証券コード:8972

2022年4月期 決算説明資料
2022年6月15日

0I am Hikaru Teramoto from the Office REIT Department of Kenedix Real Estate Fund Management, Inc.
I would like to express my sincere gratitude to you all for your continued support for the operations of Kenedix Office
Investment Corporation.
In this presentation, I am going to explain to you financial results for the fiscal period ended April 30, 2022, the latest
business developments, and future initiatives. Thank you in advance for your attention.

Table of Contents
Section 1

Management Highlight

P. 2

Section 2

Financial Results and Earning Forecasts

P. 4

Section 3

Acquisition of Own Investment UnitsP. 9Section 4

Management Status

P. 11

Section 5

Financial Status

P. 23

Section 6

Initiatives for Sustainability

P. 26

Section 7

Future Initiatives

P. 33

Appendix

P. 36

1Section 1

Management Highlight2

Management Highlight
Return to Unitholders
Fiscal period 2022/4
DPU per unit

Finance

14,000 yen
3.0 bn yen (maximum)

Period over period±0%Compared to initial forecast ±0%

Announced acquisition of
own investment units(June 14, 2022)• Japan Credit Rating Agency, Ltd. (“JCR”) upgraded the credit
rating in March 2022

• Initiatives for the fiscal period ending April 30, 2022 and thereafter
Sale

Acquisition
Sendai Honcho Building
6.3 bn yen
Edobashi Building
9.6 bn yen

Assetreshuffling

KDX Kiba Building
1.6 billion yen（scheduled to sellon July 29, 2022）

AUM growth+14.3
bn yen579 mn yen

240 mn yen

0.84

25

LTV
(book value basis)

44.1%+0.5% from 2021/10 period• Established greenhouse gas (GHG) emission reduction targets
toward carbon neutrality by 2050

127 mn yen
0Internal Growth• Occupancy rate increased for the second consecutive period bysteadily capturing tenants’ needs• Monthly rent and unit rent increased due to tenant replacement while
rent gap narrowed

98.3

Financial
institutions

Sustainability

Mid- to long-term target%+0.7% from 2021/10 period

Average rate ofinterest-bearing debt

bn yenGain on sale of real Estimated amount of provision of
estate etc. (Note)reserve for reduction entry (Note)

Occupancy rate

(Stable)%-0.05% from 2021/10 period +8 from 2021/10 period453.6(scheduled to acquireon June 30, 2022)

Increase in NOI (annual)AA• Reduced interest rate levels and expanded lender formations

External Growth(acquired on April 28, 2022)

AA(Positive)

Monthly rent increase

6.6 mn yen

Increase in rent unit priceupon tenant turnover+4.0%• Disclosed analysis on climate change in line with TCFD (Task
Force on Climate-Related Financial Disclosures)
recommendations• Promoted initiatives to reduce GHG emission
 Introduced effectively renewable energy at a total of 13 properties
 Installed LED lighting in approximately 5,900 tsubo of tenant area(leasable area ratio: 35.6% in total, +2.8% from 2021/10 period)• Acquired new environmental certifications for a total of 5
properties (Percentage of total floor space: 64.4% in total, +7.3%
from 2021/10 period)

Due to tenant replacement
and rent revisions

Note: Figures are based on assumptions for the fiscal period ending October 31, 2022.

3

Please look at page 3 of the presentation material. First, I would like to explain the management highlights. I will givefurther details about each topic later in the presentation.
Let me start with return to unitholders on the top left of the slide. DPU was 14,000 yen, due to the use of a gain on sale ofreal estate associated with the sale of part of the land of KDX Toranomon 1chome Building. This is equal to DPU for theprevious fiscal period and our initial forecast. In addition, yesterday, we announced the acquisition of our own investment
units up to a maximum of 3 billion yen. KDO is focusing on new methods to boost unitholder returns and intends toimprove EPU, DPU and NAV per unit.
Turning next to external growth below return to unitholders, we acquired Sendai Honcho Building in the fiscal period
ended April 30, 2022 and plan to acquire Edobashi Building and sell KDX Kiba Building in the fiscal period ending
October 31, 2022.
Moving on to internal growth below that. At the end of the fiscal period ended April 30, 2022, the occupancy rate was
98.3%, rising for the second consecutive period. In addition, the monthly rent increase due to tenant turnover and rent
revisions with existing tenants was 6.6 million yen, increasing from the period ended October 31, 2021 and the increase inrent unit price upon tenant turnover was also +4.0%. We continued to achieve a net increase despite the narrowing rent gap.
Moving on to finance. In March 2022, JCR upgraded our credit rating to AA (stable). We continued to steadily reduce ourdebt costs and also achieved further expansion in our lender formation. LTV on a book value basis was 44.1%, reflecting
borrowing associated with the acquisition of Sendai Honcho Building.
Next, I will touch on sustainability initiatives in the bottom right of the slide. Last year, we developed the framework at theasset management company to strengthen the framework for initiatives and we are further strengthening our sustainability
initiatives. Firstly, we established greenhouse gas (GHG) emission reduction targets toward carbon neutrality by 2050.
Building on our expression of support for the TCFD recommendations in October last year, we made qualitative climatechange-related information disclosures. We made steady progress on initiatives to reduce GHG emissions, introducing
effectively renewable energy and installing LED lighting in tenant areas. We also acquired new environmental certifications
for a total of 5 properties.

Section 2

Financial Results and Earning Forecasts

4

Financial Result of the Fiscal Period Ended April 30, 2022

Items

21/10

22/4

22/4

Performancecomparison

ActualForecast

ActualDifference(mn yen)
Actual –forecast
comparison
Difference

C-A

C-B

(announced on
December 14, 2021)

A
15,02814,981
－
46
8,170

B
15,757
14,940
763
53
8,530

C
15,891
15,078
770
42
8,463

Rental and other operating expense(excluding depreciation)

4,486

4,766

Loss on sale of real estate etc.
Depreciation
General and administrative expense(Asset management fee)
Operating income
Non-operating income
Non-operating expense(Interest expenses, etc.)
Ordinary income
Net income

－
2,567
1,116
930
6,857
0
947
938
5,911
5,909

－
2,603
1,160
949
7,227
0
939
912
6,288
6,287

Rental NOI (Note 1)
Rental NOI (excluding repair /maintenance expense)

10,495
10,832

Rental and other operating profit

Operating revenue
Rental and other operating revenue
Gain on sale of real estate etc.
Dividend income
Operating expense

862
96
770
-4
292

133
137
6
-10
-66

4,721

234

-45

－
2,588
1,153
962
7,427
0
930
907
6,497
6,496

－
21
36
31
569
0
-17
-31
586
586

－
-14
-6
12
200
-0
-9
-5
209
209

10,174

10,356-138

182

10,64910,763

-69

114

7,927

7,570

7,768

-159

197

-89

288

497

586

209

5,999
14,00013,791
745,000
8,477
428,510

5,999
14,00014,673－
8,127
428,510

5,999
14,00015,161780,000
8,314
428,510－0
1,370
35,000
-162
0

－
0
488
－
187
0

97.6%

98.2%

+13.6 bn yen+35,000 yen+14.4%+4.7%

1

Provision (+) / reversal (-) ofreserve for reduction entry
Total distributions
DPU (yen)
EPU (yen)
NAV per unit (yen)FFO (Note 2)# of total units outstanding
Occupancy rate(contracted area based)
Unrealized profit in portfolio
NAV per unit

94.9 bn yen
745,000 yen

98.3%
108.6 bn yen
780,000 yen

Comparison to the fiscal period ended October 31, 2021
■Operating revenue●Existing properties
・Rent / common area charge
・Other rental and operating revenue+862 mn yen+859 mn yen+72 mn yen+21 mn yen (Parking revenue +10, Restoration
work revenue +10)+770 mn yen (The sale of the partial land of KDX
・Gain on sale of real estate etc.
Toranomon 1-chome Building)●The property acquired in fiscal period 2022/4+3 mn yen
+3 mn yen (Sendai Honcho Building +3)
・Rental and other operating revenue■Operating expense●Existing properties
・Utilities
・Repair / maintenance expense
・Depreciation
・Other rental and operating expense+292 mn yen+289 mn yen+91 mn yen+68 mn yen+18 mn yen+73 mn yen (Management consignment revenue+35、Advertising expense +16,
Others +21)
+31 mn yen
・Asset management fee+2 mn yen
●The property acquired in fiscal period 2022/4
・Rental and other operating expense+2 mn yen (Sendai Honcho Building +2)

Comparison to the forecast of
the fiscal period ended April 30, 2022 (announced on December 14, 2022)■Operating revenue●Existing properties
・Rent / common area charge
・Utilities
・Other rental and operating revenue●The property acquired in fiscal period 2022/4
・Rental and other operating revenue+133 mn yen+130 mn yen+12 mn yen+83 mn yen+37 mn yen (Restoration work revenue +10,
Cancellation penalty +9, Parking
revenue +5, Others +12)
+3 mn yen
+3 mn yen (Sendai Honcho Building +3)■Operating expense●Existing properties
・Utilities
・Repair / maintenance expense
・Depreciation
・Other rental and operating expense●The property acquired in fiscal period 2022/4
・Rental and other operating expense-66 mn yen-69 mn yen+45 mn yen-68 mn yen-17 mn yen-22 mn yen+2 mn yen
+2 mn yen (Sendai Honcho Building +2)

Note 1: Rental NOI = Operating revenue – Gain on sale of real estate etc.– Dividend income –Rental and other operating expense (excluding depreciation)
Note 2: FFO = Net income + Depreciation – Gain on sale of real estate etc.+ Loss on sale ofreal estate etc.

5

Next, please look at page 5 of the presentation material. I would like to explain the financial results of the fiscal period
ended April 30, 2022 shown here.
Let me start with a comparison of the results for the fiscal period ended April 30, 2022 with the results for the fiscal period
ended October 31, 2021.
Operating revenue was 15,891 million yen, an increase of 862 million yen compared with the previous fiscal period.
This is mainly attributable to a gain on sale of real estate associated with the sale of part of the land of KDX Toranomon
1chome Building and an increase in rent and common area charge and other rental and operating revenue at existing
properties.
Operating expense was 8,463 million yen, up 292 million yen from the previous fiscal period. This chiefly reflects a 91
million yen increase in utilities as a result of rising fuel adjustment expenses as well as higher other rental and operating
expense, which includes repair/maintenance expenses and asset management fees.
As a result, net income rose 586 million yen from the previous fiscal period to 6,496 million yen. DPU was 14,000 yen,following a reversal of the reserve for reduction entry of 497 million yen.
A comparison of results with the forecasts announced at the time of the financial results announcement in December lastyear is as shown on the bottom right of the page. Net income was 209 million yen higher than forecast partly due to a 182
million yen increase in NOI, chiefly reflecting higher than anticipated utilities revenue that offset higher utility charges aswell as a decrease in repair/maintenance expenses. Provision of reserve for reduction entry was also 209 million yen morethan forecast.
Details of unrealized profit in portfolio and NAV per unit are shown at the very bottom of the page. Unrealized profit in
portfolio was 108.6 billion yen at the end of the fiscal period ended April 30, 2022, an increase of 13.6 billion yen from theend of the fiscal period ended October 31, 2021. NAV per unit was 780,000 yen, an increase of 35,000 yen or 4.7% fromthe end of the fiscal period ended October 31, 2021.

Earning Forecasts of the Fiscal Period Ending October 31, 2022 and April 30, 2023
(mn yen)
22/4

22/10

23/4

ActualItems
Forecast

Forecast

A
15,891
15,078
770
42
8,463

B
15,95915,673
239
46
8,845

C
15,60015,558－42
8,856

Rental and other operating expense(excluding depreciation)

4,721

5,037

Loss on sale of real estate etc.
Depreciation
General and administrative expense(Asset management fee)
Operating income
Non-operating income
Non-operating expense(Interest expenses, etc.)
Ordinary income
Net income

－
2,588
1,153
962
7,427
0
930
907
6,497
6,496

－
2,631
1,175
955
7,114
0
923
902
6,191
6,190

Rental NOI (Note 1)
Rental NOI (excluding repair /maintenance expense)

10,356

Rental and other operating profit

Operating revenue
Rental and other operating revenue
Gain on sale of real estate etc.
Dividend income
Operating expense

22/10 forecast 23/4 forecast
22/4 actual 22/10 forecast
Comparison Comparison
Difference
B-A

Difference

68
594
-530
4
381

C-B
-359
-114
-239
-4
11

5,088

316

51

－
2,617
1,150
947
6,743
0
906
897
5,837
5,836

－
43
22
-6
-313
0
-6
-4
-306
-306

－
-14
-24
-7
-370
－
-16
-5
-354
-354

10,635

10,469278-166

10,763

11,074

10,865

310

-208

7,768

8,003

7,852

235

-151

497

127

-227

-370

-354

5,999
14,00015,161
8,314
428,510

6,063
14,15014,446
8,582
428,510

6,063
14,15013,6198,453
428,510

64
150
-715
268
0

－
0
-827
-129
0

98.3%

97.5%

97.7%

1

Provision (+) / reversal (-) ofreserve for reduction entry
Total distributions
DPU (yen)
EPU (yen)
FFO (Note 2)# of total units outstanding
Occupancy rate(contracted area based)

Note 1: Rental NOI = Operating revenue – Gain on sale of real estate etc. – Dividend income – Rental and other operating
expense (excluding depreciation)
Note 2: FFO = Net income + Depreciation – Gain on sale of real estate etc. + Loss on sale of real estate etc.

Comparison between the actual of the fiscal period 22/4
and the forecast of the fiscal period 22/10■Operating revenue●Existing properties
・Rent / common area charge
・Utilities
・Gain on sale of real estate etc.

●The properties acquired and to be acquired in fiscal
period 2022/4 and thereafter・Rental and other operating revenue●The property to be sold in fiscal period 2022/10
・Rental and other operating revenue
・Gain on sale of real estate etc.
■Operating expense●Existing properties
・Utilities
・Taxes●The properties acquired and to be acquired in fiscal
period 2022/4 and thereafter・Rental and other operating expenses●The property to be sold in fiscal period 2022/10
・Rental and other operating expenses+68 mn yen-474 mn yen+178 mn yen+128 mn yen-770 mn yen (Disappearance of gain on sale ofthe partial land of KDX Toranomon
1-chome Building)+330 mn yen+330 mn yen (Sendai Honcho Building +196,
Edobashi Building +133)+212 mn yen-27 mn yen (KDX Kiba Building -27)
+239 mn yen (The sale of KDX Kiba Building)+381 mn yen+295 mn yen+248 mn yen+28 mn yen+100 mn yen+100 mn yen (Sendai Honcho Building +65,
Edobashi Building +35)
-14 mn yen-14 mn yen (KDX Kiba Building -14)

Comparison between the forecast of the fiscal period 22/10 and 23/4
■Operating revenue●Existing properties
・Rent / common area charge
・Utilities●The property to be acquired in fiscal period 2022/10
・Rental and other operating revenue●The property to be sold in fiscal period 2022/10
・Rental and other operating revenue
・Gain on sale of real estate etc.

-359 mn yen-144 mn yen-111 mn yen-33 mn yen+47 mn yen+47 mn yen (Edobashi Building +47)
-261 mn yen-22 mn yen (KDX Kiba Building -22)-239 mn yen (Disappearance of gain on sale of
KDX Kiba Building)■Operating expense●Existing properties
・Taxes・Repair / maintenance expense
・Brokerage fee●The property to be acquired in fiscal period 2022/10
・Rental and other operating expense●The property to be sold in fiscal period 2022/10
・Rental and other operating expense+11 mn yen+5 mn yen
+22 mn yen-50 mn yen+43 mn yen+23 mn yen+23 mn yen (Edobashi Building +23)
-16 mn yen-16 mn yen (KDX Kiba Building -16)

6

Please look at page 6. Next, we have a comparison of forecasts for the fiscal period ending October 31, 2022 with actual
results for the fiscal period ended April 30, 2022.
Operating revenue in the fiscal period ending October 31, 2022 is expected to reach 15,959 million yen, an increase of 68
million yen period on period. This is largely attributable to increases in rent and common area charge at existing properties
and utilities revenue as well as an increase in rental and other operating revenue from newly acquired properties and therecording of a gain on the sale of KDX Kiba Building, all of which will offset the absence of the gain on sale of real estate
associated with the sale of part of the land of KDX Toranomon 1chome Building.
Operating expense will rise 381 million yen period on period, to 8,845 million yen, chiefly reflecting an increase in utilities
due to higher fuel adjustment expenses and an increase in rental and other operating expense at newly acquired properties.
As a result, net income is expected to be 6,190 million yen, down 306 million yen period on period. With a 127 million yen
reversal of the reserve for reduction entry, DPU is expected to be 14,150 yen, which is an increase of around 1% comparedwith the initial forecast and with the actual result for the fiscal period ended April 30, 2022.
Next, we have a comparison between the forecasts for the fiscal period ending April 30, 2023 and the fiscal period ending
October 31, 2022.
Operating revenue in the fiscal period ending April 30, 2023 will be 15,600 million yen, falling 359 million yen period on
period and this is largely attributable to a decrease in rent and common area charge at existing properties and the absence ofthe gain on sale of KDX Kiba Building.
Operating expense is expected to increase by 11 million yen.
As a result, net income is expected to amount to 5,836 million yen, a decrease of 354 million yen period on period. Net
income per unit will be 13,619 yen but, following a reversal of the reserve for reduction entry of 227 million yen to
stabilize DPU, DPU is expected to be 14,150 yen, which is equal to the forecast for the fiscal period ending October 31,
2022.

Principal Factors for Changes in DPU• Fiscal period 22/4 : NOI decreased due to an increase in expenses, however, DPU is maintained at 14,000 yen by utilizing a portion ofgain on sales of real estate etc.
• Fiscal period 22/10 : DPU will increase from 14,000 yen to 14,150 yen due in part to asset reshuffling to raise the NOI level,
while EPU is less than 14,000 yen• Fiscal period 23/4 : Although NOI will decrease due to a decline in rental revenues, the NOI will continue to be 14,150 yen by utilizing
the reserve for reduction entry
KDX Hamamatsucho Place +129
KDX Harumi Building+59

Interest expenses, etc. +72
Asset management fee -74(yen)Reversal ofreserve for
reduction entry

209

Utilities revenue +3

174
Rent /
commonarea
charge13,791

Fiscal(Initial forecast)
14,000Utilities expense-213
Repair / maintenance -160

14,000KDX Harumi Building+124
KDX Iidabashi Square+89
KDX Iidabashi Building +82

14,000Utilities expense
Taxes

Gain on salesof real estateetc.

Utilities revenue +299

50
Rental andotheroperatingrevenue

-580
-66

126

263
547
Rental andotheroperatingexpenseNOI -322

Sendai Honcho Building +334
Edobashi Building+251
KDX Kiba Building
-44

638

571

417

106
OthersRent /
commonarea
charge13,362

FiscalRental andotheroperatingrevenue Rental andotheroperatingrevenue

NOI +650

541

Edobashi Building+61(contribution through period)
KDX Kiba Building-27(disappearance)(Initial forecast)
14,00014,15014,150Gain on salesof real estateetc.

Reversal ofreserve for
reduction entry

264
531

Others259
Rent /
commonarea
chargeExternal
growth(NOI)13,886

66

95

Other
Rental andrental and
other
other
operatingoperatingexpenserevenue

NOI -387

Fiscal34
External
growth(NOI)

119
Others13,619Fiscal期
21/10
period
（実績）
21/10

期
22/4
period
（実績）
22/4

期
22/10
period
（予想）
22/10

期
23/4
period（予想）
23/4(actual)(actual)(forecast)(forecast)■ Amount of reversal of reserve for reduction entry ■ Amount of increase from gain on sales of real estate etc.
■■ EPU per unit (excl. the amount of reversal of reserve for reduction entry and gain on sales of real estate etc.) ■ Factor for increase ■ Factor for decrease7

DPU per Unit and Balance of Reserve for Reduction Entry
DPU (Note 1)

Balance of reserve for reduction entry (Note 2)• Continue to stabilize DPU by utilizing gains on sales of realestate and reserve for reduction entry• 209 million yen increase in provision for the fiscal
period 2022/4 compared to the initial forecast(yen)

Increased provision ofreserve for reduction entry
due to higher-than-expected
EPU resulting fromincreased NOI

Increase DPU level from
14,000 yen to 14,150 yen in
the fiscal period 2022/10 and
2023/4 due to raising NOI
through asset reshuffling+150 yen (+1.1%)

14,00014,000209
638

14,15014,000

Sale ofKDX Kiba Building(mn yen)

14,150

Sale of the part ofthe land of KDX
Toranomon
1chome Building

4,453

4,326
264

467

531

3,828

497

127
Provision

Provision

127

497

497

1,109
334

4,225

334

334
Reversal
227

107

Provided amount in fiscal
period 21/4 and thereafter

1,709 yen/unit• To be utilized to stabilize
DPU over the short term
Reserved amount until
fiscal period 20/10

8,152 yen/unit
13,791

Fiscal期
21/10
period実績
21/10
Actual

12,891 13,362

13,533 13,886

FiscalFiscalFiscal期 22/10
Fiscal期
期 22/4期
22/4
22/10
periodperiodperiodperiod
予想
実績
予想
予想
22/4
22/4
22/10
22/10
InitialActualInitial Forecast
当初予想
当初予想
実績
forecast
forecast
Reversal of reserve for reduction entry■■
Increased amount due to gain on sales of real estate■■ EPU per unit (excl. gain on sales of real estate etc.
and the amount of reversal of reserve for reduction entry)

13,619Fiscal23/4期
period予想
23/4
Forecast

3,493

Reserveforreduction
entry
per unit

3,493

3,493

3,493

Fiscal21/10period
期
21/10
実績
ActualFiscal
22/4period
期
22/4
実績
ActualFiscalperiod
22/10
期
22/10
予想
Forecast

Fiscalperiod
23/4
期
23/4
予想
Forecast

8,934 yen

10,095 yen

10,391 yen

9,861 yen

• For temporary decrease
in income, incurrence ofexpenses and others• A temporary decrease in
distributions due tolarge-scale renewal andothers• For dilution of
distributions in the eventof capital increaseduring the period

Note 1: The amount per unit is calculated by dividing by the number of investment units issued and outstanding (428,510 units) as of the end of fiscal period 22/4. The same applies hereinafter.
Note 2: Actual and expected reserve for reduction entry is calculated by either adding provision of reserve for reduction entry or subtracting reversal of reserve for reduction entry to/from the balance of reserve for reduction entry
on the balance sheet as of the end of the relevant fiscal periods.

8

Next, look at page 8. I would like to explain a little more about the DPU on the left side of the slide.
DPU was 14,000 yen in the fiscal period ended April 30, 2022 and our DPU forecast for both the fiscal period ending
October 31, 2022 and the fiscal period ending April 30, 2023 is 14,150 yen, an increase of around 1% compared with theactual result for the fiscal period ended April 30, 2022. Net income per unit excluding gain on sale of real estate will be
13,886 yen in the fiscal period ending October 31, 2022 and 13,619 yen in the fiscal period ending April 30, 2023, still
falling short of the previous level for DPU of 14,000 yen but given the boost to NOI from new property acquisitions, we
reviewed the DPU level and forecast DPU of 14,150 yen for both the fiscal period ending October 31, 2022 and the fiscal
period ending April 30, 2023. Our policy of stabilising DPU through the use of gain on sale of real estate and reversal ofreserve for reduction entry remains unchanged.
Moving on to the balance of reserve for reduction entry on the right side of the page.
We initially assumed a provision of 288 million yen associated with the sale of part of the land of KDX Toranomon 1chome
Building in the fiscal period ended April 30, 2022. However, as a result of improvement in NOI, the amount provided was
497 million yen, an increase of 209 million yen from the initial forecast, resulting in a reserve balance of 4,326 million yen
and a balance per unit of 10,095 yen.
In the fiscal period ending October 31, 2022, we assume provision of 127 million yen from a gain on sale of real estate
associated with the sale of KDX Kiba Building. In the fiscal period ending April 30, 2023, we assume a reversal of 227
million yen to stabilize DPU, resulting in a balance after distributions for the fiscal period ending April 30, 2023 of 4,225
million yen and a balance per unit of 9,861 yen.
Our policy on using the reserve for reduction entry is as shown on the right and is unchanged from our previous policy. We
intend to actively use the full amounts of reversals of the reserve for reduction entry made in or after the fiscal period endedApril 30, 2021 to stabilize DPU.

Section 3
Acquisition of Own Investment Units

9Acquisition of Own Investment Units• Enhance unitholders’ value in the medium- to long-term through acquisition and cancellation of its own investment units while
comprehensively taking into consideration its investment unit price level, cash on hand, financial condition, market environment,
and other factors

Historical changes in unit price(January 6, 2020~June 10, 2022)

Details of plan(yen)

Total number ofinvestment units to beacquired

6,000 units (maximum)(1.4% of the total number of issued
investment units (excluding the numberof own investment units))

Total acquisition price ofinvestment units to beacquired

3.0 billion yen (maximum)

Acquisition period

From June 15, 2022 to September 9,2022

1,000,000
NAV per unit level

800,000

600,000

400,000
20/1

Significance and effect•Significance••Effect

21/5

21/9

22/1

22/5

14,100Effects ofacquisition andcancellation of
own investment
units

13,900+140 yen

14,500Efficient use of free cash

14,300

units

21/1

Estimated DPU for the fiscal period 2022/10

unitholders

acquisition and cancellation of own investment

20/9

Effect on distribution per unit (DPU) (estimate) (Note)

Improvement of capital efficiency and returns toIncrease in EPU and NAV per unit through

20/5

14,290 yen
14,150 yen

13,70013,500

Before取得・消却考慮前
taking acquisition/
cancellation into accountAftertaking acquisition/
取得・消却考慮後
cancellation into accountNote: It is assumed that the Investment Corporation will acquire its own investment units until itreaches the maximum total acquisition price of investment units (3,000 million yen) at theclosing price of 662,000 yen on June 10, 2022, and that all acquired units will becancelled during the fiscal period ending October 31, 2022.

10

Next, I would like to explain the acquisition of our own investment units announced the other day. Look at page 10.
We reached the recent decision, taking into consideration the investment unit price level, cash on hand, financial condition,market environment, and other factors.
Details of implementation are as shown on the top left of the page. The maximum total acquisition price of investment units
to be acquired is 3 billion yen and the acquisition period is from June 15, 2022 to September 9, 2022.
Assuming that we acquired investment units at the June 10, 2022 closing price of 662,000 yen within the 3.0 billion limit,
we would be able to acquire 4,531 units and assuming that we cancelled all these investment units, the DPU forecast would
increase from 14,150 yen to 14,290 yen.
We believe that this measure is an efficient use of cash on hand and will help improve capital efficiency and bolster returns
to unitholders.

Section 4

Management Status

11

Acquisition of the Property (Sendai Honcho Building)
Overview of Sendai Honcho Building
Stable occupancy is expected as tenants are expected to be diversified• The Property is located in an office area in the center of Sendai City, adjacent to a district lined with government agencies, and a bustling neighborhood extending
from the front of Sendai Station and consisting mainly of stores, bars and restaurants• With regular-shaped rental rooms that facilitate office layout planning and floors that can be subdivided, the Property’s office specifications can meet diverse
needs; occupied by more than 40 tenants• With the renovated common areas including the entrance hall and implemented other environment-friendly construction such as installation of LED lightnings, theProperty is reasonably competitive within the area and more widely

Sendai Honcho Building

Location

Sendai, Miyagi

Total floor area

13,049.82㎡

Completion dateNovember, 1984

Acquisition price

6,360 mn yen

Appraisal value(as of April 1, 2022)

Access6,500 mn yen

Acquisition date
Occupancy rate
(as of June 1, 2022)

NOI yield(estimated) (Note1)
NOI yield
after depreciation(estimated) (Note 2)
Appraisal NOI yield(Note 3)

April 28, 2022
91.9%
4.6%
4.1%
5.2%

Approximately 1 minute on foot from Hirose-dori Station on the
Sendai Subway Namboku Line

Note 1: Calculated by annualizing the NOI (estimated) after eliminating special factors for the year of acquisition and dividing by the acquisition price (rounded to the first decimal place. The same applies to each of the yields
below).
Note 2: NOI after depreciation (estimated), which is NOI (estimated) minus depreciation, is converted to an annual basis and divided by the acquisition price.
Note 3: The net operating income based on the direct capitalization method in the appraisal report as of April 1, 2022, divided by the acquisition price.

12

Next, I would like to explain the management status. Please look at page 12.
Let me start with external growth. Faced with limited opportunities to acquire prime properties in an environment whereacquiring property was difficult, we took advantage of the sponsor pipeline and acquired Sendai Honcho Building on April
28 and plan to acquire Edobashi Building on June 30. We also plan to sell KDX Kiba Building on July 29.
Let me start with the acquisition of Sendai Honcho Building. This building is located near a station, being approximately
one minute on foot from Hirose-dori Station on the Sendai Subway Namboku Line. Located on a corner, where Hirose-doriAvenue and Higashi-Ni-bancho-dori Avenue intersect, the Property is a mid-sized office building with excellent visibility.
The Property has regular-shaped rental rooms that facilitate office layout planning and floors that can be subdivided, andwith the renovation of common areas and the installation of LED lighting has been already completed, the Property isreasonably competitive within the area. The building is currently occupied by more than 40 tenants and, with a decent rent
level and tenant diversification, stable occupancy can be expected.

Acquisition of the Property (Edobashi Building)
Overview of Edobashi Building
Located in an area where there is an increasing scarcity of mid-sized office due to multiple redevelopment plans in the surrounding area
• The Property is located in also foremost office areas in Tokyo, which is lined with stores such as Nihombashi Mitsukoshi Main Store and home to many
corporate headquarters and branches• The Property has an imposing facade and the rental rooms are regularly-shaped, taking daylight from both north and south and giving a sense of
spaciousness• After the acquisition, the Investment Corporation plans to rennovate the common areas including the entrance hall to further strengthen the Property’s
competitiveness, as well as implement other environment-friendly construction such as installation of LED lightnings
江戸橋ビル

Location
Total floor area

Chuo-ku, Tokyo
8,076.42㎡

Completion dateNovember 1986

Anticipatedacquisition price9,600 mn yen

Appraisal value(as of April 1, 2022)

Access

10,200 mn yen

Scheduledacquisition date
Occupancy rate
(as of June 1, 2022)

NOI yield(estimated) (Note1)
NOI yield after
depreciation(estimated) (Note 2)
Appraisal NOI yield(Note 3)June 30, 2022

Edobashi building

100.0%
3.6%
3.3%
3.7%

Approximately 5 minutes on foot from Mitsukoshimae Station on
the Tokyo Metro Ginza Line/Hanzomon Line / Approximately 6
minutes’ walk from Nihombashi Station on the Toei Asakusa Line/ Approximately 6 minutes on foot from Shin-Nihombashi Stationon the JR Sobu Main Line13

Next, I will talk about Edobashi Building. Look at page 13.
This building is a mid-sized office building located approximately five minutes on foot from Mitsukoshimae Station. It is
located in an area where there is an increasing scarcity of mid-sized office buildings due to multiple redevelopment plans inthe surrounding area. The Property has an imposing facade and the rental rooms are regularly-shaped, and after theacquisition, we plan to renovate the common areas including the entrance hall to further strengthen the Property’s
competitiveness and its appeal to tenants, as well as implement other environment-friendly construction such as installationof LED lighting.

Sale of the Property (KDX Kiba Building) and Benefit of Asset Reshuffling
Overview of KDX Kiba Building

Benefit of asset reshuffling• Located in an area that is inferior to the surrounding office market.
The decision to sell the property was made due to unrealized
losses and concerns about a future decline in profitability• Anticipated sale price is 43.5% above the appraisal value

Properties (to be) acquired

Property to be sold

Acquisition priceSale price15.9 bn yen

1.6 bn yen

NOI yield

NOI yield(expected/after depreciation)(Weighted average of 2 properties)

Asset
reshuffling

4.0% / 3.7%
[Standard floor plan]

Location

Koto-ku, Tokyo

Total floor area

2,820.64㎡

Completion date

October 1992

Assumed book value（as of July 29, 2022)

Anticipated sale priceDifference between
anticipated sale price andassumed bookvalue/assumed book value

1,350 mn yen
1,650 mn yen

22.2%

Acquisition dateJune 20, 2006

Scheduled date of sale

July 29, 2022

Appraisal value(as of April 1, 2022)

NOI yield(actual)(Note 1)
NOI yield after
depreciation(actual) (Note 2)
NOR yield of sale price(Note 3)(expected/after depreciation)

3.5% / 1.9%

Unrealized gain (Note 4)

Unrealized loss (Note 4)

737 mn yen

200 mn yen

Portfolio NOI yield maintained at current level despite
expansion of asset size

1,150 mn yen
3.5%
AUM growth

Increase in NOI(annual) (Note 5)

Gain on sale of realestate etc. (Note 6)

1.9%

Estimated amount ofprovision of reserve
for reduction entry(Note 7)Mid- to long-term target

3.3%

14.3 bn yen

579 mn yen

240 mn yen

127 mn yen

Note 1: The sum of NOI (actual) for the 21/10 and 22/4 fiscal periods is divided by the acquisition price of the property at the time of acquisition.
Note 2: NOI (actual) after depreciation is calculated by deducting depreciation expenses from NOI (actual) for the 21/10 and 22/4 fiscal periods and dividing it by the acquisition price at the time of acquisition.
Note 3: The sum of NOI (actual) for the 21/10 and 22/4 fiscal periods is divided by the anticipated sale price.
Note 4: For properties to be acquired (planned), the difference between the appraisal value as of April 1, 2022 and the (planned) acquisition price, and for properties to be sold, the difference between the appraisal value as of April
30, 2022 and the estimated book value.
Note 5: The difference between the estimated NOI (annual) for the property to be acquired (planned) and the NOI (actual) for the 21/10 and 22/4 fiscal periods for the property to be sold.
Note 6: The figure for gain on sales of real estate etc. is an estimated figure based on the estimated book value of the property to be sold and sales expenses, etc. in the fiscal period 22/10.
Note 7: The estimated amount of provision of reserve for reduction entry is the estimated figure in the fiscal period 22/10.

14

Please look at page 14. Next, we have the sale of KDX Kiba Building.
As of the end of the fiscal period ended April 2022, this property had an estimated book value of 1,356 million yen and an
appraisal value of 1,150 million yen, giving an unrealized loss of approximately 200 million yen. It is located in an area thatis inferior to the surrounding office market and the rental rooms are a distinctive shape, and the decision to sell the property
was made due to concerns about a future decline in profitability. The anticipated sale price is 43.5% above the appraisal
value and the sale will enable us to realize a gain on the sale and eliminate the unrealized loss.
The benefits of asset reshuffling through these two property acquisitions and the sale of KDX Kiba Building are shown on
the right side of the page. AUM will grow by 14.3 billion yen, and the annual increase in NOI will be 579 million yen. In
addition, the sale will give rise to a gain on the sale of real estate etc. of 240 million yen in the fiscal period ending October
31, 2022 and we plan to set aside around 127 million yen of this as provision of reserve for reduction entry.

Occupancy Rate, Turnover Ratio and Trends in Move-ins/outs ofTenants for Office Buildings• Occupancy rate at the end of the fiscal period 2022/4 increased to 98.3% by steadily capturing tenants’ needs• Anticipate an increase in the move-out rate in the fiscal period 2022/10. Although vacancies are ahead, active tenant movement will continue. Strive to maintainand improve the occupancy rate through flexible and agile leasing strategies

Occupancy rate, area and number of move-ins/outs
and turnover ratio (Note1)
Actual occupancy rate

Occupancy rate

97.5%

Average in fiscal peirod

99.5
98.1

97.6

96.7

98.6

97.5

96.7

(35)
2,365

-408

-2,795-2,428(35)

Turnover
ratio

(65)
5,217

(78)
7,648

1,185

95.3

94.7

21/10
Fiscal期
22/4
period
22/4
Fiscal

94.5%

95.4%

period
期
21/10
21/10

-6,700(73)-6,463(63)

Fiscal

19.3% 8.1%
（12） （5）

72.2%
（39）

22.2%
（12）

23.1%
（9）

22/4
期
period
22/4

9.3%
（5）

59.0%
（23）

17.9%
（7）

■ Floor expansion ■ Floor reduction

1,480Free rent period (months) (by area) (Note 3)-3,309
(43)

3.5%

4.6%

4.4%

2.3%

期
20/4period
Fiscal
20/4

期
20/10
Fiscalperiod
20/10

期
21/4period
Fiscal
21/4

期
21/10
Fiscalperiod
21/10

期
22/4period
Fiscal
22/4■ Other/unknown () Number of move-in/out

5.3

4.6
4.0

-5,902
(44)

1.8

3.6
2.8

2.7

2.7
1.4

5.6%
（3）

79.6%
（43）

(64)
4,790

1.7%

■ Space leased (tsubo)■ Space vacated more than 200 tsubo (tsubo)

72.6%
（45）

11.1%
（6）

4.8
-1,484-5,160
(57)

97.5

OUTs

Actual average in fiscal period

(36)
2,020

97.8%
98.3

93.3

94.8

(Numberof movein/out)

period
21/10
期

INs

99.5

Fiscal

実質稼働率（面積控除後）(excl. free rentFR
area)

稼働率（契約面積ベース）(contracted area based)(%)

Reasons for move-ins/outs (Note 2)

1.9

1.5

1.0

1.3 1.3

4.0%

期
22/10
Fiscalperiod22/10
想定Forecast■ Space vacated less than 200 tsubo (tsubo)
Space leased – Space vacated (tsubo)

都心5of
区Tokyo5 Central Wards

Tokyo
Metropolitan Area
その他東京経済圏(excluding 5 central wards)

Other地方経済圏
Regional Areas■Fiscal period ■Fiscal period ■Fiscal period ■Fiscal period ■Fiscal period
20/4
20/10
21/4
21/10
22/4

Note: Occupancy rate (contracted area based) is calculated by dividing leased area (contract based) by leasable area, and actual occupancy rate (excl. 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 the floor. 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 theInvestment Corporation as of the end of each month and rounded to the first decimal place. Turnover ratio for the fiscal period 2022/10 is the estimate based on the cancellation notice, etc. received by May 31, 2022.

15

Next, I would like to explain about internal growth and the management status of existing properties. Please look at page 15.
Let me start with changes in the occupancy rate. Please look at the line chart in the top left corner of the page. The occupancy rate
based on contracted area at the end of April was 98.3%, a rise of 0.7 percentage points from the end of October last year and 0.1
percentage point higher than forecast six months earlier, which was 98.2%. At the end of April, the actual occupancy rate excluding
free rent area was 95.3%, up 2.0 percentage points from the end of October last year and around the same level as forecast six months
earlier. The gap between the occupancy rate based on contracted area and the actual occupancy rate excluding free rent area had also
narrowed to 3.0% at the end of April 2022 compared with a gap of 4.3% at the end of October 2021, as free rent periods came to an
end under some contracts. Move-ins and move-outs are shown in the bar chart below the line chart and, in the fiscal period ended April
30, 2022, there were 64 move-ins with space of 4,790 tsubo leased and 43 move-outs with 3,309 tsubo of space vacated, giving a netincrease in space leased of 1,480 tsubo.
The reasons for tenant move-ins and move-outs shown in the top right corner show that more than 70% of tenants give floor expansion
as a reason for moving in, indicating that there is still a strong tendency for strongly performing small and mid-sized enterprises tomove to larger offices. Steady efforts to tap into this strong trend led to improvement in the occupancy rate.
As shown in the bottom right section, free rent periods granted were slightly longer than those granted in the fiscal period ended
October 31, 2021. We are still mindful of filling vacancies at market rent levels and offer free rent periods of varying lengths based on
the characteristics of the buildings with vacancies and surrounding market conditions, but fairly long free rent periods were granted forrental rooms when it was deemed difficult to find tenants.
Let me now move onto the turnover ratio. As shown on the bottom left section of the page, the turnover ratio was at the low level of
2.3% in the fiscal period ended April 30, 2022 but, based on cancellation notices received as of the end of May 2022, will rise to 4% in
the fiscal period ending October 31, 2022. We previously disclosed the turnover ratio on an annualized basis but from now on we aredisclosing the turnover ratio for the REIT fiscal period of six months. Accordingly, the turnover ratio is half the previous level.
In the fiscal period ending October 31, 2022, a number of contract cancellations by tenants occupying multiple floors are expected tooccur towards the end of the period and the majority of move-outs will take place near the end of the period. Accordingly, we assume
that, as the end of the period, the tenants move out before vacancies can be filled and expect that the occupancy rate on a contractedarea basis will fall to 97.5%. While we assume that the turnover ratio will increase, the tendency for strongly performing small andmid-sized enterprises to move to larger offices remains strong. We intend, therefore, to work on maintaining and improving theoccupancy rate based on an agile and flexible leasing strategy, taking building specifications and conditions in the surrounding area
into consideration.

Rent Changes upon Tenant Turnover for Office Buildings• Continued increase in monthly rent and unit rent due to tenant replacement
Change in monthly rent unit priceand rate of change at tenant replacement

Change in monthly rents at the timeof replacement of tenants(million yen)

8.2

6.5

6.3
6.2

(yen/tsubo)

8.1

6.7

＋9.8%
16,613

3.7＋8.3%
17,192＋20.8%
16,292＋2.7%
15,806
15,384

15,875
Total rent
increase
Total rent
decrease

3.0

2.9

-0.8

2.6

15,136-0.1＋4.0%
17,01816,356

13,486

-1.4

-3.8
-5.0

% of the number
テナント入替時のof rent increase
contracts upon
賃料増加件数割合
tenant turnoverFiscalFiscalFiscalFiscalFiscalperiod20/4
期

period20/10
期

period21/4
期

period21/10
期

period
22/4
期

72.7%

93.3%

76.3%

60.6%

54.2%

20/4

20/10

21/4

21/10

22/4

Fiscal20/4
期
period20/4

FiscalFiscal20/10
期
period21/4
期
period

20/10

21/4

従前のテナント賃料単価
Unit rent for previous tenant

FiscalFiscal21/10
期
period22/4
期
period

21/10

22/4

新規テナントの賃料単価
Unit rent for new tenant

Total rent increase - Total rent decrease

Note: 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.

16

Next, look at page 16. This shows rent changes upon tenant turnover.
The chart on the left side shows the change in monthly rents. In the fiscal period ended April 30, 2022, the rent rateincreased upon tenant turnover in 54.2% of contracts.
In the fiscal period ended April 30, 2022, the total monthly rent increase was 6.5 million yen, 1.6 million yen less than in
the fiscal period ended October 31, 2021, while the total monthly rent decrease in the fiscal period ended April 30, 2022
was 3.8 million yen, 1.2 million yen less than in the fiscal period ended October 31, 2021. This resulted in a net increase of
2.6 million yen.
The right side of the slide shows the change in monthly rent unit price and the unit rent for new tenant compared with theunit rent for previous tenant was 4.0% or 662 yen higher.
Rent changes upon tenant turnover are also influenced by the level of the vacant rental room’s previous rent but, where arent gap exists, there is an opportunity to raise the rent upon tenant turnover and so we intend to take a firm stance andnotch up the rent.

Status of Rent Revisions with Existing Tenants• Increased the number of rent increases due to continuous negotiations with tenants paying below-market rents as the rent
gap in the portfolio narrowed. Continued to achieve a net increase in rent revisions
Status of rent revisions (based on leased floor area) (Note 1)

Changes in rent upon rent revisions (based on monthly rent)

Rent decrease
(5)
5.4%

(thousand yen)

Exception for
negotiation(Higher thanmarket rent)
(73)
25.5%

14,017

11,225

13,906
7,045

9,992
7,045

3,037

1,667

-1,233-111
Fiscalperiod
20/4
20/4期

Fiscalperiod20/10
20/10期

Increase
増賃額
in rent

Fiscalperiod期
21/4
21/4

Decrease
減賃額
in rent-1,052

2,713

Fiscalperiod
期
21/10
21/10

-1,946-324

Fiscalperiod
22/4
22/4期

Fiscalperiod
期
22/10
22/10
以降
OnwardIncrease in rent –
増賃額－減賃額
Decrease in rent

2022年as ofConfirmed
日時点
5月17
May
17,
2022
確定分

Rent decrease(6)
Exception for 2.6%
negotiation(Higher thanmarket rent)
(60)
17.3%

Rent increase
(34)
20.0%

Fiscal period
22/4
276

Negotiation Target

No change(Lower thanmarket rent
(176)
60.1%

Negotiation Target

Number of rent increase contracts and rent increase rate

4,002
615

Fiscal period
21/10
250

No change(Lower thanmarket rent
(154)
60.5%

5,948

Rent increase
(18)
8.7%

(number)

103■ Tokyo
5 wards
Other areas
都心5central
区
都心5■
区以外

52
38

36

28

24

10

12

Fiscal period
20/4期
20/4

Fiscal period
20/10期
20/10

Fiscal period
21/4期
21/4

Fiscal period
21/10期
21/10

Fiscal period
22/4期
22/4

7.7%

10.4%

9.4%

4.7%

6.4%

51

Rent increase rate
(incremental average)(Note 2)

34
18
13

22
5

12

Note 1: “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 2: 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).

17

Next, please look at page 17.
This shows the status of rent revisions with existing tenants.
The top right of the page shows the number of rent increase contracts and the percentage of rent increases based on leased
floor area.
Looking at rent increases with existing tenants upon contract renewal in the fiscal period ended April 30, 2022, we
increased rent for 34 tenants and for 20% of contracts based on leased floor area. This was a significant increase from thefiscal period ended October 31, 2021, both in terms of number of contracts and percentage based on leased floor area.
The left side of the page shows changes in rent upon rent revisions and there was a net increase in monthly rent of around
4.0 million yen, which is higher than in the fiscal period ended October 31, 2021.
As shown in the bottom right section, the rent increase rate was +6.4%, which is also up from the previous fiscal period.
Tenants appear to be taking a much calmer attitude toward COVID-19 in their corporate activities and cases in which
tenants agree to rent revision negotiations have increased, enabling us to achieve more rent increases than in the preceding
fiscal period.

Rent Gap of KDO Office Buildings• Although market rents are rising at some properties, the rent gap continues to narrow due to declining market rents,
tenant replacements, and rent increases at the time of rent revisions
Breakdown of rent gaps (based on monthly rent) (Note 1)
Over 10%57（mn yen）

269 mn yen
Higher thanmarketrent level

Breakdown of rent gaps by rent revision schedule(as of the end of fiscal period 2022/4, based on monthly rent) (Note 1) (Note 3)

Between 0% and 10%567 mn yen

42

45
44

39

127

106

603 mn yen

Lower thanmarketrent level

Lower than -10%

Lower thanmarket rent level
55.4%

437 mn yen

103
163
Fiscal
22/4period
期
22/4

55.5%

21.0
19.5
14.4
10.3

4.7

7.1

4.2

-0.6 -2.1

59.3%

102

Fiscalperiod
22/10
期
22/10
到来分

Fiscalperiod
23/4
期
23/4
到来分

105

106

52.6%

Fiscalperiod
23/10
期
23/10
到来分

140

62.0%

Fiscalperiod
24/4
期
24/4
到来分

■ Over -10% ■ -10%~0% ■ 0%~+10% ■ Over +10%

136
10

44.5%

Fiscalperiod
24/10
期
24/10
以降到来分
OnwardChange in market rent of owned properties (Note 4)
Rise
(0)

Decline
(19)

-2.2
-4.3
-10.7

152

85

77

End of 22/4
fiscal期末
period 22/4

Historical average rent gaps (Note 2)
（ %）

76

118

125

Between -10% and 0%

121

53

115

-4.2 -6.6-8.9 -8.7 -6.9

-5.9 -4.6

Fiscal Fiscal Fiscal Fiscal
FiscalFiscalFiscalFiscalFiscalFiscal05/10
期 22/4期
period期 07/10
period期 09/10
period期 11/10
period期 13/10
period期 15/10
period期 17/10
period期 19/10
period期 21/4
periodperiod
05/10
07/10
09/10
11/10
13/10
15/10
17/10
19/10
21/4
22/4

4
15 4%
16% Fiscal

19
20%

period
21/10
(95)

25
26%

Decline
(32)

32
34%

23
24%
Flat
(76)

Rise
(2)
1
2
1%
2%
8
9%
24
Fiscal 25%
period22/4(95) 21

16
17%

22%

Flat
(61)

■ 5 Central Wards of Tokyo ■ Tokyo Metropolitan Area
■ Other Regional Areas(excluding 5 central wards)

Note 1: A new contracted rent (standard floor) for each property estimated by CBRE as of the end of the fiscal period 2022/4 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: 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 the Investment Corporation as of the end ofeach fiscal period and the market rent for each property estimated by CBRE at the time of appraisal.
Note 3: The figure shows the distribution of the percentage deviation between the contract rent of each tenant and the market rent of each property assessed by CBRE as of the end of the fiscal period 2022/4 for office buildings
owned as of the end of the fiscal period 2022/4, by the timing of each tenant's rent renewal. The rents equal to market rents are classified into “Between 0% and +10%”.
Note 4: 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 the fiscal period 2022/4.
Note 5: The office buildings owned in Note 1 through Note 3 above do not include KDX Kiba Building scheduled to be sold on July 29, 2022, and the office buildings owned in Note 4 do not include Sendai Honcho Building
acquired on April 28, 2022.

18

Next, please look at page 18.
This shows the status of the rent gap.
The figure at the top left of the page shows a breakdown of rent gaps as of April 30, 2022.
The proportion of rents that are lower than market rent level was 55.4% as of April 30, 2022, down from 59.7% as of
October 31, 2021. This is due to a continued drop in market rents for certain properties as well as a build-up in rent
increases on the replacement of tenants and rent increases upon rent revisions.
The chart at the bottom left of the page shows historical average rent gaps. The rent gap for the fiscal period ended April 30,
2022 was -4.6% and the gap continues to move closer to emerging from negative territory.
The charts at the bottom right shows change in the number of owned properties classified as rise, flat, or decline in market
rent by area from the previous fiscal period. While rents rose for two properties, rents remained flat for 61 properties or
64% of the owned properties, and fell for 32 properties or 34% of the properties owned.
The number of properties whose rent declined increased by 13 from the previous fiscal period. However, these areproperties located in areas with rising vacancies including for large offices in the surrounding area and it appears to be
increasingly the case that market rent levels are falling slightly for such properties.
While the rent gap is narrowing, we intend to achieve some progress in terms of rent revisions by actively negotiating
increases with tenants where a rent gap exists.

Construction Expense (actual/budget)
Depreciation and construction expense (actual/budget)
（百万円）

2,470
1,960

1,776

1,692

474

1,860

1,696

356

441

1,326

406

1,332

337
1,485

Fiscal期
20/4period
20/4
actual
実績

1,420

1,251

Fiscalperiod
期
20/10
20/10
actual
実績

988

Fiscal期
21/4period
21/4
actual
実績

Fiscalperiod
期
21/10
21/10
actual実績

KDX Ochanomizu Building Renewal of outer wall and entrance
Before
After

2,617

2,631

2,588

2,567

2,548

2,523

Introduction of value-upgrading work for fiscal period 22/4

396

438
1,464

1,289
894

Fiscal期
22/4period
22/4
actual
実績

Fiscalperiod
期
22/10
22/10
budget予算

Fiscal期
23/4period
23/4予算budgetIn order to renew the building's image, large-scale work was carried out toimprove the design of the exterior walls, which had deteriorated over theyears, as well as to renovate the exterior and entrance

Repair / maintenance
修繕費
資本的支出■■ Capex
Depreciation ■■■■減価償却費

Repair/renovation work budget and major construction projects for fiscal period 2022/4 (planned)
Items

Description of works

Estimated amount(Note)(mn yen)

Percentage of total
expense (%)

Target property

Value-upgrading works Tenant and common areas

230

KDX Nishi-Shinjuku Building (sanitary facilities and pantry),
17.3
Higashi-Kayabacho Yuraku Building (sanitary facilities and pantry)

Replacement works

Air-conditioning facilities

195

14.6 KDX Fuchu Building

Other major facilities229

17.2 Pentel Building (elevator), KDX Nagoya Ekimae Building (parking)Eco-friendly works(Installation of LED lightings. , etc)95

7.1 KDX Sapporo Kitaguchi Building、KDX Sakura-dori Building

Outer wall repair

112

8.4 KDX Sakura-dori Building, KDX Tosabori Building

Maintenance/repair works

471

35.4

1,332

100.0

Total

19

Next, please look at page 19.
This shows actual construction expense and construction expenses budgets.
Actual construction expense in the fiscal period ended April 30, 2022 was less than budgeted six months earlier. In addition
to factors such as construction expense reductions achieved through tenders, etc. and construction which proved
unnecessary, the impact of semiconductor supply shortages such as construction work that was postponed due to equipment
delivery difficulties was also still apparent.
The construction budget for the fiscal period ending October 31, 2022 will be less than the preceding period. The major
constructions projects are as shown on the slide. As a general rule we will spend gradually based on a policy of carrying out
appropriate construction work at the appropriate time.

Current Occupancy Status of Low-occupancy Properties
at the End of the Fiscal Period Ended October 31, 2021
• Steadily capture tenants’ needs and improve occupancy rates by conducting an agile and flexible leasing strategy based on thecharacteristics of each property and market conditions
Portus Center Building

KDX Iidabashi Building

Occupancy rate during fiscal period (%)

Occupancy rate during fiscal period (%)
91.8

90.9

90.6
87.2

51.9

21/10 21/11 21/12•
Percentage of the portfolio

2.3 %KDX Kojimachi Building

22/1

22/2

22/3

22/4

Improved occupancy rate by conducting leasing activities thatemphasize the favorable location characteristics such asaccess to Kansai International Airport, high building grade andspecifications, etc., and by responding flexibly to tenants

88.3

88.3

Percentage of the portfolio

0.8 %

22/1

22/2

81.3

21/10 21/11 21/12

Percentage of the portfolio

1.2 %
•

0.9 %

22/3

22/2

22/3

22/4

94.4

21/10 21/11 21/12

22/4
•

100.0

22/1

100.0

94.6

22/2

22/3

22/4

Conducted previews and leasing campaigns to attract a wide
range of prospective tenants; achieved full occupancy

Percentage of the portfolio

1.2 %KDX Shinbashi Building Occupancy rate during fiscal period (%)

77.7
22/1

22/2

Occupancy rate during fiscal period (%)
89.0

KDX Ochanomizu Building Occupancy rate during fiscal period (%)•

Percentage of the portfolio

100.0

Occupancy rate declined to 76% due to cancellations of several
floors, however, captured relocation demand due to thereconstruction of neighboring buildings, resulting in fulloccupancy

22/1

67.0

Increased occupancy rate by widely promoting the benefits of
TurnKey Office, which is fully furnished and decorated, using
new tools such as web ads in addition to the dedicated website,and synergizing with the leasing campaign

76.6

21/10 21/11 21/12•

21/10 21/11 21/12•

KDX Tosabori Building

Occupancy rate during fiscal period (%)

56.9

62.0

22/3

85.7

81.4
21/10 21/11 21/12

22/4

Occupancy rate temporarily dropped to 77% due to thecancellations caused by the cost review and the expansion of
remote work, however the occupancy rate improved due to thesuccess of measures such as the relocation in the building andmatching the demand for leased space with the demand forleased space
The number of inquiries is increasing due to the large-scalerenovation of the exterior walls and entrance, etc. Aim to further
improve the occupancy rate•

Percentage of the portfolio

1.1 %

22/1

22/2

84.7

84.7

22/3

22/4

One section was contracted and the occupancy rate improved
through floor splits and active leasing campaigns. For theremaining sections, aim to achieve full occupancy by leveraging
the location's convenient accessibility near the station anddeveloping leasing activities targeting the needs of office forshop-visit type tenantsNote: Percentage of the portfolio is calculated by dividing the leasable area of the property as of the end of April 30, 2022 by the leasable area of all 96 office buildings owned at the same time, rounded to one decimal place.
The same applies hereinafter.

20

Please look at page 20.
This shows current occupancy status of properties with less than 90% occupancy as of the end of the fiscal period ended
October 31, 2021.
At all properties, the occupancy rate improved compared with six months earlier.
Offering TurnKey Office floors, KDX Iidabashi Building had a persistently low occupancy rate but partly thanks to theutilization of new tools such as web advertising in addition to a dedicated website and a continued leasing campaign, 6 outof 7 TurnKey Office spaces were filled and the occupancy rate recovered to 91.8% by April 30, 2022.
At KDX Ochanomizu Building and KDX Shinbashi Building, occupancy increased but was still below 90%. However, thenumber of inquiries about KDX Ochanomizu Building has increased partly thanks to large-scale renovation work including
the exterior walls and entrance hall and so we aim to further improve the occupancy rate soon. We are also in talks over
KDX Shinbashi Building and intend to achieve full occupancy soon by conducting leasing activities that leverage its
convenient accessibility near the station.

Leasing Focus Properties for the Fiscal Period Ending October 31, 2022
Portus Center Building••
Percentage of the portfolio

2.3 %
•

Higashi-Kayabacho
Yuraku Building••
Percentage of the portfolio

Occupancy rate
as of the end of
April 2022

Estimated
occupancy rate
as of the end of
September 2022

90.9%

71.8%

A total of 666 tsubo is expected to be cancelled after May
2022
Due to the location and the success of ongoing flexible andagile leasing activities, potential tenants for a total of
approximately 365 tsubo (equivalent to approximately 10% of
the occupancy rate) are currently considering contracts
Aim to improve occupancy rate by upgrading LED lighting andinterior specifications of the available sections
Occupancy rate
as of the end of
April 2022

Estimated
occupancy rate
as of the end of
July 2022

100%

64.5%

A total of 470 tsubo on three floors is expected to be cancelledin May 2022 or later due to relocations for consolidation
Through flexible leasing activities that meticulously respond totenant needs, such as floor splits, etc., tenant candidates are
currently considering contracts for a total of approximately 145
tsubo (equivalent to approximately 11% of the occupancy rate)

0.9 %

•
•

2.1 %

•
•
Percentage of the portfolio

0.5 %

•

KDX Musashi-Kosugi
Building••
Percentage of the portfolio

Occupancy rate
as of the end of
April 2022

Estimated
occupancy rate
as of the end of
November 2022

100%

56.0%

A total of 304 tsubo on four floors is expected to be cancelled
at the end of October 2022 due to the relocation of tenants
Conduct leasing activities focusing on attracting tenants thatvalue transportation convenience, as the property is directly
connected to the station
Aim to improve occupancy rates by promoting points that arehighly evaluated by potential tenants, such as the rooftop
gardenOccupancy rate
as of the end of
April 2022

Estimated
occupancy rate
as of the end of
October 2022

100%

81.7%

A total of 720 tsubo on two floors is expected to be cancelledby the end of September 2022
Aim to improve occupancy rates by appealing the building's
specifications that can meet diverse tenant needs, such as its
convenient transportation accessibility (1-minute walk from thestation), multiple floor division patterns, and heavy-load areas

2.6 %KDX Fuchu Building

Percentage of the portfolio

KDX Akihabara Building

Occupancy rate
as of the end of
April 2022

Estimated
occupancy rate
as of the end of
December 2022

85.2%

76.3%

As of the end of April 2022, 453 tsubo of space is vacant, and
377 tsubo is expected to be cancelled after July 2022
The property is in a convenient location, a 3-minute walk fromthe station, and through flexible leasing activities that
meticulously respond to tenant needs such as floor division,etc., tenant candidates are currently considering contracts fora total of approximately 569 tsubo (equivalent to approximately
18% of the occupancy rate)

KDX Chofu Building••
Percentage of the portfolio

2.4 %

•

Occupancy rate
as of the end of
October 2022

Estimated
occupancy rate
as of the end of
October 2022

100%

83.2%

A total of 603 tsubo of space on two floors is expected to becancelled in October 2022 due to the consolidated relocationof tenants
Planning for value-up work in common areas to improve
design and enhance refreshment space
Aim to increase occupancy rate by appealing to tenants withstrong needs for BCP measures, such as meeting the needs ofwork/residence proximity, location on stable ground that is
resistant to earthquakes, and having an emergency power
generator for tenant use

Note: The estimated occupancy rate is based on the number of units for which cancellation notices have been received from existing tenants or the lease agreements have been executed with a new tenant as of June 9, 2022
(rounded to one decimal place).

21

Next, please look at page 21.
This shows leasing focus properties where occupancy is expected to fall sharply in the fiscal period ending October 31,
2022 and/or thereafter.
At the Portus Center Building, the occupancy rate recovered to the 90% level for a time but this property is positioned as aleasing focus building on expectation of continued contract cancellations.
Meanwhile at the other properties shown here, contract cancellations by tenants that lease more than one floor are expected
and the occupancy rate is expected to fall significantly.
By adopting an agile and flexible leasing strategy, taking building specifications and conditions in the surrounding area into
consideration, we intend to steadily close deals currently under discussion, striving for early recovery of the occupancy rate.

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%
List of top end-tenants for office buildings

Average rent for office buildings by area (Note 2)(as of the end of the fiscal period 22/4)(tsubo)share ofleased floorarea (%) (Note1)

3,408.4

2.3

Mitsubishijuko Yokohama Bldg.

1,920.0

1.3

KDX Toranomon 1chome Bldg.

1,550.8

1.1

KDX Kawasaki-Emimae
Hon-cho Bldg.

1,424.9

1.0

KDX Chofu Bldg.

Tenant B(Manufacturing)

1,308.0

0.9

KDX Kobayashi-Doshomachi Bldg.

6 JASTEC Co., Ltd.

1,304.6

0.9

KDX Takanawadai Bldg.

Leasedarea

Tenant name1

Mitsubishi Heavy Industries,
Ltd.

2 WeWork Japan G.K.
3

Tenant A(wholesale, retail and dining)

4 Japan Pension Service
5

Fiscal period
21/4

Fiscal period
21/10

Fiscal period
22/4

16,000 yen

16,000 yen

16,000 yen

5 Central Wards of Tokyo

19,500 yen

19,500 yen

19,600 yen

Tokyo Metropolitan Area
(excluding 5 central wards)

14,400 yen

14,400 yen

14,400 yen

Other Regional Areas

13,000 yen

13,100 yen

13,000 yen

Name of property

7

Customer relation
telemarketing, CO,LTD

1,279.6

0.9

KDX Higashi Umeda Bldg.

8

Medical Corporation
DOYUKAI

1,135.6

0.8

Koishikawa TG Bldg.

9

Tenant C(service provider)

1,080.1

0.7

KDX Musashi-Kosugi Bldg.

10

Tenant D(wholesale, retail and dining)

912.2

0.6

Harajuku F.F. Bldg.

Total

15,324.2

10.5

Office buildings

Tenant diversification by type of business(based on # of tenants) (Note 3)
Transportation,
Communication(35) 3.0%
Construction(44) 3.8%

Public sector (other)(4) 0.3%

Real estate(48) 4.1%

Mining(1) 0.1%

Finance,Insurance(49) 4.2%
Individual(52) 4.5%
Manufacturing(147) 12.6%

Infrastructure(4) 0.3%# oftenants(1,167)

Service provide(517) 44.3%

Wholesale, Retail, Dining(266) 22.8%

Note 1: Leased area of each end-tenant against total leased floor area of KDO portfolio as of the end of fiscal period 22/4 (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 fiscal period 22/4 (rounded to the first decimal place).

22

Next, please look at page 22.
On the left-hand side there is a list of top end-tenants. Although there were some changes in the ranking due to expansion inleased area, there was no major change compared with October 31, 2021 in terms of the shares of the top 10 end-tenants
and we maintained a stable portfolio underpinned by tenant diversification.

Section 5

Financial Status

23

Financial Status
Status of rating
AA-

AA(Positive)(Stable)Average rateof interest-bearing debt

Fixed interest rate ratio

0.84％

Japan Credit Rating Agency, Ltd.

-0.05% from previous period

94.8％

44.1％

25

Book value basis+8 from previous period

Balance of interest-bearing debt
and Historical LTV (interest-bearing debt ratio) level (Note 2)

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

Balance of
有利子負債残高

0.94%
0.89%
0.84%

Averagecurrent
maturity (year)

LTV
LTV（帳簿価額ベース）(book value basis)interest-bearing debt

0.97%

0.8

Financial institutions

Fixed by interest rate swaps, etc.

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

0.94%

LTV

End
fiscal20/4of期末period 20/4

End of期末
fiscal20/10

period 20/10

End
fiscal21/4of期末
period 21/4

End
of 期末
fiscal21/10
period 21/10

End
of期末
fiscal22/4
period 22/4

4.5

4.5

4.7

4.4

4.1

43.4%

43.6%

44.1%

36.5%

36.1%

36.0%

35.7%

End
fiscal20/4of期末period 20/4

End
of期末
fiscal20/10
period 20/10

End
fiscal21/4of期末
period 21/4

End
of期末
fiscal21/10
period 21/10

End
of期末
fiscal22/4
period 22/4

192.0

201.7

198.7

198.7

205.1

42.9%

6
5
4
3
2
1
0

35.8%

Balance ofinterest-bearing
debt (bn yen)

LTV
LTV（鑑定評価額ベース）(appraisal value basis)

43.9%

32.0%

Balance of interest-bearing debt by maturity (as of the end of fiscal period 2022/4)
0.87%

1.25%

0.80%

0.58%

0.96%

1.04%

1.11%

0.94%

0.86%

0.97%

15.50

15.20

2.00

2.00

16.20
1.00

0.76%

0.69%
21.60

(bn yen)
11.45
1.00
1.80
8.65

11.60
9.50

12.20

12.80

12.05

2.00

2.00

2.00

12.30

10.20

10.80

10.05

12.30

14.10

13.50

0.85%

0.77%

17.10

21.60

6.80
9.50

14.10

0.88%

15.20

Fiscal
22/10
期

FiscalFiscalFiscalFiscal期
FiscalFiscalFiscalFiscalFiscalFiscalFiscal
23/4期
23/10
24/4期
24/10
25/4期
25/10期
26/4期
26/10期
27/4期
27/10期
28/4期
期
periodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiod
22/10
23/4
23/10
24/4
24/10
25/4
25/10
26/4
26/10
27/4
27/10
28/4
■ Long-term borrowings ■ Short-term borrowings ■ Corporate bonds ◆ Average interest rate (excl. short-term borrowings)

6.80

17.10
7.85

4.80

Fiscal28/10期period
28/10

0.90%

The commitment line
agreement
Total 9.0 bn yen
7.85

13.20

0.83%

Fiscal29/4期
period
29/4

6.80

Fiscal29/10期period
29/10

Fiscal30/4期
period
30/4

5.00
1.00
4.00

Fiscal30/10期period
30/10

3.90
3.90

Fiscal31/4期
period31/4

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 andthe average borrowing period rounded to the first decimal place).
Note 2: LTV (book value basis) is calculated by dividing the balance of interest-bearing debt by the amount of total assets as of the end of each fiscal period. LTV (appraisal value basis) is calculated by dividing the balance ofinterest-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).

24

Next, I would like to explain our financial status. Please look at page 24.
Firstly, JCR upgraded our credit rating from AA－ (positive) to AA (stable). We were awarded this latest upgrade inrecognition of our portfolio with its stable cash flow, our stable track record of portfolio operations, our LTV, reinforcementof the framework of support from the SMFL Group, and reinforcement of our financial position through synergy, among
other factors.
Next, the average interest rate of interest-bearing debt totaling around 200 billion yen as the end of the fiscal period endedApril 30, 2022 was 0.84%, down 0.05 percentage points from the end of the previous fiscal period, and we continue toachieve steady reduction in interest expenses.
Meanwhile, the fixed interest rate ratio was 94.8%, and the maturity ladder at the bottom of the page also shows steadydiversification of maturity dates.
LTV on a book value basis rose 0.5 points from 43.6% as of the end of the fiscal period ended October 31, 2021 to 44.1%
as of the end of the fiscal period ended April 30, 2022, reflecting borrowing associated with the acquisition of Sendai
Honcho Building, while LTV on an appraisal value basis was 35.7%.
The total number of financial institutions we deal with increased by 8 from the end of the previous fiscal period to 25, andwe realized further expansion in our lender formation.

Financial Status (the End of the Fiscal Period Ended April 30, 2022)
Results of borrowings during the fiscal period 2022/4

Status of debt financing
Classification

Balance• Total refinancing of 18.7 billion yen

Percentage

Before refinance

After refinance

Short-Term Borrowings

8,600 mn yen

4.2%

Long-Term Borrowings

183,550 mn yen

89.5%

Average interest rate

0.70%

0.40%

192,150 mn yen

93.7%

Average borrowing term

4.2 years

3.7 years

13,000 mn yen

6.3%

205,150 mn yen

100.0%

Total borrowings
Investment
Corporation Bonds
Total Borrowings andInvestment Corporation Bonds• New borrowings totaling 6.4 billion yen for acquisition of Sendai
Honcho Building
Conditions

Outstanding borrowings by financial institutions

9.8%
2.4%
4.6%

22.6%

Total
borrowings
from financial
institutions
192.1 bn yen

5.9%
9.8%

19.4%

11.4%
14.1%

Financial institutions

17

The end of fiscal
period 2021/10

25

The end of
April 2022

■ Sumitomo Mitsui Banking
43,400 mn yen■ MUFG Bank
37,300 mn yen■ Development Bank of Japan 27,050 mn yen■ Mizuho Bank
21,950 mn yen■ Sumitomo Mitsui Trust Bank 18,900 mn yen■ Resona Bank
11,250 mn yen■ Aozora Bank
8,900 mn yen■ Mizuho Trust & Banking
4,600 mn yen
The 77 Bank
2,000 mn yen
2,000 mn yen
The Bank of Fukuoka
New Shinsei Bank, Ltd.
2,000 mn yen
The Norinchukin Bank
1,800 mn yen
The Nishi-Nippon City Bank 1,700 mn yen
Sumitomo Life Insurance
1,500 mn yen
Company
The Musashino Bank, Ltd.
1,000 mn yen
The Hiroshima Bank
1,000 mn yen
New The Dai-ichi Life
1,000 mn yen
Insurance Company,
Limited
New Nippon Life
1,000 mn yen
Insurance Company
The Higashi-Nippon Bank,
800 mn yen
Limited
San ju San Bank,Ltd.
500 mn yen
New Daishi Hokuetsu
500 mn yen
Bank, Ltd.
New The Shizuoka Bank, Ltd.
500 mn yen
New The Chugoku Bank, Ltd.
500 mn yen
New The Yamaguchi Bank, Ltd
500 mn yen
New Daiwa Next Bank, Ltd.
500 mn yen

22.6%
19.4%
14.1%
11.4%
9.8%
5.9%
4.6%
2.4%
1.0%
1.0%
1.0%
0.9%
0.9%
0.8%
0.5%
0.5%
0.5%

0.5%
0.4%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%

Average interest rate

0.29%

Average borrowing term

1.9 years

Issue status of investment corporation bonds(total 13.0 bn yen)
Corporate bonds

IssuedperiodIssuedamountInterest
rate

Term

6th bonds

2014/7

2.0 bn yen

1.18%

10 years

7th bonds

2016/4

1.0 bn yen

0.90%

12 years

8th bonds

2017/7

1.0 bn yen

0.26%

5 years

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

12th bonds (green bonds)

2020/10

1.0 bn yen

0.61%

10 years

13th bonds

2021/7

2.0 bn yen

0.18%

5 years25

Section 6
Initiatives for Sustainability

26

Initiatives for Sustainability ~ Highlight
Initiatives in fiscal period 2022/4
Established greenhouse gas (GHG) emission
reduction targets toward carbon neutrality by 2050
GHG emission reduction targets(Compared to fiscal year 2013(per unit))change based on 4゜C and 1.5゜Cscenarios

Introduction ofeffectively renewable energy• Introduced at a total of 13 properties(+13 properties from 2021/10 period)• Expected to reduce 6,568t-CO2

Contribution to society

Social• Provided blood donation sites
free of charge to the Japanese
Red Cross Society• Installation of bicycle andEnvironment

In fiscal year 2030

By 2050

50% reduction

Carbon Neutrality

Disclosure of analysis on climate change
in line with TCFD recommendations• Analysis of financial impacts of climate

Initiatives in fiscal period 2022/10 and thereafter

Installation of LED lightning
in tenant area
• Introduced in approximately 5,900 tsubo(leasable floor area ratio: 35.6% in total,+2.8% from 2021/10 period)• Expected to reduce 244 t-CO2

Promotion of acquisitionof environmental certifications• Newly acquired for 5 properties in total(leasable floor area ratio: 64.4% in total,+7.3% from 2021/10 period)
Promotion of diversity

Governance• A female supervisory director was newly appointed

Additional acquisition of investment units
by sponsor (same boat investment)• Kenedix, Inc., a shareholder of the Asset

ESG
Enhanced transparency of disclosure• Separate disclosure of GHG emissions for Scope
1, 2, and 3• Third-party assurance of GHG emissions, energyuse, and water consumption• Initiatives to expand disclosure information basedon TCFD

Continuous environmental initiatives• Promote acquisition of environmental certification
for properties (target of over 70% of total floor
area)• Promote switchover to electricity derived from
effectively renewable energy sources• Promote installation of LED lighting

Green finance• Green Bond Framework is to be updated to Green

electric kickboard sharing ports

Management Company, has additionally acquired

at a total of 14 properties

9,163 units of investment units of the Investment

Finance Framework

Corporation (holding ratio is 3.60% of the total• Execute green finance

units issued and outstanding after the acquisition)

27

Next, I will explain our initiatives for sustainability. Please look at page 27.
Our initiatives during the fiscal period ended April 30, 2022 was shown on the left. On the environmental front, firstly, we establishedgreenhouse gas (GHG) emission reduction targets. We are aiming for a 50% reduction by FY2030 and carbon neutrality by FY2050
compared to fiscal year 2013 (per unit).
Next, we made qualitative disclosure in line with TCFD recommendations. We carried out a scenario analysis based on multiple viewsof the financial impacts of climate change and the assumption of 4 ℃ and 1.5 ℃ increases in the Earth’s average temperature andconsidered the medium and long term financial impacts based on these scenarios.
We also introduced effectively renewable energy at 13 properties as a measure for reducing GHG emissions. Similarly, we havecontinued making progress with the installation of LED lighting. Since the installation of LED lighting in common areas of solely
owned properties is already more or less complete, we decided to focus on installing LED lighting in tenant areas moving forward and,in the fiscal period ended April 30, 2022, we installed LED lighting in approximately 5,900 tsubo, increasing the ratio of LED lighting
in the portfolio based on leasable floor area to 35.6%.
As for the acquisition of environmental certifications, we aim to acquire environmental certifications for more than 70% of the leasable
floor area and, in the fiscal period ended April 30, 2022, we acquired certification for five properties, and the acquisition ratio
increased to 64.4%, up 7.3% from the previous fiscal period.
In terms of social initiatives, we provided blood donation sites free of charge to support the Japanese Red Cross Society. We also
continued to install bicycle and electric kickboard sharing ports as an eco-friendly means of transport for tenant employees and local
residents.
In governance initiatives, a female supervisory director was newly appointed at the general meeting of unitholders held on January 28,
increasing diversity in the management of the Investment Corporation.
Details of our future sustainability initiatives are as shown on the right side of the page. From the viewpoint of enhancing thetransparency of disclosures, we will make separate disclosure of GHG emissions for Scope 1, 2, and 3 and we will also obtain thirdparty assurance of data including energy use, and water consumption data. We will also consider expansion of disclosure information
based on TCFD. In terms of environmental initiatives, we will continue to promote acquisition of environmental certification forproperties and also promote the switchover to electricity derived from effectively renewable energy sources and the installation of LED
lighting to reduce our GHG emission. On the finance front, we will update the Green Bond Framework to a Green Finance Framework
and plan to execute green finance in our refinancing activities during the fiscal period ending October 31, 2022.

Initiatives for Sustainability ~ Initiatives for Environment
Established GHG emission reduction targets
toward carbon neutrality by 2050

GHG emissions (Note 2)• Established GHG emission reduction target as of March 23, 2022

• To achieve GHG emissions reduction targets, continue to actively

GHG emission
reduction targets(Compared tofiscal year 2013 (per unit))

In fiscal year 2030

By 2050

50% reduction

Carbon Neutrality

promote the introduction of electricity derived from effectively
renewable energy sources and LED lighting(Intensity：t-CO2/m2)

Disclosed analysis on climate change
in line with TCFD recommendations• Disclosed analysis of financial impacts of climate change based on 4゜C and1.5゜C scenarios. Disclosed medium-term (2030) and long-term (2050)

0.065110.06146

financial implications

Promoted initiatives to reduce GHG emission(GHG emission：t-CO2)

Introduction of effectively renewable energy• Since February 2022, effectively renewable energy has been installed in 12
properties. As a result, a total of 13 properties have already installed. This
introduction is expected to reduce GHG emission by 6,568 t-CO2
Installation of LED lighting in tenant area (Note 1)• LED lighting in common areas of properties undersingle ownership is almost complete. Going forward,
focus on installation of LED lighting in tenant areas

where LED lighting was installed is expected to be
reduced by approximately 62%, and 244t-CO2 interms of GHG emission

30,089The ratio ofconverting lighting
in common area

94.6%
2013

• Installed LED lighting in approximately 5,900 tsubo of
tenant area. Annual power consumption in the areas

45,204

The ratio ofconverting lighting
in tenant area

35.6%(+2.8% from 2021/10 period)

Note 1: LED lighting is calculated as a percentage of total floor area for common areas and a percentage of leasablearea for tenant areas.

2014

2015

2016

排出量
GHGemissions■■ GHG

2017

2018

2019

2020

2021

Intensity
排出原単位
GHG

Note 2: GHG emissions are calculated by the Asset Management Company based on theemission factor (adjusted emission factor) of the electric utility companies in the Ministry of
the Environment's "Greenhouse Gas Emissions Calculation, Reporting and Publication
System" for the period from April of each year to March of the following year. The
calculation method of GHG emissions has been changed since the fiscal period 2022/4,
and therefore, the figures are different from those disclosed prior to the fiscal period
2021/10.

28

Initiatives for Sustainability~ Environmental Certification and Evaluation
GRESB Real Estate Assessment

Acquisition status of environmental certification(as of April 30, 2022)• First J-REIT to participate in the 2011

DBJ Green Building Certification

survey• Newly acquired 4 stars for KDX Toyosu Grand Square in January• Acquired "Green Star" rating for 10

2022

consecutive years and the 2nd-highest-

Total number ofproperties

rated “4 Star” in GRESB Rating 2021

★★★★

4

★★★

13

★★

9

Acquired the highest “A” Level
for Public Disclosure on ESG

26 (+1 from2021/10 period)

Certification for CASBEE for Real Estate
Acquisition of environmental certification(as of April 30, 2022) (Note)• Newly acquired Rank S for Mitsubishijuko Yokohama Buildingin March 2022
Total number ofproperties• The status of properties with DBJ Green Building Certification,
Certification for CASBEE for Real Estate or/and BELS
Certification is as follows• Aim to acquire the certification for more than 70% of properties

25 (+4 from2021/10 period)

Rank S

11

Rank A

14

BELS Certification
Percentage of theportfolio

Numbers of the properties
with certifications

64.4%

47 properties(+7.3% from 2021/10 period)(+5 properties
from 2021/10 period)

Note: If a single building has acquired multiple environmental certifications or evaluations, it is counted
as one property. The total floor area ratio is calculated by dividing the total floor area of the entire
portfolio by the name of acquired properties.

• Newly acquired 4 stars for KDX Ochanomizu Building in
December 2021
Total number ofproperties

5 (+1 from2021/10 period)

★★★★

1

★★★

3

★★

1

29

Initiatives for sustainability ~ Contribution to society
Contribution to communities

Introduced tenant relations system "Connect Square"Support for the Japanese Red Cross Society• As of April 30, 2022, the system had been introduced in 71• Provided the location for the blood donation site

properties for which Kenedix Property Design is entrusted

in KDX Hamamatsucho Place free of charge towith property management services, and more than 600

the Japanese Red Cross Society

tenants had begun using the system

Installation of bicycle and electric kickboard sharing• Provided locations for the sites at a total of 14
properties for bicycle and electric kickboard
sharing services• Provided tenant employees and residents withan environmentally friendly and diverse meansof transportation, contributing to improved
convenience

Support for the activities of the United Nations UNHCR Association• Broadcasting PR videos using digital signage,
and provided the sites for the United Nations• Aim to further improve relationships with tenants by
publicizing ESG initiatives, encouraging participation invarious campaigns, posting disaster prevention maps, andother measures

What is Connect Square?
Website portal developed to improve the efficiency of routine
tasks of tenant administrative staff and PM company staff
through digital transformation (DX) and to establish close
collaboration between them•Campaign to support refugees free of charge

creates various application forms by entering

at the following 3 properties in the fiscal period

necessary information on the website

2022/4•
Property nameNovember 2021

Senri Life Science Center Building

November 2021

KDX Karasuma Building

April 2022

Consolidated PM company FAQs and inquiry
form on the website

Term

KDX Sakura-dori Building

Implemented a function that automaticallyConnect Square Website•

Reduce tenant work and time costs•

Improve accessibility to information provided
by the PM company

30

Initiatives for Sustainability ~ Governance and Other Initiatives
Promotion of diversity in management• One female supervisory director was appointed following approval at thegeneral meeting of unitholders held on January 28, 2022, and further
diversified the Investment Corporation’s management
Director and CEO
Hikaru Teramoto
Supervisory Director
YoshihiroMorishima

Licensed realestate appraiser

Seki
Takahiro

LawyerAkiko
TokumaCertified public
accountant

Number of investments

Inc., has additionally acquired 9,163 units of

15,421 units

2022/4)• Further align unitholders' interests and theKenedix Group’s interest

set forth basic investment management guidelines, including
investment policy, related party transaction rules, distribution policy
and disclosure policy, regarding the asset management of theInvestment Corporation• Furthermore, made decision of property acquisition, according toinvestment policy set forth in the management guidelines and related
party transaction rules• The decision-making flow for establishing and revising themanagement guidelines and asset management plans, etc. and thatas follows• Since November 2021, the sponsor, Kenedix,

Corporation (as of the end of the fiscal period• Created management guidelines of the Investment Corporation, andpertaining to acquisition and sale of assets are established in principle

Additional acquisition of investment units by sponsor

investment units of the Investment

Decision-making process with transparency
and check-and-balance system

Preparation of
proposal

Office REIT Department

Confirmationof proposal

Compliance Officer

Deliberation
and resolution

Compliance Committee

Disapprovedor remand(as of the endof the fiscal period 2022/4)

Shareholding ratio

3.6 %(+2.1% from2021/10 period)

Expansion of disclosure• Disclosed GRI Standard on the web to enhance the searchability ofsustainability-related information

Asset Management Committeeof Office REIT Department
Outside member

Deliberation
and resolution

Supervisory Director
Licensed Real Estate Appraiser/
Lawyer / Certified public accountant• Proactively disclosed data related to employee diversity andemployment, one of the Asset Manager's stakeholders• Updated and further enhanced the content of the Sustainability Report

Outside member

Deliberation
and resolution

KDO Board of Directors

31

Memo

32

Section 7
Future Initiatives

33

Future Initiatives
Return to Unitholders

External Growth• Focusing on finding quality
acquisition opportunities amid thecontinuing difficult environment for
property acquisitions• Aim to improve portfolio quality
through asset reshuffling• Stabilize DPU level by utilizing retained
earnings and gains on sales of realestate etc.
• Consider acquisition of own investment
units depending on cash on hand andthe level of investment unit price

Aim to Enhance
Unitholder Value

Internal Growth• Aim to maintain and improve
occupancy rates by steadily capturing
tenant needs through flexible andagile leasing strategies based on thecharacteristics of the properties andthe surrounding market conditions

Financial Strategy• Reduce interest costs throughrefinancing• Maintain a high level of fixedinterest rate ratios and continue tomanage finances with maturity
diversification

Sustainability• Take the initiatives to disclose
information based on TCFD
• Reduce GHG emissions throughintroduction of electricity derived fromefficiently renewable energy sources
and promotion of LED lightning

34

Finally, I would like to explain to you our future initiatives. Please look at page 34.
Let me start with external growth. Recently, the market is full of players competing to acquire properties and information
about properties that meet our requirements is limited, making it difficult for us to make acquisitions. However, we willcontinue focusing on finding quality acquisition opportunities. At the same time, we will aim to improve portfolio quality
through asset reshuffling.
Moving on to internal growth. Our approach of prioritizing maintaining and improving occupancy rates above all else
remains unchanged. Maintaining and improving occupancy rates is essential in order to bolster the profitability of theInvestment Corporation. Given that the turnover rate has begun to rise again recently, we assume there will be situations
where tenants move out before vacancies can be filled and the occupancy rate will fall. However, demand to move to larger
offices among strongly performing small and mid-sized enterprises remains brisk. Using free rent periods, we will carry out
leasing activities aiming to achieve market rent levels and we will aim to maintain and improve occupancy rates by steadily
capturing tenant needs through flexible and agile leasing strategies based on the characteristics of the properties and thesurrounding market conditions.
Turning to financial strategy, we still have some loans with fairly high interest rate levels and so we will continue working
to reduce interest costs through refinancing. At the same time, in view of foreign exchange rates and rising prices, etc.,
future interest rate movements also need to be taken into consideration. We will maintain the fixed interest rate ratio at ahigh level and continue to manage finances based on an awareness of maturity diversification.
As for sustainability initiatives, we are gradually getting sustainability initiatives on track by seeking to further build on theinitiatives implemented since development of the framework by the Asset Management Company last year. We will
implement initiatives to enhance the disclosure of information based on TCFD and reduce GHG emissions through theintroduction of electricity derived from effectively renewable energy sources and promotion of LED lighting. We will
actively pursue sustainability at a property level because we believe that this might encourage tenants to choose ourproperties in the future.
Finally, we come to unitholder returns. We are currently seeking to stabilize DPU through gains on sale of real estate, etc.
and the reversal of retained earnings and will continue stabilizing DPU through gains on sale and the reversal of retained
earnings in the future. We are now implementing the acquisition of our own investment units, setting a maximum
acquisition price of 3 billion yen, and we intend to continue considering the acquisition of our own investment units in thefuture depending on cash on hand and the level of the investment unit price.
While the COVID-19 situation has quietened down slightly recently, the environment remains
volatile amid the developments in Ukraine, Russia and China and the fallout from thesedevelopments, including volatility in interest rates, exchange rates, prices, and energy prices.
However, we intend to aim for further enhancement of unitholder value through the steady
implementation of initiatives in terms of external growth, internal growth, financial strategy,
sustainability and unitholder returns respectively.
This brings me to the end of my presentation. Thank you very much.

Memo

35

Appendix

36

Overview of Kenedix Office Investment Corporation
1

Investment management strategy centered on Tokyo metropolitan area and mid-sized office buildings
Target regional investment ratio• Investing in and managing mainly mid-sized officebuildings in the Tokyo metropolitan area (major cities

Regional Areas:in Tokyo Metropolitan, Kanagawa, Saitama, and Chiba
Prefectures) where economic activities are densely

Typical mid-sized office building

30% or less2 elevators(Core cities, including

integrated with abundant tenant demand and rich

8 to 10 floors with total floorarea of 500 - 3,000 tsubo

governmentdesignated cities)
Tokyo metropolitan area:
over 70%

stocks of properties

Rented area per floor of

100 - 150 tsubo

2

Has successfully managed assets for more than 15 years and the asset size has grown to over 400
billion yen• Listed in July 2005 sponsored by one of the major
independent real estate investment managementcompanies in JapanEnd of the fiscal period ended April 30, 2022

97 properties, 445.6 billion yen• The largest among office J-REITs in terms of the numberof portfolio properties• Highly stable portfolio thanks to diverse tenants andlimited revenue impact from large end-tenants vacating

3

High creditworthiness and stable financial position• The credit rating meets the Bank of Japan's criteria forpurchase. Also, the rating improved from "AA(Positive)" to "AA (Stable)" in March 2022
• Sufficiently prepared for the risk of rising interest rates
with a high level of fixed interest rate ratio

LTV

Ratio of fixed interest rate

Status of credit rating(ratio of interest-bearing debt)(JCR)

Conservative financial managementwith a target LTV of 45%
The end of fiscal period 2022/4

Continue to hedge against apotential rise in interest rates
The end of fiscal period 2022/4

44.1%

94.8%

AA (Stable)

37

Portfolio Diversification(as of the End of Fiscal Period Ended April 30, 2022)
Breakdown by asset type (Note 1)

Breakdown by region (Note 2)• Portfolio mainly consisted of mid-sized office buildings withadvanced tenant diversification• Plan to maintain approx. 80% investment ratio in the Tokyo
metropolitan area

その他
Other
0.6%
(1 (1
property)
物件)

オフィスビル
Office Bldg.
その他）((Other)
15.2%(8 properties)(8物件)

97 properties

Other地方経済圏
regional areas
19.8%

Office Bldg.
オフィスビル(mid-sized)
(中規模）
84.0%
(88(88properties)
物件)

Tokyo central
都心
5区
5 wards
51.7%
Other
Tokyo
その他
metropolitan
area
東京経済圏
28.3%

Office Bldg.

99.3%(96 properties)

Tokyo
Metropolitan area

80.1%

Breakdown of the number of tenants by leased floor area (Note 3)
300 tsuboor More
300坪以上6.6%
200- lessthan
200坪以上
300 坪未満tsubo
300

Less100
than
100 tsubo
坪未満

6.2%

100
坪以上
100
- lessthan
200 坪未満
tsubo
200
21.2%

65.9%

# of tenants:
1,236

Less than 200 tsubo

87.1%

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-base.

38

Characteristics of KDO Office Buildings(as of the End of Fiscal Period Ended April 30, 2022)
By acquisition price(based on acquisition price, office buildings)
10.0 bn yen
or more(101.5 bn
yen)
22.9%

7.5 - less than
10 bn yen(60.2 bn yen)
13.6%

By distance from the nearest station on foot(based on acquisition price, office buildings)

Less than
2.5 bn yen(59.3 bn yen)
13.4%

Average
4.6 bn yen/property

5.0 - less than
7.5 bn yen(90.6 bn yen)
20.5%

6 mins or more
( 14 properties )73.5 bn yen
16.6%
5 mins( 7 properties )23.8 bn yen
5.4%

2.5 - less than
5.0 bn yen(130.9 bn yen)
29.6%

4 mins( 15 properties )61.0 bn yen
13.8%

1 mins( 23 properties )118.4 bn yen
26.8%

83.4%
located within
5 minutes
on foot

Percentage share of our properties that comply withnew earthquake resistance standard (Note 1) (Note 2)

2 mins( 17 properties )55.2 bn yen
12.5%

3 mins( 20 properties )110.5 bn yen
25.0%

Equivalent to new earthquake resistance standard
3 properties (3.7%)
Implemented earthquake-resistance reinforcement:
KDX Hakata-Minami Building, KDX Akihabara Building

Portfolio
PML
3.1%(Note 3)

Evaluated as a property complying with equivalent standard of
the new earthquake resistance standard:
KDX Nihonbashi 313 Building

New earthquake resistance standard
93 properties (96.3%)

Note 1: "New Earthquake Resistance Standard" was formulated based on the revision of enforcement order of Building Standard Law in 1981 (cabinet order No. 144 on April 24, 1981). The anti-seismic performance of buildings
has been greatly improved since the enforcement of the law due to the newly added provisions including the followings: New provision on tie-hoop ratio of Reinforced-Concrete Pillars (0.2% or more); Resetting ofhorizontal seismic coefficient to elastic shear modulus; New requirement on the secondary design in seismic calculation.
Note 2: Percentage share is calculated based on leasable area as of the end of fiscal period 22/4. For the properties owned through quasi co-ownership interest, leasable area for such portion is used in calculation.
Note 3: PML value is as of April 2022 and is based on the research implemented by Sompo Risk Management Inc. “PML (Probable Maximum Loss) value” is probable maximum loss ratio due to an earthquake. PML value can bedivided into ratios of an individual property and the entire portfolio, respectively. There is no uniform strict definition of the PML value; however here it means the percentage (%) of the excess probability of 10% loss to thereplacement price (= loss amount for the recurrence interval of 475 years) during the estimated period of use (50 years = useful life of general buildings).

39

Portfolio Growth and Changes in the Number of Properties• Aim for sustainable growth through asset reshuffle and exploring quality property acquisition opportunities as a basic policy
continuously

Portfolio growth (based on total acquisition price) and the number of properties (Note)(# of properties)(bn yen)
Office (left axis)
オフィスビル（左軸）Central urban retail (left axis)
都市型商業施設（左軸）# of properties (right axis)
物件数（右軸）600
6,000

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

97 97

100

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

90
500
5,000

453.6 80
445.6

PO

70

PO

400
4,000

PO

60

PO

3,000
300

50
PO
PO

2,000
200

31

40

PO

30

PO

1,000
100

20

69.1
10

0

The
05/10
end of
期末
05/10

The
06/10
end of
期末
06/10

The
07/10
end of
期末
07/10

The
08/10
end of
期末
08/10

The
09/10
end of
期末
09/10

The
10/10
end of
期末
10/10

The
11/10
end of
期末
11/10

The
12/10
end of
期末
12/10

The
13/10
end of
期末
13/10

The
14/10
end of
期末
14/10

The
15/10
end of
期末
15/10

The
16/10
end of
期末
16/10

The
17/10
end of
期末
17/10

The
18/10
end of
期末
18/10

The
19/10
end of
期末
19/10

The
20/10
end of
期末
20/10

The 22/4
The 22/7
The
21/10
end of end of end of期末
21/10 期末
22/4 月末
July

periodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiod period 2022

0

Note: Amounts and number of properties are as of the end of each fiscal period. Amounts are rounded down to the nearest 100 million yen.
The figures as of the end of July 2022 reflect the impact of properties to be acquired or sold.

40

Portfolio Overview (1)(as of the End of the Fiscal Period Ended April 30, 2022)
Office Buildings (96 properties)
Type

Area

No.

Name

Location

End of 2022/4
Acquisition price Completion dateperiod occupancy(Note 2)(mn yen) (Note 1)
rate (Note 3)
1974/4
5,940
100.0

Type

Area

No.

Name

Location

End of 2022/4
Acquisition price Completion dateperiod occupancy(Note 2)(mn yen) (Note 1)
rate (Note 3)
1988/42,620
100.0

Chuo-ku, Tokyo

A063

KDX Gotanda Building

Higashi-Kayabacho Yuraku Building

Chuo-ku, Tokyo

4,450

1987/1

100.0

A064

KDX Nihonbashi 216 Building

Chuo-ku, Tokyo

2,010

2006/10

100.0

A004

KDX Hatchobori Building

Chuo-ku, Tokyo

3,680

1993/6

100.0

A066

KDX Shinjuku Building

Shinjuku-ku, Tokyo

6,800

1993/5

100.0

A005

KDX Nakano-Sakaue Building

Nakano-ku, Tokyo

2,533

1992/894.7

A067

KDX Ginza 1chome Building

Chuo-ku, Tokyo

4,300

1991/11

100.0

A006

Harajuku F.F. Building

Shibuya-ku, Tokyo

2,450

1985/11

100.0

A071

KDX Iidabashi Building

Shinjuku-ku, Tokyo

4,670

1990/391.8

A007

KDX Minami Aoyama Building

Minato-ku, Tokyo

2,270

1988/11

100.0

A072

KDX Higashi-Shinagawa Building

Shinagawa-ku, Tokyo

4,590

1993/1

100.0

A008

KDX Kanda Kitaguchi Building

Chiyoda-ku, Tokyo

1,950

1993/5

100.0

A073

KDX Hakozaki Building

Chuo-ku, Tokyo

2,710

1993/11

100.0

A013

KDX Kojimachi Building

Chiyoda-ku, Tokyo

5,950

1994/5

100.0

A078

KDX Tachikawa Ekimae Building

Tachikawa, Tokyo

1,267

1990/2

100.0

A014

KDX Funabashi Building

Funabashi, Chiba

2,252

1989/4

100.0

A083

KDX Fuchu Building

Fuchu, Tokyo

6,120

1996/385.2

A016

Toshin 24 Building

Yokohama, Kanagawa

5,300

1984/9

100.0

A084

KDX Kasuga Building

Bunkyo-ku, Tokyo

2,800

1992/6

100.0

A017

KDX Ebisu Building

Shibuya-ku, Tokyo

4,640

1992/1

100.0

A085

KDX Nakameguro Building

Meguro-ku, Tokyo

1,880

1985/10

100.0

A019

KDX Hamamatsucho Building

Minato-ku, Tokyo

3,460

1999/9

100.0

A086

KDX Omiya Building

Saitama, Saitama

2,020

1993/4

100.0

A020

KDX Kayabacho Building

Chuo-ku, Tokyo

2,780

1987/10

100.0

A087

Nihonbashi Horidomecho First

Chuo-ku, Tokyo

2,200

1995/797.3

A021

KDX Shinbashi Building

Minato-ku, Tokyo

3,728

1992/2

100.0

A088

KDX Shinjuku 6-chome Building

Shinjuku-ku, Tokyo

1,900

1990/3

100.0

A022

KDX Shin-Yokohama Building

Yokohama, Kanagawa

2,520

1990/9

100.0

A089

KDX Takanawadai Building

Minato-ku, Tokyo

5,250

1985/10

100.0

A026

KDX Kiba Building

Koto-ku, Tokyo

1,580

1992/10

100.0

A090

KDX Ikebukuro Building

Toshima-ku, Tokyo

3,900

2009/3

100.0

A027

KDX Kajicho Building

Chiyoda-ku, Tokyo

2,350

1990/3

100.0

A091

KDX Mita Building

Minato-ku, Tokyo

3,180

1993/3

100.0

A029

KDX Higashi-Shinjuku Building

Shinjuku-ku, Tokyo

2,950

1990/1

100.0

A092

KDX Akihabara Building

Chiyoda-ku, Tokyo

2,600

1973/12

100.0

A030

KDX Nishi-Gotanda Building

Shinagawa-ku, Tokyo

4,200

1992/11

100.0

A093

KDX Iidabashi Square

Shinjuku-ku, Tokyo

4,350

1994/1

100.0

A031

KDX Monzen-Nakacho Building

Koto-ku, Tokyo

1,400

1986/9

100.0

A094

KDX Musashi-Kosugi Building

Kawasaki, Kanagawa

12,0002013/5

100.0

A032

KDX Shiba-Daimon Building

Minato-ku, Tokyo

6,090

1986/7

100.0

A095

KDX Toyosu Grand Square

Koto-ku, Tokyo

8,666

2008/498.1

A033

KDX Okachimachi Building

Taito-ku, Tokyo

2,000

1988/6

100.0

A096

KDX Takadanobaba Building

Toshima-ku, Tokyo

3,650

1988/10

100.0

A035

KDX Hachioji Building

Hachioji, Tokyo

1,155

1985/12

100.0

A099

KDX Ikebukuro West Building

Toshima-ku, Tokyo

1,934

1988/7

100.0

A037

KDX Ochanomizu Building

Chiyoda-ku, Tokyo

6,400

1982/885.7

A101

KDX Yokohama Building

Yokohama, Kanagawa

7,210

1994/3

100.0

A038

KDX Nishi-Shinjuku Building

Shinjuku-ku, Tokyo

1,500

1992/10

100.0

A102

KDX Yokohama Nishiguchi Building

Yokohama, Kanagawa

2,750

1988/10

100.0

A041

KDX Shinjuku 286 Building

Shinjuku-ku, Tokyo

2,300

1989/8

100.0

A107

KDX Ginza East Building

Chuo-ku, Tokyo

3,600

1991/8

100.0

A046

Hiei Kudan-Kita Building

Chiyoda-ku, Tokyo

7,600

1988/386.5

A108

Pentel Building

Chuo-ku, Tokyo

3,350

1990/11

97.7

A048

KDX Kawasaki-Ekimae Hon-cho
Building

Kawasaki, Kanagawa

3,760

1985/2

100.0

A109

KDX Hamamatsucho Center
Building

Minato-ku, Tokyo

3,950

1985/12

100.0

A051

KDX Hamacho Nakanohashi
Building

Chuo-ku, Tokyo

2,310

1988/9

100.0

A112

KDX Toranomon 1chome Building

Minato-ku, Tokyo

14,616

2013/10

100.0

A055

Shin-toshin Maruzen Building

Shinjuku-ku, Tokyo

2,110

1990/7

100.0

A113

KDX Shin-Nihonbashi Ekimae
Building

Chuo-ku, Tokyo

3,829

1992/5

100.0

A056

KDX Jimbocho Building

Chiyoda-ku, Tokyo

2,760

1994/5

100.0

A115

ARK Mori Building

Minato-ku, Tokyo

4,169

1986/3

100.0

A059

KDX Iwamoto-cho Building

Chiyoda-ku, Tokyo

1,864

2008/3

100.0

A116

KDX Nishi-Shinbashi Building

Minato-ku, Tokyo

8,400

1992/8

100.0

A060

KDX Harumi Building

Chuo-ku, Tokyo

10,2502008/2

100.0

A117

BR Gotanda

Shinagawa-ku, Tokyo

2,200

1991/9

100.0

A062

Koishikawa TG Building

Bunkyo-ku, Tokyo

3,080

1989/11

100.0

A119

KDX Shibuya Nanpeidai Building

Shibuya-ku, Tokyo

3,500

2003/12100.0

Office Buildings

KDX Nihonbashi 313 Building

A003

Tokyo Metropolitan Area

Office Buildings

Tokyo Metropolitan Area

A001

Shinagawa-ku, Tokyo

Note 1: Acquisition price is only the acquisition (investment) price of the trust beneficiary interest, etc. (excluding any expenses, taxes, etc.) acquired by KDO. Figures are truncated to the nearest million yen.
Note 2: Completion date shows the newly-built year-month recorded in the real estate register. The average value shown in the subtotal or total section is a weighted average value calculated based on acquisition price with a basedate of the end of the fiscal period ended April 30, 2022. Figures are truncated to the first decimal place.
Note 3: Occupancy rate is calculated by dividing leased area as of the end of the fiscal period ended April 30, 2022 by leasable area and is rounded to the first decimal place.

41

Portfolio Overview (2)(as of the End of the Fiscal Period Ended April 30, 2022)
Office Buildings (96 properties)
No.

Name

Location

Acquisition price(mn yen) (Note 1)

Completion
date (Note 2)

Tokyo Metropolitan Area

2,479

1991/8100.0

Chuo-ku, Tokyo

9,800

2008/11

100.0

Yokohama, Kanagawa

14,7201994/2

99.6

Yokohama, Kanagawa

9,500

2007/9100.0

KDX Hamamatsucho Place

Minato-ku, Tokyo

20,7002015/2

92.4

KDX Chofu Building

Chofu, Tokyo

8,700

1995/1100.0

KDX Kanda Ekimae Building

Chiyoda-ku, Tokyo

3,300

1991/2

100.0

A120

KDX Yoyogi Building

Shibuya-ku, Tokyo

A121

Ginza 4chome Tower

A122

Mitsubishijuko Yokohama Building

A123

KDX Yokohama Kannai Building

A124
A125
A127

KDX Shinbashi Ekimae Building

Minato-ku, Tokyo

16,3002018/984.7

A012

Portus Center Building

Sakai, Osaka

5,570

1993/990.9

A042

KDX Karasuma Building

Kyoto, Kyoto

5,400

1982/10

99.2

A044

KDX Sendai Building

Sendai, Miyagi

2,100

1984/2

100.0

A053

KDX Hakata-Minami Building

Fukuoka, Fukuoka

4,900

1973/698.0

A054

KDX Kitahama Building

Osaka, Osaka

2,220

1994/7

100.0

A058

KDX Nagoya Sakae Building

Nagoya, Aichi

7,550

2009/4

100.0

Area

No.

OthersD002

Name

Location

Shinjuku 6chome
Building (Land)

Shinjuku-ku,
TokyoAcquisition price(mn yen) (Note 1)

Others (1 property) Subtotal(97 properties, excl. investment securities)
Total

End of 2022/4
period occupancy
rate (Note 3)

Completion
date (Note 2)

2,880

-

100.0

2,880

-

100.0

445,606

Average25.8 years

98.3%

The total number of end tenants for 96 office buildings is 1,236.
(1,167 if tenants are aggregated based on their names.)

Investment Security (1 security)
Type
Investment
Security

Other Regional Areas

Office Buildings

A128

Type

Tokyo
Metropolitan
Area

Type Area

Others (1 property)
End of 2022/4
period occupancy
rate (Note 3)

Location of
specified asset

Name

Acquisition price(mn yen)Shinjuku-ku,
Silent partnership equity interest of G.K. KRF 43
Tokyo

Completion date ofspecified asset

1,107

1979/12A069

KDX Kobayashi-Doshomachi Building

Osaka, Osaka

2,870

2009/7

100.0

A070

KDX Sapporo Building

Sapporo, Hokkaido

2,005

1989/10

100.0

A079

KDX Nagoya Ekimae Building

Nagoya, Aichi

7,327

1986/4

100.0

A082

KDX Higashi Umeda Building

Osaka, Osaka

2,770

2009/7

100.0

A097

KDX Utsunomiya Building

Utsunomiya, Tochigi

2,350

1999/2

100.0

A098

KDX Hiroshima Building

Hiroshima, Hiroshima

1,300

1990/1

100.0

A100

Senri Life Science Center Building

Toyonaka, Osaka

13,0001992/6

100.0

A104

KDX Minami-Honmachi Building

Osaka, Osaka

2,200

2009/12

100.0

A106

KDX Sakura-dori Building

Nagoya, Aichi

5,900

1992/8

100.0

A110

KDX Shin-Osaka Building

Osaka, Osaka

4,550

1992/5

94.6

Office buildings

5.0

5.0

4.9

4.7

4.7

A111

KDX Nagoya Nichigin-mae Building

Nagoya, Aichi

3,500

2006/9100.0

Others

4.3

4.3

4.3

4.3

4.3

A118

KDX Sapporo Kitaguchi Building

Sapporo, Hokkaido

1,800

1992/9

100.0

5.0

4.9

4.9

4.7

4.7

A126

KDX Tosabori Building

Osaka, Osaka

5,000

1987/10

100.0

A129

Sendai Honcho Building

Sendai, Miyagi

Office Buildings (96 properties) Subtotal

6,360

442,726

1984/11

91.9

Average25.8 years

98.3

Investment Security (1 security) Total

1,107

Historical rent-based NOI yield(by asset type, annualized-based) (Note 4) (Note 5)
Fiscal period
2020/4

Total

Fiscal period
2020/10

Fiscal period
2021/4(%)

Fiscal period
2021/10

Fiscal period2022/4Note 1: Acquisition price is only the acquisition (investment) price of the trust beneficiary interest, etc. (excluding any expenses, taxes, etc.) acquired by the Investment Corporation. Figures are truncated to the nearest million yen.
Note 2: Completion date shows the newly-built year-month recorded in the real estate register. The average value shown in the subtotal or total section is a weighted average value calculated based on acquisition price with a basedate of the end of the fiscal period ended April 30, 2022. Figures are truncated to the first decimal place.
Note 3: Occupancy rate is calculated by dividing leased area as of the end of the fiscal period ended April 30, 2022 by leasable area and is rounded to the first decimal place.
Note 4: NOI yield calculation for the properties without taxation on property and city planning taxes in the year of acquisition are assumed as if they are imposed. Acquisition price for newly acquired / sold properties is calculated bymultiplying the ratio of actual operating days to the relevant fiscal period's operating days.
Note 5: Each yield is rounded to the first decimal place.

42

Appraisal Value and Cap Rateas of the End of the Fiscal Period Ended April 30, 2022 (1)As of April 30, 2022
No.

Name

Acquisition
Date

Acquisition
price(mn yen)AppraiserBook value(mn yen)(B)(A)

Appraisalvalue(mn yen)(C)

Directcapitalization
Methodcap rate(D)

As of October 31, 2021

(Note 1)

Appraisalvalue(mn yen)(C)÷(B)-1(E)

Appraisal valuevs Book value

Directcapitalization
Methodcap rate(F)

Directcapitalization
Methodcap rate

Period-end appraisal value

Difference

Increasedecrease rate(C)－ (E)(C)÷(E)-1

Difference(Note 1)(D)－(F)A001

KDX Nihonbashi 313 Building

2005/8

5,940

Daiwa

5,620

7,100

3.7%

26.3%

6,900

3.8%

200

2.9%

-0.1%

A003

Higashi-Kayabacho Yuraku Building

2005/8

4,450

JREI

3,931

5,340

3.9%

35.8%

5,330

4.0%

10

0.2%

-0.1%

A004

KDX Hatchobori Building

2005/8

3,680

Daiwa

3,228

3,580

4.0%

10.9%

3,510

4.1%

70

2.0%

-0.1%

A005

KDX Nakano-Sakaue Building

2005/8

2,533

Daiwa

2,290

2,510

4.2%

9.6%

2,500

4.3%

10

0.4%

-0.1%

A006

Harajuku F.F. Building

2005/8

2,450

JREI

2,361

3,600

4.3%

52.4%

3,490

4.4%

110

3.2%

-0.1%

A007

KDX Minami Aoyama Building

2005/8

2,270

JREI

2,177

2,820

3.7%

29.5%

2,770

3.8%

50

1.8%

-0.1%

A008

KDX Kanda Kitaguchi Building

2005/8

1,950

Daiwa

1,745

1,640

4.0%

-6.0%

1,640

4.1%

-

-

-0.1%

A012

Portus Center Building

2005/9

5,570

Daiwa

3,738

5,050

5.4%

35.1%

5,030

5.5%

20

0.4%

-0.1%

A013

KDX Kojimachi Building

2005/11

5,950

JREI

5,443

5,360

3.4%

-1.5%

5,150

3.5%

210

4.1%

-0.1%

A014

KDX Funabashi Building

2006/3

2,252

JREI

2,167

2,940

4.9%

35.7%

2,850

5.0%

90

3.2%

-0.1%

A016

Toshin 24 Building

2006/5

5,300

JREI

4,860

5,470

4.1%

12.5%

5,320

4.2%

150

2.8%

-0.1%

A017

KDX Ebisu Building

2006/5

4,640

JREI

4,285

6,110

3.7%

42.6%

6,100

3.8%

10

0.2%

-0.1%

A019

KDX Hamamatsucho Building

2006/5

3,460

Daiwa

3,076

3,600

3.6%

17.0%

3,510

3.7%

90

2.6%

-0.1%

A020

KDX Kayabacho Building

2006/5

2,780

JREI

2,637

3,240

4.1%

22.8%

3,160

4.2%

80

2.5%

-0.1%

A021

KDX Shinbashi Building

2006/5

3,728

JREI

3,665

5,500

3.4%

50.0%

5,270

3.5%

230

4.4%

-0.1%

A022

KDX Shin-Yokohama Building

2006/5

2,520

JREI

2,134

2,610

4.6%

22.3%

2,560

4.7%

50

2.0%

-0.1%

A026

KDX Kiba Building

2006/6

1,580

JREI

1,356

1,150

4.5%

-15.2%

1,140

4.7%

10

0.9%

-0.2%

A027

KDX Kajicho Building

2006/7

2,350

Daiwa

2,256

2,320

4.0%

2.8%

2,320

4.1%

-

-

-0.1%

A029

KDX Higashi-Shinjuku Building

2006/9

2,950

Daiwa

2,883

4,070

4.1%

41.1%

3,980

4.2%

90

2.3%

-0.1%

A030

KDX Nishi-Gotanda Building

2006/12

4,200

JREI

3,613

3,590

4.0%

-0.7%

3,470

4.1%

120

3.5%

-0.1%

A031

KDX Monzen-Nakacho Building

2007/1

1,400

Daiwa

1,238

1,140

4.5%

-7.9%

1,120

4.6%

20

1.8%

-0.1%

A032

KDX Shiba-Daimon Building

2007/3

6,090

JREI

5,802

6,210

3.9%

7.0%

5,910

4.0%

300

5.1%

-0.1%

A033

KDX Okachimachi Building

2007/3

2,000

Daiwa

1,990

2,090

4.0%

5.0%

2,050

4.1%

40

2.0%

-0.1%

A035

KDX Hachioji Building

2007/3

1,155

Daiwa

1,140

1,240

4.9%

8.7%

1,220

5.0%

20

1.6%

-0.1%

A037

KDX Ochanomizu Building

2007/4

6,400

JREI

6,445

8,230

3.7%

27.7%

8,080

3.8%

150

1.9%

-0.1%

A038

KDX Nishi-Shinjuku Building

2007/4

1,500

JREI

1,506

1,530

4.1%

1.6%

1,480

4.2%

50

3.4%

-0.1%

A041

KDX Shinjuku 286 Building

2007/6

2,300

JREI

2,356

2,820

3.7%

19.7%

2,860

3.8%

-40

-1.4%

-0.1%

A042

KDX Karasuma Building

A044

2007/6

5,400

Daiwa

4,964

5,950

4.6%

19.9%

5,930

4.7%

20

0.3%

-0.1%

KDX Sendai Building

2007/6

2,100

Daiwa

1,840

1,930

5.1%

4.9%

2,060

5.2%

-130

-6.3%

-0.1%

A046

Hiei Kudan-Kita Building

2008/2

7,600

Daiwa

7,375

8,570

3.6%

16.2%

8,350

3.7%

220

2.6%

-0.1%

A048

KDX Kawasaki-Ekimae Hon-cho Building

2008/2

3,760

JREI

3,253

3,280

4.5%

0.8%

3,200

4.6%

80

2.5%

-0.1%

A051

KDX Hamacho Nakanohashi Building

2008/2

2,310

JREI

2,180

2,190

4.2%

0.4%

2,120

4.3%

70

3.3%

-0.1%

A053

KDX Hakata-Minami Building

2008/2

4,900

JREI

4,268

5,170

5.5%

21.1%

5,040

5.6%

130

2.6%

-0.1%

*Notes are shown on page 45.

43Appraisal Value and Cap Rateas of the End of the Fiscal Period Ended April 30, 2022 (2)As of April 30, 2022
No.

Name

Acquisition
Date

Acquisition
price(mn yen)AppraiserBook value(mn yen)(B)(A)

Appraisalvalue(mn yen)(C)

Directcapitalization
Methodcap rate(D)

As of October 31, 2021

(Note 1)

Appraisalvalue(mn yen)(C)÷(B)-1(E)

Appraisal valuevs Book value

Directcapitalization
Methodcap rate(F)

Period-end appraisal value

Increasedecrease rate

Difference

Directcapitalization
Methodcap rate
Difference(Note 1)(C)－(E)(C)÷ (E)-1(D)－ (F)A054

KDX Kitahama Building

2008/2

2,220

JREI

1,994

1,730

4.9%

-13.3%

1,690

5.0%

40

2.4%

-0.1%

A055

Shin-toshin Maruzen Building

2008/2

2,110

JREI

2,032

1,780

4.1%

-12.4%

1,750

4.2%

30

1.7%

-0.1%

A056

KDX Jimbocho Building

2,760

JREI

2,793

2,590

4.0%

-7.3%

2,530

4.1%

60

2.4%

-0.1%

A058

KDX Nagoya Sakae Building

7,550

Daiwa

6,119

5,800

4.2%

-5.2%

5,710

4.3%

90

1.6%

-0.1%

A059

KDX Iwamoto-cho Building

1,864

JREI

1,547

1,690

4.1%

9.2%

1,630

4.2%

60

3.7%

-0.1%

A060

KDX Harumi Building

2008/6

10,250

JREI

8,253

8,690

3.7%

5.3%

8,670

3.9%

20

0.2%

-0.2%

A062

Koishikawa TG Building

2009/11

3,080

JREI

3,033

3,320

4.0%

9.5%

3,270

4.1%

50

1.5%

-0.1%

A063

KDX Gotanda Building

2009/11

2,620

JREI

2,629

3,530

4.1%

34.2%

3,410

4.2%

120

3.5%

-0.1%

A064

KDX Nihonbashi 216 Building

2009/12

2,010

JREI

1,752

2,760

3.6%

57.4%

2,640

3.7%

120

4.5%

-0.1%

A066

KDX Shinjuku Building

2010/2

6,800

JREI

6,923

10,400

3.3%

50.2%

10,200

3.4%

200

2.0%

-0.1%

A067

KDX Ginza 1chome Building

2010/11

4,300

Daiwa

4,097

5,940

3.4%

45.0%

5,630

3.5%

310

5.5%

-0.1%

A069

KDX Kobayashi-Doshomachi Building

2010/12

2,870

JREI

1,725

2,920

7.8%

69.2%

2,890

7.9%

30

1.0%

-0.1%

A070

KDX Sapporo Building

2011/3

2,005

Daiwa

1,941

2,580

4.6%

32.9%

2,550

4.7%

30

1.2%

-0.1%

A071

KDX Iidabashi Building

2011/7

4,670

Daiwa

4,769

5,830

3.9%

22.2%

5,740

4.0%

90

1.6%

-0.1%

A072

KDX Higashi-Shinagawa Building

2011/7

4,590

Daiwa

4,595

4,870

4.0%

6.0%

4,760

4.1%

110

2.3%

-0.1%

A073

KDX Hakozaki Building

2011/7

2,710

Daiwa

2,633

3,490

4.2%

32.5%

3,470

4.3%

20

0.6%

-0.1%

A078

KDX Tachikawa Ekimae Building

2011/12

1,267

JREI

1,317

1,760

4.7%

33.6%

1,730

4.8%

30

1.7%

-0.1%

A079

KDX Nagoya Ekimae Building

2011/12

7,327

JREI

7,795

10,300

3.8%

32.1%

10,100

3.9%

200

2.0%

-0.1%

A082

KDX Higashi Umeda Building

2012/3

2,770

Daiwa

2,199

4,060

4.1%

84.6%

3,860

4.2%

200

5.2%

-0.1%

A083

KDX Fuchu Building

2012/9

6,120

Daiwa

5,647

8,780

4.5%

55.5%

8,940

4.6%

-160

-1.8%

-0.1%

A084

KDX Kasuga Building

2012/9

2,800

JREI

2,605

4,220

3.9%

61.9%

4,110

4.0%

110

2.7%

-0.1%

A085

KDX Nakameguro Building

2012/9

1,880

Daiwa

1,868

3,580

4.1%

91.6%

3,470

4.2%

110

3.2%

-0.1%

A086

KDX Omiya Building

2013/3

2,020

Daiwa

2,104

3,180

4.8%

51.1%

3,110

4.9%

70

2.3%

-0.1%

A087

Nihonbashi Horidomecho First

2013/8

2,200

Daiwa

2,251

3,180

4.0%

41.2%

3,090

4.1%

90

2.9%

-0.1%

A088

KDX Shinjuku 6-chome Building

2013/9

1,900

Daiwa

1,951

3,530

4.0%

80.9%

3,440

4.1%

90

2.6%

-0.1%

A089

KDX Takanawadai Building

2013/11

5,250

JREI

5,546

6,960

3.9%

25.5%

6,700

4.0%

260

3.9%

-0.1%

A090

KDX Ikebukuro Building

2013/11

3,900

Daiwa

3,479

5,240

3.7%

50.6%

5,100

3.8%

140

2.7%

-0.1%

A091

KDX Mita Building

2013/11

3,180

JREI

3,125

4,210

3.8%

34.7%

3,980

3.9%

230

5.8%

-0.1%

A092

KDX Akihabara Building

2013/11

2,600

JREI

2,463

3,230

3.7%

31.1%

3,220

3.8%

10

0.3%

-0.1%

A093

KDX Iidabashi Square

2014/1

4,350

Daiwa

4,751

6,420

3.8%

35.1%

6,270

3.9%

150

2.4%

-0.1%

A094

KDX Musashi-Kosugi Building

2014/3

12,000JREI

10,44318,800

3.8%

80.0%

18,200

3.9%

600

3.3%

-0.1%

A095

KDX Toyosu Grand Square

2014/5

8,666

Daiwa

7,539

9,930

4.3%

31.7%

9,910

4.4%

20

0.2%

-0.1%

A096

KDX Takadanobaba Building

2014/5

3,650

Daiwa

3,564

4,640

4.1%

30.2%

4,580

4.2%

60

1.3%

-0.1%

*Notes are shown on page 45.

2008/3
2009/7
2008/544

Appraisal Value and Cap Rateas of the End of the Fiscal Period Ended April 30, 2022 (3)As of April 30, 2022
No.

Name

Acquisitiondate

Acquisition
price(mn yen)Appraiser(A)

Book value(mn yen)Appraisalvalue(mn yen)(B)(C)

Directcapitalization
Methodcap rate(D)

As of October 31, 2021

(Note 1)

Appraisalvalue(mn yen)(C)÷ (B)-1(E)

Appraisal valuevs Book value

Directcapitalization
Methodcap rate(F)

Directcapitalization
Methodcap rate

Period-end appraisal value

Difference

Increasedecrease rate(C)－(E)(C)÷ (E)-1

Difference(Note 1)(D)－ (F)A097

KDX Utsunomiya Building

2014/5

2,350

Daiwa

2,190

2,690

5.3%

22.8%

2,660

5.4%

30

1.1%

-0.1%

A098

-0.1%

KDX Hiroshima Building

2014/9

1,300

JREI

1,327

1,890

5.1%

42.4%

1,860

5.2%

30

1.6%

A099

KDX Ikebukuro West Building

2014/9

1,934

Daiwa

1,984

2,530

4.0%

27.5%

2,470

4.1%

60

2.4%

-0.1%

A100

Senri Life Science Center Building

2014/10

13,000Daiwa

12,185

13,700

4.3%

12.4%

13,700

4.4%

-

-

-0.1%

A101

KDX Yokohama Building

2014/10

7,210

Daiwa

7,270

9,470

4.2%

30.3%

9,440

4.2%

30

0.3%

-

A102

KDX Yokohama Nishiguchi Building

2014/12

2,750

Daiwa

2,616

3,400

4.2%

29.9%

3,320

4.3%

80

2.4%

-0.1%

A104

KDX Minami-Honmachi Building

2014/12

2,200

JREI

1,887

3,200

4.1%

69.5%

3,080

4.2%

120

3.9%

-0.1%

A106

KDX Sakura-dori Building

2015/1

5,900

Daiwa

6,582

8,580

4.4%

30.3%

8,400

4.5%

180

2.1%

-0.1%

A107

KDX Ginza East Building

2015/3

3,600

JREI

3,638

4,060

3.8%

11.6%

3,910

3.9%

150

3.8%

-0.1%

A108

Pentel Building

2015/3

3,350

Daiwa

3,549

4,200

3.7%

18.3%

4,125

3.8%

75

1.8%

-0.1%

A109

KDX Hamamatsucho Center Building

2015/9

3,950

Daiwa

3,973

4,580

3.5%

15.3%

4,450

3.6%

130

2.9%

-0.1%

A110

KDX Shin-Osaka Building

2015/9

4,550

Daiwa

4,453

5,530

4.0%

24.2%

5,520

4.1%

10

0.2%

-0.1%

A111

KDX Nagoya Nichigin-mae Building

2016/3

3,500

JREI

3,328

4,120

3.9%

23.8%

3,980

4.0%

140

3.5%

-0.1%

A112

KDX Toranomon 1chome Building

2016/3

14,616

JREI

14,85024,400

3.0%

64.3%

23,300

3.1%

1,100

4.7%

-0.1%

A113

KDX Shin-Nihonbashi Ekimae Building

2016/8

3,829

JREI

3,965

4,520

3.4%

14.0%

4,370

3.5%

150

3.4%

-0.1%

A115

ARK Mori Building

2016/12

4,169

Daiwa

4,183

5,040

3.4%

20.5%

4,880

3.5%

160

3.3%

-0.1%

A116

KDX Nishi-Shinbashi Building

2017/2

8,400

Daiwa

8,487

9,330

3.3%

9.9%

9,150

3.4%

180

2.0%

-0.1%

A117

BR Gotanda

2017/4

2,200

JREI

2,285

2,520

4.0%

10.2%

2,470

4.1%

50

2.0%

-0.1%

A118

KDX Sapporo Kitaguchi Building

2017/7

1,800

Daiwa

2,085

2,230

4.6%

6.9%

2,160

4.7%

70

3.2%

-0.1%

A119

KDX Shibuya Nanpeidai Building

2017/8

3,500

Daiwa

3,530

3,970

3.4%

12.5%

3,850

3.5%

120

3.1%

-0.1%

A120

JREI

2,390

2,380

4.3%

-0.4%

2,340

4.4%

40

1.7%

-0.1%

65.6%

14,900

3.1%

600

4.0%

-0.1%

KDX Yoyogi Building

2005/9

2,479

A121

Ginza 4chome Tower

2013/8

9,800

JREI

9,357

15,5003.0%

A122

Mitsubishijuko Yokohama Building

2017/12

14,720Daiwa

14,531

15,200

3.8%

4.6%

15,000

3.9%

200

1.3%

-0.1%

A123

KDX Yokohama Kannai Building

2018/1

9,500

Daiwa

9,508

10,600

3.9%

11.5%

10,400

4.0%

200

1.9%

-0.1%

A124

KDX Hamamatsucho Place

2018/7

20,700Daiwa

20,272

24,100

3.2%

18.9%

23,400

3.3%

700

3.0%

-0.1%

A125

KDX Chofu Building

2019/6

8,700

JREI

9,014

10,200

4.4%

13.1%

10,200

4.5%

-

-

-0.1%

A126

KDX Tosabori Building

2020/1

5,000

JREI

5,051

5,010

4.0%

-0.8%

5,000

4.1%

10

0.2%

-0.1%

A127

KDX Kanda Ekimae Building

2020/2

3,300

JREI

3,364

3,500

3.4%

4.0%

3,450

3.5%

50

1.4%

-0.1%

A128

KDX Shinbashi Ekimae Building

2020/6

16,300JREI

16,327

21,100

2.8%

29.2%

20,600

2.9%

500

2.4%

-0.1%

A129

Sendai Honcho Building (Note 2)

2022/4

6,360

Daiwa

6,459

6,500

4.6%

0.6%

6,500

4.6%

-

-

-

423,993531,940

3.9%

25.5%

520,655

4.0%

11,285

2.2%

-0.1%

Subtotal: Office Buildings (Note 3)
D002

Shinjuku 6chome Building (Land)442,726
2014/4

2,880

Daiwa

3,660

3.3%

3,550

3.4%

110

3.1%

Subtotal: Others (Note 3)

2,880

2,973

3,660

3.3%

23.1%

3,550

3.4%

110

3.1%

-0.1%

Total (Note 3)

445,606

426,967

2,973

535,600

3.9%

25.4%

23.1%

524,205

4.0%

11,395

2.2%

-0.1%

Note 1: Ratios for appraisal value vs book value and increase-decrease rate are rounded to the first decimal place.
Note 2: For the property acquired in the fiscal period 2022/4, the details described in the appraisal report at the time of acquisition are shown as those as of the end of fiscal period as of Oct. 31, 2021.
Note 3: Cap rates for subtotals and the entire portfolio are weighted averages based on appraisal values.

-0.1%

45

Historical Appraisal Profit/loss of Portfolio
Historical changes in portfolio's appraisal profit/loss amount and ratio and average appraisal cap rate (Note 1)(bn yen)

（%）

1,200
120

30.0
25.4

1,000
100
20.7

800
80

21.9

21.5

25.0

22.5

20.0

17.6
13.9

600
60
10.9
8.9

400
40

9.2

8.6
5.1

-0.1

5.5

5.0

2.9

0.8
-0.2

10.0

4.5

3.7

200
20

15.0

11.9

6.5

6.1

00

21.1

10.9 17.8 20.0 11.6

0.5
-5.7
-7.3
-18.5 -22.3 -24.1 -24.4 -24.2 -22.6 -25.4 -25.9 -22.8 -16.4

0.6

10.9 17.4 25.4 33.1 41.5 47.2 57.0 71.0 85.0 88.2 92.1 93.0 94.9 108.6

-2.0

-20
-200

0.0

1.9

-5.0

-2.6
-4.9

-40
-400
-60
-600
平均鑑定
Average
キャップレート
appraisalcap
2）（注rate

-7.9

-8.3

05/10

06/4

06/10

07/4

07/10

08/4

08/10

09/4

5.1%

5.0%

4.9%

4.8%

4.9%

5.1%

09/10

-9.4

-10.3 -9.9

-9.5

10/4

10/10

11/10

11/4

12/4

-7.6
-8.7

-8.9

12/10

13/4

Appraisal profit/loss amount

13/10

14/4

14/10

15/4

15/10

16/4

16/10

5.0%

4.9%

4.8%

4.7%

4.6%

4.5%

4.4%

17/4

17/10

18/4

-10.0

Appraisal profit/loss ratio

含み損益（左軸）(left axis)

含み損益率（右軸）(right axis)
18/10

19/4

19/10

20/4

20/10

21/4

21/10

22/4

期 06/4期 06/10期 07/4期 07/10期 08/4期 08/10期 period
期 period
期 period
期 period
期 period
期 period
期 period
期 period
期 period
期 period
期 period
05/10
09/4期 09/10
10/4期 10/10
11/4期 11/10
12/4期 12/10
13/4期 13/10
14/4期 14/10
15/4期 15/10
16/4期 16/10
17/4期 17/10
18/4期 18/10
19/4期 period
19/10期 period
20/4期 period
20/10期 period
21/4期 period
21/10期 period
22/4期
periodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiod
5.2%

5.3%

5.2%

5.1%

4.3%

4.2%

4.1%

4.0%

-15.0

3.9%

(Note 2)

Note 1: Portfolio's appraisal profit/loss amount is the sum of differences between appraisal value and book value for the properties owned as of the end of relevant fiscal period. Appraisal profit/loss ratio is calculated by dividing
appraisal profit/loss by book value as of the end of relevant fiscal period. Figures are rounded to the first decimal place.
Note 2: Average appraisal cap rate is a weighted average based on appraisal value for the properties owned as of the end of relevant fiscal period and listed in the appraisal report with the base date for appraisal as of the end ofeach fiscal period. Figures are rounded to the first decimal place.

46

DPU and NAV per unit
DPU
15,384(yen)
14,412
13,45813,719792

15,384
1,179

13,63914,000209

619

14,00014,150264

638

14,150531

12,960446

12,96013,012

13,10013,63914,412

14,592

14,205

13,791

13,362

13,886

13,619Fiscal18/4期
period実績
2018/4
ActualFiscal期
18/10
period実績
2018/10
ActualFiscal19/4期
period実績
2019/4
ActualFiscal期
19/10
period実績
2019/10
ActualFiscal20/4
期
period
実績
2020/4
ActualFiscal20/10
期
period
実績
2020/10
ActualFiscal21/4
期
period実績
2021/4
ActualFiscal期
21/10
period実績
2021/10
ActualFiscal22/4
期
period実績
2022/4
ActualFiscal22/10
期
period予想
2022/10
Forecast

Fiscal23/4
期
period予想
2023/4
Forecast

Amount of increase from gain on sales of real estate etc.

Amount of reversal of reserve for reduction entry

NAV per unit
(yen)

596,000

615,000

631,000

17/4
期
Fiscal
実績
period2017/4
Actual

17/10
Fiscal期
実績
period2017/10
Actual

18/4期
Fiscal
実績
period2018/4
Actual

654,000

18/10
Fiscal期
実績
period2018/10
Actual

687,000

19/4期
Fiscal
実績
period2019/4
Actual

719,000

727,000

738,000

740,000

19/10
Fiscal期
実績
period2019/10
Actual

20/4
期
Fiscal
実績
period2020/4
Actual

20/10
期
Fiscal
実績
period2020/10
Actual

21/4
期
Fiscal
実績
period2021/4
Actual

745,000

21/10
期
Fiscal
実績
period2021/10
Actual780,000

22/4
期
Fiscal
実績
period2022/4
ActualNote: Figures per unit are calculated based on the number of investment units issued and outstanding as of the end of each fiscal period.
NAV per unit is truncated to the nearest thousand yen after subtracting the amount of DPU.

47

Track Record of Asset Reshufflingin and after the Fiscal Period Ended October 31, 2015
• Steadily establish a track record of strategic asset reshuffle after comprehensively evaluating building age, profitability,
appraisal profit/loss, etc.
Fiscal period 15/10～
Fiscal period 17/4

Fiscalperiod
17/10

Fiscalperiod18/4

Fiscalperiod18/10

BR Gotanda
KDX Nagoya
KDX ShinKDX
Nichigin-mae Nihonbashi Nihonbashi (Compartmentalized
ownership ･Bldg.
EkimaeEdo-dori
Partial land leasehold)
Bldg.
Bldg.

KDX Sapporo
Kitaguchi Bldg.

Mitsubishijuko
Yokohama Bldg.
(Quasi-co-ownershipinterest)

KDX
Hamamatsucho
Place

Fiscalperiod19/4

Fiscalperiod19/10

Fiscalperiod
20/4

KDX Chofu Bldg.
KDX(Compartmentali
zed ownership) Tosabori Bldg.

Fiscalperiod20/10

Fiscalperiod
21/4

KDX
Shinbashi
Ekimae Bldg.

Fiscalperiod
21/10

Fiscalperiod
22/4

Fiscalperiod22/10

Sendai
Honcho Bldg.

Edobashi Bldg.
(to beacquired)Total
acquisition
price

Acquisition
KDX
Hamamatsucho
Center Bldg.

KDX
Toranomon
1chome Bldg.

ARK Mori Bldg.
(Compartment
KDX NishiKDX Shibuya
alizedShinbashi Bldg. Nanpeidai Bldg.
ownership)

20

Properties

KDX Kanda
Ekimae Bldg.

KDX Yokohama
Kannai Bldg.

146.9
bn yenKDX ShinOsaka Bldg.

Mutualtransaction
相互売買
NIPPON
日本土地
TOCHI
建物㈱
TATEMONO
Co., Ltd.

KDX
Nagoya Nikko
Toranomon
Shoken Bldg.
Bldg.

Mutual
相互売買
transaction
森ビル㈱
Mori
Building
Co., Ltd.

Mutualtransaction
相互売買

Mutual
相互売買
transaction
Heiwa
平和 Real
不動産㈱Estate Co.,Ltd.

Domestic generalbusiness
corporation
group

KDX Shin
KDX Shin- Frame JinnanKDXzaka-Yokohama 381 KDX Ikejiri- Yokohama
BUREX
Nihonbashi(Quasi-coOohashi Bldg. 214 Bldg.
Bldg.
Toranomon Kabutocho Bldg.
ownership
interest: 49%)
RetailFrame Jinnanzaka(Quasi-coownershipinterest: 51%)
RetailMutual
相互売買
transaction
国内大手
Domestic
ディベロッパーmajor
developer

KDX
Nihonbashi
Honcho Bldg.

KDX
Hon-Atsugi
Bldg.

KDX Toranomon
1chome Bldg.
(The part ofland)

KDX Kiba
Bldg.
(to be sold)

Disposition

21

KDX
Nogizaka
Bldg.

Toranomon
Toyo Bldg.

KDX
KDX
KDX
Kanda
Roppongi Gobancho Misaki228 Bldg.
Bldg.
cho Bldg.

KDX
Residence Charmante Hamamatsucho
TsukishimaDai-2 Bldg.

KDX
Nihonbashi
Edo-dori
Bldg.

KDX
ShinNihonbashi
Bldg.

Properties

78.4
bn yen48

Outline of Our Sponsor
SMFL MIRAI Partners balanceof real estate assets held

Strengthen support by sponsors
70% owned through group company

Japan Credit Rating
Agency, Ltd.
(JCR)

AA-

Establishment of a strategic
partnership structure throughcapital and business alliance

StableShareholders
Sumitomo Mitsui
Financial Group, Inc.

50%

Hotel &
Residential
area

Sumitomo Corporation

50%

Factory

18%

OfficeBuilding

25%

SMFL MIRAI Partners

5%Company,Limited （Note）
Balance of real estate assets held
Approximately

Strengthening REIT and Private
Placement Fund Businesses

Expansion of New Business Domains

Supplementation of Creditworthiness andEnhancement of Fund Raising Capacity

Sharing Know-how on SDGs
Management

Strengthening Competitiveness by
Sharing Experience, Knowledge, andKnow-how throughMutual Exchange of Human
Resources

Kenedix Real Estate Fund Management, Inc.
100% owned by
Kenedix, Inc

Private fund
Kenedix
Investment
Partners, Inc.
Kenedix, Inc.

Mid-sized officebuildings, etc.

Residential &healthcare
properties &
accommodation

Retail properties& retail
distribution
centers

Large-sized officebuildings &accommodation

440.3 bn yen

280.0 bn yen

247.2 bn yen

127.8 bn yen（Note 1）

Variousasset types
1,275.9 bn yen

Kenedix Residential
Next Investment
Corporation

Kenedix Retail
REIT Corporation

Listed in Jul. 2005

Listed in Apr. 2012

Listed in Feb. 2015

Note 1: Include silent partnership equity interest of 1.1 bn yen.
Note 2: Include consolidated real estate of 159.4 bn yen.

Kenedix
PrivateInvestment
Corporation

Variousprivatefunds

Retailproperty

40%

REIT(sub sponsor)

Conclusion of Alliance Agreement

Premier
Investment
Corporation
Japan Logistics
Fund, Inc.
Overseas REIT

Variousasset types
318.1 bn yen

We have entered into an alliance agreement among 3
companies: Sumitomo Mitsui Finance andLeasing Co., Ltd. (“SMFL”), SMFL MIRAI Partners Co.,
Ltd. (“FLMP”), and Kenedix Real Estate FundManagement, Inc.
Overview of the Alliance Agreement•

Pipeline support to KFM•

Acquisition support through warehousing support by•

Financing for warehousing SPCs by SMFL•

Provision of environmentally-friendly technology and•Other necessary support including cooperation in(Note 2)

Kenedix Office
Investment
Corporation

1,278.7
bn yenas of the end of Mar. 2022

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

Fund management by Kenedix Group (as of the end of March 2022)
REIT (main sponsor) 1,099.5 bn yen 私募REIT

Logistics
property 12%

FLMP

Japan Logistics
Fund, Inc.
Overseas REIT

knowhow
securing human resources and provision of training49

Property Sourcing and Acquisition Methods
Multiple pipelines
Support-line(Kenedix Group incl. Kenedix, Inc., the sponsor)

Unique network of KFM
•
•
•
•
•

Real estate funds
Developers
Financial institutions
Construction companies
Corporate sector

Diversified acquisition methods
Joint acquisition Utilizing bridgewith Kenedix Group
funds

Mitsubishijuko Yokohama Bldg.
(Quasi-co-ownership interest)

KDX Mita Bldg.

Percentage share ofproperties acquired
from related parties (Note)

Brokerage bysponsor

Acquisition
through
corporateacquisition

Strategic mutual transaction with
developers, etc.

Equityinvestment

KDX Yokohama
Kannai Bldg.

KDX Shin-Nihonbashi
Ekimae Bldg.

KDX Toranomon KDX Hamamatsucho KDX Shinbashi
1chome Bldg.
Place
Ekimae Bldg.

Senri Life Science
Center Bldg.

42.5%

Percentage share ofproperties acquired
from third parties (Note)

57.5%

Note: Each percentage of the acuisitions is estimated as of July 29, 2022.

50

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
as approx. 80% of mid/small-sized office buildings are 20 years or older; new supply is limited
Age of property (year)

Mid/small-sized

Large-sized70
Mid/small-sized: 6.07 mn tsubo
Average age: 33.6 years# of properties: 8,620

65
60

Large-sized: 6.91 mn tsubo
Average age: 24.9 years# of properties: 758

55
Office buildings withformer earthquake
resistance standards
1.45 mn tsubo (24%)

Office buildings withformer earthquake
resistance standards
1.03 mn tsubo (15%)

50
45
40

20 years or older
5.04 mn tsubo (83%)
Large supply
during the
bubble period

20 years or older
3.61 mn tsubo (52%)

35
30
25

Large supply in 1994
Large supply in 2003

20

Less than 20 years
1.03 mn tsubo (17%)

Less than 20 years
3.30 mn tsubo (48%)

15
10Large supply in 2012

50
500,000

300,000

100,000

300-lessthan 5,000
tsubo(total floor area)
延床
坪未満（中小規模ビル）
300坪以上5,000(mid/small-sized office buildings)

100,000

300,000

5,000
tsubo
or more (total floor area)
延床
坪以上（大規模ビル）
5,000(large-sized buildings)

Source： Compiled by KFM based on “Office Stock Pyramid 2022" published by XYMAX REAL ESTATE INSTITUTE Corporation on January 12, 2022.

500,000(tsubo)51

Office Building Market (1)Change in asking rent and vacancy rate in Tokyo central 5 wards (January 2002 – April 2022) (Note 1)
Max: 9.43%（2012/6）

(%)

10.0

(yen/tsubo)
24,000

Max: 23,014
yen/tsubo（2020/7）

8.0

22,0006.38%
20,328 yen/tsubo

6.0

20,0004.0

18,000

2.0
0.0

2002

2003
2004
2005
Vacancy rate
空室率（左軸）(left axis)

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Average asking rent
平均賃料（右軸）(right axis)
Note 1: Include office buildings with a standard floor area of 100 tsubo or more in Tokyo business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards)
Source: Miki Shoji “Office Market Data Tokyo Business Area”

Comparison of occupancy rates of KDO office buildings and market average (Note 2) (Note 3)
(%)

99.4

100.0

98.1
96.0

96.5 96.3
95.3

96.2

97.2

97.3
95.4

95.3

95.3

95.9

90.8
90.0

92.4
91.2 91.2

91.1

91.2

90.8

91.3

93.4

91.5

94.4

94.7 95.5

96.4

95.8

99.2

99.7

99.9

96.6

97.4

97.8

98.3

98.4

16,000

97.9

97.7

97.0

2022

99.9

97.2

94.9

95.0

99.6

2021

98.4

96.8
95.4

96.1
94.4

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

93.5

93.6

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

85.0

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
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
10/4
末期 10/10
期末 11/4
期末 11/10
期末 12/4
期末 12/10
期末 13/4
期末 13/10
期末 14/4
期末 14/10
期末 15/4
期末 15/10
期末 16/4
期末 16/10
期末 17/4
期末 17/10
期末 18/4
期末 18/10
期末 19/4
期末 19/10
期末 20/4
期末 20/10
期末 21/4
期末 21/10
期末 22/4
期末
KDO’s
occupancy
fiscalfiscalfiscalfiscal ratefiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalfiscalperiod2010/4

period2010/10

period2011/4

period2011/10マーケット稼働率
Market occupancy rate

period2012/4

period2012/10

period2013/4

period2013/10

period2014/4

period2014/10

period2015/4

period2015/10

period2016/4

period2016/10

period2017/4

period2017/10

period2018/4

period2018/10

period2019/4

period2019/10

period2020/4

period2020/10

period2021/4

period2021/10

period2022/4

本投資法人稼働率
KDO’s occupancy rate

Note 2: Market occupancy rate refers to the average value of Tokyo central 5 wards for each corresponding month published by Miki Shoji.
Note 3: KDO's average occupancy rate refers to the weighted average occupancy rate of the office buildings in Tokyo central 5 wards that KDO owns as of the end of each fiscal period.

52

Disclosure of Analysis on Climate Change
in Line with TCFD Recommendations
Risks and Opportunities

Category

Financial impact

Midterm

Longterm

Low

Low

Low

Mid

Increase in carbon tax costs

Low

Low

Mid

High

Increase in acquisition costs of
non-fossil certificates, etc.

Low

Low

Mid

Mid

Increase in costs due tointroduction of new technology

Low

Low

Low

Mid

•Energy-saving in existing
properties

Decrease in utility costs due toenergy-saving, introduction ofrenewable energy, conversion
to ZEB/ZEH, etc.

Low

Low

Low

Mid

•Acquisition of ZEB/ZEH
properties•Conversion of existing
properties to ZEB/ZEH

Increase in financing costs due
to low valuation

Low

Low

Low

Low

Decrease in financing costs
due to high valuation

Low

Low

Low

Low

Increase in cost of actions toimprove evaluation

Low

Low

Low

Low

Increase in acquisition costs ofenvironmental certifications

Low

Low

Low

Low

Low environmental
performance properties
becoming stranded

Low

Low

Mid

Mid

Maintain and improve
occupancy rates by improving
environmental performance

Low

Low

Mid

Mid

Low resilience properties
becoming stranded

Mid

Mid

Low

Low

Maintain and improve
occupancy rates by improving
resilience measures

Mid

Mid

Low

Low

Increase in disaster recovery
costs

Mid

Mid

Low

Low

Decrease in rental income
during the recovery period

Mid

Mid

Low

Low

Rise in sea level

Increase in costs to cope withsea level rise

Low

Low

Low

Low

Rise in averagetemperature

Increase in utility costs during
summer

Low

Low

Low

Low

Carbon tax

Advancement ofenergy-saving
and renewableenergytechnologies

Evaluation by
investors andfinancial
institutions
Markets

Focus onenvironmental
certification

Tenant behavior
change due toenvironmental
orientation
Reputation
Tenant behavior
change due todisasterprevention
orientation

Physical
Risks
and
Opportunities

Acute

Chronic

Measures to address risks andopportunities

Longterm

Policy andlegal

Transiti
on
Risks
and
Opportunities

1.5℃
Scenario

Midterm

CO2 emission
regulation

Technology

4℃
Scenario

FactorIntensification ofheavy rains andtorrential rains

Increase in costs to improveenergy efficiency of existing
properties•Improvement of energy-saving
in existing properties•Establishment of GHG
reduction targets•Introduction of renewableenergy•Acquisition of non-fossil
certificates, etc.

•Energy-saving in existing
properties•Acquisition of environmental
certifications•Improvement of engagementwith investors and financial
institutions•Utilization of green finance•Acquisition of environmental
certifications•Energy-saving in existing
properties•Acquisition of environmental
certifications•Engagement•Due diligence on acquisition•Flood risk analysis ofproperties•Improvement of resilience•Engagement•Energy-saving in existing
properties

53

List of Green Certified Properties
The property which newly acquired certification for in the fiscal period 2022/4
DBJ Green
Building
Certification

Certification
for CASBEE
for Real Estate

BELS
Certification

DBJ Green
Building
Certification

Certification
BELS
for CASBEE
Certification
for Real Estate

No.

Name

A-3

Higashi-Kayabacho Yuraku Building

A

A-90

KDX Ikebukuro Building

★★

A-6

Harajuku F.F. Building

A

A-93

KDX Iidabashi Square

★★★

★★★

A-14

KDX Funabashi Building

A

A-94

KDX Musashi-Kosugi Building

★★★★

★★★

A-22

KDX Shin-Yokohama Building

A

A-95

KDX Toyosu Grand Square

★★★★

A-32

KDX Shiba-Daimon Building

A

A-97

KDX Utsunomiya Building

A-37

KDX Ochanomizu Building

★★★

A-98

KDX Hiroshima Building

S

A-42

KDX Karasuma Building

★★★

S

A-99

KDX Ikebukuro West Building

A

A-44

KDX Sendai Building

S

A-100

Senri Life Science Center Building

★★★

A-46

Hiei Kudan-Kita Building

A-101

KDX Yokohama Building

★★★

A-48

KDX Kawasaki-Ekimae
Hon-cho Building

S

A-106

KDX Sakura-dori Building

★★★

A-109

KDX Hamamatsucho Center Building

A-51

KDX Hamacho Nakanohashi Building

A

A-110

KDX Shin-Osaka Building

A-53

KDX Hakata-Minami Building

A

A-111

KDX Nagoya Nichigin-mae Building

★★★

A-58

KDX Nagoya Sakae Building

★★★

A-112

KDX Toranomon 1chome Building

★★★★

A-60

KDX Harumi Building

★★★

A-115

ARK Mori Building

A-63

KDX Gotanda Building

A

A-116

KDX Nishi-Shinbashi Building

A-66

KDX Shinjuku Building

★★

S

A-117

BR Gotanda

A-69

KDX Kobayashi-Doshomachi Building

★★★

S

A-119

KDX Shibuya Nanpeidai Building

★★

A-72

KDX Higashi-Shinagawa Building

★★★

A-121

Ginza 4chome Tower

★★

A-79

KDX Nagoya Ekimae Building

★★

A-122

Mitsubishijuko Yokohama Building

A-82

KDX Higashi Umeda Building

★★

A-123

KDX Yokohama Kannai Building

★★★

A-83

KDX Fuchu Building

★★

A-124

KDX Hamamatsucho Place

★★★★

A-84

KDX Kasuga Building

A

A-125

KDX Chofu Building

A-85

KDX Nakameguro Building

A

A-128

KDX Shinbashi Ekimae Building

★★★★

★★

No.

Name

S

A
A

S
S

★★★
A

S

★★★

★★
S

★★

54

KDO Unitholders(As of the End of the Fiscal Period Ended April 30, 2022)
Changes in unit holding ratio by type of unitholders (Note)

End of fiscal
期末
21/4
period2021/4End of fiscal

21/10
期末
period

61.7%

3.2%

2.3%

Top 10 unitholders (Note)

32.9%

3.1%

63.8%

2.3%

Percentage
share

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

75,350

17.6%

The Master Trust Bank of Japan, Ltd. (Trust Acct.)

73,35817.1%

STIZHTING PENSIOEN FONDS ZORG EN WELZIJN

26,186

6.1%

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

20,966

4.9%

Kenedix, Inc.

15,421

3.6%

Custody Bank of Japan, Ltd.
(Securities Investment Trust Acct.)

12,687

3.0%

SMBC Nikko Securities Inc.

12,5202.9%

STATE STREET BANK WEST CLIENT - TREATY 505234

5,836

1.4%

Mizuho Securities Co., Ltd.

5,708

1.3%

THE BANK OF NEW YORK 133969

5,531

1.3%

253,563

59.2%

30.8%

2021/10End of fiscal
期末
22/4
period2022/4# ofunits held
(unit)

Name

3.0%

59.4%

5.3%

32.3%

and others 金融機関（含む証券会社）
cos.
cos. and individuals■ Individuals■ Financial inst.
■ Other domestic■ Foreign
個人・その他
その他国内法人
外国法人・外国個人(incl. securities cos.)

Number of unitholders

Individuals and Others(Person)End of fiscal
period2021/4End of fiscal
period2021/10End of fiscal
period2022/4

4,244

4,192

4,130

9

9

8

33

30

31

60

68

66

City / Trust Bank
Regional Bank
Financial Inst.
(Incl. Securities Credit Union and Others
Cos.)
Life / Nonlife, Securities

28

30

30

Total

130

137

135

Other Domestic Cos.

93

94

86

Foreign Cos. and Individuals

283

291

295

Total

4,750

4,714

4,646

Total

Note: Ratios are rounded to the first decimal place.

55

Historical Changes in Unit PriceHistorical changes in unit price (January 4, 2012 – May 31, 2022)(yen)
1,000,000
PO 公募増資の実施
Public offering

800,000
Nov.
2013

600,000

Nov.
2014
May
2014

PO

May
2018

Inclusion into indices• FTSE EPRA/NAREIT
Global Real Estate Investors index

PO

PO

PO

400,000• S&P Global Property Index/
S&P Global REIT Index

200,0000

2012/1 2012/7 2013/1 2013/7 2014/1 2014/7 2015/1 2015/7 2016/1 2016/7 2017/1 2017/7 2018/1 2018/7 2019/1 2019/7 2020/1 2020/7 2021/1 2021/7 2022/1

本投資法人投資口価格
KDO unit priceComparison between rebased unit price and TSE REIT Index(January 4, 2012 – May 31, 2022)
400
350• TSE REIT Core Index

300(started on March 26, 2018)

250
200
150
100
50

2012/1 2012/7 2013/1 2013/7 2014/1 2014/7 2015/1 2015/7 2016/1 2016/7 2017/1 2017/7 2018/1 2018/7 2019/1 2019/7 2020/1 2020/7 2021/1 2021/7 2022/1

KDO unit price (rebasing
January
4,日20122012=100=） 100)
本投資法人投資口価格（
年1月4

TSEREIT
REIT指数（Index
2012(rebasing
January=100） 4, 2012 = 100)
東証
年1月4日

56

Allocation rule for property information in the Groupand management guidelines
Kenedix Group's fund management structure

Overview of preferential study rights for property information

70% owned
100% owned

Kenedix, Inc.

Sumitomo Mitsui Finance and Leasing
Company, Limited

100% owned

Kenedix Investment
Partners, Inc.
(Private funds business)

100% owned

SMFL MIRAI Partners Company,
Limited• For mid-sized office buildings (Note 1), KDO’s main investment targets,
KDO will have the first opportunity to consider property acquisition
among the other REITs if the following conditions are satisfied:
Location

Total floor area per building (m2)Tokyo 23 wards

2,000 or more, 13,000 or lessOutside Tokyo 23
wards

3,000 or more, 20,000 or less

Support-line
OfficeREIT Dept.

Residential
REIT Dept.

RetailREIT Dept.

PrivateREIT Dept.

Kenedix Office
Investment
Corp.

Kenedix
Residential
Next
Investment
Corp.

Kenedix Retail
REIT Corp.

Kenedix
PrivateInvestment
Corp.

Mid-sized
officebuildings

1st

-

-

2nd

Other officebuildings

2nd

-

-

1st

Residential
properties

-

1st

-

2nd

Central urban
retail/service
properties

3rd-

1st / 2nd

2nd / 1st

Logistics
facilities

-

-

1st

2nd

Kenedix Real Estate Fund Management, Inc.
Kenedix Office
Investment Corp.
(KDO)

Kenedix
Residential Next
Investment Corp.
(KDR)

Kenedix Retail
REIT Corp.
(KRR)

Kenedix Private
Investment Corp.
(KPI)

KDO management guidelines
Targeting portfolio

Officebuildings

Of office buildings, rental office buildings whose main use
under the Building Standards Act is office and whose total floorarea (Note 1) of the entire building fulfills the following:・Tokyo 23 wards: Total floor area 13,000 m 2 or less・Outside Tokyo 23 wards: Total floor area 20,000 m 2 or lessTargetinvestment ratio

80%～100%

Of office buildings, those that do not fall under the category of
the above
Central urban
retail properties

OthersRetail properties with high tenant substitutability located inhighly bustling districts (Note 2)(Note 2)0%～20%

Land with third-party leasehold (limited proprietary right ofland) or buildings with floor area whose use under the BuildingStandards Act is not subject to investment (Note 3) that are notoffice buildings or central urban retail properties

Note 1: Total floor area of the entire building stated in the certificate of all registered matters.
Note 2: Tokyo central 5 wards (Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku and Shibuya-ku) or central parts ofgovernment-designated cities.
Note 3: Residential properties, logistics and warehouse facilities, amusement parks, medical, nursing andhealth care-related facilities and golf courses.

Note 1: Office building refers to a property or an asset backed by that in which office use weighs thelargest share of total floor area based on floor area use in accordance with the Building Standards
Law.
Note 2: Retail property is categorized as "retail property" if retail stores occupy the largest floor area and as"service property" if service stores occupy the largest floor area. KRR and KPI have the first andsecond preferential study rights, respectively, in “retail property". KPI and KRR have the first andsecond preferential study rights, respectively, in “service property“.

57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.

58

59