Translation of Japanese Original
September 18, 2024
To All Concerned Parties
REIT Issuer:
KDX Realty Investment Corporation
Representative: Hiroaki Momoi, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Representative: Akihiro Asano, President & CEO
Contact:
Michiru Nagamata, Head of Strategic Planning,
Listed REIT Department
TEL:+81-3-5157-6010

Notice Concerning Acquisition of Property (KDX Residence Higashiyukigaya)
KDX Realty Investment Corporation (“KDXR”) announced today that Kenedix Real Estate Fund Management, Inc.
(the “Asset Management Company”), the asset management company for KDXR, decided to acquire the following
property (the “Acquisition”).
1. Overview of the Acquisition
Property
Number

Property Name

Location

AnticipatedAcquisition Price(Millions of Yen)

Appraisal
NOI Yield (%)(Note 1)

B1106
(1)
(2)
(3)
(4)
(5)

KDX Residence Higashiyukigaya(Note 3)

Ota-ku, Tokyo

Brokerage(Note 2)

2,700

4.5

N/A

Contract Date:
September 18, 2024
Scheduled Acquisition Date: September 25, 2024
Seller:Please refer to “4. Overview of the Seller” for details.
Acquisition Funds:
Borrowings (Note 4) and cash on hand (planned)
Settlement Method:
Payment in full at settlement(Note 1) “Anticipated Acquisition Price” is the purchase price (excluding acquisition costs, settlement of property tax and city

planning tax, and consumption tax, etc.) indicated in the trust beneficiary interest sale and purchase contract, and is rounded
down to the nearest million yen. The same shall apply hereafter.
(Note 2) “Appraisal NOI Yield” is calculated by dividing the appraisal NOI of the property as on the appraisal report as of August
1, 2024 by the anticipated acquisition price for the property and rounded to the first decimal place.
“Appraisal NOI” refers to NOI (Net Operating Income) before depreciation expenses, which is calculated by deducting theoperating expenses from the operating revenues described in the appraisal report, and thus, differs from NCF (Net CashFlow) which is calculated by adding the profit from the investment of tenant deposits to and deducting capital expendituresfrom NOI. The appraisal NOI here is the NOI calculated using the direct capitalization method.
(Note 3) KDXR plans to change the property name after the acquisition. Accordingly, the property name after the change is shownin this material.
(Note 4) For details, please refer to the press release “Notice Concerning Debt Financing (Series 0019)” dated today.

The property to be acquired shall hereafter be referred to as the “Property”.
2．Reason for the Acquisition
In accordance with the “Asset Management Targets and Policies” set forth in the Articles of Incorporation of KDXR,
it has decided to acquire the property with the aim to improve portfolio quality and maximize unitholder value.
KDXR expects further portfolio growth with the acquisition of the Property, which has potential upside throughactive management, including renovation.
Furthermore, KDXR has considered the following characteristics in determining the Acquisition.
(ⅰ) Location
The Property is a residential complex located approximately 14-minute walk from “Ontakesan” station on theTokyu Ikegami Line and approximately 19-minute walk from “Nishi-magome” station on the Toei Asakusa
Line. The location has excellent access to business and commercial areas in the main areas of Tokyo andYokohama. It is about 15 minutes from “Ontakesan” station to “Gotanda” station and about 26 minutes to“Shinagawa” station, and is about 16 minutes by bus to “Denenchofu” station on the Tokyu Toyoko Line andTokyu Meguro Line from the “Yukigaya Cultural Center” stop on the Tokyu Bus, which is about a 3-minute
walk from the property. Furthermore, it is about 15 minutes from “Denenchofu” station to “Shibuya” station
1

about 25 minutes to “Yokohama” station. Furthermore, the area surrounding “Ontakesan” station and “Nishimagome” station has convenient living facilities such as supermarkets and restaurants, and the area aroundthe Property has a concentration of hospitals, post offices, elementary and junior high schools, parks and otherpublic facilities, therefore, stable demand is expected from family and DINKS households who preferconvenience of living and commuting to work and school.
(ⅱ) Building
The Property is a family-type residential property composed of 6 units of 2LDK layout and 53 units of 3LDK
layout, completed in April 1998. In 2022, large-scale repairs has been carried out in the common areas, andrenovation work is being carried out sequentially in the private areas, including upgrading facilities such as
kitchens, washstands and bathtubs, to improve the comfort of living. KDXR believes that the Property canexpect rental demand oriented towards the number of rooms and comfort of living due to the prevalence ofwork from home, in addition to the convenience of living and commuting.
3．Overview of the Property
Property Name
Type of Specified Asset
Trustee
Trust Period
Location
Form of OwnershipLand Area
Land

ZoningBuilding Coverage Ratio
Floor-area Ratio
Form of Ownership
Gross Floor Area
Completion Date
BuildingUsageTypeStructure / No. of FloorsEarthquake PML
Anticipated Acquisition PriceAppraisal Value
Date of Appraisal
Appraisal
Appraiser
OutlineCollateral
Master Lessee Company
Type of Master Lease
Property Management Company
Details of Tenant
Total Number of Tenants
Total Leasable Area
Total Leased Area
Total Leasable Units
Total Leased Units
Occupancy Rate during Past FiveYears
Monthly Rent and Common Area
Charge (excluding consumption tax)
Security and Guarantee Deposits
Remarks
Not applicableOther

KDX Residence Higashiyukigaya
Trust beneficiary interest in real estate
Sumitomo Mitsui Trust Bank, Limited (planned)
From September 30, 2022 to September 30, 2044
5-36-1 Higashiyukigaya, Ota-ku, Tokyo
Proprietary ownership
2,489.63 m2
Category 1 medium-to-high-rise exclusive residentialdistricts
60%
200%
Proprietary ownership
4,231.67 m2 (Note)
April 1998
Apartment building
Family type7-story reinforced concrete structure, flat roof
6.6%
2,700 million yen
2,890 million yen
August 1, 2024
Japan Real Estate Institute
Please refer to “10. Summary of Appraisal Report”
below.
None
Tokyu Housing Lease Corporation (planned)
Pass throughTokyu Housing Lease Corporation (planned)
1
4,025.87 m23,616.13 m2
59 units
53 units
2020
2021-2022-

2023
98.3%

2024
89.8%

8,642 thousand yen
12,494 thousand yen

Note: “Gross Floor Area” of the building does not include the area of the annexed building (electricalroom of 20.01 m2).

2

The table above shows the overview of each property to be acquired of (the “Individual Asset Table”). In addition,
the terms used in the Individual Asset Table are as follows. Please refer to the Individual Asset Table together withthe explanation on the terms listed below. In principle, unless otherwise specified, the status as of August 31, 2024
is indicated.










“Location” is the indication of the residential address.
“Building Coverage Ratio” and “Floor-area Ratio” are the designated building-to-land ratio and designated floor-arearatio provided in the city plan (if there are more than one, both). The designated building-to-land ratio may be relaxed
or restricted since the property is a fireproof building in a fire zone or for other reasons and may differ from the buildingto-land ratio actually applied. The designated floor-area ratio may be relaxed or restricted due to the width of roads
adjacent to the land or other reasons, and may differ from the actual applicable floor-area ratio.
“Type” is the classification of the principal residential unit, among studio type, small family type or family type as
described below.
Studio type
Small family type
Family type(housing mainly for single(housing mainly for married-couple (housing mainly for family
households)
households and family households
households of 3 person or more)with an infant)
The exclusively owned area per
The exclusively owned area per
The exclusively owned area perresidential unit contains at least 18
residential unit contains at least 30
residential unit contains at least 60
m2, but less than 30 m2 and at leastm2, but less than 60 m2 and at leastm2 per unit and at least 5 residential
20 residential units per property.
15 residential units per property.
units per property.
“Earthquake PML” indicates the figure described in the earthquake PML valuation report (level 2) prepared by Sompo
Risk Management Inc. in August 2024.
“Master Lease Company” is the master lease company scheduled to execute the master lease agreement for the property.
“Type of Master Lease” is described as follows; “Pass through” for those with a master lease agreement without a rent
guarantee concluded or scheduled to be concluded, “Rent guarantee” for those with a master lease agreement with arent guarantee concluded or scheduled to be concluded, and “-” in the case that the owner has or will conclude a leaseagreement directly with the end tenant, or where there is no end tenant.
“Property Management Company” indicates the property management company that has entered into or will enter into
a property management agreement for the property.
“Total Number of Tenants” is the number of lessees, and when the same lessee leases or will lease multiple parcels,such lessee is counted as one. In cases where the master lease company has executed or will execute a pass-throughmaster lease agreement with the lessor, the number of end tenants is stated in brackets after the number of master lease
companies. For residential properties, when a master lease agreement is concluded or will conclude with a master leasecompany, the "Total Number of Tenants" is counted as one.
“Total Leasable Area” is the floor area described in the lease agreements that is leasable at the property.
“Total Leased Area” is the leased floor area described in the lease agreements or sublease agreements which are actuallyexecuted with end tenants.
“Total Leasable Units” is the number of leasable residential units as of August 31, 2024.
“Occupancy Rate during Past Five Years” is the ratio of the “Total Leased Areas” (based on the lease agreements) tothe “Total Leasable Area” of the property rounded to the first decimal place. The figures shown are those disclosed by
the seller for each year from the end of August 2024 to past five years.
“Monthly Rent and Common Area Charge (excluding consumption tax)” is the total of the monthly rent and monthly
common charges according to the lease agreements or the sublease agreements actually executed with the end tenants(excluding taxes, car parking space usage fees and trunk room charges), and the figures are rounded down to the nearest
thousand yen.
“Security and Guarantee Deposits” is the total of the security deposit (in case there is any portion that is not required
to be returned due to special provision of deduction of security deposits, amortization of security deposits, etc. in eachlease agreements or the sublease agreements, it is the amount after such amount is deducted) and the balance of theguarantee deposit as stipulated in the lease agreements or the sublease agreements, and the figures are rounded down
to the nearest thousand yen.

4．Overview of the Seller
Company NameLocation
Title and Name of Representative
Description of BusinessAmount of Capital
Date of Incorporation
Net Assets
Total Assets
Major Shareholder and Ratio

Fuyo General Lease Co.,Ltd.
5-1-1, Kojimachi, Chiyoda-ku, Tokyo
Hiroaki Oda, President & CEO
Leasing of machinery, appliances and real estate, and financial
instruments business such as installment sales and loan of money.
10,532 million yen (as of March 31, 2024)
May 1, 1969
477,326 million yen (as of March 31, 2024)
3,390,324 million yen (as of March 31, 2024)
Hulic Co., Ltd. (13.96%)
The Master Trust Bank of Japan, Ltd. (Trust Acct.) (9.06%)
Meiji Yasuda Life Insurance Company (8.46%)(as of March 31, 2024)
3

Relationship between the Seller and KDXR / the Asset Management Company
There is no special capital relationship between KDXR or the Asset
Capital RelationshipManagement Company and the seller.
There is no special personnel relationship between KDXR or the Asset
Personnel RelationshipManagement Company and the seller.
There is no special business relationship between KDXR or the AssetBusiness RelationshipManagement Company and the seller.
The seller is not deemed a related-party with special
Related-Party
interests relating to KDXR or the Asset ManagementRelationships
Company.
5．Property Acquirer and Previous Owner’s Profile
Details are omitted since the sellers of the Properties are not special related parties of KDXR or the AssetManagement Company.
6．Brokerage
There is no brokerage for the Acquisition.
7．Related-Party Transactions
There are no related-party transactions for the Acquisition.
8．Schedule of the Acquisition
Acquisition Decision Date / Contract Date
Payment Date / Acquisition Date

September 18, 2024
September 25, 2024 (planned)

9．Outlook
The impact of the Acquisition on the financial results for the fiscal periods ending October 31, 2024 (from May 1,2024 to October 31, 2024) and April 30, 2025 (from November 1, 2024 to April 30, 2025) is minimal. Therefore,
the forecasts of financial results for the fiscal periods remains unchanged.

4

10．Summary of Appraisal Report
Property NameKDX Residence Higashiyukigaya

Appraisal Value
Appraiser
Date of Appraisal
Item2,890,000,000 yen
Japan Real Estate Institute
August 1, 2024
Breakdown

Income Capitalization Approach
Value

2,890,000,000

Value based on Direct
Capitalization Method

2,900,000,000(1) Gross Operating Revenue
General OperatingRevenue
Vacancy-Related Loss

145,887,000
151,999,000
6,112,000(2) Operating Expenses

25,512,000

Maintenance Fees

4,762,000

Utility Expenses

1,200,000

Repairs

4,803,000

PM Fees

2,784,000

Tenant MarketingExpenses

3,960,000

Property Taxes

7,592,000

Insurance Expenses
Other Property-RelatedExpenses(3) Net Operating Income(NOI=(1)-(2))(4) One-Time Gain

411,000
0

Assessed based on a level of fair rent considered
to remain stable over the medium and long term,
assuming renovation work in the residential area.
Assessed based on the assumption of an
occupancy rate that remains stable over themedium and long term.
Assessed with reference to the maintenance andmanagement fees based on the contract terms, thefee level of similar properties, etc.
Assessed in consideration of the performance ofsimilar properties.
Assessed in consideration of the actual amounts inthe prior years, expenses at similar properties,
annual average repair, maintenance and renewalexpenses, etc. in the engineering report.
Assessed in consideration of compensation rates
based on contract terms and compensation rates,etc. at similar properties.
Assessed with reference to the contract terms andthe lease terms of similar properties.
Assessed an amount based on the fiscal year 2024
tax statement, etc.
Recorded with consideration of the insurance
premium rate at similar properties.
There are no special expenses to be recorded.

120,375,000
175,000(5) Capital Expenditure

7,370,000(6) Net Cash Flow
(NCF＝(3)+(4)-(5))

113,180,000(7) Cap Rate

Unit: Yen
Basis
Calculated with the value based on the DCF
method in conjunction with the value based on
the direct capitalization method.
Calculated by dividing the standardized NCF thatremains stable over the medium to long term by
the cap rate.

3.9%

5

Assessed income from investments by using an
investment return of 1.0%.
Assessed taking into account the level of capital
expenditures at similar properties and the age ofthe property, assuming that an equal amount is
added to a reserve in each fiscal period.

Assessed by comprehensively taking into accountthe property’s location, the conditions of thebuilding and other conditions (including the costof renovation works on resident areas).

2,880,000,000

Value based on DCF method
Discount rate

3.3%

Terminal Cap Rate

3.6%

Value based on Cost Method

3,240,000,000

Ratio of Land

91.7%

Ratio of Building

8.3%

The appraiser’s points to consider
upon appraisal other than the above

Assessed by comprehensively taking into accountthe property’s unique characteristics by reference
to transaction yields at similar properties.
Assessed by comprehensively taking into accountupcoming changes in investment returns, risks
associated with the Property, general prediction ofeconomic growth rate, trends in real estate prices
and rental rates, and all other applicable factor,
while reflecting returns associated withacquisitions of similar properties.

Adopted income approach value from the judgment that the income
approach value is more persuasive because it is the price calculated
according to price formation process from the aspect of earnings, while
using the value calculated based on the cost approach as a reference.

＜Attached Materials＞
・Reference Material 1: Photographs and Map of the Property
・Reference Material 2: Status of Property Portfolio of KDXR (After the Acquisition)
KDXR’s Website: https://www.kdx-reit.com/eng/[Provisional Translation Only]
This document is an English translation of the original Japanese document and is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

6Reference Material 1: Photographs and Map of the Property

7Reference Material 2: Status of Property Portfolio of KDXR (After the Acquisition)
Property Type
Office Buildings
Residential Properties
Retail Facilities
Logistics Facilities
HotelsHealthcare Facilities
Portfolio Total(Anticipated)
Acquisition Price(Millions of Yen)
429,996
323,074
287,421
26,262
48,64083,768
1,199,162

Number of Properties
93144
61
13540356

Investment Ratio (Note)
(%)
35.9
26.9
24.0
2.2
4.1
7.0
100.0

(Note) “Investment Ratio” indicates the ratio of (Anticipated) Acquisition Price of each asset type to Portfolio Total and is rounded
to the first decimal place.

8