Kenedix Retail REIT Corporation Security Code: 3453
Financial Results
for the 15th Fiscal Period ended September 30, 2022
November 16, 2022

Contents
Section 1

Executive summary2

Section 2

KRR highlights and updates

12

Section 3

Growth strategies focusing on stability

19

Appendix 1

Key characteristics of KRR

30

Appendix 2

Portfolio and unitholder information

39

Security Code

3453
01

Executive summary

Executive summary

Promoting growth strategies in an unstable environment• Conducted the 6th public offering (Note 1) in October 2022 for the first time in 1.5 years

External
growthInternal
growthGrowthstrategies
andissues• Acquired 5 properties for JPY 21.9 billion with average appraisal NOI yield of 5.1%,
since the 15th FP• Continued strong performance of KRR’s core tenants that deal with daily necessities,
even amid the prolonged COVID-19 pandemic• Increased occupancy rate/contract ratio of the properties acquired with low occupancy rate,
through steady progress in leasing• While keeping the stability of shopping centers for daily needs as a base, explore theupside potential by increasing sales-linked rent through acquisition of iias Kasugai,
which have high ratio of service-oriented tenants(Note 2) and sales-linked rent,with a focus on post-pandemic environment• Expecting a decrease in DPU forecasts due to the impact of rising electricity charges.
Aim to reduce such impact by passing on the charges to the tenants

Note 1: May be referred to as “this offering” in this material. The series of initiatives including this offering, related borrowings, and acquisition of assets shall be referred to as “this offering, etc.” Completion day of this offering, etc. is referred to as “after this offering, etc.”
Note 2: “Service-oriented tenants” refer to the tenants mainly providing services, including movie theater and other amusement facilities, sports clubs, and restaurants.

3

Executive summary

Summary of the 6th public offering
Overview
Offering format

Offering size

Number of units issued

Unit price and market capitalization
KRR's unit price(left axis)

TSE REIT Index(left axis) (Note)

Market capitalization(right axis)

Domestic offering(with extraordinary report filing,
institutional investors-only)(JPY)
350,000

Total amount:
Public offering:(Of which sold tooverseas investors) :300,000

300,000

250,000

250,000

200,000

200,000

150,000

150,000

100,000

100,000

50,00050,000

Apr. 7, 2021
5th PO launch date

Oct. 6, 2022
6th PO launch date

(JPY mn)
350,000

JPY 5,122 million
JPY 5,122 million
JPY 2,049 million

20,000 units

Total number of units
outstanding(post-offering)

602,177 units

Issue price

JPY 256,132

Net proceeds

JPY 4,954 million

Launch date

October 6, 2022

Pricing date

October 13, 2022

Subscription period

October 14, 2022

Payment date

October 19, 2022
0Feb. 20, 2020

Sep. 20, 2020

Note: Calculated using the TSE REIT Index as of Feb. 20, 2020 when the 2020 highest price was recorded for the TSE REIT Index as the closing price for KRR unit price.

Apr. 20, 2021

Nov. 20, 2021

0Jun. 20, 2022 Nov. 14, 2022

4

Executive summary

Portfolio summary
Characteristics of KRR portfolio(Note 1)
Total
appraisal value

Appraisal
NOI yield(Note 2)

NOI yield after
depreciation(Note 2)

Occupancy rate(Note 3)

4 majormetropolitan areas

Shopping centers
for daily needs

Grocery anchored
shopping centers(Note 4)

JPY 289.8 bn

5.2%

4.2%

99.3%

82.6%

94.2%

89.6%

Trend in AUM (based on acquisition price)(JPY bn)300

1st follow-on
offering

2nd follow-on
offering

3rd follow-on
offering

4th follow-on
offering

5th follow-on
offering(Oct. 2015)(Apr. 2016)(Apr. 2017)(Oct. 2019)(Apr. 2021)

13 properties
JPY 37.9bn

8 properties
JPY 28.6bn

10 properties
JPY 38.1bn

12 properties
JPY 33.9bn

4 properties
JPY 22.3bn(acquisition price)(acquisition price)(acquisition price)(acquisition price)(acquisition price)

This offering(Oct. 2022)

5 properties
JPY 21.9bn(acquisition price)

Top 5 properties
269.2

245.2

250
225.8
204.9

206.1

212.8

150

247.2

(based on acquisition price)

253.6

Kasugai 5.4%
Hamakita 4.4%
Tsunashima 4.3%
HAT Kobe 4.1%
Top 5
Kitera Chofu
3.9%
properties

226.7

213.2
200.9

200
158.7

226.4

Diversification of
portfolio
post-offering

164.3

22.1%

131.6
others 77.9%

100

80.8

91.8

Top 10 tenants(based on rent)

50

0
At Listing 1st period 2nd period 3rd period 4th period 5th period 6th period 7th period 8th period 9th period 10th period 11th period 12th period 13th period 14th period 15th period Post(Feb. 2015)(Sep. 2015)(Mar. 2016)(Sep. 2016)(Mar. 2017)(Sep. 2017)(Mar. 2018)(Sep. 2018)(Mar. 2019)(Sep. 2019)(Mar. 2020)(Sep. 2020)(Mar. 2021)(Sep. 2021)(Mar. 2022)(Sep. 2022) offering

Number ofproperties

18

Tenants 286(Note 5)

19

33

40

42

51

52

53

53

55

62

62

64

66

66

68

70

321

389

405

409

542

522

520

511

480

496

496

502

528

519

524

593

A. 6.8%B. 4.6%C. 3.8%D. 3.7%E. 3.5%
Top 10F. 3.3%tenants
G. 3.0%37.1%
H. 2.9%I. 2.9%J. 2.7%
Others 62.9%

Note 1: Figures are as of Sep 30, 2022 for the properties held as of the date of this material. As for iias Kasugai and Coop Sapporo Shunko, appraisal value and NOI yield are as of Sep. 1, 2022.
Note 2: “Appraisal NOI Yield” is calculated by dividing appraisal NOI from the latest appraisal reports by acquisition price. Please refer to page 26 for details of the appraisal NOI of Kitera Plaza Aobadai.
NOI yield after depreciation is calculated by deducting the depreciation from the aforementioned appraisal NOI and dividing the figure by acquisition price.
Note 3: As Kitera Plaza Aobadai is under conversion, its occupancy rate is 0% as of Sep. 30, 2022. However, if we exclude this property, the occupancy rate is 99.5%.
Note 4: ”Grocery anchored shopping centers” ratio is calculated by dividing total acquisition price of grocery anchored shopping centers by total acquisition price of retail properties.
Note 5: “Number of tenants” at listing is figure as of Sep. 30, 2014.

5

Executive summary

Selective investments adapting to trend changes
Through this offering, KRR makes acquisitions adapting to trend changes, including assets with tenant mix focused on grocery
supermarkets enabling stable management even amid the pandemic and retail trade areas with demographic advantages
List of the new acquisitions

Changes in the portfolio through this offering
Retail distribution
centers

Shopping centers for daily needs
iias Kasugai

Coop Sapporo Shunko(Mar. 31, 2022)

The new
acquisitions

Postoffering

66

5

70

Total acquisition
pricesJPY 247.2bn

JPY 21.9bn

JPY 269.2bn

Total appraisal
value(Note)

JPY 266.8bn

JPY 22.6bn

JPY 289.8bn

Averageappraisal NOI
yield

5.2%

5.1％

5.2％

Four major
metropolitan
areas(based on
acquisition price)

82.0％

89.5％

82.6％

Retail facilities
with groceryrelated tenants(based on
acquisition price)

88.6％

100.0％

89.6％

14th FP

Properties acquired in 15th FP

Properties acquired in 16th FP

Higashimatsuyama
Shopping Center

Sun Street Hamakita(Additional acquisition)

Prima Meat Packers
Kinki Center

The new
acquisitions

Number ofproperties

Area

Greater Nagoya

Ordinance-designatedcities and core cities

Tokyo metropolitan area

Ordinance-designatedcities and core cities

Greater Osaka

Location

Kasugai, Aichi

Asahikawa, Hokkaido

Higashimatsuyama,
Saitama

Hamamatsu, Shizuoka

Osaka, Osaka

Acquisition
date

October 26, 2022

October 7, 2022

April 28, 2022

April 15, 2022

April 28, 2022

Acquisition
price(JPY, mn)

14,490

1,110

4,080

1,200

1,047

Appraisal value(JPY, mn)

14,490

1,220

4,650

1,210

1,080

Appraisal NOI
yield (％)

4.6%

6.3%

6.4%

5.7%

5.2%

Acquisition
route

Sponsor (brokerage)

Proprietary

Alliance Co.

Proprietary

Proprietary

Main tenant

Seiyu Co., Ltd.

Coop Sapporo

Seiyu Co., Ltd.

Seiyu Co., Ltd.

Fukuda and Partners
Co., Ltd.

Highlights

One of the largest NSCs,
newly built in Kasugai, Aichi,
with a stable retail trade areaand diversified tenants

An NSC for daily needs of
local residents, housing Coop
Sapporo as the core tenant,located in Asahikawa,
Hokkaido’s second-largest
city

An NSC housing a grocery
store as the core tenant andspecialty stores providing
daily necessities with easy
access to wide areas
including the city center

KRR acquired soleownership in the large NSC
located in a residential areawith growing population byacquiring additional 10%
quasi-co-ownership interest

A distribution center withadvantages in easy accessto CBD in the Greater Osaka
area and securing labor force

Note: Total appraisal value of the assets held at the end of the 14th FP is updated to as of the 15th FP for post-offering. Therefore, the sum of the total appraisal value of the assets held at the end of the 14th FP and that of the new acquisitions do not match the post-offering total appraisal value.

6

Executive summary

DPU, NAV per unit and unrealized gain
DPU (Note 1)
(JPY)
7,500

7,328
7,095

7,090

7,000
6,477

6,500

6,486

6,535

6,546
6,484
6,360

6,255

6,299

6th period(Mar. 2018)

7th period(Sep. 2018)

Incl. gain on sale of Daikanyama

6,240

6,000

0
8th period(Mar. 2019)

9th period(Sep. 2019)

10th period(Mar. 2020)

11th period(Sep. 2020)

12th period(Mar. 2021)

13th period(Sep. 2021)

14th period(Mar. 2022)

15th period(Sep. 2022)

NAV per unit (Note 2)

16th period(Mar. 2023)
Forecast

17th period(Sep. 2023)
Forecast(JPY)
270,000
262,998
258,148

260,000

254,616
251,614251,438

251,701

252,462

259,730

254,861

247,548

250,000

243,257

244,777

238,931240,000
230,058

231,555

230,000

220,000

0

1st period 2nd period 3rd period 4th period 5th period 6th period 7th period 8th period 9th period 10th period 11th period 12th period 13th period 14th period 15th period(Sep. 2015) (Mar. 2016) (Sep. 2016) (Mar. 2017) (Sep. 2017) (Mar. 2018) (Sep. 2018) (Mar. 2019) (Sep. 2019) (Mar. 2020) (Sep. 2020) (Mar. 2021) (Sep. 2021) (Mar. 2022) (Sep. 2022)
Unrealized JPY 2,130
gain
mn

JPY 4,657
mn

JPY 6,720
mn

JPY 8,493 JPY 10,861 JPY 12,270 JPY 14,213 JPY 14,438 JPY 14,695 JPY 15,572 JPY 14,565 JPY 15,753 JPY 17,501 JPY 17,982 JPY 19,458
mn
mn
mn
mn
mn
mn
mn
mn
mn
mn
mn
mn

Note 1: The boxes in orange lines indicate the forecasts as of. May 18, 2022.
Note 2: NAV per unit at the end of each FP = (net assets + unrealized appraisal gains/losses on the entire portfolio at the end of each FP – total distributions) / (total number of investment units issued at the end of each FP).
The assumed costs of the Kitera Plaza Aobadai conversion is deducted from the calculation of unrealized appraisal gains/losses on the entire portfolio.

7

Executive summary

DPU impact and forecast assumptions
DPU

Positive factors

Negative factors

(JPY)
7,500

Absence of gain on sale(net increase in incomeDPU-linked AM fee)in 14th FP

7,000

609

Increase in
NOI(acquisitionin 14th and15th FP)

Termination
Othersfee(Absence of (P-1)
nondeductible
consumption 137
tax, etc.)

94

6,500
82

Increase indepreciation

97

110

Absence of
payment
for past
electronic
charges

182
Payment
for past
electronic
charges

Increasein utility
cost

Decrease in
NOI from159
the sale of
ShonanFujisawa, Expensing
Jiyugaoka property
taxes(acquisitionin 2021)

7,090

6,000

370

Increase in NOI(full contributionof acquisition in
15th FP,
completion of
Aobadaiconversion andacquisition in
16th FP)

137

181

182
286

Absence ofterminationfee (P-1)

536
Increasein utility
cost

6,529

6,516

6,481

6,419

6,399

6,419

6,484

6,484
6,347

6,347
6,243

6,240

20
Increase indepreciation Others(increasein interest
expenses,
etc.)

136

54
Expensingpropertytaxes(acquisitionin 2022)

218

Dilution
due toissuanceof new
investment
units

6,380

6,360

Increase in
NOI

13

25

Increasein utility
cost

Others

6,265

6,240

6,360
6,224

6,224

6,240

6,025

6,240

6,025

0

第14期
Mar.
2022
14th FP
Actual

第15期
Sep.
2022
15th FP
Actual

第16期
Mar.
2023
16th FP
Forecast

第17期
Sep.
2023
17th FP
Forecast

8

Executive summary

Impact of rising electricity charges
Electricity charges borne by tenants in the portfolio (based on acquisition price)
Properties where
tenants bear all
electricity charges(Single tenant, land
only properties, etc.)
55.6%

Breakdown of electricity charge expense(8 properties where tenants do not bear all or part of variable costs (ii))(JPY mn)
500

Fixed unit cost type
12.2%

300

Combination of
fixed and variable
unit cost types
11.4%(ii) Properties where
tenants do not bear
all or part of variable
costs

23.5%

(i) Variable unit
cost type(tenants bear all
variable costs)
20.9%

76.5%
Countermeasures to rising electricity charges
Measures to reduce electricity consumption in common areas• Solar panel installation (self-consumption)⇒Newly installed at Yumemachi Narashino Mall in the 15th FP•

LED lighting installation⇒Installed LED lighting at 4 properties in the 15th FP•

Promoting initiatives to reduce energy consumption, such as upgrading air conditioning
equipment
Solar panel output coverage in the
15th FP(Note 2)

Effect of LED lighting installation in
the 15th FP(Note 3)

Coverage ratio

Estimated cost reduction

11.5％

JPY 2.5 mn / year

266
143

125

54

69

-6
14th period

65

62

70

15th period

16th period

17th period

100
-100

Base rate + Metered rate*

Fuel adjustment cost

Renewable energy levy

*Significant increase due to revision of electricity contracts and transition to the last resort contracts with regional electricity supplers

Trend in electricity charges(16 properties excluding properties where tenants bear all electricity charges (i)+(ii))
Income(JPY mn)

Balance
1,200
1,000
800
600
400
200
0

Properties lessimpacted bychanges of utility
cost charges

494
421

379

55

-1

725
531

Expense
-161
727

890

-185
1,059
875

16th period（Forecast）

17th period（Forecast）

729

476

14th period（Actual）

15th period（Actual）

Countermeasures to fixed unit cost contracts of the tenants’ exclusive areas(i) Increase billing unit price (done in the 15th FP)⇒Achieved raising billing unit price at 8 properties in the 15th FP
Invoicing to tenants (conceptual
Increase in the
diagram)billing pricePrevious billing

1900年01月
1900年01月(ii) Pass on the variable
cost to tenants (16th FP
and thereafter)⇒Plan to implement at 3 properties during the 16th FP

Note 1: Variable costs refer to “fuel adjustment cost,” “renewable energy levy,” and “market price adjustment unit cost / market-linked metered unit cost”.
Note 2: Calculated for 5 properties that are self-consuming electricity generated by solar panels as of October 31, 2022. The figure is calculated by dividing solar power generation amount in the 15th period by electricity usage of these facilities.
For Yumemachi Narashino Mall, calculated for the period from June 2022 when solar panels were installed.
Note 3: Estimated cost reduction (at the time of each installation) of the installation completed in the 15th FP.

9Executive summary

Summary of statements of income and retained earnings: 15th FP(JPY mn)Mar. 2022
14th FP
actual (A)Sep. 2022
15th FP
forecast (B) (Note 1)

Changes

15th FP
actual (C)C-A

Remarks on changes from forecasts

C-B

Rent revenue – real estate

7,882

8,016

8,011

+129

-4

Other lease business revenue

1,074

1,234

1,346

+272

+111

Gain/loss on sale of real estate

436

-

-

-436

-

Operating revenues(Note 2)

9,393

9,250

9,357

-35

+107

Property related expenses(excl. depreciation)

2,399

2,623

2,705

+305

+81

NOI

6,557

6,627

6,652

+95

+25

Depreciation

1,189

1,248

1,244

+55

-4

NOI after depreciation

5,367

5,378

5,408

+40

+29

Other operating expenses

1,047

919

1,001

-45

+82

Operating income

4,756

4,459

4,406

-350

-52

Non-operating income

1

-

0

-0

+0

Non-operating expenses

626

623

627

+1

+4

Ordinary income

4,131

3,835

3,778

-352

-56

Net income

4,127

3,834

3,774

-352

-59

DPU (JPY)

7,090

6,595

6,484

-606

-111

Fixed rent -8, sales-linked rent +3
Utility charge reimbursement +79, revenue from events +16,
insurance income +6, restoring +5
Net utility charges +26

Utility charges +105, repair costs -17, property taxes -3,
sales promotion costs -2

Payment for past electronic charges (Note 3) +106, AM fee -12

Note 1: The 15th FP forecast above is as of May 18, 2022.
Note 2: The figures include loss on sale of real estate.
Note 3: KRR has discovered that in one of its properties, a portion of the electricity charges was borne by different parties due to the fact that wiring of electricity meters was not consistent in accordance with the status of ownership of the property.
The settlement has been made within the parties for the past electricity charge.

10

Executive summary

Financial forecasts: 16th and 17th FPs(JPY mn)
Key financial information
Operating revenues

Sep. 2022

Mar. 2023

15th FP (actual)

16th FP (forecast)

ChangesMar. 2023

Sep. 2023

16th FP (forecast)

17th FP (forecast)

Changes

9,357

9,828

+470

9,828

10,082

+254

-

-

-

-

-

-

4,951

5,364

+413

5,364

5,689

+325

4,406

4,463

+57

4,463

4,392

-70

627

637

+9

637

639

+1

612

621

+9

621

623

+1

15

16

+0

16

16

-

Ordinary income

3,778

3,826

+47

3,826

3,753

-72

Net income

3,774

3,825

+50

3,825

3,752

-72

DPU

6,484

6,360

-124

6,360

6,240

-120

Gain on sale of real estate
Operating expenses
Operating income
Non-operating expenses
Interest expenses & financing-related
expenses
Amortization of investment unit
issuance costs

Related key indicator
NOI

Sep. 2022

Mar. 2023

15th FP (actual)

16th FP (forecast)

ChangesMar. 2023

Sep. 2023

16th FP (forecast)

17th FP (forecast)

Changes

6,652

6,716

+63

6,716

6,667

-48

NOI yield

5.2%

5.0%

-

5.0%

4.9%

-

Depreciation

1,244

1,354

+109

1,354

1,376

+22

NOI after depreciation

5,408

5,362

-45

5,362

5,291

-70

4.3%

4.0%

-

4.0%

3.9%

-

FFO

5,039

5,199

+160

5,199

5,149

-50

CAPEX

457

723

+266

723

1,035

+311

44.9%

45.1%

-

45.1%

45.1%

-

NOI yield after depreciation

LTV

11

Security Code

3453
03

KRR highlights and updates

KRR highlights and updates

Leasing overview (1)Lease contract type (by annual fixed rent)

Lease expiry profile (by annual fixed rent)
20 years or more
11.2%

Regular building
lease
11.2%

less than 2 years
13.5%

15 to less than
20 years
7.0%

10 to less than
15 years
11.7%

WALE

9.0 years

Commercial fixedterm land lease
13.1%

Fixed-term building
lease
75.7%

2 to less than
5 years
22.3%
Lease contract type thatmakes it difficult for tenants
to move out, providing
stability

5 to less than
10 years
34.3%

Percentage of tenant categories (based on rents)

Percentage of portfolio with rent linked to interest / CPI (based on rent)

Tenants less affected by e-commerce
M. 4.8%N. 4.7%L. 7.3%
A. 28.4%

Lease contracts
with rent linked tointerest / CPI

8.2％

K. 0.3%J. 1.6%I. 2.9%A to K Tenants

H. 3.8%83.2%

G. 4.5%F. 6.4%

B. 11.9%

E. 6.6%D. 6.7%Note 1: The figures are as of Sep. 30, 2022 for the assets owned by KRR as of the date of this material.
Note 2: Based on the contractual rent determined in the lease contract, including regular building leases.
Note 3: “Interest/CPI-linked” indicates tenants whose rent contract renews accordingly to the interest rate or CPI.

C. 9.9%A.

Groceries & Costco

28.4%

B.

Master lease

11.9%

C.

Home & garden

9.9%

D.

Service businesses

6.7%

E.

Amusement

6.6%

F.

Logistics facilities

6.4%

G.

Health clubs

4.5%

H.

Restaurants

3.8%

I.

Drug stores

2.9%

J.

Dollar shops

1.6%

K.

Office0.3%

L.

Other retailers

7.3%

M.

Apparel

4.8%

N.

Consumer electronics

4.7%

13

KRR highlights and updates

Leasing overview (2)Lease expiry in each financial period (Note 2)

Rent revisions (based on number of revisions) (Note 1)
Upward revision

39.5%

29.0%

22.6%

35.5%

45.2%

48.8%

35.5%

No revision
28.2%

33.3%

56.4%

47.6%

32.3%

11.6%

Downward revision

15.4%

19.0%

4.4%

32.1%

HakataHanmichibashi

39.3%
3.2%
2.1%

2.1%

1.9%

2.2%

28.6%

Mar. 2020
Sep. 2020(10th period) (11th period)
Annual changeMar. 2021(12th period)

Sep. 2021(13th period)

Mar. 2022(14th period)

Sep. 2022(15th period)

Mar. 2023(16th period)

Sep. 2023(17th period)

Mar. 2024(18th period)

Sep. 2024(19th period)

Mar. 2025(20th period)

Sep. 2025(21th period)+57mn yen

+24mn yen

+7mn yen-2mn yen-44mn yen46
tenants

43
tenants

50
tenants

59
tenants

34
tenants

29
tenants-46mn yenContract renewals at lease expiry in each period

Tenant move-in and move-out (Note 3)
3.4%

Move-inMove-out

3.2%

RenewalExit

Exit due to replacing the master lessee by the end tenant at Sunadabashi

9.8%

13.2%

10.5%

14.8%

86.8%

89.5%

85.2%

Sep. 2021(13th period)

Mar. 2022(14th period)

Sep. 2022(15th period)

25.5%
50.8%

1.0%

0.8%

Mar. 2020(10th period)

3.5%

90.2%

74.5%

0.6%
0.2%

1.1%

0.4%

Sep. 2020(11th period)

0.2% 0.2%
Mar. 2021(12th period)

Sep. 2021(13th period)

0.4% 0.4%
45.7%
Mar. 2022(14th period)

Mar. 2022(15th period)

Mar. 2020(10th period)

Sep. 2020(11th period)

Mar. 2021(12th period)

Direct lease at
Sunadabashi
Note 1: Based on the rent including common area charges before revision of the tenants subject to rent revision. Temporal rent reductions/deferrals due to the COVID-19 pandemic are excluded.
Note 2: Based on the contractual rent determined in the lease contract, including regular building leases, for properties owned as of the date of this material. However, disposed assets are excluded.
Note 3: Based on the rent revenue of the last month of each fiscal period.

14

KRR highlights and updates

Response to rent reduction requests amid the pandemic and sales-linked rent
◼ Occupancy rate stayed stable amid the COVID-19 pandemic◼ The number of requests for temporary rent reduction remained limited even during the declarations of emergency and the quasistate of emergency
Percentage of tenant categoryof sales-linked rent
(based on rent)

Rent type(Apr. 2022 – Sep. 2022) (Note)

Occupancy rate
Occupancy rate
Occupancy rate (excl. Kitera Plaza Aobadai)

(%)
100

99.7

Service businesses
14.3%

99.8
99.6

99.4

99

99.5

99.2

99.6
Fixed rent with
Groceries 1.1%
sales-linked rent
10.6%
Dollar shops 4.4%

99.3

Total saleslinked rent
2.1%
0Mar. 2020
Sep. 2020
Mar. 2021
Sep. 2021
Mar. 2022
Sep. 2022(10th period) (11th period) (12th period) (13th period) (14th period) (15th period)(JPY mn)
50

0.02%

0.12%

0.12%

0.02%

Total amountof saleslinked rent

25

10.9

Sep. 2020(11th period)

Mar. 2021(12th period)

10th FP

11th FP

12th FP

13th FP

14th FP

15th FPMar. 2020

Sep. 2020

Mar. 2021

Sep. 2021

Mar. 2022

Sep. 2022

152

116

139

124

133

126

2.6

2.1

2.4

2.1

2.2

2.1

(JPY mn)0Mar. 2020(10th period)

Non-service
85.7%

2.3

1.6

0.0

Sundry goods
48.5%

Sales-linked rent

41.2

11.1

Apparel10.0%
Other
retailers
14.8%

Fixed rent
88.0%

Total amount of temporary rent reductions (COVID related)% of rent income 0.50%

Sales-linked rent
1.4%

Drug stores
6.8%

Sep. 2021(13th period)

Mar. 2022(14th period)

Sep. 2022(15th period)

Percentage
of saleslinked rent

Note: The figures of “Rent type” is for the 15th FP.

15

KRR highlights and updates

Changes in tenant sales (Jan. 2020 – Sep. 2022)
Changes in tenant sales by business category (Monthly comparison vs. 2019)
Portfolio monthly tenant sales remained stable during the 15th FP (from Apr. 2022 to Sep. 2022), resulting only 1.3% decline compared to the same
period of 2019, while the period saw impact from the last-minute demand before the 2019 consumption tax hike15th FP ended Sep. 2022
140%

SoED* *State of emergency(1st) declaration

SoED
(2nd)

Quasi-stateof emergency

SoED
(4th)

SoED
(3rd)

130%

120%

110%

100%

90%

80%

70%

Impact from the last-minute demand
before the 2019 consumption tax hike60%

Portfolio

Supermarket

Home & garden

Drug storesConsumer electoronics

Restaurants

50%

Impact from the last-minute demand
before the 2019 consumption tax hike
Impact from the last-minute demand
before the 2019 consumption tax hike40%
Jan Feb Mar
2020

Apr May Jun

Jul

Aug Sep

Oct

Nov Dec Jan Feb Mar
2021

Apr May Jun

Jul

Aug Sep

Oct

Nov Dec Jan Feb Mar
2022

Apr May Jun

Jul

Aug Sep

Note: “Changes in tenant sales” is based on the sales figures available to KRR. Sales figures of portfolio do not take into account the effect of difference in days of the weekends in each period while sales figures by business category (excluding supermarket and home &garden) take into account the effect of the day of the week. Health clubs and some large amusement facilities are not included in aggregate calculation.

16

KRR highlights and updates

Financial highlights
Financial highlights

Average borrowing terms, remaining years to maturity and debt cost
14th FPLong-term
debt ratio

99.4%

15th FP

Oct. 2022

99.4%

Avg. borrowing terms(left)(years)
12

98.6%

98.6%

98.6%

97.7%

44.7%

44.9%

45.0%

18

18

20

Number of lenders(Note 2)

1.2%

0.99%

1.00%

0.98%

0.96%

0.96%

0.95%

7.3

7.7

7.7

7.9

7.9

7.7

1.0%

6

4.4

4.0

LTV(Note 1)

Avg. debt cost(right)10
8

Fixed interest
debt ratio

Avg. remaining years(left)

4.5

4.4

4.2

0.8%
0.6%
4.1

4

0.4%

2

0.2%

0

Sep. 2020(11th period)

Mar. 2021(12th period)

Sep. 2021(13th period)

Mar. 2022(14th period)

Sep. 2022(15th period)

Oct. 2022

0.0%

New borrowing terms (incl. refinances and investment corporation bonds)

Credit rating

Minimizing debt cost by adjusting borrowing periods amid unstable interest rate environment
Japan Credit Rating Agency (JCR)
Long-term Issuer Rating

AA- (stable)

11th and 12th FP

13th FP

14th FP

15th and 16th FP

Averageborrowing
period5.6 years

6.1 years

6.9 years

4.3 years

Averagedebt cost

0.75%

0.69%

0.75%

0.69%

Green finance
Eligible green assets

Procured JPY 13.05bn in total
Green bonds

Green loans

Outstanding
JPY 4.0bn

Outstanding
JPY 9.05bn

Eligible properties in KRR’s portfolio: 20 properties with total acquisition priceof JPY137.3 bn (as of Oct. 31, 2022)
DBJ Green Building
Certification“3 stars” or higher

7th Series
Investment
Corporation
Bonds

8th Series
Investment
Corporation
Bonds

Debt Financing Series 46

Debt Financing Series 48

AmountJPY 2.0bn

JPY 2.0bn

JPY 7.0bn

JPY 2.05bn

Procurement
date

Jan. 28,
2022

Jun. 22,2022

Feb. 10, 2022

Aug. 31, 2022

Note 1: LTV = (loan balance + investment corporation bond balance) / total assets
Note 2: The figures include upfront fees.

Certification for CASBEE
for Real Estate“B+ rank” or higher

BELS Assessment“★★★” or higher

17

KRR highlights and updates

Borrowings and bonds (as of Oct. 31, 2022)
Maturities of interest-bearing debts◼ Borrowings◼ Investment corporation bonds(JPY mn)

Average debt cost (for the FPs in which the 2015 borrowings remain)

15,000

1.12%

1.20%

1.21%

12,00010,590
9,500
8,000

7,750

9,000

6,820

6,000

3,690

11,66011,30013,20012,890

2,000

2,000

1,000

2015 borrowings(Before negative interest rate policy)
Green finance

11,550
2,000

1,000
8,500

6,350
10,300

11,20010,890

5,550

9,550

3,450

3,000

3,100
5,550

500

2,000
800

600

0
Mar. 2026
Mar. 2027
Mar. 2028
Mar. 2029
Mar. 2030
Mar. 2031
Mar. 2032
Mar. 2024
Mar. 2025
3
4
5
6
7
8
9
10 (26th11
12 (28th
13
14
15
16
17
18 (34th
19(22nd period)(24th period)
period)period)(30th period)(32nd period)
period)(18th period)(20th period)
Sep. 2023
Sep. 2024
Sep. 2025
Sep. 2026
Sep. 2027
Sep. 2028
Sep. 2029
Sep. 2030
Sep. 2031(17th period)(19th period)(21st period)(23rd period)(25th period)(27th period)(29th period)(31st period)(33rd period)

Mar. 2023
1(16th period)

2

Breakdown of debt outstanding

Commitment credit lines (total of JPY 3,000 mn)(JPY mn)

7.7%
8.2%
30.6%

3.4%
4.7%
4.7%

Total interestbearing debt
JPY129.3bn

7.9%
14.5%

8.7%
9.5%

■ Sumitomo Mitsui Banking Corp.
■ MUFG Bank, Ltd.
■ Mizuho Bank, Ltd.
■ Development Bank of Japan Inc.
■ Sumitomo Mitsui Trust Bank, Ltd.
■ Resona Bank, Ltd.
■ Mizuho Trust & Banking Co., Ltd.
■ Aozora Bank, Ltd.

39,570

The Bank of Fukuoka, Ltd.
The Musashino Bank, Ltd.
Shinsei Bank, Ltd.
Sumitomo Life Insurance Co.
New Shinkin Central BankThe Gunma Bank, Ltd.
Nippon Life Insurance Co.
The Yamaguchi Bank, Ltd.
New Kansai Mirai Bank, Ltd.
The 77 Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
The Higo Bank, Ltd.
■ Investment corporation bonds

1,500
1,450
1,300
1,000
1,000
900
700
700
600
500
500
500
10,00018,76012,27011,29010,170
6,100

6,050
4,440

Counterparty

Maximum amountEnd ofcontract term

Sumitomo Mitsui
Banking Corp.

JPY 1,000 mn

Mar. 31, 2023

Mizuho Bank, Ltd.

JPY 1,000 mn

Mar. 31, 2023

MUFG Bank, Ltd.

JPY 1,000 mn

Mar. 31, 2023

Investment corporation bonds
Bond

Amount ofissuance

Interest
rate

Issuance
date

Term

2nd Series

JPY 1,000 mn

0.60%

Oct. 201610 years

4th Series

JPY 2,000 mn

0.70%

Aug. 201710 years

5th Series

JPY 2,000 mn

0.70%

Apr. 201810 years

6th Series

JPY 1,000 mn

0.40%

Apr. 2020

5 years

7th Series

JPY 2,000 mn

0.46%

Jan. 2022

10 years

JPY 2,000 mn

0.50%

Jun. 2022

5 years and4 months(Green bonds)

8th Series(Green bonds)

18

Security Code

3453
03

Growth strategies focusing on stability

Growth strategies focusing on stability

Growth strategies
・Continue focused investments in shopping centers for daily needs as a source of stable cash flow
and selective investment in retail distribution centers that meet the demand from e-commerce・Explore the upside potential by increasing sales-linked rent with a focus on post-pandemic
environment, along with the stability of shopping centers for daily needs as a base・Aim to reduce the impact of rising electricity charges by passing on to the tenants

Strategies in with/ post-pandemic environment
Increase in unit price

AUM expansion➢ Grow revenue by improving➢ Expand AUM through public offerings

occupancy rate and increasing➢ Reduce funding costs

at appropriate timing➢ Financing leveraging high credit

sales-linked rent
➢ Acquire assets using the sponsor➢ Reduce the impact of rising

Credit improvement

rating (AA-)

support and proprietary network

electricity charges by passing on to
the tenants➢ Consider asset reshuffling and unit

buyback when conducting a public➢ Make distinctive efforts, such asoffering is difficult

property conversion and expansion➢ Stabilized DPU target:
JPY 7,000(Note)

Note: The above targets largely depend on external factors, such as the market environment.

Promotion of ESG initiatives➢ Strengthen the initiatives to achieve

decarbonization targets➢ Further enhance disclosures on ESG➢ AUM target:
JPY 340 bn(Note)in line with TCFD recommendations➢ Expand green finance20Growth strategies focusing on stability

Leveraging strong support from the Sponsor and Alliance Companies
KRR achieves sustainable growth acquiring properties by utilizing the pipelines of the Sponsor and Alliance Companies
KRR aims to further expand AUM and enhance unitholder value by leveraging strong support from the Kenedix Group and Alliance Companies
Sponsor’s enhancement of support capability

External growth by utilizing Sponsor and Alliance Companies pipelines

70% equity sharethrough a group company

Breakdown of acquisitions post-offering(Based on (anticipated) acquisition price)

Strategic partnershipbacked by capital-business alliance

Others23.1%

Synergy effects

Sponsor
51.5%

Strengthening REIT and private placement fund businesses
Alliance
Companies
25.4%

Supplementation of creditworthiness and enhancement of fund-raising capacity
Expansion of new business domains

Sharing know-how on SDGs management

Strengthening competitiveness by sharing experience, knowledge, and know-how
through mutual exchange of human resources

Acquisitions from
SMFL Group

20.5%

Acquisitions fromthe Sponsor /Alliance
Companies

76.9％

Strong support from the Kenedix Group and Alliance Companies
Sample pipelines (Note)
Asset management
Property management

Kenedix Retail REIT Corporation

Kenedix Real Estate
Fund Management, Inc. (“KFM”)

Pipeline support
Warehousing
Leasing

Financing functions
for bridge funds

Property management
Environmental technology / know-how

Leasing
Property
ｍanagement
プロパティマネジメント業務

YorkMart Higashi Michinobe

Evaluation/
Advisory on operation

Inageya Shinyuri
Yonetty Ozenji-mae
Proprietary
network

Personnel support
Right to use trademarks
Sponsor / support-line company

Kenedix Investment
Partners, Inc.

Alliance Company

Sumitomo Mitsui Finance
And Leasing Co., Ltd.
Kenedix, Inc.

Other Alliance Companies

Jinushi Co., Ltd.

Underlying land of a retailfacility in Hiroshima

Logistics facility
in Hiroshima

P&D Consulting
Co., Ltd.

SMFL MIRAI Partners Co., Ltd.
Note: KRR has not decided to acquire these properties and there is no guarantee that it can acquire these properties in the future.
: KFM’s parent companies

21

Growth strategies focusing on stability

New acquisition (1)NSC Neighborhood
Shopping Centeriias Kasugai

One of the largest NSCs, newly built in Kasugai, Aichi, with a stable retail trade area and diversified tenants
Location

An NSC in Kasugai with a stable retail trade area population and good accessPopulation and households in Kasugai are stable

Trade area

Trends in population and households in Kasugai
Population (left)(k. people)

350

133

132

130

Households (right)

134

138

137

136

(k. households)

139

320

130

290

110

260

312

311

310

312

312

311

311

310

230

Komaki

OchiaiPark

Kasugai to Nagoya
for about 22 minutes

NagoyaCastleTomei Expressway

Meitetsu Inuyama Line

Kasugai IC

Sakae

2017

Kasugai

iias Kasugai

Retailtrade area

Population(2010)

Population(2015)

1km

20,00019,0003km

123,000

124,000

2019

2020

2021

Chikusa

Nagoya

12
min

22
min

(Nearest station)

JR Chuo Line

JR Chuo Line

2022

5km

Chikusa

285,000◼

Population of the retailtrade area within 5km isc. 300,000 people◼

Good access from thenearest Kasugai Station
to major stations
including Nagoya and
Sakae Stations(excluding transit time)

Nagoya Subway
Higashiyama Line
19
min

KasugaiCity Hall

Ozone

2018

Population in the retail trade area

Kasugai IC

Nagoya City Hall
Nagoya2016

Source: “Changes in population” in Kasugai (Jan. 1 of each year)

Oike
Park

Prefectural
Nagoya Airport

Kusunoki
JCT

0
2015

Enlarged View

90
70

0
Chuo
Expressway
Komaki JCT

150

Sakae

291,000

Moriyama
PA/SIC

Higashiyama Line

Anticipated acquisition price

JPY 14,490mn

Appraisal value

JPY 14,490mn

Location

Kasugai, Aichi

Appraisal NOI

JPY 662mn

Land area

64,844.79m2

Appraisal NOI yield

Gross floor area

69,822.78m2

Main tenant

The property is located near National Road 19, accessible by cars, etc.

Access

The image of entrance andexit via the overpass

National Road 155

4.6％
Kasugai IC

Seiyu Co., Ltd.

Highlights
The population of Kasugai is over 300,000, and both population and number of households have been stable.
The city has many residential districts including Kozoji New Town, providing a densely populated retail trade area
◼ The property has good access from several national roads and a highway. It also has two bus routes from thenearest station, Kasugai Station on JR Chuo Line, making the property accessible for customers◼ The property houses one of the largest Muji in Japan in addition to Seiyu. Round1, on the third floor, has been
seeing recovery in earnings recently and expected to be competitive when demand for consumption of services orexperience-oriented activities recovers during or after the pandemic

iias
Overpass(both directions) Kasugai

iias Kasugai
Jinryo Station◼

National Road 19◼

The overpass enables
smooth access to
National Road 19

Parkingdeck

National Road 19
Kasugai Station

JR Chuo Line

Good access from
National Road 19 as well
as National Road 155 as
the property is locatednear.

parking
19

Nagoya◼

Tomei Expressway

Source: KFM processed an aerial photograph taken by the Geospatial Information Authority of Japan22

Growth strategies focusing on stability

New acquisition (2)NSC Neighborhood
Shopping Centeriias Kasugai

Tenants

A tenant mix that can provide fulfilling daily lives and new enjoyment to
consumers of all ages

Sustainability

Operation emphasizing decarbonization of society and regional
contribution

Competitiveness

The first floor is occupied by one of the largest Muji stores in Japan and Seiyu grocery supermarket.
The second floor is lined up with variety of specialty shops

Environment

Proactive efforts for decarbonization and the protection of natural resources, contributing torealizing a sustainable society

FashionCafé/restaurant
Foods

1F

◼

Lifestyle
Food court
Service/others

Efforts for decarbonization• Use of power generated with renewables in common areas

Tabeyard• Introduce high efficiency air conditioning and heating equipment• Giant ceiling fans in the high-ceiling community plaza (Nature Field)

Muji• Installed Energy-efficient LEDs in lighting. Motion sensors are installed throughout

Nature Field
Seiyu

the facility to automatically control light volumes• The parking area has two chargers for electric vehicles
Seiyu

Muji

◼

Muji, the core tenant, makes use of its large sales area to stock nearly the full range of its products. There are also
spaces for customers to test and buy storages and for events for the local community◼

Seiyu provides convenient 24-hour operation as well as delivery services linked to the “Rakuten Seiyu Netsuper”,
allowing products to be ordered by smartphone or PC and delivered in as fast as the same day
FashionCafé/restaurant

2F

LifestyleService/others

Potential
Kojimax
BicCamera

Daiso
H&M

Loft

Books & coffee & life

Kumazawa
Book
Store

Kojima x BicCamera

GU

UniqloService-oriented tenants (based on actual rent)(Apr. 2022 - Sep. 2022) (Note 1)

Rent type (based on actual rent)(Apr. 2022 - Sep. 2022) (Note 1)
Sales-linked
rent
15.1%

GU

The second floor is occupied by home electronics retailer Kojima x BicCamera and toy retailer Toys “R” Us /Babies “R” Us as well as casual apparel stores Uniqlo and GU, meeting various needs of consumers from children
to adults◼

The “Books & coffee & life” section is occupied by Starbucks, Kumazawa Book Store, etc. provides new enjoyment
to consumers with books, coffee, miscellaneous goods and lessons

3F

High ratios of service-oriented tenants andsales-linked rent with a focus on post-pandemic environment

Toys “R” Us◼

Popularity

EV charging service（e-Mobility Power）

The third floor is occupied by Round1 with “Spo-Cha” providing a place for enjoyment with family
and friends

Serviceoriented
tenants

34.4％

Total saleslinked rent
Fixed rent
67.0%

Portfolio
Sales-linked rent
1.4% Fixed rent withsales-linked rent
10.6%

AmusementP
Round1
Spo-Cha
Outdoor area

Round1

18.7％

Fixed rent withsales-linked
rent
17.9%

Spo-Cha Outdoor area◼

Round1 has facilities for bowling, karaoke, and arcade games in addition to the “Spo-Cha” offering limited-time-all-youcan-play sports and amusement◼

A wide range of amusement facilities for children and adults can win the post-pandemic demand for experiences

Serviceoriented
tenants (Note 2)

21.6％

Total saleslinked rent
Fixed rent
88.0%

2.1％

Note 1: The ratios have been calculated based on actual rents during the period.
Note 2: The figure is based on the contractual rent determined in the lease as of Sep. 30, 2022 for the assets owned by KRR as of the dateof this material.

23

Growth strategies focusing on stability

New Acquisition (3)NSC Neighborhood
Shopping Center

NSC Neighborhood
Shopping Center

Coop Sapporo Shunko

An NSC for daily needs of local residents, housing Coop Sapporo as the core tenant,located in Asahikawa, Hokkaido’s second-largest city

Higashimatsuyama Shopping Center

An NSC housing a grocery store as the core tenant and specialty stores providing daily
necessities with easy access to wide areas including the city center
Kumagaya

Hokkaido
Expressway

KonosuShinrin-koen
Higashimatsuyama Kitamoto

Syunkodai
Park
Shunkoen

Coop Sapporo Shunko

Omiya
Kawagoe

Asahikawa
Loop Line
Higashi-matsuyama←→Ikebukuro Akabane
approx. 46 min.
Ikebukuro

Acquisition price
JGSDF Camp Asahikawa

Hokkaido Univ.
of Education
Shin-Asahikawa Sta.

Acquisition
price
Location
Land area
Gross floor
area

Asahikawa,
Hokkaido
10,007.76m2

Appraisal
value
Appraisal NOI
Appraisal NOI
yield

7,162.46m2

Main tenant

JPY 1,110mn

Minaminagayama Sta.

JPY 1,220mn

JPY 4,650mn

Appraisal NOI

JPY 259mn

Land area

33,860.98m2

Appraisal NOI yield

Gross floor area

24,894.94m2

Main tenant

6.4%

Asahikawa
City Hall

6.3%
Asahikawa Sta.

Asahikawa Shijo Sta.

Coop
SapporoHigashimatsuyama Sta.

Seiyu Co., Ltd.

Highlights

Higashimatsuyama Shopping Center

Higashimatsuyama
City Office

Higashimatsuyama IC
Higashimatsuyama
Police Station

Enlarged view

Logistics
Prima Meat Packers Kinki Center
Facility
A distribution center with advantages in easy access to CBD in the Greater Osaka
area and securing labor forceL◼

The property is an NSC with three floors located in a residential area in Asahikawa, Hokkaido. The core tenant is Coop
Sapporo with end tenants including drug store, dollar shop, bakery, apparel shops and dental clinic, comprising of shops
and services for daily needs of local residents◼

Asahikawa has a population of approximately 330k people, making it Hokkaido’s second-largest city following Sapporo. The
city was planned as a “compact city,” with a compact size and high convenience and sustainability, maintaining urban
functions into the future

Toyonaka
JCT
Amagasaki IC

In Asahikawa, household Coop membership exceeds 80%, above the national average (approximately 40%). Strong
demand is expected for supermarket Coop Sapporo operated by Coop
TenantShinrin-koen
Sta.

An NSC housing a grocery store as the core tenant and specialty stores providing daily necessities with easy access towide areas including the city center◼ Seiyu operates one of the largest grocery supermarkets in the area on the first floor of Seiyu building. The building also
features specialty stores including a dollar shop, fast food shops and service-oriented tenants on the first floor and a large
apparel store, health clubs, etc. on the second floor, providing convenience to the community

Highlights◼

Appraisal value◼

Tokiwa ParkJPY 70mn

Location

JPY 4,080mn
Higashimatsuyama,
SaitamaKashima Sta.
HanshinAmagasaki Sta.

The property housing Coop Sapporo operated by Consumers’ Co-operative Union (Coop)◼ The tenant is supermarket Coop Sapporo

operated by Coop, with over 100 stores in
Hokkaido◼ 81.5% of households in Asahikawa aremembers of Coop Sapporo. This is higher
than the national average rate of Coopmembership, and illustrates the major role
which plays in citizens’ daily lives◼ Coop Sapporo uses a proprietary homedelivery system, Todok. It enables easyorders, delivery, etc. using smartphones,
enabling customers to complete the entire
shopping process without visiting a store

Overview of Coop Sapporo
Business
All Hokkaido
areaMembers

1,921,098 people
69.4% of households

Sales

Total JPY 309.7bn

Staff

Full-time: 2,464
Specialist: 2,179
Part-time, etc.: 15,024

Source: Coop Sapporo website(as of Mar. 2022)

Asahikawa
旭川市

81.5%

北海道全域
All
Hokkaido

69.4%

Acquisition price

JPY 1,047mn

Appraisal value

JPY 1,080mn

Location

Osaka, Osaka

Appraisal NOI

JPY 54mn

Land area

3,201.33m2

Appraisal NOI yield

5.2%

Gross floor area

6,971.47m2

Main tenant

Highlights

0%

Kashima IC

Prima Meat Packers Kinki Center

Rate of household Coop membership

All Japan
全国

Shin-Osaka
Sta.

Amagasaki Sta.

39.1%
50%

Osaka Sta.
Osaka Umeda
Sta.

Fukuda and Partners
Co., Ltd.
Universal Studios Japan

Namba Sta.

The property is located in Nishiyodogawa-ku, where logistics facilities concentrate along Osaka Bay, and approximately
250m from Kashima Interchange of Hanshin Expressway 11 Ikeda Route◼ The area is one of the highly valued areas for distribution hub in Greater Osaka since it has potential as a delivery base forthe two major consumption areas in the Kansai region and the property is in proximity to JR Tozai Line Kashima Station◼ Prima Meat Packers, Ltd., a major food company, is the end tenant as of the date of this material◼

100%

Source: Coop Sapporo website andJapanese Consumers’ Co-operative
Union website (as of Mar. 2022)24

Growth strategies focusing on stability

Internal growth initiatives (1)Example of expansion leveraging underutilized space –Unicus Ina Restaurant Building B

Leasing progress amid the COVID-19 pandemic –Kitera Town Fukuoka Nagahama

Overview of the property

Acquisition priceRestaurant building A
Restaurant building B

Restaurant building B under construction

Completion

Nov. 2020

OpenFeb. 2021

Acquisition

Oct. 2021•

The property was completed in Nov. 2020 amid the COVID-19 pandemic, andthe vacancy rate was 17% at the time of acquisition in Oct. 2021•

Executed lease agreement for 10% since the acquisition•

Currently negotiating for 6% of the space (7% vacancy in total)

Restaurant building B

Restaurant building A

JPY 6,000mn

Trends in occupancy rate•••

Construction cost

Profitability enhancement

Investment return

Total expected construction cost
approx. JPY 172 mn

Assumed increase in NOI
JPY +16 mn

Assumed NOI yield
9.5%

78.9％

82.8％

Sep. 30, 2022

92.9％

Leasing progress after acquisition (3rd floor layout)■New tenants after acquisition ■Existing tenants

VacantOverview (Note)

Oct. 31, 2021
(Acquisition month)

VacantThe second property expansion at Unicus Ina, following the completion of Restaurant
building A (leased to a sushi restaurant) in 2017
McDonald’s is planning to open a new store at the building. The store will offer Mobile
Ordering and a service that enables customers to receive orders placed through Mobile
Ordering in parking lots without leaving cars
As these services are designed to provide customers safe dining environment amid the
pandemic and capture demands online, the store is expected to have synergistic effectamong other tenants by attracting more families with young children

Feb. 28, 2021
(Opening month)

Note: The figures are estimates. The total expected construction cost and assumed increase in NOI represent the amount corresponding to 80% of the quasi -co-ownership interest of the trust beneficiary right in the property accordingly.

25

Growth strategies focusing on stability

Internal growth initiatives (2)Initiatives for conversion project – Kitera Plaza Aobadai

Acquisition price (Note 1)
Appraisal value

Population and number of households in Aoba-ku

JPY 2,553mn(k, people)(k, households)

Population (left)

350

JPY 3,610mn

Appraisal NOI yield✓Covert into a shopping center for daily needs, which is resilient to COVID-19 ande-commerce

Key point of
the project

Overview

129

4.6%

131

130

132

Household (right)
133

133

135

136

150
138

139
140
130

Kodomonokuni

300
120
306

Schedule

308

307

309

309

308

308

310

310

310
110

0

0

Kitera Plaza
Aobadai2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: Yokohama City Government (as of March 1 for each year)

Jan./Feb. 2022

Executed leaseagreements with new tenants

Feb. 2022

Former tenant moved out

Mar. 2022

Acquired by KRR

Apr. 2022

Start of conversion

Jan. 2023(Scheduled)completion of conversion

Mar. 2023(Scheduled) opening

Under conversion(as of Oct. 31, 2022)

Before conversion

After conversion (scheduled)(Note 2)

Before conversion

After conversion (scheduled)

Health clubSupermarket, clinics, etc.
(Attic)Gym

Pool

Clinics

Sep. 2022
Assumedoccupancy
rate

67.2％
(contract rate)

Mar. 2023

74.5%

Sep. 2023

84.4%

StudioGrocery store

Reception

Pharmacy, stores providing
services, etc.

Underground parking

Underground parking

Nov. 2023

100.0%

Note 1: Acquisition price excludes conversion costs. The conversion costs are estimated at JPY 990mn as of Sep. 30, 2022.
Note 2: The exterior image is based on the planned extension as of the date of this material and may differ from the actual completed building.

26

Growth strategies focusing on stability

Promoting ESG initiatives
KRR promotes ESG initiatives for the purpose of enhancing unitholder value in the medium- to long-term
Major ESG initiatives
Awarded GRESB Ratingin the 2022 GRESB Real Estate

E

Disclosed analysis on climate change
in line with TCFD recommendation

Awarded
4 Star Rating for
fourth consecutive
year（Environment）

Medium- to long-term targets
for GHG emission reduction
By FY2030
40% reduction(vs. FY2015)

By 2050
Achievecarbon neutral

S

Collaboration withlocal communities

Hosting SDGs
enlightening eventfor children

Decision to introduce
investment unit
ownershipprogramG

Unitholder value-linked
management fee
structure

Same boat
investment
by Kenedix, Inc.

Kenedix Group’s
strongcommitment（Social）（Governance）

Sustainability OfficeSustainability Office and Sustainability
Committee covering REITs managed by KFM✓ Dealing with matters relating to sustainability and ESG in KFM✓ Published the first Sustainability Report of KFM, introducing ESG
initiatives of its managing REITs

Sustainability Committee✓ Chaired by the President of KFM, for the purpose of enhancing
approaches to sustainability and ESG

27

Growth strategies focusing on stability

ESG initiatives (environment and social)
Environment initiatives

Social initiatives

The number of certified properties and certified floor area (as of Oct. 31, 2022)

Contribution to community

The number ofcertified properties

Total certified floor area

Ratio (based on gross floor area)

21 properties

585,988.22m2

65.0% (Target: 70%+)

Certification for CASBEE
For Real Estate

12 certified properties
S rank ★★★★★

A rank ★★★★

Apita Terrace Yokohama Tsunashima Musashi Ranzan Distribution Center
Homecenter Kohnan Sunadabashi
Resora Obu Shopping Terrace
Kitera Town Chofu

Costco Wholesale Sapporo
Warehouse
Carino Esaka

Unicus Yoshikawa

COMBOX Komyoike
Yumemachi Narashinodai Mall

Hosting used clothingcollecting event

SDGs educational events forchildren✓ Entering into agreements,
allowing the property to be used
as a temporary shelter at
emergency✓ Hosting an event organized by
BRING, a project aimed at
recycling used clothing✓ Holding an event featuring
essence of SDGs

DBJ Green Building Certification

8 certified properties★★★
MONA Shin-Urayasu
Passaggio Nishiarai
Unicus Ina
Blumer HAT Kobe
Kawamachi Yahagi Mall
Roseo Mito
Ashico Town Ashikaga
Sun Street Hamakita

Certification for Building-Housing Energy-efficiency
Labeling System (BELS)

Kalsa Hiratsuka
Blumer Maitamon

Collaboration with local
communities

Ashico Town Ashikaga

Blumer Maitamon

Sun Street Hamakita

Bicycle sharing

Supporting Japan for UNHCR✓ Providing a portion of theproperties in order to provide
services to users of facilities andresidents in the vicinity, and to
reduce environmental impact✓ Providing common areas of our retail properties for their fundraising campaign✓ In 2021, the campaign locations were provided at thefollowing 6 properties

2 certified properties

Property name★★★★★
Apita Terrace Yokohama Tsunashima★★
iias Kasugai

Passaggio Nishiarai
Blumer Maitamon
Blumer HAT Kobe

Carino Esaka

Solar panel installation

LED lighting installation

Unicus Ina
Kawamachi Yahagi Mall
Apita Terrace Yokohama Tsunashima
Monenosato Mall
Yumemachi Narashinodai Mall
Tenri Distribution Center(as of Oct. 31, 2022)

56 of 58 properties (excl.
land-only properties)
installed LED entirely or
partially(as of Oct. 31, 2022)
Monenosato Mall

COMBOX Komyoike
MONA Shin-Urayasu

MONA Shin-Urayasu

KRR executed paperless offerings using electronic delivery of prospectuses, aiming to reduce
environmental load◼
◼

Passaggio Nishiarai

Efforts for employees

Digital prospectus documents◼

Resora Obu Shopping Terrace

Executed environmentally-conscious offerings by reducing the amount of paper, ink, etc. usedthrough digital prospectusesc. 850k sheets of B5 size paper was reduced in this offering
Aimed to increase visibility to investors through color prospectuses

Introduction of investment unit ownership program

Engagement survey✓In August 2022, Kenedix, Inc. decided to
introduce an investment unit ownership programfor employees of KFM and its specified related
corporations, including Kenedix, Inc.

✓A survey to promote mutual understanding
and affinity between the company andemployees✓The introduction of investment unit ownershipprogram aims to facilitate their wealth building aswell as to enhance unitholder value over the
medium- to long-term by promoting furtheralignment of interests with KRR’s unitholders✓Regular surveys will enable a qualitative
understanding of the relationship between
company and employees, and will be used in thedrafting of internal initiatives to improve theorganization

28

Growth strategies focusing on stability

ESG initiatives (governance)
The Kenedix Group’s strong commitment to J-REITs

Unitholder value-linked management fee structure

The Kenedix Group’s J-REIT assets (as of Jun. 30, 2022) constitute about ahalf of their AUM. Sound growth of the J-REITs is in line with their interests

KRR has introduced a fee structure providing incentives to enhance unitholder value
Fee structure providing incentives to enhanceunitholder value
I

Total assets at the end of the previous FP x 0.27%(annual rate)II

Net income x DPU x 0.0013%

Asset management fee

Investment in KRR by Kenedix, Inc.
Number of investment
units owned
16,950 units(As of Oct. 31, 2022)

Ownership of total investment
units issued
2.8%

Decision-making process for related-party transactions
Preparation of
proposal

Investment Department

Investment unit performancefee

KRR’s excess returns over Tokyo Stock Exchange REIT
Total Return Index (including dividends) x
Market capitalization x 0.1%

Acquisition fee

Acquisition price x 1.0% (Including acquisition ofbuildings through property expansion or reconstruction)

Disposition fee

Disposition price x 0.5%

Merger fee

Appraisal value of the assets to be succeeded x 1.0%
(maximum)The investment unit performance fee structure
Confirmation of
proposal• The purpose of the revision in Dec. 2021 is to increase the linkage between unitholder returns andthe asset management fee

Compliance Officer• Revised the method of calculation to factor in a case where KRR’s investment unit prices
underperform the TSE REIT Index

Transactions withinterested party

Deliberation
and resolution

Compliance Committee

Othertransactions

KRR’s excess return

KRR’s market capitalization

0.1%

Transactions withinterested party

Deliberation
and resolution

KRR’s total return(Growth rate considering dividends)

Asset Management Committee of Retail REIT Department
Transactions withinterested party

Deliberation
and resolution

KRR Board of Directors

Othertransactions

TSE REIT Total Return Index(including dividends)(Growth rate for the same period)

In case of negative excess return
・ No investment unit performance fee

Reporting

KFM Board of Directors

Revisedpoint

・ Negative performance figures are carried over to the next period (only for one FP)
If the next period’s excess return is positive, the excess return is offset by the previous period’s negative
performance figure29

Security Code

3453
05

Key characteristics of KRR

Key characteristics of KRR

Investments focusing on shopping centers for daily needs“Daily / Neighborhood” type

“Weekend / Destination” type

KRR’s focus: Neighborhood, community andother shopping centers for daily needs

The majority of portfolio properties of preceding
listed retail-focused J-REITs

Small

Trade area

Large

High

Frequency of customer visits

Low

Characteristics

Trade
area

NSC

Neighborhood
shopping
centers

Shopping centers with a supermarket as
an anchor or core tenant

3-5km

SM

Supermarkets

Stand-alone stores that primarily
provide groceries

3km

CSC

Community
shopping
centers

Larger Shopping centers than NSC,
with a supermarket as an anchor orcore tenant

5-10kmUrban Station-Front

Shopping centers in the immediate
vicinity of an urban public
transportation station

3-10kmSS

Specialty stores such as drug stores,
convenience stores, health clubs orelectronic appliance stores

1-10kmProperty types

Specialty stores

Large-scale suburban retail properties
RSC (Regional shopping centers)
GMS (General merchandise stores)
Stand-alone GMS is excluded from our investment criteria

Outlet malls

Urban retail properties featuring
High-end brand shops

31

Key characteristics of KRR

Primary characteristics of shopping centers for daily needs
Location Located within residential areas of a metropolitan
commuter district◼ Retail trade area population (Note)・1km radius: 10,000 people
・3km radius: 62,000 people
・5km radius: 247,000 people

Residential district
Specialty stores(small retail spaces)

Grocery supermarket(anchor tenant)Tenants

Providing primarily daily necessities◼ Housing Yaoko, a grocery supermarket, as the anchor tenant
and a group of specialty storesFlat parking lot

Facilities

Restaurant building A
expansion site
Restaurant building B
expansion site

Capacity to accommodate frequent customer
visits and provide revenue upside potential◼ Flat parking lot to accommodate approximately 480 vehicles

Residential
district◼ Constructed a restaurant building on underutilized space

Shopping centers and distribution centers in the supply chain

KRR investments

Target portfolio distribution

Visit
Manufacturing
Delivery
Shopping centers fordaily needs
Delivery

Large logistics facilities

Distribution
centers
Other retailfacilities

Shopping
centers for daily
needs

20% or less

80% or more

Delivery

ImportRetail distribution centers

Efficiency by consolidation

Diversification for frequent
small-lot deliveries

Note: Populations in each radius are calculated based on the 2015 national census.

Increasing homedeliveries

32Key characteristics of KRR

Providing consumers with retail infrastructure that grows in importance amid the pandemic◼ The COVID-19 pandemic is accelerating the environment changes where the functions of retail and logistics facilities are getting similar◼ The importance of shopping centers for daily needs and retail distribution centers increases as a retail infrastructure
KRR’s environmental awarenessAcceleration of environment changes amid the pandemic
Changes in consumer behavior due to the experience of COVID-19

Medium- to long-term changes in the market environment
with the rise of e-commerce
Changes in retail facilities
with the rise of e-commerce

Challenges faced by the logistics sector
with the rise of e-commerce• Partnerships between online and brick-andmortar retailers

Changes in consumer behavior amid the pandemic• Frequent small deliveries

Change in lifestyles with rising
stay-at-home demandMore demand for e-commerce
Large increase in home deliveries

Increased bulk purchases with lessfrequent shopping outsideMore people working from home
Increased mid-day population inresidential areas• Shorter lead time

• Delivery of products from retail facilities• Managing the last mile issue• Pickup of products at retail facilities(click-and-collect, curbside pickup)• Expanding needs for distribution centers close to
consumption areas• Integration of retail and logistics facilities

Providing retail infrastructure for new lifestyle

Neighborhood
shopping centers

Delivery

Retail distribution centers
Leasing a portion of the land of retailproperties to logistics operators(Kurume-Nishi Shopping Center)

New acquisitions
New acquisitions

Integration of retailfacilities and logistics(Yokohama Kamigo
Distribution Center)Prima Meat
Packers Kinki
CenterHome
deliveryMicro-fulfillment center for an
online store partnered with agrocery supermarket(Kitera Town Fukuoka Nagahama)

Purchasing in daily life
Picking up products at retail facilities

Home
deliveryConsumers

iias Kasugai

Coop Sapporo Shunko

Higashimatsuyama
Shopping Center

Sun Street Hamakita(Additional acquisition)(P-1 Plaza Tenno)

Delivery of products fromretail facilities(P-1 Plaza Tenno)

Receiving orders placed
through online inparking lots (planned)

Supermarkets(Unicus Ina)

Purchasing in daily life
Delivery33

Key characteristics of KRR

Retail market trends: GMS vs. Specialty stores

Buying goods at GMS
2007
Type of store

Buying goods at specialty stores
2022(JPY bn)

Sales

Type of store(JPY bn)

Sales

Change1Supermarket

12,961.0

1Supermarket

18,483.1+42.6%

2

GMS

8,602.1

2

Convenience store

10,813.7+45.9%

3

Department store

8,283.1

3

Drug store

9,390.0+154.3%

4

Convenience store

7,413.9

4

Other retailers

7,345.4+27.9%

5

Other retailers

5,743.7

5GMS

6,334.7-26.4%

6

Consumer electronics

5,719.1

6

Consumer electronics

5,869.0+2.6%

7

Drug store

3,692.2

7

Apparel

5,413.4+70.4%

8

Apparel

3,177.7

8

Home and garden

3,548.5+25.1%

9Home and garden

2,835.6

9Department store

3,228.9-61.0%

10 Consumers’ co-operative

2,487.0

10 Consumers’ co-operative

2,692.1+8.2%

Source: Data regarding Japanese retailer earning results are based on magazine “Diamond Chain Store” dated Sep. 15, 2016 and Sep. 15, 2022.

34

Key characteristics of KRR

Advantages of shopping centers for daily needs over GMS
Typical shopping center for daily needs
Flat parking lot

Grocery supermarket

Typical stand-alone GMS

Specialty stores(small retail spaces)

Parking lot
Furniture/
Home electronics
Household goods
ApparelGroceries

Facilities of shopping center for daily needs

VS

Facilities of stand-alone GMS

Small to medium

Retail trade area

Medium to large

High (low-rise building)Ease of getting around

Low (high-rise building)

Large flat parking lot

Parking lot

Multilevel parking lot

Grocery supermarket + Specialty stores

Tenants

GMS stand-alone

Real estate value of shopping center for daily needs

VS

Real estate value of stand-alone GMS

Upside potential

Limited frequency of upward rent revisions

Relatively easy

Tenant replacement

Relatively difficult

Expanding market share

Potential for investment

A number of stand-alone GMSs
owned by real-estate funds exited the market

Potential rental upside upon tenant replacement or contract renewal

Property expansion leveraging underutilized space

35

Key characteristics of KRR

Portfolio strategies
Investment criteria

Primary geographic target areas

Focus on the following four elements in making investment decisions:• Four major metropolitan areas,
which have relatively stable populations

Attractiveness

Location• Ability to serve particular day-to-day
needs of local area customers• Demographic composition, number ofhouseholds, competing facilities inlocal retail trade area

• Selective investments in ordinance-designated cities,
core cities and other areas for diversification

The Tokyo metropolitan area

The Greater Osaka area

Profitability

Tenant mix• Occupancy, leasing status, rent level
and lease term

• Optimal tenant mix for the property
considering tenant credit profiles andretail space usage

Target portfolio distribution (based on acquisition price)
Distribution centers
Other retail facilities

20% or less80%
or moreShopping centers
for daily needs

The Fukuoka area

Focus onthe four major
metropolitan
areas
The Greater Nagoya area

Investment in land - Seeking additional growth opportunities
We also seek investment opportunities in the underlying land of retail properties anddistribution centers• Strong demand from retail tenants (the majority of buildings on land-only properties
held by J-REITs are retail facilities)• Maintain maximum value upon termination of lease term, as the land is expected tobe returned in its original state• Investment in lands would be limited to 20% of the portfolio (based on acquisition
price) as our general policy
Beneficial relationship for both Asset Manager and tenants
Advantages to Asset Manager

Advantages to tenants• Generation of long-term stable rents due to a decreaseof vacancy risks because tenants will own buildings
pursuant to fixed-term land lease agreements• Stabilization of rent revenue as tenants will pay
maintenance costs related to the buildings on such land
• Improvement of payout ratio as depreciation costs ofbuildings are borne by tenants• Limited downside risk related to their asset valuecaused by external factors, such as fires• Tenants that are both the lessee and property ownerbear a smaller financial burden when opening a store• Increased capital efficiency through treatment of land as
off-balance sheet• Simplified procedures for interior renovation of buildings

Note: Target areas for distribution centers include locations near expressways or major public highways and easy access to a major metropolitan area or an ordinance-designated city and core city.

36Key characteristics of KRR

Retail property trends and macroeconomic conditions
Demographic shift in Japan(million people)
140

Population share in Japan by area（%）
40

Projections（%）

Projections

70

120

Shrinking retailtrade area
due to aging andconcentrating
population in Japan

30

100
80

20

60

60
50
40

40

10
30

20
0

1990

1995 2000
14 and under2005

2010 2015
15-64

2020

2025 2030
65 and over

2035

0

2040
aging rate

Source: Ministry of Internal Affairs and Communications, National Institute of Population and Social
Security Research (as of 2017)

Retail market trends in Japan120

20
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Four major metropolitan areas
Ordinance-designated cities and core cities
Other areas
Source: Ministry of Internal Affairs and Communications, National Institute of Population and Social
Security Research

Retail property opening applications by property size

(FY2002=100)

110

100

100

3.8

2.7

2.5

90

11.4 10.4

9.6

80

90

Changing retail

80

70

facilities

70

60

60

50

50

40

0
2002

13.8 18.8

0.8
4.4

18.6 21.4

1.2
3.8

1.0
2.6

0.7
4.3

1.1
4.3

1.3
3.1

1.2
2.5

0.9
2.4

1.1 0.2
1.8 4.2
11.1
11.9
13.4 14.6
12.9
14.5
15.6
15.3 14.5

0.7
3.7
7.4

0.7
2.8
8.7

0.9
1.6
8.3

84.9 86.1 82.7 88.3 87.8 89.3
79.5 83.1 80.4 79.3 81.0 81.8
69.5 73.0 69.0 76.7 73.4

0
2004

2006

2008

2010

2012

Groceries
GMS
Source: Ministry of Economy, Trade and Industry

2014

2016

2018

Department store

2020
All retails

0%

20%

Books, video/music software
Home appliances, AV equipment, PCs andperipherals, etc.
Household goods, Furniture, interior

Cars, motorcycles, parts, etc.

Foods, beverages, alcohol
Others

40%

60%

80%

Low e-commerce penetration in the purchase of fresh foods

100%

Others 6.4%

46.2%

E-commerce
0.3%

38.1%
28.3%

Clothing and accessories, etc.
Cosmetics and pharmaceuticals

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
5,000㎡ or less
5,000㎡-10,000㎡
10,000㎡-30,000㎡
Over30,000㎡
Source: Ministry of Economy, Trade and Industry

Foods, etc. with relatively low e-commerce penetration

Shopping
centers for dailyneeds are highly
resistant to
e-commerce

15.3

1.2
3.5

21.2%
7.5%
3.9%

3.8%

GMS
29.8%

Grocery supermarket
63.5%

2.0%

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

Source: 2021 Supermarket White Paper by the National Supermarket Association of Japan

37

Key characteristics of KRR

Overview of the Kenedix GroupThe Kenedix Group’s strong commitment to J-REITs

The Kenedix Group’s total AUM(JPY bn)

Total AUM: JPY 2,697.8 bn (as of Jun. 30, 2022) (Note)

J-REIT

Private funds / Private REIT / Foreign REIT

Proprietary investments

J-REIT: JPY 1,372.5
1,284.9 bn

2,697
2,574

162

120
Kenedix Office Investment
Corporation

Kenedix Residential Next
Investment Corporation

2,392

Kenedix Retail REIT
Corporation

62

2,340
86

2,098
2,003

81

92

1,250

922

Japan Logistics Fund Inc.
1,703

KDX 10% ownership in AM

1,644

1,058

658

83

1,220

602

72
1,480

Private REIT / Private funds / Foreign REIT : JPY 1,250.4 bn
132
431

428

1,206
Private funds

1,111

Foreign REIT

Kenedix Private Investment
Corporation

152

1,117

844

20%

1,308
1,140

Properietary investments
6.0%

0%

542
531

Breakdown of AUM as of Jun. 30, 2022
349

427

Note: The Kenedix Group’s total AUM includes proprietary investments of JPY 162.4 bn.

1,407
1,195

1,233

1,284

482

322

46.3%

60%

1,358

613

funds / Foreign REIT

40%

1,190

909

Private REIT / Private

47.6%

438

496

172

J-REIT

96

92

80%

100%

as of
Dec. 31,
2008

as of
as of
as of
as of
as of
as of
as of
as of
as of
as of
as of
as of
Dec. 31, Dec. 31, Dec. 31,Dec. 31, Dec. 31,Dec. 31, Dec. 31, Dec. 31, Dec. 31,Dec. 31, Dec. 31, Jun. 30,
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

38

Security Code

3453
06

Portfolio and unitholder information

Portfolio and unitholder information

Portfolio map (as of Oct. 31, 2022)
NSC
T-11

SM
Coop Sapporo Shunko

Urban Station-Front SC

T-34

R-12
SS

L-3

R-1
T-7

L-5

L-8

Distribution Centers

T-12

R-11

T-9
R-9

T-23

T-3

T-8

+7.1％

R-6

T-5

T-32

Population growth rate
(KRR portfolio)
F-4

R-4
Higashimatsuyama
Shopping Center

T-17

R-2

T-22

T-19

T-31

R-3

T-28

F-2

T-27

L-6

F-1

T-15

T-33

T-24
F-3

T-16

L-4

R-5

T-30

T-26

T-6

L-7
T-2

T-13

L-1

T-20

T-29

T-25
T-18
L-2

Population growth rate
(KRR portfolio)+2.0％
Population growth rate
(KRR portfolio)

N-2
N-8

+0.4％
Population growth rate
(Trade area of KRR portfolio) (Note 1)

O-3

+1.9％

O-10

O-4

O-5

O-1

Population growth rateof Japan (Note 1)

O-12

-0.8％

L-10

Prima Meat
Packers Kinki
Center
L-9

O-9

O-2
O-11
O-6

iias Kasugai

N-7

Average property age (Note 2)
N-1

N-4

15.3 years

N-6
Sun Street Hamakita

Population growth rate
(KRR portfolio)

R-10

Portfolio PML value (Note 3)

R-8

+2.2％

Note 1 : “Population growth rates” are based on 2010 and 2015 census. “Population growth rate (Trade area of KRR portfolio)” is calculated as the growth rate of the population within a 3km radius of KRR’s retail properties (1km or 2km radius for some of the properties).
Note 2 : “Average property age” is calculated based on the date recorded in the property registry up to Oct. 31, 2022. The figure is rounded to the first decimal place.
Note 3 : “Portfolio PML value” is the portfolio PML value of 58 properties that KRR owns as of Oct. 31, excluding land with leasehold interest, based on the “Portfolio Earthquake PML Evaluation Report” dated Sep. 2022, created by Sompo Risk Management Inc.

2.8％
40

Portfolio and unitholder information

Portfolio overview (as of Oct. 31, 2022) (1)No.

Name of property

Location(city/ward, prefecture)

T-2
T-3
T-5
T-6
T-7
T-8
T-9
T-11
T-12
T-13
T-15
T-16
T-17
T-18
T-19
T-20
T-22
T-23
T-24
T-25
T-26
T-27
T-28
T-29
T-30
T-31
T-32
T-33
T-34
O-1
O-2
O-3
O-4
O-5
O-6

MONA Shin-Urayasu
Passaggio Nishiarai
Unicus Ina (80%)
Yorktown Kita-Kaname
Unicus Yoshikawa
Sports Club Renaissance Fujimidai
Super Viva Home Iwatsuki (Land)
Unicus Kamisato (Land)
Unicus Konosu (Land)
Inageya Yokohama Minamihonjuku (Land)
Nakamachidai Tokyu Store
Central Wellness Club Nagatsuta MinamidaiLife Kameido
Totsuka-Fukaya Shopping Center (Land)
Yumemachi Narashinodai Mall
Kawamachi Yahagi Mall
Round1 Ichikawa-Onitaka
Ozeki Tokiwadai
Konami Sports Club Shibuya
Apita Terrace Yokohama Tsunashima
Kalsa Hiratsuka
Monenosato Mall
KDX Chofu Building (Retail wing)
Across Plaza Urayasu Higashino (Land)
Comfort Market Nishi-Magome
Kitera Town Chofu
Unicus Urawamisono (Land)
Kitera Plaza Aobadai
Higashimatsuyama Shopping Center
Blumer Maitamon
Life Takadono (Land)
DCM MEGA Don Quijote UNY Omihachiman
Blumer HAT Kobe
Carino Esaka
COMBOX Komyoike

Urayasu, Chiba
Adachi, Tokyo
Ina-machi, Kitaadachi-gun, Saitama
Hiratsuka, Kanagawa
Yoshikawa, Saitama
Nerima, Tokyo
Saitama, Saitama
Kamisato-cho, Kodama-gun, Saitama
Konosu, Saitama
Yokohama, Kanagawa
Yokohama, Kanagawa
Yokohama, Kanagawa
Koto, Tokyo
Yokohama, Kanagawa
Funabashi, Chiba
Chiba, Chiba
Ichikawa, Chiba
Itabashi, Tokyo
Shibuya, Tokyo
Yokohama, Kanagawa
Hiratsuka, Kanagawa
Yotsukaido, Chiba
Chofu, Tokyo
Urayasu, Chiba
Ota, Tokyo
Chofu, Tokyo
Saitama, Saitama
Yokohama, Kanagawa
Higashimatsuyama, Saitama
Kobe, Hyogo
Osaka, Osaka
Omihachiman, Shiga
Kobe, Hyogo
Suita, Osaka
Izumi, Osaka

O-9

Life Nishi-Tengachaya

Osaka, Osaka

Acquisition(anticipated) price(JPY mn)
8,063
5,850
3,576
4,000
3,600
2,586
4,815
3,000
1,700
1,442
3,360
1,724
1,450
4,170
3,416
3,097
1,880
1,263
3,400
11,567
5,980
2,753
2,300
2,248
1,920
10,500
732
2,553
4,080
8,389
2,685
2,140
11,0006,555
6,450

Appraisal
value(JPY mn)
9,250
6,580
4,376
4,350
3,870
2,770
5,740
3,100
1,810
1,380
3,740
1,780
1,480
4,350
3,600
3,270
1,950
1,340
3,370
12,100
6,050
3,000
2,240
2,320
2,080
11,400
817
3,650
4,650
9,760
3,260
2,590
11,100
7,400
6,380

1,505

1,750

Appraisal
NOI yield(%)

Occupancy rate(%)

Number oftenants

6.2
5.1
6.1
5.4
5.2
5.0
4.1
4.6
4.6
4.5
5.4
5.3
4.4
4.6
5.3
5.2
5.2
4.6
4.0
4.7
4.7
5.4
5.1
4.0
4.4
5.2
4.6
4.6
6.4
6.1
4.8
7.1
5.1
5.3
6.0

96.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
97.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
91.4
100.0
(Note 2)
0.0
100.0
98.3
100.0
100.0
99.1
100.0
100.0

5.2

100.0

Note 1: The figures are as of Sep. 30, 2022 for the properties held as of Oct. 31, 2022.
Note 2: As Kitera Plaza Aobadai is under conversion, its occupancy rate is 0% as of Sep. 30, 2022. However, if we exclude this property, the occupancy rate is 99.5%. Please refer to page 26 for details of Kitera Plaza Aobadai.
Note 3: In case of a master lessee with pass-through type master lease agreements, the number of end tenants is in parentheses after the number of master lessee. In the case of a master lessee with a sub-lease type master lease agreement,
the number of the master lessee is shown.

1(54)
1(43)
1
1
1(10)
1
1
1
1
1
1
2
1
2
1(13)
1(12)
1
1
1
1
3
1(11)
3
1
1
1(25)
1
1(0)
2
49
1
2
1(41)
1(30)
1
1

41

Portfolio and unitholder information

Portfolio overview (as of Oct. 31, 2022) (2)
No.
O-10
O-11
O-12
N-1
N-2
N-4
N-6
N-7
N-8
F-1
F-2
F-3
F-4
R-1
R-2
R-3
R-4
R-5
R-6
R-8
R-9
R-10
R-11
R-12
L-1
L-2
L-3
L-4
L-5
L-6
L-7
L-8
L-9
L-10

Name of property
Million Town Tsukaguchi (Land)
Habikigaoka Shopping Center
Merado Daikai
DCM Nakagawa Tomita (Land)
Valor Ichinomiya-Nishi
Homecenter Kohnan Sunadabashi
Resora Obu Shopping Terrace
Valor Nakashidami (Land)iias Kasugai (70%)
Sunny Noma
Round1 Stadium Hakata-Hanmichibashi
Kurume-Nishi Shopping Center
Kitera Town Fukuoka-Nagahama
Roseo Mito
K’s Denki Aomori Honten
Super Sports Xebio Aomori-Chuo
Ashico Town Ashikaga
Yorktown Shinden-Higashi
Kasumi Technopark Sakura
P-1 Plaza Tenno
Seiyu Rakuichi Moriya (Land)Sun Street Hamakita
Costco Wholesale Sapporo Warehouse
Coop Sapporo Shunko
Zama Distribution Center
Oppama Distribution Center
Musashi Ranzan Distribution Center (90%)
Yokohama Kamigo Distribution Center
Gyoda Distribution Center
Shinjuku Nishiochiai Distribution Center
Chiba-Kita Distribution Center
Sapporo Shiroishi Distribution Center
Tenri Distribution Center
Prima Meat Packers Kinki Center (90%)
Total / Average

Location(city/ward, prefecture)
Amagasaki, Hyogo
Habikino, Osaka
Kobe, Hyogo
Nagoya, Aichi
Ichinomiya, Aichi
Nagoya, Aichi
Obu, Aichi
Nagoya, Aichi
Kasuigai, Aichi
Fukuoka, Fukuoka
Fukuoka, Fukuoka
Kurume, Fukuoka
Fukuoka, Fukuoka
Mito, Ibaraki
Aomori, Aomori
Aomori, Aomori
Ashikaga, Tochigi
Sendai, Miyagi
Tsukuba, Ibaraki
Hamamatsu, Shizuoka
Moriya, Ibaraki
Hamamatsu, Shizuoka
Sapporo, Hokkaido
Asahikawa, Hokkaido
Zama, Kanagawa
Yokosuka, Kanagawa
Ranzan-machi, Hiki-gun, Saitama
Yokohama, Kanagawa
Gyoda, Saitama
Shinjuku, Tokyo
Chiba, Chiba
Sapporo, Hokkaido
Tenri, Nara
Osaka, Osaka

Acquisition(anticipated) price(JPY mn)
3,723
2,000
5,440
2,311
2,174
7,140
7,911
2,551
14,490
1,497
5,020
1,515
6,000
10,046
1,469
898
4,180
3,252
830
4,010
4,111
11,946
4,210
1,110
1,400
1,300
3,879
918
3,160
810
1,250
800
1,070
1,047

Appraisal
value(JPY mn)
4,160
2,020
5,780
2,740
2,360
7,500
6,770
2,590
14,490
1,650
5,760
1,830
6,270
12,100
1,520
911
4,970
2,600
980
4,050
4,300
11,800
4,430
1,220
1,830
1,720
4,420
1,050
3,740
864
1,540
1,060
1,110
1,107

269,219

289,895

Appraisal
NOI yield(%)

Occupancy rate(%)

Number oftenants

4.2
5.3
5.3
5.0
6.0
5.5
4.5
4.7
4.6
5.3
5.7
6.1
4.6
6.0
6.2
6.3
6.2
4.7
6.2
5.2
4.1
5.4
4.8
6.3
6.1
6.6
5.7
5.0
5.7
4.4
5.0
7.2
5.5
5.2

100.0
100.0
100.0
100.0
100.0
100.0
98.0
100.0
97.6
100.0
100.0
100.0
92.9
100.0
100.0
100.0
99.2
100.0
100.0
100.0
100.0
98.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

1
2
7
1
1
1
1(40)
1
1(68)
1
1
4
1(16)
1(23)
1
1
1(29)
2
1
1(7)
1
1(50)
1
1
1
1
1
2
1
1
1
1
1
1

5.2

99.3

593

Note 1: The figures are as of Sep. 30, 2022 for the properties held as of Oct. 31, 2022. “Appraisal value” and “Appraisal NOI yield” are as of Sep. 1, 2022 for iias Kasugai and Sapporo Shiroishi Distribution Center.
Note 2: In case of a master lessee with pass-through type master lease agreements, the number of end tenants is in parentheses after the number of master lessee. In the case of a master lessee with a sub-lease type master lease agreement,
the number of the master lessee is shown.

42

Portfolio and unitholder information

Appraisal value (properties as of Sep. 30, 2022) (1)
Income capitalization approach value
No.

Property nameAppraisal value(JPY mn)Previous

T-2
T-3
T-5
T-6
T-7
T-8
T-9
T-11
T-12
T-13
T-15
T-16
T-17
T-18
T-19
T-20
T-22
T-23
T-24
T-25
T-26
T-27
T-28
T-29
T-30
T-31
T-32
T-33
T-34
O-1
O-2
O-3
O-4
O-5
O-6

MONA Shin-Urayasu
Passaggio Nishiarai
Unicus Ina (80%)
Yorktown Kita-Kaname
Unicus Yoshikawa
Sports Club Renaissance Fujimidai
Super Viva Home Iwatsuki (Land)
Unicus Kamisato (Land)
Unicus Konosu (Land)
Inageya Yokohama Minamihonjuku (Land)
Nakamachidai Tokyu Store
Central Wellness Club Nagatsuta MinamidaiLife Kameido
Totsuka-Fukaya Shopping Center (Land)
Yumemachi Narashinodai Mall
Kawamachi Yahagi Mall
Round1 Ichikawa-Onitaka
Ozeki Tokiwadai
Konami Sports Club Shibuya
Apita Terrace Yokohama Tsunashima
Kalsa Hiratsuka
Monenosato Mall
KDX Chofu Building (Retail wing)
Across Plaza Urayasu Higashino (Land)
Comfort Market Nishi-Magome
Kitera Town Chofu
Unicus Urawamisono (Land)
Kitera Plaza Aobadai
Higashimatsuyama Shopping Center
Blumer Maitamon
Life Takadono (Land)
DCM MEGA Don Quijote UNY Omihachiman
Blumer HAT Kobe
Carino Esaka
COMBOX Komyoike

9,760
6,570
4,216
4,340
3,870
2,770
5,600
3,050
1,790
1,380
3,740
1,780
1,480
4,340
3,580
3,250
1,950
1,340
3,370
12,100
6,050
2,990
2,410
2,310
2,040
11,400
817
3,610
4,650
9,600
3,200
2,590
11,1007,330
6,430

Latest

9,250
6,580
4,376
4,350
3,870
2,770
5,740
3,100
1,810
1,380
3,740
1,780
1,480
4,350
3,600
3,270
1,950
1,340
3,370
12,100
6,050
3,000
2,240
2,320
2,080
11,400
817
3,650
4,650
9,760
3,260
2,590
11,1007,400
6,380

Direct capitalization
methodDirect cap rate (%)

Changes

Previous

-510
10
160
10
0
0
140
50
20
0
0
0
0
10
20
20
0
0
0
0
0
10
-170
10
40
0
0
40
0
160
60
0
0
70
-50

4.6
4.3
4.5
4.9
4.7
4.6
4.6
5.0
4.2
4.7
4.9
4.8
4.8
4.2
3.8
4.3
4.4
4.9
4.6
4.2
4.1
4.8
4.1
4.3
4.8
5.2
5.8
4.9
4.3
5.3

Latest

4.6
4.3
4.7
4.9
4.7
4.6
4.6
5.0
4.2
4.7
4.9
4.8
4.8
4.2
3.8
4.3
4.4
4.9
4.6
4.2
4.0
4.8
4.1
4.3
4.8
5.1
5.8
4.9
4.3
5.3

DCF method
Discount rate (%)

Changes

Previous

0.0
0.0
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0

4.3
4.1
4.2
4.7
4.5
4.4
4.6
4.6
4.5
4.0
4.4
4.8
3.9
4.6
4.7
4.6
4.6
4.0
3.8
4.1
4.1
4.7
4.2
4.1
4.1
4.5
4.0
4.1
4.6
5.3
3.8
5.5
4.7
4.0
4.9

Latest

4.3
4.1
4.2
4.7
4.5
4.4
4.5
4.5
4.4
4.0
4.4
4.8
3.9
4.6
4.7
4.6
4.6
4.0
3.8
4.1
4.1
4.7
4.2
4.1
4.0
4.5
4.0
4.1
4.6
5.2
3.7
5.5
4.7
4.0
4.9

Terminal cap rate (%)

Changes

Previous

0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
-0.1
-0.1
0.0
0.0
0.0
0.0

4.8
4.5
4.7
5.1
4.9
4.8
4.8
5.2
4.4
5.1
5.0
5.0
4.4
4.0
4.5
4.6
5.2
4.8
4.3
5.0
4.1
4.5
5.0
5.4
6.0
5.1
4.5
5.4

Latest

4.8
4.5
4.7
5.1
4.9
4.8
4.8
5.2
4.4
5.1
5.0
5.0
4.4
4.0
4.5
4.6
5.2
4.8
4.2
5.0
4.1
4.5
5.0
5.3
6.0
5.1
4.5
5.4

Changes

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0

Note: “Previous” refers to appraisal value as of Mar. 31, 2021 for properties held as of the end of 14th period, Mar. 1, 2022 for Higashimatsuyama Shopping Center. Discount rate for DCF method shows the discount rate for the nearest period.

43

Portfolio and unitholder information

Appraisal value (properties as of Sep. 30, 2022) (2)Income capitalization approach value
No.

Property nameAppraisal value(JPY mn)Previous

O-9
O-10
O-11
O-12
N-1
N-2
N-4
N-6
N-7
F-1
F-2
F-3
F-4
R-1
R-2
R-3
R-4
R-5
R-6
R-8
R-9
R-10
R-11
L-1
L-2
L-3
L-4
L-5
L-6
L-7
L-8
L-9
L-10

Life Nishi-Tengachaya
Million Town Tsukaguchi (Land)
Habikigaoka Shopping Center
Merado Daikai
DCM Nakagawa Tomita (Land)
Valor Ichinomiya-Nishi
Homecenter Kohnan Sunadabashi
Resora Obu Shopping Terrace
Valor Nakashidami (Land)
Sunny Noma
Round1 Stadium Hakata-Hanmichibashi
Kurume-Nishi Shopping Center
Kitera Town Fukuoka Nagahama
Roseo Mito
K’s Denki Aomori Honten
Super Sports Xebio Aomori-Chuo
Ashico Town Ashikaga
Yorktown Shinden-Higashi
Kasumi Technopark Sakura
P-1 Plaza Tenno
Seiyu Rakuichi Moriya (Land)Sun Street Hamakita
Costco Wholesale Sapporo Warehouse
Zama Distribution Center
Oppama Distribution Center
Musashi Ranzan Distribution Center (90%)
Yokohama Kamigo Distribution Center
Gyoda Distribution Center
Shinjuku Nishiochiai Distribution Center
Chiba-Kita Distribution Center
Sapporo Shiroishi Distribution Center
Tenri Distribution Center
Prima Meat Packers Kinki Center (90%)
Total

LatestDirect capitalization
methodDirect cap rate (%)

Changes

Previous

LatestDCF method
Discount rate (%)

Changes

Previous

LatestTerminal cap rate (%)

Changes

Previous

LatestChanges

1,710
4,080
2,020
5,780
2,680
2,360
7,500
6,950
2,550
1,650
5,760
1,830
6,140
12,100
1,520
911
4,930
2,580
981
4,050
4,300
10,890
4,430
1,790
1,680
4,330
1,040
3,660
842
1,510
1,040
1,090
1,080

1,750
4,160
2,020
5,780
2,740
2,360
7,500
6,770
2,590
1,650
5,760
1,830
6,270
12,100
1,520
911
4,970
2,600
980
4,050
4,300
11,800
4,430
1,830
1,720
4,420
1,050
3,740
864
1,540
1,060
1,110
1,107

40
80
0
0
60
0
0
-180
40
0
0
0
130
0
0
0
40
20
-1
0
0
-300
0
40
40
90
10
80
22
30
20
20
27

4.5
5.1
4.9
5.1
4.9
4.9
4.4
4.9
4.8
4.5
4.8
5.5
5.5
5.3
5.5
5.1
4.9
4.3
5.3
4.5
4.4
4.5
4.9
4.3
4.7
4.0
4.0
5.3
4.9
4.4

4.4
5.1
4.9
5.1
4.9
4.9
4.4
4.9
4.8
4.4
4.8
5.5
5.5
5.3
5.5
5.1
4.9
4.3
5.2
4.5
4.3
4.4
4.8
4.2
4.6
3.9
3.9
5.2
4.8
4.3

-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1

4.6
3.9
5.1
4.6
4.3
4.8
4.7
5.0
4.1
4.2
4.6
4.5
4.1
4.5
5.2
5.2
5.1
5.3
4.9
4.6
4.2
5.0
4.2
4.4
4.6
4.9
4.4
4.6
3.6
3.8
5.1
4.7
4.1

4.5
3.8
5.1
4.6
4.2
4.8
4.7
5.0
4.0
4.2
4.6
4.5
4.0
4.5
5.2
5.2
5.1
5.3
4.9
4.6
4.2
4.9
4.2
4.3
4.5
4.8
4.3
4.5
3.5
3.7
5.0
4.6
4.0

-0.1
-0.1
0.0
0.0
-0.1
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1

4.7
5.3
5.1
5.3
5.1
5.1
4.8
5.1
5.0
4.7
5.0
5.7
5.7
5.5
5.7
5.3
5.1
5.6
4.7
4.6
4.7
5.1
4.5
4.9
4.1
4.2
5.5
5.1
4.7

4.6
5.3
5.1
5.3
5.1
5.1
4.8
5.1
5.0
4.5
5.0
5.7
5.7
5.5
5.7
5.3
5.1
5.5
4.7
4.5
4.6
5.0
4.4
4.8
4.0
4.1
5.4
5.0
4.6

-0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1
-0.1

273,777

274,185

408

-

-

-

-

-

-

-

-

-

Note 1: “Previous” refers to appraisal value as of Mar. 31, 2022 for properties held as of the end of 14th period, Mar. 1, 2022 for Prima Meat Packers Kinki Center (90%) and additional interest (10%) of Sun Street Hamakita acquired in Apr. 2022.
“Latest” refers to appraisal value as of Sep. 30, 2022. Discount rate for DCF method shows the discount rate for the nearest period.
Note 2: “Direct cap rate”, “Discount rate” and “Terminal cap rate” for Ashikaga show the rates for the building.

44Portfolio and unitholder information

Portfolio composition
Resilience against COVID-19 and e-commerce◼ 76.5% of the portfolio is COVID-19 resilient and 83.2% is e-commerce resilient◼ More than half of the portfolio is both COVID-19 and e-commerce resilient
E-commerce resilience
Relatively strong

Relatively weak

Relatively
strongOther retailers:
Consumer electronics:
Apparel (casual):

7.3%
4.7%
3.0%

15.0%

Groceries & Costco: 28.4%
Master lease:
11.9%
Home & garden:
9.9%
Distribution centers:
6.4%
Drug stores:
2.9%
Dollar shops:
1.6%
Office:
0.3%

61.5%

76.5%

COVID-19
resilience

Relatively
weakApparel (other)

1.9%

Service oriented:
Amusement:
Health clubs:
Restaurants:

6.7%
6.6%
4.5%
3.8%

21.6%

83.2%
Note 1: The figures are as of Sep. 30, 2022 for the assets owned by KRR as of Oct. 31, 2022.
Note 2: Based on the contractual rent determined in the lease contract, including regular building leases.

45

Portfolio and unitholder information

Income and expenses of assets(JPY mn)

Revenues and expenses of nine assets with sales-linked rent (Note 1)
FP

Shin-Urayasu
14th
15th

Nishiarai
14th
15th

Kitera Chofu
14th
15th

Maitamon14th
15th

HAT Kobe
14th
15th

Esaka
14th
15th

Obu
14th

Ashikaga
14th
15th

15th

Hamakita
14th
15th

Rent (fixed)

303

312

218

218

320

309

355

353

356

354

152

156

203

210

196

196

423

450

Rent (sales-linked)

34

35

10

10

5

5

10

8

7

7

35

30

16

14

6

7

7

7

Utility charge reimbursement

35

44

34

43

48

60

77

101

63

95

28

35

42

60

60

81

54

78

-

4

-

-

27

-

2

-

3

-

-

-

4

-

-

1

13

24

Other revenues

100

99

32

32

18

18

29

30

34

38

78

80

15

15

10

10

30

30

Revenues

473

496

296

303

420

393

474

493

465

495

294

302

283

301

274

297

528

591

PM fees

75

80

48

48

31

30

61

61

70

68

41

43

38

37

36

37

71

78

Utilities

49

97

32

49

48

79

62

79

53

73

27

41

43

66

59

84

42

67

Taxes

22

22

34

35

-

35

41

41

47

48

24

25

26

26

24

24

25

25

Repairs and maintenance

13

8

5

5

1

3

3

1

5

2

7

7

4

10

6

3

11

3

Others

53

48

17

14

14

13

22

20

17

15

3

3

12

12

11

7

67

72

Expenses

214

257

138

153

95

162

192

204

193

208

104

121

125

153

138

157

219

247

NOI

258

238

157

150

325

231

282

289

272

287

190

180

157

148

135

140

309

344

Penalty restoring reimbursement

Revenues and expenses of assets without / with negligible amount of sales-linked rent (Note 1)
Existing properties (Note 2)
Multi-tenant properties
FP
Rent (fixed)
Rent (sales-linked)
Utility charge reimbursement
Penalty restoring reimbursement

14th

Properties acquired since 14th FP

Single-tenant properties

15th

14th

Multi-tenant properties

15th

14th

Disposed properties

Single-tenant properties

15th

14th

Multi-tenant properties

15th

14th

Single-tenant properties

15th

14th

15th

1,613

1,585

3,399

3,402

130

270

5

62

28

-

40

-

-

-

-

-

0

0

-

-

-

-

-

-

125

160

13

19

22

29

-

-

-

-

-

-

-

84

-

-

-

-

-

-

-

-

-

-

46

45

3

4

10

12

0

3

3

-

0

-

Revenues

1,785

1,875

3,416

3,426

162

312

5

66

32

-

40

-

PM fees

112

105

80

79

11

12

0

4

0

-

0

-

Utilities

113

136

13

19

19

28

-

0

-

-

-

-

Taxes

143

159

319

347

0

13

0

0

6

-

3

-

Repairs and maintenance

31

22

43

32

0

0

-

0

9

-

-

-

Others

29

37

29

29

2

5

0

1

0

-

0

-

Expenses

430

462

486

509

33

60

0

6

16

-

4

-

1,354

1,412

2,930

2,917

129

252

5

60

15

-

35

-

Other revenues

NOI

Note 1: Revenues and expenses of Kitera Town Fukuoka-Nagahama, with sales linked rent, is included in “Revenues and expenses of assets without / with negligible amount of sales-linked rent” as the amount of sales-linked rent is minimal.
Note 2: “Existing properties” refer to properties acquired by the end of 13th FP, excluding disposed properties.

46

Portfolio and unitholder information

Portfolio highlights (Tokyo metropolitan area) (1)
Name

T-2

MONA
Shin-Urayasu

T-3

Passaggio Nishiarai

T-5

Unicus Ina

T-6

Yorktown
Kita-Kaname

T-7

Unicus Yoshikawa

Photo

Location
Acquisition price (JPY)

Highlights

Name

Urayasu, Chiba
Adachi ward, Tokyo
8,063 mn
5,850 mn
⚫ Located in front of Shin⚫ The surrounding area has a
Urayasu Sta. (17 min fromsignificant inflow of families
Tokyo Sta. by train)
due to large developments⚫ Approx. 60 tenants,⚫ Houses an apparel store,
including supermarkets andrestaurants, etc.
apparel stores⚫ Conducted renovations in2017 and 2018
T-8

Sports Club
Renaissance Fujimidai

T-9

Super Viva Home
Iwatsuki (Land)

Kitaadachi-gun, Saitama
Hiratsuka, Kanagawa
3,576 mn
4,000 mn
⚫ Highly competitive by⚫ Population increase withhousing supermarket Yaoko
residential developments
among other tenants⚫ Plays an important role in⚫ The population in thethe local community bysurrounding area ishousing tenants including a
increasing by continued
supermarket, a drug store
residential developments
and a restaurant⚫ Constructed a restaurant
building in 2017
Unicus Kamisato
Unicus Konosu
T-11
T-12
(Land)(Land)

Yoshikawa, Saitama
3,600 mn
⚫ Conveniently located alonga heavily traveled road in a
population increasing area
⚫ Houses a supermarket, Life,and a home and garden
store, Kohnan, as anchor
tenants

Kodama-gun, Saitama
Konosu, Saitama
3,000 mn
1,700 mn
⚫ Underlying land of the⚫ Underlying land of thelargest NSC in Kamisato
largest NSC in Konosu
developed by P&D
developed by P&D⚫ Competitive due to its⚫ Easy access and highconcentration of highly
visibility by car given its
recognizable tenants
location facing the largest
including a supermarket and trunk road within thea cinema complex
relevant trade area

Yokohama, Kanagawa
1,442 mn
⚫ Underlying land of Inageyagrocery supermarket opened
in Mar. 2015
⚫ Comprises a trade area thatcater daily needs together
with a restaurant and a drug
store nearby

T-13

Inageya Yokohama
Minamihonjuku (Land)

Photo

Location
Acquisition price (JPY)

Highlights

NSC

SM

Nerima ward, Tokyo
Saitama, Saitama
2,586 mn
4,815 mn
⚫ A well-equipped⚫ Comprises a large homemembership-based healthand garden store, aclub with a gym, two studios
supermarket and a foodand a swimming poolcourt
⚫ Large housing⚫ A number of major routes
developments surrounding
near the property potentiallyFujimidai Sta. (15min fromenlarge trade areas
Ikebukuro Sta. by train)including adjacent cities

Urban Station-Front SC

SS

Distribution Centers

47

Portfolio and unitholder information

Portfolio highlights (Tokyo metropolitan area) (2)
Name

T-15

Nakamachidai
Tokyu Store

T-16

Central Wellness Club
Nagatsuta Minamidai

T-17 Life Kameido

T-18

Totsuka Fukaya
Shopping Center (Land)

T-19

Yumemachi
Narashinodai Mall

Photo

Location
Acquisition price (JPY)

Highlights

Name

Yokohama, Kanagawa
3,360 mn
⚫ A station-front NSC in anarea with high population
growth and easy access tocentral Tokyo⚫ Houses a supermarket andother retailers that cater
daily needs

T-20

Kawamachi
Yahagi Mall

Yokohama, Kanagawa
Koto ward, Tokyo
1,724 mn
1,450 mn
⚫ Located in an area with high ⚫ A supermarket located in
population growth, housing a one of the most densely
health club as its core tenant populated retail trade areas⚫ Convenient car access duein Tokyoto its roadside location, with ⚫ A large-scale condominium
good visibility
consisting of approx. 700
residential units in theneighborhood
T-22

Round1
Ichikawa-Onitaka

T-23 Ozeki Tokiwadai

Yokohama, Kanagawa
4,170 mn
⚫ Underlying land of an NSC
opened in Mar. 2015
⚫ NSC houses a grocery
supermarket and a homeand garden store⚫ Located in an area withpopulation growth, with new
residential development insurrounding areas
T-24

Konami Sports Club
Shibuya

Funabashi, Chiba
3,416 mn
⚫ Located in an area with highpopulation growth, housing acompetitive supermarket as
the anchor tenant⚫ The tenants, including thecore grocery supermarket,
cater to diverse daily needsof consumers
T-25

Apita Terrace
Yokohama Tsunashima

Photo

Location
Acquisition price (JPY)

Highlights

Ichikawa, Chiba
Chiba, Chiba
1,880 mn
3,097 mn
⚫ A new NSC housing tenants ⚫ A road-side amusementwith a high level of customer facility located in an area
attraction
with easy access and high⚫ Located in an area withpopulation growthsignificant population growth ⚫ Attractive occupancy costpotential, near a nationaland no other Round One
road and a highway JCT
stores near the retail trade⚫ Flat parking lot for up to 320
areavehiclesItabashi ward, Tokyo
Shibuya ward, Tokyo
Yokohama, Kanagawa
1,263 mn
3,400 mn
11,567 mn⚫ New supermarket opened in ⚫ A health club located in an⚫ NSC that meets diverse
Sep. 2017, located in one ofupper-class residential area,
customer needs andthe most densely populated
approx. 12 minutes from JR
constitutes a nextretail trade areas in Tokyo
Shibuya Sta.
generation urban smart city
⚫ Leased to Ozeki Co., Ltd.,⚫ Konami Sports Club is thein an area with a dense andwhich runs many stores inlargest health club operator
growing population
densely populated areasin Japan, with Shibuya ward ⚫ Opened in March 2018,near train stations in Tokyo
as its strategic focus area
located between
metropolitan area
Tsunashima and Hiyoshi
Stations48

Portfolio and unitholder information

Portfolio highlights (Tokyo metropolitan area) (3)Name

T-26 Kalsa Hiratsuka

T-27 Monenosato Mall

T-28

KDX Chofu Building(Retail wing)

T-29

Across Plaza Urayasu
Higashino (Land)

T-30

Comfort Market
Nishi-Magome

Photo

Location
Acquisition price (JPY)

Highlights

Name

Hiratsuka, Kanagawa
Yotsukaido, Chiba
5,980 mn
2,753 mn
⚫ NSC with the retail trade⚫ NSC opened in March 2019area covering Hiratsuka andin “Monenosato,” a new
Chigasaki, the core of thetown undergoing residential
Shonan area
development⚫ Tenants include a grocery⚫ Tenants include a grocery
supermarket, a home &supermarket Yorkmart, agarden store, and a generaldrugstore, an apparel store
sporting goods shop
and a dollar shop

T-31 Kitera Town Chofu

T-32

Chofu, Tokyo
Urayasu, Chiba
2,300 mn
2,248 mn
⚫ NSC located in the⚫ Underlying land for an NSC
commercial and residential
opened in December 2017
district within walking⚫ The population of the area
distance of Chofu Station
has been consistently⚫ Tenants include grocery
growing by goodsupermarket, a dollar shop,
accessibility to Tokyo CBDa drug store, beauty salon,
from the nearest Maihama
and a health club
StationUnicus UrawamisonoT-33 Kitera Plaza Aobadai(Land)

T-34

Ota ward, Tokyo
1,920 mn
⚫ A new-brand grocery
supermarket adjacent toNishi-magome station,
convenient for commuting tocentral Tokyo⚫ The first and second floors
are used as the store space,
while the third and fourth
floors are used as a nurseryschoolHigashimatsuyama
Shopping Center

Photo

Location
Acquisition price (JPY)

Highlights

Chofu, Tokyo
Saitama, Saitama
Yokohama, Kanagawa
Higashimatsuyama, Saitama
10,500 mn
732 mn2,553 mn
4,080 mn
⚫ NSC designed for frequent⚫ NSC located in a new town
⚫ The property is aiming to⚫ NSC consisting of Seiyu
customer visits in the Chofu
close to Urawa-Misono
revitalize by conversing abuilding providing groceriesarea, a location experiencing station, the starting station
health club to an NSC.
as well as other daily
high population growth andon the Saitama Rapid⚫ Expected to be operated asnecessities and Sundrug
large-scale residential and
Railway Linea convenient retail facility
building
infrastructure development ⚫ There are over 20 end
featuring tenants that deal ⚫ Easy access to wide areas⚫ Convenient car access due
tenants, including Yaoko
with daily necessities andincluding the city center
to its location along thesupermarket as well as aservices including the⚫ Tenants of Seiyu building
Koshu-Kaido Road
drug store and a dollar shop
grocery supermarket, OK,
includes a dollar shop andand clinics
service-oriented tenants

49

Portfolio and unitholder information

Portfolio highlights (Greater Osaka area)
Name

O-1

Blumer Maitamon

O-2

LifeTakadono (Land)

O-3

DCM MEGA Don Quijote
UNY Omihachiman

O-4

Blumer HAT Kobe

O-5

Carino Esaka

Photo

Location
Acquisition price (JPY)

Highlights

Name

Omihachiman, Shiga
2,140 mn
⚫ NSC consisted of twobuildings, MEGA Don
Quijote UNY and DCM(home and garden store)⚫ The trade area surrounding
Omihachiman Sta. is a
residential area with young
families
Million Town
O-10
Tsukaguchi (Land)

Kobe, Hyogo
11,000 mn⚫ Landmark NSC in “HAT
Kobe District”, a revival
symbol project from theKobe earthquake⚫ Houses a cinema complex,a grocery store, clothing
stores and restaurants

Izumi, Osaka
Osaka, Osaka
Amagasaki, Hyogo
6,450 mn
1,505 mn
3,723 mn
⚫ The largest retail property in ⚫ A supermarket located in a
⚫ A newly opened NSC
the central area of Komyoike densely populated retaillocated in an area as a part⚫ Located in the area
area
of the large-scale
accessible to Namba Sta. in ⚫ The tenant, Life Corporation, redevelopment project in
30 min by train
has dominant strategy infront of Tsukaguchi Sta.
Osaka and continues store ⚫ Opened with grocery
openingsupermarket Mandai as acore tenant, as well as adrug store and clinics

Habikino, Osaka
2,000 mn
⚫ NSC located in New Town
with housing developmentsin the southeastern part of
Osaka Prefecture⚫ Consists of Sunplaza, agrocery supermarket, andJoshin, a consumer
electronics store, as coretenants

Kobe, Hyogo
8,389 mn
⚫ Located within a newly
developed residential area
⚫ Consists of approx. 50
tenants, including a
supermarket, an electronic
appliance store and a major
clothing store as coretenants
O-6

COMBOX Komyoike

Osaka, Osaka
2,685 mn
⚫ A supermarket which Life
Corporation opened on theland in 2015
⚫ Located in a densely
populated area bordering
central Osaka⚫ Highly accessible by car as
well
Life
O-9
Nishi-Tengachaya

O-11

Habikigaoka
Shopping Center

Suita, Osaka
6,555 mn
⚫ Attractively located near
Esaka Sta., only 10min from
Umeda Sta.
⚫ The retail trade area ispopular among young
families⚫ Core tenant is Tokyu Hands
O-12 Merado Daiki

Photo

Location
Acquisition price (JPY)

Highlights

Kobe, Hyogo
5,440 mn
⚫ Located in an area with highpopulation density in Hyogoku, Kobe and convenientwithin walking distance of 3
stations on 3 lines⚫ Kansai Supermarket, agrocery supermarket in
Osaka and Hyogo region, isthe core tenant

50

Portfolio and unitholder information

Portfolio highlights (Greater Nagoya area / Fukuoka )
Name

N-1

DCM Nakagawa
Tomita (Land)

N-2

Valor
Ichinomiya-Nishi

N-4

Homecenter Kohnan
Sunadabashi

N-6

Resora Obu
Shopping Terrace

N-7

Valor Nakashidami(Land)

Photo

Location
Acquisition price (JPY)

Highlights

Name

Nagoya, Aichi
2,311 mn
⚫ Located near a number ofmajor routes⚫ Comprises an integrated
retail zone in thesurrounding area, together
with a supermarket and asporting goods store on theadjacent lot
N-8

iias Kasugai

Ichinomiya, Aichi
Nagoya, Aichi
2,174 mn
7,140 mn⚫
Houses a large home and⚫ Located in a commuter town
garden store and a large
for Nagoya (10 min fromsporting goods store
Nagoya Sta. by train)⚫ A large residential property⚫ NSC composed of Valor, a
was developed in the
successful supermarket
neighborhood. A
chain in the Chubu Region,as its core tenant, in addition supermarket also opened,
generating synergies withto an electronic appliancethe home and garden store
store and a health club
F-1

Sunny Noma

F-2

Round1 Stadium
Hakata-Hanmichibashi

Obu, Aichi
Nagoya, Aichi
7,911 mn
2,551 mn
⚫ The largest NSC in Obu,
⚫ Underlying land for a
Aichi, opened in Apr. 2008
standalone grocery
as a part of the development supermarket in the Valor
project including a medical
chainmall and a condominium⚫ Valor is a supermarket chain⚫ Yamanaka, a grocerywith strong strategic
supermarket as its main
dominance in the Tokai
tenant and over 40 tenantsregionF-3

Kurume-Nishi
Shopping Center

F-4

Kitera Town
Fukuoka Nagahama

Photo

Location
Acquisition price (JPY)

Highlights

Kasugai, Aichi
Fukuoka, Fukuoka
Fukuoka, Fukuoka
Kurume, Fukuoka
14,490 mn
1,497 mn
5,020 mn
1,515 mn
⚫ A roadside NSC located⚫ Rebuilt in 2007 after⚫ A large-scale flagship store⚫ An NSC located in aalong National Route 19 inenjoying strong support from for Round One that offers aresidential district near
Kasugai, with a stable retailthe local community for 35
variety of amusement anddowntown Kurume City
trade areayears
sporting facilities⚫ Tenants include a grocery⚫ Seiyu, Round1, Uniqlo and⚫ The strongest performing⚫ Located in Fukuoka withsupermarket, a baby goods
Muji have opened new large
supermarket among otherpopulation growth
store and a drug store
stores with unique ability to
Sunny supermarkets in the ⚫ The store ranks high in sales ⚫ Facing a national route,attract customers andsurrounding area
among all Round One stores providing good visibility
making the facility
competitive

Fukuoka, Fukuoka
6,000 mn
⚫ An NSC opened in Feb.
2021 in an area with highpopulation growth,neighboring Tenjin area
⚫ Sunny is open 24-hours andprovides delivery service forits online supermarket

51

Portfolio and unitholder information

Portfolio highlights (Ordinance-designed cities, core cities and other areas)
Name

R-1

Roseo Mito

R-2

K’s Denki
Aomori Honten

R-3

Super Sports Xebio
Aomori-Chuo

R-4

Ashico Town
Ashikaga

R-5

Yorktown
Shinden-Higashi

Photo

Location
Acquisition price (JPY)

Highlights

R-6

Kasumi Technopark
SakuraTsukuba, Ibaraki
830 mn⚫ 24-hour Kasumi
supermarket⚫ The retail trade area
includes the college town of
Tsukuba University⚫ Kasumi is headquartered in
Tsukuba, and has adominant presence in thearea

Mito, Ibaraki
Aomori, Aomori
Aomori, Aomori
10,046 mn
1,469 mn
898 mn⚫ Located in a population⚫ Opened in 2005 in Hamada ⚫ Located in Hamada districtgrowing area with many
District in Aomori, which has
in Aomoriyoung families
the highest concentration of ⚫ Some major routes bring⚫ Houses a supermarket andretailers in Aomori
customers from broad retaila home and garden store as
trade area
core tenants⚫ Constructed a secondhand
shop building in 2015
R-8

P-1 Plaza Tenno

Hamamatsu, Shizuoka
4,010 mn
⚫ Located in a large-scaleretail area in northeast
Hamamatsu where roadside retail facilities
concentrate⚫ Houses tenants including a
local supermarket, a drug
store and a relaxation spa

R-9

Seiyu Rakuichi
Moriya (Land)

Ashikaga, Tochigi
4,180 mn
⚫ A large-scale multi-tenant
NSC with supermarket as acore tenant⚫ Easily accessibility by car
due to its location along amajor local route⚫ Cinema reopened in Mar.
2016
Costco Wholesale
R-10 Sun Street Hamakita R-11
Sapporo Warehouse

Moriya, Ibaraki
Hamamatsu, Shizuoka
4,111 mn
11,946 mn⚫ Underlying land of an NSC⚫ An NSC located in awith a grocery supermarket as residential area in central
the anchor tenant
Hamamatsu where the⚫ Located in a population
population
growing area with the 2005 ⚫ The property is easily
opening of Tsukuba Express accessible by car due to its⚫ Land acquired at a pricelocation facing National
lower than the official land
Route 152 and Prefectural
price
Route 391

Sapporo, Hokkaido
4,210 mn
⚫ Costco is a “membershipwarehouse club” with over
740 warehouse storesworldwide⚫ Sapporo Warehouse is the
only Costco warehouse in
Hokkaido and covers
Sapporo metropolitan area
as its trade area

Sendai, Miyagi
3,252 mn
⚫ Located in eastern Sendai
conveniently commutable to
Sendai Sta.
⚫ Houses a supermarket anda home and garden store ascore tenants

R-12

Coop Sapporo
ShunkoAsahikawa, Hokkaido
1,110 mn
⚫ An NSC for daily needs of
local residents, housing
Coop Sapporo as the coretenant, located in Asahikawa,
Hokkaido’s second-largest
city⚫ Facing Suehiro-takadai-doriAvenue, which can beaccessed from National
Road 40

52

Portfolio and unitholder information

Portfolio highlights (Distribution centers)
Name

L-1

Zama Distribution
CenterL-2

Oppama Distribution
CenterL-3

Musashi Ranzan
Distribution Center

L-4

Yokohama Kamigo
Distribution Center

L-5

Gyoda
Distribution Center

Photo

Location
Acquisition price (JPY)

Highlights

Name

Zama, Kanagawa
Gyoda, Saitama
Yokosuka, Kanagawa
Hiki-gun, Saitama
Yokohama, Kanagawa
1,400 mn
3,160 mn
1,300 mn
3,879 mn
918 mn⚫ Distribution center for a⚫ Core distribution center of a ⚫ Distribution center in an area ⚫ Distribution center of a home ⚫ A highly versatile storagemajor convenience store
major convenience store
with a concentration ofdelivery service firm within atype distribution center for
chain that delivers to its
chain that delivers to its
logistics facilities, near aresidential district
regional and wider area
storesstores and features a
Kan-Etsu Expressway⚫ Spaces for distributiondelivery in the metropolitan⚫ Located within Zama area inprocess center function
interchange
centers are limited in the
area
Kanagawa Prefecture, with ⚫ Located within Tokyo⚫ The location allows thearea⚫ Nippon Express Co., Ltd., aa concentration of logistics
metropolitan bay area
tenant to make daily⚫ Currently leased to a major
major logistics company, isfacilities⚫ Location with high potential
deliveries to Tokyo
home delivery service firmusing the distribution center⚫ The tenant is a major
for local deliveries as well as
Metropolitan area and 24⚫ Newly constructed afor shippers of food-related
convenience store chain
wide area distribution
hour operation
restaurant building
and home appliances
Shinjuku Nishiochiai
Chiba-kita
Sapporo Shiroishi
Tenri Distribution
Prima Meat Packers
L-6
L-7
L-8
L-9
L-10
Distribution Center
Distribution Center
Distribution Center
CenterKinki Center

Photo

Location
Acquisition price (JPY)

Highlights

Shinjuku ward, Tokyo
Chiba, Chiba
810 mn1,250 mn
⚫ This facility is highly scarce ⚫ The property is locatedand has optimal facility
adjacent to an interchange
specifications as a last-mileon an expressway anddistribution center
National Route 16⚫ A major delivery company,⚫ There is strong demand for
Yamato Transport Co., Ltd.,
logistics facilities in the areais the tenant of the facility
because of an easy accessto the Tokyo metropolitan
area

Sapporo, Hokkaido
Tenri, Nara
800 mn1,070 mn
⚫ The property is located in⚫ Located in Tenri City, Nara
Sapporo, within the Ryutsu
Prefecture, in an area
Center District, one of thesuitable for regional
districts with the highest
distribution andpotential for logistics
manufactures’ storing andfacilities in the Sapporo area distribution.
⚫ The facility is expected to be ⚫ Nippon Express Co., Ltd., aable to meet the needs of amajor logistics company, iswide range of tenants
the current end tenant

Osaka, Osaka
1,047 mn
⚫ Located in Nishiyodogawaku, where logistics facilities
concentrate along Osaka
Bay with advantages in easy
access to CBD⚫ Prima Meat Packers, Ltd., amajor food company, is thecurrent tenant

53

Portfolio and unitholder information

Unitholder information (as of Sep. 30, 2022)
Ownership ratio by investor type
Individuals and others
Other domestic corporations
Brokerage firms
Sep. 2021
13th
PeriodMar. 2022
14th
PeriodSep. 2022
15th
Period

12.3%

11.8%

12.2%

Major unitholders

Financial institutions
Foreign investors

54.7%

4.8%

54.5%

25.6%

4.7%

52.7%

Name

27.5%

4.9%

28.7%

2.6%

1.5%

Sep. 2021
13th FPMar. 2022
14th FP

Sep. 2022
15th FP

13,64813,40813,3531210

9Regional banks
Financial Shinkin banks
institutions and others
Life/ Nonlife

23

23

24

81

81

79

6

6

8

Total

122

120

120

Other domestic corporations

311

307

310

Foreign investors

271

264

280

Brokerage firms

25

26

25

Total

14,377

14,125

14,088City/ Trust banks

Ratio
(%)

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

112,750

19.36%

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

95,541

16.41%The Nomura Trust and Banking Co., Ltd.
(Investment Trust Acct.)

31,2705.37%

Kenedix, Inc.

16,9502.91%

SSBTC Client Omnibus Account12,9682.22%

State Street Bank West Client-Treaty 505234

11,787

2.02%

JP Morgan Chase Bank 385781

8,063

1.38%

State Street Bank and Trust Company 505103

7,351

1.26%

DFA International Real Estate Securities Portfolio

6,969

1.19%

State Street Bank and Trust Company 505223

6,022

1.03%

1.4%

Number of unitholders by investor type

Individuals and others# ofunits held

Note: “Ratio” is based on number of units issued and outstanding, rounded down to the second decimal place.

54

Disclaimer

The contents in this document are provided solely for informational purposes and not intended for the purpose of soliciting investment in, or as arecommendation to purchase or sell, any specific products.
This document contains charts/diagrams/tables/data and others Kenedix Real Estate Fund Management (“KFM”) created based on data, indices, etc.
published by third parties, in addition to the information related to Kenedix Retail REIT Corporation (“KRR”). This document also contains the current
analyses/judgments/other opinions of KFM.
KFM is a financial instruments business operator under the Financial Instruments and Exchange Act.
The information provided herein is unaudited and hence no assurance or warranties are given with respect to the accuracy or completeness thereof.
Also, please be aware that the analyses/judgments/other opinions provided by KFM may change or cease to exist without prior notice of any kind as they
are based on current assumptions and beliefs of KFM.
Neither KRR nor KFM shall be liable for any errors/inaccuracies of the data/indices/other information published by third parties (including the data basedon the appraisal report).
This document also contains forward-looking statements and anticipation of future results for KRR. However, no guarantees are given with respect to theaccuracy of these statements/anticipation.
Revised editions of this document will be posted on our website (https://www.krr-reit.com/en) should there be major corrections going forward.

Abbreviations of property names
Property name

Abbreviation

Property name

Abbreviation

Property name

Abbreviation

MONA Shin-Urayasu

Shin-Urayasu

KDX Chofu Building (Retail wing)

Chofu

Kurume-Nishi Shopping Center

KurumePassaggio Nishiarai

Nishiarai

Across Plaza Urayasu Higashino (Land)

Urayasu Higashino

Kitera Town Fukuoka Nagahama

Fukuoka Nagahama

Daikanyama Address Dixsept

Daikanyama

Comfort Market Nishi-Magome

Nishi-Magome

Roseo Mito

Mito

Unicus Ina

Ina

Kitera Town Chofu

Kitera Chofu

K's Denki Aomori Honten

K's Aomori

Yorktown Kita-Kaname

Kita-Kaname

Unicus Urawamisono (Land)

UrawamisonoSuper Sports Xebio Aomori-Chuo

Xebio Aomori

Unicus Yoshikawa

Yoshikawa

Kitera Plaza Aobadai

Aobadai

Ashico Town Ashikaga

Ashikaga

Sports Club Renaissance Fujimidai

Fujimidai

Higashimatsuyama Shopping Center

Higashimatsuyama

Yorktown Shinden-Higashi

Shinden-Higashi

Super Viva Home Iwatsuki (Land)

IwatsukiBlumer Maitamon

MaitamonKasumi Technopark Sakura

Kasumi Sakura

K’s Denki Shonan-Fujisawa (Land)

Fujisawa

Life Takadono (Land)

Takadono

P-1 Plaza Tenno

P-1

Unicus Kamisato (Land)

Kamisato

DCM MEGA Don Quijote UNY Omihachiman

Omihachiman

Seiyu Rakuichi Moriya (Land)

MoriyaUnicus Konosu (Land)

KonosuBlumer HAT Kobe

HAT Kobe

Sun Street Hamakita

Hamakita

Inageya Yokohama Minamihonjuku (Land)

Minamihonjuku

Carino Esaka

Esaka

Costco Wholesale Sapporo Warehouse

Costco Sapporo

Nakamachidai Tokyu Store

Nakamachidai

COMBOX Komyoike

Komyoike

Coop Sapporo Shunko

ShunkoCentral Wellness Club Nagatsuta Minamidai

Nagatsuta

Life Nishi-Tengachaya

Tengachaya

Zama Distribution Center

Zama

Life Kameido

KameidoMillion Town Tsukaguchi (Land)

Tsukaguchi

Oppama Distribution Center

OppamaTotsuka-Fukaya Shopping Center (Land)

Totsuka

Habikigaoka Shopping Center

Habikigaoka

Musashi Ranzan Distribution Center

RanzanYumemachi Narashinodai Mall

Narashinodai

Merado Daikai

Daikai

Yokohama Kamigo Distribution Center

KamigoKawamachi Yahagi Mall

Yahagi

DCM Nakagawa Tomita (Land)

Nakagawa

Gyoda Distribution Center

Gyoda

Prime Square Jiyugaoka

Jiyugaoka

Valor Ichinomiya-Nishi

Ichinomiya

Shinjuku Nishiochiai Distribution Center

Nishiochiai

Round1 Ichikawa-Onitaka

Ichikawa

Homecenter Kohnan Sunadabashi

Sunadabashi

Chiba-Kita Distribution Center

Chiba-Kita

Ozeki Tokiwadai

Tokiwadai

Resora Obu Shopping Terrace

Obu

Sapporo Shiroishi Distribution Center

Sapporo Shiroishi

Konami Sports Club Shibuya

Shibuya

Valor Nakashidami (Land)

Nakashidami

Tenri Distribution Center

Tenri

Apita Terrace Yokohama Tsunashima

Tsunashima

iias Kasugai

KasugaiPrima Meat Packers Kinki Center

Prima Kinki

Kalsa Hiratsuka

Hiratsuka

Sunny Noma

Noma

Monenosato Mall

Monenosato

Round1 Stadium Hakata-Hanmichibashi

Hakata-Hanmichibashi

Memo

Memo

Memo