Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED MARCH 31, 2023 (REIT)(October 1, 2022 to March 31, 2023)
May 17, 2023
Kenedix Retail REIT Corporation (“KRR”) is listed on the Tokyo Stock Exchange with the securities code number 3453.
(URL https://www.krr-reit.com/en/)
Representative:
Moyuru Watanabe, Executive Director
Asset Management Company: Kenedix Real Estate Fund Management, Inc.
Representative:
Hikaru Teramoto, President & CEO
Inquiries:
Isaharu Kikushima, Head of Strategic Planning, Retail REIT Department
TEL +81-3-5157-6013
Planned submission of semiannual securities report:
Planned start of distribution payments:
Preparing presentation material:
Hold a financial brief meeting:June 22, 2023
June 16, 2023
Yes
No (Cancelled to prevent the spread of COVID-19 infection.
Presentation video of financial results is scheduled to be webcasted.)

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED MARCH 31, 2023 (October 1, 2022 to March 31, 2023)(1) Business Results
Operating revenues
Fiscal period ended
March 31, 2023
September 30, 2022

Millions of yen
9,924
9,357

(Amounts are rounded down to the nearest million yen)
(Percentages show period-on-period changes)
Ordinary income
Net income

Operating income
%
6.1
-8.7

Net income per unit%

Millions of yen
4,565
4,406

Millions of yen
3,926
3,778

3.6
-7.4

Return on net assets

%
3.9
-8.5

Ordinary income to total assets

Fiscal period ended
Yen%
March 31, 2023
6,535
2.8
September 30, 2022
6,484
2.7
Note:
Net income per unit is calculated by dividing the net income by the weighted average number of units.

Millions of yen
3,922
3,774

%
3.9
-8.5

Ordinary income to operating
revenues

%
1.4
1.4

%
39.6
40.4

(2) Distribution
Distributions per Distributions perDistribution ratio
Distributions in Total distributions Total distributions Total distributions
Payout ratio
unit (including
unit (excluding
to net assets
excess of earnings (including excess (excluding excess
in excess ofexcess ofexcess of
per unitof earnings)
of earnings)
earnings
earnings)
earnings)
Fiscal period ended
Yen
Yen
Yen
Millions of yen
Millions of yen
Millions of yen%%
March 31, 2023
6,514
6,514
3,922
3,922
100.0
2.8
September 30, 2022
6,484
6,484
3,774
3,774
100.0
2.7
Note:
Due to the issuance of new investment units, the payout ratio for the fiscal period ended March 31, 2023, is calculated as follows (rounded to the nearest tenth).
Payout ratio = Total distributions (excluding excess of earnings)/ Net income × 100(3) Financial Position
Total assets
As ofMarch 31, 2023
September 30, 2022

Millions of yen
287,569
276,699

Net assets
Millions of yen

Net assets to total assets

Net asset per unit

142,566
137,428

%
49.6
49.7

Yen
236,751
236,059

Cash flows frominvesting activities
Millions of yen-17,421-6,974

Cash flows fromfinancing activities
Millions of yen
6,139-3,141

Cash and cash equivalents
at the end of the period
Millions of yen
14,396
20,674(4) Cash Flows
Fiscal period ended
March 31, 2023
September 30, 2022

Cash flows fromoperating activities
Millions of yen
5,004
4,742

2．EARNINGS FORECASTS FOR THE FISCAL PERIODS ENDING SEPTEMBER 30, 2023 (April 1, 2023 to September
30, 2023) AND MARCH 31, 2024 (October 1, 2023 to March 31, 2024)(Percentages show period-on-period changes)

Fiscal period ending
September 30, 2023
March 31, 2024
Reference:
Note:

Distributions
OperatingOperatingper unit
Ordinary income
Net income
revenues
income(excluding(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)excess of
earnings)
%
%
%
%
Yen
10,275
3.5
4,594
0.6
3,954
0.7
3,951
0.7
6,561
10,195
-0.8
4,600
0.1
3,960
0.2
3,957
0.2
6,571
Forecasted net income per unit (Forecasted net income / Forecasted average number of investment units during the period)
6,561 yen for the fiscal period ending September 30, 2023 and 6,571 yen for the fiscal period ending March 31, 2024

Distributions
in excess ofearnings per
unit
Yen
9
9

Distributions
per unit(includingexcess of
earnings)
Yen
6,570
6,580

Distributions per unit are calculated based on the number of investment units issued and outstanding totaled 602,177 as of the date of this material.

*OTHERS(1) Changes in Accounting Policies/Changes in Accounting Estimate/Retrospective Restatement(a) Changes in accounting policies accompanying revisions to accounting standards: None(b) Changes in accounting policies other than (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(2) Number of Investment Units Issued and Outstanding (including treasury investment units)(a) Number of investment units issued and outstanding at the end of the period (including treasury investment units)
As of March 31, 2023: 602,177 units
As of September 30, 2022: 582,177 units(b) Number of treasury investment units at the end of the period
As of March 31, 2023: 0 units
As of September 30, 2022: 0 units
Note: Please refer to “Notes to Per Unit Information” on page 23for the number of investment units used as the basis for calculating net income per unit.

* Status of audit procedures
As of the time of disclosure of this financial report, audit procedures for the financial statements pursuant to the Financial Instruments andExchange Act of Japan are incomplete.
* Remarks on appropriate use of forecasts of performance and other special notes
Forward-looking statements presented in this financial report, including forecasts of performance, are based on information currently available to
KRR and on certain assumptions KRR deems to be reasonable. As such, actual operating and other results may differ materially from these
forecasts as a consequence of numerous factors. The above-mentioned forecasts are based on “Assumptions for the Earnings Forecasts for the
Fiscal Periods Ending September 30, 2023 and March 31, 2024” on page 6 for calculation, and our judgment as of May 17, 2023. Actual operating
revenues, operating income, ordinary income, net income, distributions per unit and distributions in excess of earnings per unit may vary according
to changes in market conditions. These forecasts do not guarantee the distribution amount.

This is an English-language translation of the original Japanese announcement on our website released on May 17, 2023. However, no assurance or warranties are given with respect tothe accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

Contents of Attachments
1. Status of Asset Management …………………………………………………….……………………………………………………2(1)

Status of Asset Management ……………………………………………………………………………………………………2(2)

Investment Risks …………………………………………………………………………………………………………………7

2. Financial Statements……………………………………………………………………………………………………………………8(1) Balance Sheets...…………………………………………………………………………………………………………………8(2)

Statements of Income and Retained Earnings ……………………………………………………………………………………10(3)

Statements of Changes in Net Assets ……………………………………………………………………………………………11(4)

Statements of Cash Distributions …………………………………………………………………………………………………12(5)

Statements of Cash Flows ………………………………………………………………………………………………………13(6)

Notes on Assumption of Going Concern …………………………………………………………………………………………14(7)

Summary of Significant Accounting Policies ……………………………………………………………………………………14(8)

Notes to Financial Statements ……………………………………………………………………………………………………15(9)

Changes in Investment Units Issued and Outstanding ……………………………………………………………………………24

3. Reference Information …………………………………………………………………………………………………………25(1)

Information on Price of the Managed Assets ……………………………………………………………………………………25(2)

Capital Expenditures on the Managed Assets ……………………………………………………………………………………39(3)

Information Concerning Major Tenants …………………………………………………………………………………………40

1

1. Status of Asset Management(1) Status of Asset Management(Overview of the Period ended March 31, 2023)
i) Transition of KRR
KRR was established on October 3, 2014, under the Act on Investment Trusts and Investment Corporations of Japan (the “Investment TrustAct”). On October 3, 2014, KRR was registered with the Director-General of the Kanto Local Finance Bureau (registration number: DirectorGeneral of the Kanto Local Finance Bureau No. 97). KRR was listed on the Real Estate Investment Trust Securities (“J-REIT”) Market ofTokyo Stock Exchange, Inc. (the “Tokyo Stock Exchange”) (Securities code: 3453) on February 10, 2015. Subsequently, KRR raised funds
through public offerings. As a result, the number of investment units issued at the end of the period ended March 31, 2023 was 602,177 units.
KRR seeks to invest primarily in neighborhood, community and other shopping centers that cater to the day-to-day needs of local area
customers and have stable demand from retailers and customers, and also seeks to invest in distribution centers, which supplement shopping
centers in providing goods to consumers, in order to provide stable investment returns over the long term. Sponsored by Kenedix, Inc., KRR
entrusts its asset management and investment operations to Kenedix Real Estate Fund Management, Inc. (“KFM”), with the following
strategies.
Note: For our management purposes and ease of classification, we define shopping centers for daily needs as retail properties that generally have the following characteristics:
a. Retail trade area of approximately a one to ten km radius (and generally, a three to five km radius), with customers predominantly from local areas surrounding theretail property
b. Operational capacity to accommodate certain daily local retail needs and strong customer traffic on both weekdays and weekends
c. Composed of various specialty stores to meet a range of day-to-day needs such as groceries, clothing and other daily goods and servicesii) Investment Environment
During the fiscal year under review, the Japanese economy saw improvement in consumer spending and corporate revenue as socioeconomic
restrictions in response to the spread of COVID-19 was eased, and economic activity normalized. However, the business environment
remains uncertain due to soaring resource prices impacted by the war in Ukraine, rapid inflation and rising interest rates in the United Statesand other countries and the emergence of geopolitical risks, so we need to pay close attention to the effect of price rises, including resource
prices. The financial environment remains unstable due to the aforementioned factors, but in the real estate trading market, investors continue
to be eager to invest in real estate against the backdrop of monetary easing policies in Japan, and transactions remain active.
Even in these circumstances, among shopping centers for daily needs, in which KRR focuses its investment, specialty stores such as
supermarkets and home & garden stores that cater to the day-to-day needs of customers have maintained steady demand.
iii) Status of Asset Management(A) Management Performance
KRR acquired two properties, iias Kasugai (70% quasi-co-ownership interest) with an acquisition price (Note 1) of 14,490 million yen andCoop Sapporo Shunko with an acquisition price of 1,110 million yen. In addition, KRR expanded Unicus Ina with an acquisition price of
172 million yen.
As a result, the portfolio at the end of the period under review (March 31, 2023) consists of 70 properties with the total acquisition price of
270,381 million yen. The portfolio as a whole performed well with an overall occupancy ratio of 99.5%. Furthermore, the portfolio isdiversified in terms of tenants as there are 608 end-tenants (Note 2) in KRR’s retail properties and distribution centers.
Note 1: “Acquisition price” indicates the purchase price of properties specified in sale and purchase agreements (excluding acquisition expenses, property taxes, city planning taxes
and consumption taxes, and is rounded down to the nearest million yen). The same applies hereafter.
Note 2: The number of end-tenants is the sum of the number of end-tenants in a pass-through-type master lease and the number of master lessees in a sublease type master lease.

(B) Financing
When financing to acquire properties, KRR seeks to achieve proper balance between financial stability and the cost of the funds to achieve
the objectives of stable medium- to long-term returns and consistent growth of assets under management.
(Issuance of New Investment Units)
During the fiscal period under review, KRR issued 20,000 investment units through public offering with an aim to partially fund theacquisition of specified assets on October 19, 2022, and procured 4,954 million yen of funds.
As a result, unitholders’ capital totaled 138,058 million yen at the end of the fiscal period under review (March 31, 2023).
(Debt Finance)
During the fiscal period under review, KRR borrowed 5,000 million yen for the acquisition of properties and 8,750 million yen forrefinancing. Consequently, borrowings totaled 119,300 million yen and interest-bearing debt including investment corporation bonds(excluding interest-bearing tenant leasehold and security deposits) totaled 129,300 million yen at the end of the fiscal period under review
2

(March 31, 2023). Furthermore, the borrowings (7,750 million yen) for refinancing were procured as green loan. Borrowings procured as
green loan totaled 16,800 million yen.
When undertaking borrowings, KRR seeks to spread out repayment dates and lengthen borrowing periods. While doing so, KRR undertook
borrowings from the point of agility and flexibility in financial strategy. Furthermore, for some of the long-term borrowings, KRR has usedswaps to fix the interest payments to hedge against the risk of a rise in interest rates.
As a result, the average debt maturity is 4.0 years, the weighted average debt cost is 0.93%, the long-term debt ratio (Note 1) is 97.6% and
the LTV ratio (Note 2) is 45.0%.
Note 1:
Note 2:Long-term debt ratio = (Long-term borrowings + Investment corporation bonds) / (Borrowings + Investment corporation bonds)
LTV ratio = (Loans payable + Investment corporation bonds) / Total assets(Credit Ratings)
The status of the credit ratings as of March 31, 2023 is as follows.
Credit rating agency
Details of the ratings
Long-term issuer rating
AA- (Outlook: Stable)
Japan Credit Rating Agency, Ltd. (JCR)
Rating on bonds
AA(Shelf Registration)
KRR filed a shelf registration statement for investment corporation bonds (excluding short-term investment corporation bonds) on
November 24, 2022. Details are as follows.
Planned issue amount

100,000,000,000 yen

Planned issuance period December 2, 2022 to December 1, 2024
Use of proceeds

Acquisition funds for specified assets (as defined in Article 2, Paragraph 1 of the Investment
Trust Law), repayment funds for borrowings, repayment funds for investment corporation
bonds (including short-term investment corporation bonds), refund funds for lease andguarantee deposits, funds to pay for repairs and maintenance, working capital, etc.

iv) Results of Operations
For the fiscal period under review, operating revenue was 9,924 million yen, operating income was 4,565 million yen, ordinary income was
3,926 million yen and net income was 3,922 million yen.
Furthermore, in accordance with the distribution policy in the KRR Articles of Incorporation, KRR made a distribution of 3,922,580,978
yen which is almost equivalent to the earnings (as defined in Article 136-1 of the Act on Investment Trusts and Investment Corporations)for the fiscal period. Cash distributions are paid in accordance with Article 67-15 of the Special Taxation Measures Law (Law No. 26 of
1957, including subsequent amendments).
Consequently, the distribution per unit was 6,514 yen.

3

(Outlook)i) Outlook for Asset Management(A) Investment Policy and Disposition Policy
We receive a variety of support from many sources in order to achieve the steady growth of our assets and increase the value of our assets.
One source is the Kenedix Group (Note), including Kenedix, Inc., the parent company of KFM. We also receive support from our Alliance
Companies: Sumitomo Mitsui Finance and Leasing Co., Ltd., SMFL MIRAI Partners Co., Ltd., both of which are also KFM’s parent
companies, JINUSHI Co., Ltd., and P&D Consulting Co., Ltd. We are implementing a growth strategy that takes full advantage of theexternal growth opportunities created by the large and diverse acquisition pipeline made possible by the support of these companies.
When acquiring properties, we make decisions based on all applicable factors with emphasis on four parameters: the retail property’s
attractiveness, location, profitability and the tenant mix. By using this selection process, we invest in retail properties with a competitive edge,
and good prospects for consistent rental revenue and growth in asset value. We also invest in carefully selected distribution centers, which
supplement retail facilities in providing goods to consumers. In addition, we invest in land ownership interests underlying retail properties.
Regarding land-only properties, we make these investments after examining the terms of the land leasing agreement, the characteristics ofthe tenant, the asset value of the land, and the proportion of land-only properties in our portfolio. We may also consider making an equity
investment in a tokumei kumiai (silent partnership) for the acquisition of preferential negotiation rights and opportunities for additional
revenues, provided that we are given an opportunity to acquire them in the future.
Regarding disposition of a portfolio property, we make decisions based primarily on the significance of these properties in the context of theportfolio. This is assessed by a comprehensive evaluation of the outlook for future profitability and asset value determined based on its current
profitability and market trends.
Note:

The Kenedix Group consists of Kenedix, Inc. and its subsidiaries and affiliates.

(B) Management Strategy for Existing Properties
KRR is committed to building a portfolio that can pursue both stability and growth. We believe that implementing integrated asset andproperty management services makes it possible to properly manage retail properties and distribution centers and pursue internal growth.
Furthermore, this integrated management framework facilitates activities to enliven local communities where our properties are located,enabling us to aim for medium to long-term growth in asset value.
To accomplish these goals, KFM oversees properties owned by KRR while placing priority on the following themes.
・“One-stop” asset management and property management services
・Continuously implementing a retail property management cycle through our in-house property management services
・Pursuit of internal growth through management of retail properties
・Directing investments and management policies to enliven local communities in the medium to long-term
・Implementing distribution center management(C) Financing
We will establish a suitable financial foundation by examining numerous financing methods and selecting the optimum ones. These decisions
will reflect interest rates and other elements of the financial environment. Our goal is to select financing methods that result in the optimum
balance between financial stability and the financing cost.
(D) Important Subsequent Events
Not applicable4ii) Earnings Forecasts
For the fiscal periods ending September 30, 2023 (from April 1, 2023 to September 30, 2023) and March 31, 2024 (from October 1, 2023
to March 31, 2024), the earnings forecasts are estimated as set forth below.
Fiscal period ending September 30, 2023
Operating revenues

10,275 million yen

Operating Income

4,594 million yen

Ordinary income

3,954 million yen

Net Income

3,951 million yen

Distributions per unit

6,570 yen

Of the above, distributions in excess of earnings

9 yen

Fiscal period ending March 31, 2024
Operating revenues

10,195 million yen

Operating Income

4,600 million yen

Ordinary income

3,960 million yen

Net Income

3,957 million yen

Distributions per unit

6,580 yen

Of the above, distributions in excess of earnings

9 yen

Please refer to “Assumptions for the Earnings Forecasts for the Fiscal Periods Ending September 30, 2023 and March 31, 2024” set forth
below for information on current assumptions for the forecasts of operating results.
Furthermore, KRR has updated the assumptions mentioned in “Notice Concerning Revisions to Earnings and Distributions Forecasts for the
Fiscal Period Ending September 30, 2023 (17th fiscal period)” released on May 12, 2023. However, there are no changes in the forecast
figures.
Note:

The above forecasts are based on certain assumptions for calculation, and our judgment as of today. Actual operating revenues, operating income, ordinary income,net income, distributions per unit and distributions in excess of earnings per unit may vary due to changes in market conditions. These forecasts do not guarantee the
distribution amount.

5Assumptions for the Earnings Forecasts for the Fiscal Periods Ending September 30, 2023 and March 31, 2024
Item

Assumptions
・The 17th fiscal period: April 1, 2023 to September 30, 2023 (183 days)
Calculation period
・The 18th fiscal period: October 1, 2023 to March 31, 2024 (183 days)
・Earnings forecasts for the fiscal periods ending September 30, 2023, and March 31, 2024, are based on a totalof 70 properties which consist of properties and trust beneficiary interest owned by KRR as of March 31,
2023 (the “Properties Owned as of the End of 16th Fiscal Period”).
Property portfolio
・Forecasts are based on the assumption that portfolio assets other than the above are not subject to change(such as acquisition of new properties and disposition of owned properties).
・The actual property portfolio may change due to the acquisition of new properties or the disposal of owned
properties.
・Operating revenues are calculated based on the information held by KFM for the Properties Owned as of the
End of 16th Fiscal Period, taking into account the effective leasing agreements, movements of tenants,
Operating revenues
market trends, and other factors.
・Forecasts are based on the assumption that there will be no rent in arrears or non-payments by tenants.
・Property-related operating expenses other than depreciation are calculated based on historic data, etc., andthese expenses reflect fluctuations in costs, including leasing costs based on the leasing agreements.
・Depreciation expenses of 1,375 million yen, and 1,382 million yen are assumed for the fiscal periods ending
September 30, 2023, and March 31, 2024, respectively, using the straight-line depreciation method.
・Property-related taxes are assumed at 892 million yen and 891 million yen for the fiscal periods ending
September 30, 2023, and March 31, 2024, respectively. When a property is sold, the purchaser of theproperty typically reimburses the seller, pursuant to the purchase agreement, for the pro rata portion of theproperty-related taxes that relates to the period from the acquisition date to the end of the calendar year inOperating expenses
which the acquisition occurs. As is customary for property transactions in Japan and in accordance withJapanese GAAP, KRR intends to capitalize the portions of the property-related taxes on the properties to beacquired. Property-related taxes on the assets acquired on or after January 1, 2023, were settled with the seller
at the time of sale, and the amount equivalent to the property-related taxes was included in the acquisition
price. Due to this and other reasons, the property-related taxes to be expensed are expected to be expensed
in the fiscal period ending September 30, 2024, or later.
・With respect to building repair expenses, the amount assumed to be necessary for each property is based on
the repair plan of KFM for each fiscal period. However, repair expenses may be substantially different fromthe expected amount due to certain unexpected factors.
・The amortization of offering-related costs are expected to be 16 million yen and 15 million yen for the fiscal
periods ending September 30, 2023, and March 31, 2024, respectively. It is assumed that the offering-related
Non-operating expenses
costs are amortized using the straight-line method over three years.
・For interest expenses and other debt-related costs, 623 million yen and 623 million yen are expected for the
fiscal periods ending September 30, 2023, and March 31, 2024, respectively.
・As of today, KRR has an outstanding balance of 119,300 million yen in borrowings and 10,000 million yen
in investment corporation bonds.
・It is assumed that KRR will fully refinance 500 million yen and 10,150 million yen which are due forrepayment during the fiscal periods ending September 30, 2023, and March 31, 2024, respectively.
Borrowings and・There are no investment corporation bonds maturing during the fiscal period ending September 30, 2023, orinvestment corporation bonds
March 31, 2024.
・LTV ratios are estimated to be approximately 45.0% at the end of both fiscal periods ending September 30,
2023, and March 31, 2024.
・LTV ratios are calculated according to the following formula:
LTV ratio = (Outstanding borrowings + Outstanding investment corporation bonds) / Total assets
・The forecasts are based on our assumption of 602,177 units issued as of today. It is assumed that there will
Investment units
be no changes in the number of investment units due to the new issuance of units until the end of the fiscal
period ending March 31, 2024.
・Distributions per unit (excluding excess of earnings per unit) are calculated in accordance with the distribution
policy outlined in KRR’s Articles of Incorporation.
・KRR assumes that there is no effect from the changes in market value of swaps on the distributions per unit
Distributions per unit
for the fiscal periods ending September 30, 2023, and March 31, 2024.
(excluding excess of earnings
per unit)・Actual distributions per unit (excluding excess of earnings per unit) may fluctuate due to various factors
including movements in investment assets, fluctuations in rental revenues caused by tenant replacements or
unexpected repairs.
・KRR expects to record Allowance for Temporary Adjustment (ATA) to adjust the temporary differences
between treatment of certain transactions under Japanese GAAP and Japanese tax laws in relation to SunnyNoma, which results from the depreciation of fixed term land lease right for business purposes, the expensed
interest from asset retirement obligations and deprecation of buildings, during the relevant period (30 years
Distributions in excess ofstarting from March 16, 2007). Although we assume no effect from the changes in the fair value of swaps
earnings per unit
on the distributions per unit, we may not record ATA, depending on the fair value, which may change dueto the fluctuations in the interest rate market.
・KRR has a policy to distribute the amount of increase in ATA, in excess of its earnings. Distributions inexcess of earnings are expected to be 9 yen per unit in each period ending September 30, 2023, and March
31, 2024.
6

Item

Assumptions

Others・Forecasts are based on the assumption that there will be no amendments to the law, taxation system,
accounting standards, public listing regulations, requirements of the Investment Trusts Association, Japan,
etc. which may affect the aforementioned forecast figures.
・Forecasts are based on the assumption that there will be no unexpected significant changes in general
economic trends and real estate market trends or other conditions.

(2) Investment Risks
There are no significant changes to the Securities Report (submitted on December 22, 2022; prepared in Japanese only). The disclosure isomitted.

7

2. Financial Statements(1) Balance Sheets(in thousands of yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment, net
Intangible assets
Leasehold right in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Long-term deposits
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets

*1

*1

*1

8

15th Fiscal Period(As of September 30, 2022)

16th Fiscal Period(As of March 31, 2023)

10,003,221
10,833,639
238,068
149,376-

4,800,305
9,743,638
253,117
36,795563,310

1,907
21,226,213

1,907
15,399,074

773,703(109,983)
663,720
46,777(8,230)38,547
2,956,465
20,66672,000,294(11,403,948)
60,596,346
3,646,089(774,128)
2,871,961
339,316(70,931)
268,384
191,805(99,843)
91,961
181,272,334
238,915
249,019,303

788,457(126,563)
661,894
46,777(9,632)
37,144
2,956,465－
79,948,559(12,636,690)
67,311,868
3,940,441(846,266)
3,094,175
367,914(81,196)286,718
200,960(114,079)
86,881
191,218,540

265,653,689

4,713,944
4,558
4,718,502

4,709,965
4,106
4,714,071

10,00062,927900,180
98,080590,363
1,661,551
255,399,357

10,00062,927
861,843
140,010633,129
1,707,910
272,075,670

50,67423,02773,70245,943
48,587
94,530276,699,273

287,569,276

(in thousands of yen)

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Deduction from unitholders' capital
Allowance for temporary difference adjustments
Total deduction from unitholders' capital
Unitholders' capital, net
Surplus
Unappropriated retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

*1

*3

*4

9

15th Fiscal Period(As of September 30, 2022)

16th Fiscal Period(As of March 31, 2023)

823,979
750,000
8,500,000
487,701
71,705
3,705
126,797
1,450,130
22,708916,863
3,150,000
7,500,000
512,462
70,1093,599
54,327
1,531,599
96,051

12,236,728

13,835,013

10,000,000
105,050,000
156,083
11,779,677
24,99923,554
127,034,315
139,271,043

10,000,000
108,650,000
148,083
12,315,282
25,15629,185
131,167,708
145,002,721

133,103,750

138,058,250(40,522)(40,522)
133,063,228(40,522)(40,522)138,017,728

3,775,141
3,775,141
136,838,369

3,922,702
3,922,702
141,940,430

589,860
589,860

626,123
626,123

137,428,230
276,699,273

142,566,554
287,569,276

(2) Statements of Income and Retained Earnings
15th Fiscal Period(From April 1, 2022
to September 30, 2022)
Operating revenues
Rent revenue-real estate
Other lease business revenue
Total operating revenues
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Financing-related expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings(in thousands of yen)
16th Fiscal Period(From October 1, 2022
to March 31, 2023)*1*18,011,772
1,346,195
9,357,967

8,530,802
1,394,083
9,924,885*1

3,949,838
765,048
10,96434,966
3,000
187,889
4,951,708
4,406,259

4,445,452
780,079
10,99235,7783,000
83,7885,359,091
4,565,794

63
258
2

44
284

324

328

471,585
27,635
108,498
4,826
15,402627,948
3,778,636

483,162
28,615109,287
4,731
14,322640,119
3,926,003

3,778,636

3,926,003

3,715
3,715
3,774,920
221
3,775,141

3,606
3,606
3,922,396
305
3,922,702

10-

(3) Statements of Changes in Net Assets
15th Fiscal Period (From April 1, 2022 to September 30, 2022)(in thousands of yen)
Unitholders' equity

Unitholders' capital
Deduction from unitholders' capital
Allowance for
Total deduction
temporaryfrom unitholders'difference
capitaladjustments

Unitholders'
capitalBalance at the beginning of theperiodChanges of items during theperiod133,103,750(317,378)(317,378)

Surplus276,855

276,855

Balance at the end of the period

Balance at the beginning of theperiodChanges of items during theperiod137,191,084(4,127,634)(4,127,634)(4,127,634)

276,855(276,855)(276,855)-

3,774,920

3,774,920

3,774,920

276,855

276,855

276,855(629,570)(629,570)(352,714)*1 133,103,750(40,522)(40,522)

133,063,228

3,775,141

3,775,141

136,838,369

Valuation and translation
adjustments
Total valuation
Deferred gains or
and translation
losses on hedges
adjustments

Total net assets

163,403

163,403137,354,487(4,127,634)

Reversal of allowance fortemporary difference
adjustments-

Net income

Balance at the end of the period

4,404,711-

Dividends from surplus

Net changes of items otherthan unitholder’s equity
Total changes of items during
the period

4,404,711

132,786,372

Net income
Net changes of items otherthan unitholder’s equity
Total changes of items during
the period

Totalunitholders'equityUnappropriatedretained earnings

Dividends from surplus
Reversal of allowance fortemporary difference
adjustments

Total
surplus

Unitholders'
capital, net

3,774,920
426,457

426,457

426,457

426,457

426,457

73,742589,860

589,860

137,428,230

11

16ｔh Fiscal Period (From October 1, 2022 to March 31, 2023)(in thousands of yen)
Unitholders' equity

Unitholders'
capitalBalance at the beginning of theperiodChanges of items during theperiodIssuance of new investment
units

Unitholders' capital
Deduction from unitholders' capital
Allowance for
Total deduction
temporaryfrom unitholders'difference
capitaladjustments

133,103,750(40,522)(40,522)

4,954,500

Surplus
Unitholders'
capital, net

Unappropriatedretained earnings

133,063,228

3,775,141

Total
surplusTotal
unitholders'equity3,775,141

136,838,369

4,954,500

4,954,500

Dividends from surplus(3,774,835)(3,774,835)(3,774,835)

Net income

3,922,396

3,922,396

3,922,396

Net changes of items otherthan unitholder’s equity
Total changes of items during
the period
Balance at the end of the period

Balance at the beginning of theperiodChanges of items during theperiodIssuance of new investment
units

4,954,500--

4,954,500

147,560

147,560

5,102,060*1 138,058,250(40,522)(40,522)138,017,728

3,922,702

3,922,702

141,940,430

Valuation and translation
adjustments
Total valuation
Deferred gains or
and translation
losses on hedges
adjustments

Total net assets

589,860

589,860

137,428,230

4,954,500

Dividends from surplus(3,774,835)

Net income

3,922,396

Net changes of items otherthan unitholder’s equity
Total changes of items during
the period
Balance at the end of the period

36,26336,26336,26336,26336,263

5,138,324

626,123

626,123

142,566,554(4) Statements of Cash Distributions(in yen)
15th Fiscal Period(From April 1, 2022
to September 30, 2022)

16th Fiscal Period(From October 1, 2022
to March 31, 2023)

I.

Retained earnings at the end of period

3,775,141,552

3,922,702,444

II.

Total distributions

3,774,835,668

3,922,580,978

6,484

6,514

305,884

121,466

In accordance with the policy described in Article 39-1
of its Articles of Incorporation, KRR determines that theamount of distribution shall exceed the amount equivalent
to 90% of its distributable profit as stipulated in Article 6715 of the Special Taxation Measures Law and shall be up
to its profits as the maximum amount. Following thispolicy, KRR has decided that it shall distribute
3,774,835,668 yen which is almost the entire amount ofretained earnings as the distributions of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 39-2 of KRR’s
Articles of Incorporation. In the15th fiscal period, KRR has
decided not to distribute cash in excess of distributableprofit.

In accordance with the policy described in Article 39-1
of its Articles of Incorporation, KRR determines that theamount of distribution shall exceed the amount equivalent
to 90% of its distributable profit as stipulated in Article 6715 of the Special Taxation Measures Law and shall be up
to its profits as the maximum amount. Following thispolicy, KRR has decided that it shall distribute
3,922,580,978 yen which is almost the entire amount ofretained earnings as the distributions of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 39-2 of KRR’s
Articles of Incorporation. In the15th fiscal period, KRR has
decided not to distribute cash in excess of distributableprofit.

Distributions per unit
III.

Retained earnings brought forward to the next
periodMethod of calculating distribution amount12

(5) Statements of Cash Flows(in thousands of yen)
16th Fiscal Period(From October 1, 2022
to March 31, 2023)

15th Fiscal Period(From April 1, 2022
to September 30, 2022)
Net cash provided by (used in) operating activities
Income before income taxes

3,778,636

3,926,003

Depreciation and amortization

1,245,780

1,352,642

Amortization of investment corporation bond issuance costs

4,826

4,731

Amortization of investment unit issuance costs

15,402

14,322

Interest income

(63)

(44)

Interest expenses

499,221511,777

Decrease (increase) in operating accounts receivable(63,712)(15,048)

Decrease (increase) in consumption taxes receivable-(563,310)(124,628)

112,580

31,41874,870Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other(114,574)

24,929

Increase (decrease) in accrued consumption taxes(169,696)(72,470)

36,91581,469

Increase (decrease) in deposits received

3,999

73,343

Decrease (increase) in long-term prepaid expenses

97,97038,337

Decrease (increase) in long-term deposits(2,400)(41,930)

Increase (decrease) in advances received

Other(1,089)(1,195)

Subtotal

5,238,004

5,521,009

63

44

Interest expenses paid

(491,822)(513,333)

Income taxes paid

(4,055)(3,712)

4,742,191

5,004,007Interest income received

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets(34,327)(19,198)(6,728,384)(17,944,538)

-

(690)

(425,032)
8,000-

Repayments of tenant leasehold and security deposits in trust(177,584)(93,736)

Proceeds from tenant leasehold and security deposits in trust

370,751

621,341

Purchase of intangible assets in trust(2,691)

Repayments of lease and guarantee deposits in trust
Proceeds from tenant leasehold and security deposits

15,00015,000(6,974,268)(17,421,822)

Proceeds from short-term loans payable

1,000,000

3,150,000

Repayments of short-term loans payable(1,000,000)(750,000)

Proceeds from long-term loans payable

2,050,000

10,600,000

Repayments of long-term loans payable(2,050,000)(8,000,000)

Proceeds from issuance of investment corporation bonds

1,986,826

Redemption of investment corporation bonds(1,000,000)-

Proceeds from restricted bank deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities-

4,914,617

Dividends paid

(4,128,380)(3,774,720)

Net cash provided by (used in) financing activities(3,141,554)

6,139,897

Net increase (decrease) in cash and cash equivalents(5,373,632)(6,277,917)

Cash and cash equivalents at the beginning of the period

26,047,993

20,674,361

20,674,361

14,396,443

Proceeds from issuance of investment units

Cash and cash equivalents at the end of the period*113(6) Notes on Assumption of Going Concern
Not applicable(7) Summary of Significant Accounting Policies
1.Method of depreciation of noncurrent assets(1) Property, plant and equipment (including trust assets)
The straight-line method is applied.
Useful lives of the assets ranging are as follows:
Buildings: 2 to 70 years
Structures: 8 to 65 years
Machinery and equipment: 2 to 25 years
Tools, furniture and fixtures: 3 to 15 years(2) Intangible assets (including trust assets)
The straight-line method is applied.
(3) Long-term prepaid expenses
The straight-line method is applied.

2. Accounting for deferred assets(1) Investment unit issuance costs
Investment unit issuance costs are amortized over a period of 3 years under the straight-line method.
(2) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized over a maturity period under the straight-line method.

3. Accounting for revenues andexpenses(1)Accounting for property-related taxes
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on acalendar year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes
corresponding to said period. Under Japanese tax regulations, the seller of the property is liable for these taxes on the property
from the date of disposal to the end of the calendar year in which the property is disposed. The seller, however, is reimbursed by
the purchaser for these accrued property-related tax liabilities.
When KRR purchases properties, it typically allocates the portion of the property-related taxes related to the period following thepurchase date of each property through the end of the calendar year. The amounts of those allocated portions of the propertyrelated taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted
to 22,301 thousand yen and 24,236 thousand yen as of September 30, 2022 and March 31, 2023, respectively.
(2) Accounting for revenues
The main content of the performance obligation regarding the revenue from contracts with the customers of KRR and thenormal point of time when satisfying the said performance obligation (normal point of time when recognizing revenue) are as
follows.
1. Sale of real estate property
For the revenue from sale of real estate, etc., revenue is recorded when the buyer who is a customer gains control of the realestate by performing the obligation of handover stipulated in the contract for real estate sales .
2. Utility charge reimbursements
For utility charge reimbursement, revenue is recorded in accordance with the supply of electricity, tap water, etc. to the lessee
who is a customer based on the lease agreement of real estate, etc. and the content of agreement incidental to it. Of the utility
charge reimbursement, for those that are determined to fall under the category of an agent by the Investment Corporation, thenet amount obtained by deducting the amount paid to other related parties supplying electricity, gas, etc. from the amountreceived as the fee of electricity, gas, etc. is recognized as revenue.

4. Method of hedge accounting(1) Hedge accounting method
Deferral hedge accounting is applied. However, the special treatment is applied for the interest-rate swap agreements that meet thecriteria for special treatment.
(2) Hedging instruments and hedged items
Hedge instruments
Interest-rate swap transactions
Hedged items
Interest payments on debts(3) Hedging policy
KRR enters into derivative transactions based on its risk management policies with the objective of hedging risks provided in its
Articles of Incorporation.
(4) Method of assessing the effectiveness of hedging
As for the method of assessment of the effectiveness of the hedge in the period from the inception of the hedge to the time of
judgment of its effectiveness, the cumulative changes in cash flow of the hedged items and hedging instruments are compared
and a judgment is made based on changed amount, etc. However, an assessment of the effectiveness of hedging activities isomitted in the case of interest rate swaps that meet the requirements for special treatment.

5. Scope of cash and cash
equivalents on statements of cash
flows

Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid,readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the dateof purchase.

6. Other accounting policies for the
preparation of financial
statements(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities as well as revenues and expenses of financial assets held in the form of trust beneficiary interests in realestate and other assets are recorded in full in KRR’s balance sheet and statement of income and retained earnings.
Of the assets in trust accounted for under the respective account items, the following significant items are separately indicated on
the balance sheet.
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust, land in trust,construction in progress in trust
3. Leasehold right in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for non-deductible consumption taxes
Non-deductible consumption taxes applicable to the acquisition of assets are included in the cost of acquisition for each asset.

14

(8) Notes to Financial Statements(Notes to Balance Sheets)* 1. Assets pledged as collateral and related secured liabilities:
Assets pledged as collateral are as follows.
(in thousands of yen)
15th Fiscal Period(As of September 30, 2022)

16th Fiscal Period(As of March 31, 2023)

Buildings in trust

628,385

618,238

Structures in trust

17,972

16,7692,709,001

2,709,001

3,355,359

3,344,009

Land in trust
Total
Secured liabilities are as follows.
15th Fiscal Period(As of September 30, 2022)
Tenant leasehold and security deposits in trust
Total

16th Fiscal Period(As of March 31, 2023)
348,077

326,080

348,077

326,080

2. Commitment line contracts
KRR has commitment line contracts with the banks with which it does business.
(in thousands of yen)
15th Fiscal Period(As of September 30, 2022)
Total amount of commitment line contracts

16th Fiscal Period(As of March 31, 2023)
3,000,000

Balance of loans payable outstanding
Remaining amount

3,000,000--

3,000,000

3,000,000* 3. Allowance for temporary difference adjustments
15th Fiscal Period (As of September 30, 2022)
1. Reasons, related assets, initial amount, allowance and reversal(in thousands of yen)
Related assets, etc.

Reason for allowance

InitialamountBalance atthe beginningof the period

Buildings in trust,
Leasehold right in trust

Amortization of leasehold
right in trust and the amountin excess of depreciation

40,522

40,522

Deferred gains or losses
on hedges

Loss on interest-rate
swaps recognized at theend of the fiscal period
Total

Allowance
during theperiodReversalduring theperiod-Balance at theend of theperiod-40,522276,855

276,855-(276,855)-

317,378

317,378-(276,855)

40,522

Reason forreversal
Changes infair value ofderivativetransactions-

2. Method of reversal
Method of reversal
Buildings in trust,
Leasehold right in trust

Upon sale, the corresponding amount is scheduled to be reversed.

Deferred gains or losses on hedges

Based on changes in the fair value of the hedging instruments, the corresponding amount is scheduled to be reversed.

15

16th Fiscal Period (As of March 31, 2023)
1. Reasons, related assets, initial amount, allowance and reversal(in thousands of yen)
Related assets, etc.

Reason for allowance

InitialamountBalance atthe beginningof the period

Buildings in trust,
Leasehold right in trust

Amortization of leasehold
right in trust and the amountin excess of depreciation

40,522

40,522--

40,522-

40,522

40,522--

40,522-

Total

Allowance
during theperiodReversalduring theperiod

2. Method of reversal
Method of reversal
Buildings in trust,
Leasehold right in trust

Upon sale, the corresponding amount is scheduled to be reversed.

* 4. Minimum net assets prescribed in Article 67-4 of the Investment Trust Act(in thousands of yen)
15th Fiscal Period(As of September 30, 2022)

16th Fiscal Period(As of March 31, 2023)
50,00050,00016

Balance at theend of theperiodReason forreversal

(Notes to Statements of Income and Retained Earnings)* 1. Breakdown of real estate rental revenues and expenses(in thousands of yen)
15th Fiscal Period(From April 1, 2022
to September 30, 2022)

16th Fiscal Period(From October 1, 2022
to March 31, 2023)

A. Rental and other operating revenues:
Rent revenue-real estate:
Rental revenues

6,820,886

7,322,312

Rental revenues from limited proprietary rights of land

928,021929,433

Common area charges

262,864

279,056

8,011,772

8,530,802

Parking space rental revenues

178,905

198,616

Utility charge reimbursement

810,240

857,547

Miscellaneous

357,049

337,919

Subtotal

1,346,195

1,394,083

9,357,967

9,924,885

Property management fees and facility management fees

687,655

808,884

Utilities

824,618

970,172

Taxes

806,828

806,828

Repairs and maintenance

104,105

134,573

Insurance

22,56424,458Trust fees

27,351

27,301

Depreciation

1,244,644

1,351,499

Others232,070

321,733

3,949,838

4,445,452

5,408,129

5,479,433

Subtotal
Other lease business revenue:

Total rental and other operating revenues
B. Property-related expenses:
Expenses related to rent business:

Total property-related expenses
C. Net operating income from real estate rental business（A-B）

17

(Notes to Statements of Changes in Net Assets)* 1. Total number of authorized investment units and total number of investment units issued and outstanding
15th Fiscal Period(From April 1, 2022
to September 30, 2022)

16th Fiscal Period(From October 1, 2022
to March 31, 2023)

Total number of authorized investment units

5,000,000 units

5,000,000 units

Total number of investment units issued and outstanding

582,177 units

602,177 units(Notes to Statements of Cash Flows)* 1. Reconciliation of balance sheet items to cash and cash equivalents at the end of period in the cash flows statements
15th Fiscal Period(From April 1, 2022
to September 30, 2022)(in thousands of yen)
16th Fiscal Period(From October 1, 2022
to March 31, 2023)

Cash and deposits

10,003,221

4,800,305

Cash and deposits in trust

10,833,639

9,743,638

Restricted bank deposits in trust (Note)(162,500)(147,500)

Cash and cash equivalents

20,674,361

14,396,443

Note: Restricted bank deposits in trust are retained for repayment of tenant leasehold and security deposits in trust.

(Notes to Lease Transactions)Operating lease transactions (Lessee)
Future minimum lease payments
15th Fiscal Period(From April 1, 2022
to September 30, 2022)(in thousands of yen)
16th Fiscal Period(From October 1, 2022
to March 31, 2023)

Due within 1 year

10,50010,500Due after 1 year

141,298

136,048

Total

151,798

146,548

Operating lease transactions (Lessor)
Future minimum lease income(in thousands of yen)
15th Fiscal Period(From April 1, 2022
to September 30, 2022)

16th Fiscal Period(From October 1, 2022
to March 31, 2023)

Due within 1 year

10,389,207

10,838,715

Due after 1 year

52,938,573

53,175,672

Total

63,327,781

64,014,387（Notes to the Financial Instruments）
1. Overview(1) Policy for financial instruments
KRR procures funds for asset acquisitions, repairs, payment of distributions, repayment of loans, etc. through loans from financial institutions, issuance of investment corporation bonds,
issuance of investment units and other means. With regard to the procurement of interest-bearing debts, KRR ensures that it can effectively combine stable long-term funds with flexible
short-term funds. Management of surplus funds is undertaken through various bank deposits focusing on safety, liquidity and effectiveness. KRR uses derivatives for the purpose ofhedging its exposure to changes in interest rates and other risks and does not enter into derivative transactions for speculative or trading purposes.
(2) Types of financial instruments and related risk
Bank deposits are for managing KRR’s surplus funds and are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited.
Loans payable and investment corporation bonds, which are made or issued primarily for the purpose of procuring funds for the acquisition of real estate and trust beneficiary interests
in real estate and have a repayment date of a maximum of 8 years and 1 months for loans payable and also have a redemption date of a maximum of 8 years and 10 months forinvestment corporation bonds as of March 31, 2023, the end of the 16th fiscal period, are exposed to liquidity risk where alternative funds may not be procured by the repayment date.
Also, loans payable with floating interest rates are exposed to interest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain
portion of the loans payable.
Tenant leasehold and security deposits are deposits received from tenants, which are exposed to liquidity risks when the tenants vacate the properties.
(3) Risk management for financial instrumentsa.
Credit risk
While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored by deposits in non-interest bearing
ordinary savings accounts or with financial institutions with credit ratings above a certain level. In utilizing derivatives, KRR aims to mitigate counterparty risk such as by transactingwith financial institutions with favorable ratings.

18

b.
Market risk
While loans payable with floating rates are exposed to interest rate fluctuation risk, such risk is monitored by adjusting the rate of the balance of loans payable with floating rates
against the total loans payable according to the financial environment, interest rate forecasts by continuous monitoring, etc. and by using derivatives, etc. A risk management policy
is established with regard to the execution and management of derivatives and such transactions are conducted based on this policy.
c.
Liquidity risk
Though loans payable are subject to liquidity risk, KRR reduces such risk by spreading out payment due dates and by diversifying financial institutions. Liquidity risk is also managed
by such means as regularly checking the balance of cash reserves.
Though tenant leasehold and security deposits are subject to liquidity risk, in principle, KRR reduces such risk by retaining funds that would enable KRR to return necessary amounts
to tenants.
(4) Supplementary explanation of the estimated fair value of financial instruments
Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fair value.
2. Estimated fair value of financial instruments
The carrying value of financial instruments on the balance sheets and estimated fair value are shown in the following table. Furthermore, “cash and deposits”, “cash and deposits intrust” and “short-term loans payable” are omitted as they are settled with cash and in a short span of time and are therefore similar in fair value to the book value. Also, “tenant leasehold
and security deposits in trust” is omitted as it lacks in significance.
15th Fiscal Period (As of September 30, 2022)
Carrying amount(1) Current portion of investment corporation bonds(2) Current portion of long-term loans payable(3) Investment corporation bonds(4) Long-term loans payable
Total
Derivative transactions

Estimated fair value

8,500,000
10,000,000
105,050,000
123,550,000
589,860

8,497,359
9,874,800
104,897,191
123,269,351
589,860(in thousands of yen)
Difference(2,640)(125,200)(152,808)(280,648)-*The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing the net liability position.
16th Fiscal Period (As of March 31, 2023)
Carrying amount(1) Current portion of investment corporation bonds(2) Current portion of long-term loans payable(3) Investment corporation bonds(4) Long-term loans payable
Total
Derivative transactions

Estimated fair value

7,500,000
10,000,000
108,650,000
126,150,000
626,123

7,540,755
9,866,800
108,241,668
125,649,223
626,123(in thousands of yen)
Difference
40,755(133,200)(408,331)(500,776)-*The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing the net liability position.
Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions
Liabilities(1) Current portion of investment corporation bonds and (3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
(2) Current portion of long-term loans payable and (4) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount of principal and interest discounted by theestimated interest rate to be applied in the event that KRR conducts new loans of the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying
amount since market interest rates are reflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of KRR has not changed
significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special treatment for interest-rate swaps is based on the present value of thetotal of principal and interest, accounted for together with the applicable interest-rate swaps, discounted by the estimated interest rate to be applied in the event that KRR conducts newloans payable of the same type.)
Derivative transactions
Please refer to “Notes to Derivative Transactions”.
Note 2: Redemption of long-term loans payable and other interest-bearing debt scheduled to be due after the balance sheet date
15th Fiscal Period (As of September 30, 2022)(in thousands of yen)
Investment corporation bonds
Long-term loans payable
Total

Due in 1 year or
less

Due after 1 year
through 2 years

8,500,000
8,500,000

9,490,000
9,490,000

Due in 1 year or
less

Due after 1 year
through 2 years

7,500,000
7,500,000

10,510,000
10,510,000

Due after 2 years
through 3 years
1,000,000
15,320,000
16,320,000

Due after 3 years
through 4 years
20,850,000
20,850,000

Due after 4 years
through 5 years
3,000,000
21,500,000
24,500,000

Due after 2 years
through 3 years
1,000,000
19,590,000
20,590,000

Due after 3 years
through 4 years
1,000,000
23,310,000
24,310,000

Due after 4 years
through 5 years
4,000,000
22,090,000
26,090,000

Due after 5 years
6,000,000
37,890,000
43,890,000

16th Fiscal Period (As of March 31, 2023)(in thousands of yen)
Investment corporation bonds
Long-term loans payable
Total

19

Due after 5 years
4,000,000
33,150,000
37,150,000

(Notes to Derivative Transactions)(1) Transactions not subject to hedge accounting
15th Fiscal Period（As of September 30, 2022）and 16th Fiscal Period（As of March 31, 2023）: Not applicable(2) Transactions subject to hedge accounting
15th Fiscal Period (As of September 30, 2022)
Hedge
accounting
methodType of derivativetransactions

Hedged items

Contract amount(in thousands of yen)
Maturing after 1
year

Fair value(in thousands of yen)Calculation method for
applicable fair value

Interest rate swap
Based on the amounttransaction:
Long-term loans
64,360,000
64,360,000
589,860 provided by counterparty
Receive/floating andpayablefinancial institutions
pay/fixed
Interest rate swap
Special treatment
transaction:
Long-term loansof interest-rate
21,000,000
17,000,000*
Receive/floating andpayableswaps
pay/fixed
Total
85,360,000
81,360,000
589,860*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value is included in the fair value of thehedged long-term loans payable. (Please refer to “Notes to Financial Instruments” (Note 1) Methods to determine the estimated fair value of financial instruments and matters related toderivative transactions; Liabilities (2) Current portion of long-term loans payable and (4) Long-term loans payable.)
Principle method

16th Fiscal Period (As of March 31, 2023)
Hedge
accounting
methodType of derivativetransactions

Hedged items

Contract amount(in thousands of yen)
Maturing after 1
year

Fair value(in thousands of yen)Calculation method for
applicable fair value

Interest rate swap
Based on the amounttransaction:
Long-term loans
66,560,000
66,560,000
626,123 provided by counterparty
Receive/floating andpayablefinancial institutions
pay/fixed
Interest rate swap
Special treatment
transaction:
Long-term loansof interest-rate
17,000,000
10,000,000*
Receive/floating andpayableswaps
pay/fixed
Total
83,560,000
76,560,000
626,123*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value is included in the fair value of thehedged long-term loans payable. (Please refer to “Notes to Financial Instruments” (Note 1) Methods to determine the estimated fair value of financial instruments and matters related toderivative transactions; Liabilities (2) Current portion of long-term loans payable and (4) Long-term loans payable.)
Principle method(Notes to the Related-Party Transactions)
1．Parent Company, major corporate unitholders and other15th Fiscal Period（From April 1, 2022 to September 30, 2022）and 16th Fiscal Period（From October 1, 2022 to March 31, 2023）: Not applicable
2．Affiliated companies and other15th Fiscal Period（From April 1, 2022 to September 30, 2022）and 16th Fiscal Period（From October 1, 2022 to March 31, 2023）: Not applicable
3．Fellow subsidiary companies and other15th Fiscal Period（From April 1, 2022 to September 30, 2022） and 16th Fiscal Period（From October 1, 2022 to March 31, 2023）: Not applicable
4．Directors, major individual unitholders and other15th Fiscal Period（From April 1, 2022 to September 30, 2022）and 16th Fiscal Period（From October 1, 2022 to March 31, 2023）: Not applicable(Notes to the Tax-Effect Accounting)
1. The significant components of deferred tax assets and liabilities:(in thousands of yen)
16th Fiscal Period(As of March 31, 2023)

15th Fiscal Period(As of September 30, 2022)
Deferred tax assets:
Enterprise tax payable

224

215

Amortization of leasehold right in trust

19,192

20,443

Depreciation
Asset retirement obligations

6,908
7,864

7,358
7,914

Subtotal deferred tax assets

34,18935,932

Valuation allowance(34,189)(35,932)

Total deferred tax assets

-

-

20

2. The significant differences between the statutory tax rate and the effective tax rate:
15th Fiscal Period(As of September 30, 2022)(unit: %)16th Fiscal Period(As of March 31, 2023)

Statutory tax rate

31.46

31.46

Deductible cash distributions(31.43)(31.43)

Others0.07

0.06

Effective tax rate

0.10

0.09

(Notes to Asset Retirement Obligations)
Asset retirement obligations reported on balance sheets
1. Summary of the asset retirement obligations
KRR has recognized the original state restoration obligations assumed under the fixed-term business-purpose land leasehold agreement as the asset retirement obligations in connection
with Sunny Noma acquired on February 10, 2015.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated based on a discount rate of 1.256% after the useful life has been estimated to be 22 years and two months based on the time period from thedate of acquisition to the expiration of the agreement.
3. Changes in the amount of applicable asset retirement obligations consisted of the following(in thousands of yen)
15th Fiscal Period
16th Fiscal Period
From April 1, 2022
From October 1, 2022
to September 30, 2022
to March 31, 2023
Balance at the beginning of the period
24,84324,999Accretion adjustment
156
157
Balance at the end of the period
24,99925,156(Notes on Revenue Recognition)
1. Disaggregation of revenue from contracts with customers
15th Fiscal Period (From April 1, 2022 to September 30, 2022)(in thousands of yen)
Revenues generated from contracts withcustomers *1
Revenue from sale of real estate property

Sales to external customers--

810,240

810,240

Other-

8,547,727

Total

810,240

9,357,967

Utility charge reimbursements*1 Rental revenues, etc. which are subject to Accounting Standard for Lease Transactions (ASBJ Statement No. 13) and the transfer of real estate properties which are subject to the“Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Using Special Purpose Companies” (Accounting System Committee Report No.15 of the JapaneseInstitute of Certified Public Accountants) are not included in the above amounts as they are excluded from revenue recognition accounting standards. Furthermore, revenue generated
from contracts with major customers comprise of revenue from sale of real estate properties and utility charge reimbursements.
16th Fiscal Period (From October 1, 2022 to March 31, 2023)(in thousands of yen)
Revenues generated from contracts withcustomers *1

Sales to external customers--

857,547

857,547

Other-

9,067,337

Total

857,547

9,924,885

Revenue from sale of real estate property
Utility charge reimbursements*1 Rental revenues, etc. which are subject to Accounting Standard for Lease Transactions (ASBJ Statement No. 13) and the transfer of real estate properties which are subject to the“Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Using Special Purpose Companies” (Accounting System Committee Report No.15 of the JapaneseInstitute of Certified Public Accountants) are not included in the above amounts as they are excluded from revenue recognition accounting standards. Furthermore, revenue generated
from contracts with major customers comprise of revenue from sale of real estate properties and utility charge reimbursements.
2．Basis for understanding revenues generated from contracts with customers
15th Fiscal Period (From April 1, 2022 to September 30, 2022) and 16th Fiscal Period (From October 1, 2022 to March 31, 2023)
The basis for understanding revenues generated from contracts with customers is as indicated in the Summary of Significant Accounting Policies.
3．Information on relationship of fulfillment of performance obligations based on contracts with customers with cashflow generated from said contracts along with amount and period ofrevenue expected to be recognized in the next fiscal period or thereafter from contracts with customers existing at the end of the fiscal period

2115th Fiscal Period (From April 1, 2022 to September 30, 2022)(1) Balance of contract assets and contract liabilities, etc.
(in thousands of yen)
15th Fiscal Period(From April 1, 2022
to September 30, 2022)
Receivables generated from contracts with customers(balance at beginning of fiscal year)
Receivables generated from contracts with customers(balance at end of fiscal year)

124,784
192,333

Contract assets (balance at beginning of fiscal year)-

Contract assets (balance at end of fiscal year)-

Contract liabilities (balance at beginning of fiscal year)-

Contract liabilities (balance at end of fiscal year)-(2) Transaction price allocated to remaining performance obligations
Not applicable.
With regard to utility charge reimbursements, as KRR has the right to receive from customers an amount directly corresponding to the value for the lessees who are customers of sections
for which performance is complete by the end of the fiscal period, the amount it has the right to claim according to Paragraph 19 of the Implementation Guidelines of the AccountingStandard for Revenue Recognition is recognized as revenue. Accordingly, such is not included in the note on transaction value allocated to remaining performance obligations throughapplication of the provisions of Paragraph 80-22 (2) of the Accounting Standard for Revenue Recognition.
16th Fiscal Period (From October 1, 2022 to March 31, 2023)(1) Balance of contract assets and contract liabilities, etc.
(in thousands of yen)
16th Fiscal Period(From October 1, 2022
to March 31, 2023)
Receivables generated from contracts with customers(balance at beginning of fiscal year)
Receivables generated from contracts with customers(balance at end of fiscal year)

192,333
167,894

Contract assets (balance at beginning of fiscal year)-

Contract assets (balance at end of fiscal year)-

Contract liabilities (balance at beginning of fiscal year)-

Contract liabilities (balance at end of fiscal year)-(2) Transaction price allocated to remaining performance obligations
Not applicable.
KRR does not include contracts whose terms are initially expected to be one year or less.
Also, with regard to utility charge reimbursements, as KRR has the right to receive from customers an amount directly corresponding to the value for the lessees who are customers ofsections for which performance is complete by the end of the fiscal period, the amount it has the right to claim according to Paragraph 19 of the Implementation Guidelines of the AccountingStandard for Revenue Recognition is recognized as revenue. Accordingly, such is not included in the note on transaction value allocated to remaining performance obligations throughapplication of the provisions of Paragraph 80-22 (2) of the Accounting Standard for Revenue Recognition.

(Notes to the Segment Information)(Segment information)
Disclosure is omitted because the real estate leasing business is KRR’s sole business and it has no reportable segment subject to disclose.
(Related information)
15th Fiscal Period (From April 1, 2022 to September 30, 2022)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on the statement of income and retained
earnings.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income and retained earnings.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant and equipment on the balance sheets.
3. Information about each major customer
Disclosure is omitted because no net sales to a single external customer accounts for more than 10% of the operating revenue on the statements of income and retained earnings.
16th Fiscal Period (From October 1, 2022 to March 31, 2023)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue on the statement of income and retained
earnings.
2. Information about each geographic area22

(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income and retained earnings.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant and equipment on the balance sheets.
3. Information about each major customer
Disclosure is omitted because no net sales to a single external customer accounts for more than 10% of the operating revenue on the statements of income and retained earnings.

(Notes to Investment and Rental Properties)
KRR owns retail properties and logistics facility for rental purposes mainly in the four major metropolitan areas and other regional areas of Japan.
The book value and fair value concerning the above real estate for rental purposes are as follows.
(in thousands of yen)
16th Fiscal Period(From October 1, 2022
to March 31, 2023)

15th Fiscal Period(From April 1, 2022
to September 30, 2022)
Book value
Balance at the beginning of the period

247,974,742

253,736,770

Changes during the period
Balance at the end of the period

5,762,028
253,736,770

16,630,209
270,366,979

Fair value at the end of the period
274,185,000
291,694,000
Note 1: Book value is acquisition cost less accumulated depreciation.
Note 2: Among changes in the amount of real estate for rental purposes that occurred during the 15th fiscal period, the principal increase was the acquisition of real estate trust
beneficiary interest in 2 properties totaling 5,221,986 thousand yen and the additional acquisition of 1 real estate trust beneficiary interest amounting to 1,221,185
thousand yen and the principal decrease was the depreciation of 1,244,488 thousand yen and during the 16th fiscal period, the principal increase was the acquisition ofreal estate trust beneficiary interest in 2 properties totaling 16,300,622 thousand yen and additional acquisition of 1 real estate trust beneficiary interests amounting to
182,058 thousand yen and conversion work for 1 real estate trust amounted to 1,238,127 thousand yen and the principal decrease was the depreciation of 1,351,341
thousand yen.
Note 3: The fair value at the end of the period is the appraisal value determined by outside appraisers.
The profit or loss for the period under review concerning investment and rental properties is indicated under “Notes to Statements of Income and Retained Earnings.”(Notes to Per Unit Information)
16th Fiscal Period(From October 1, 2022
to March 31, 2023)

15th Fiscal Period(From April 1, 2022
to September 30, 2022)
Net asset value per unit

236,751 yen

236,059 yen

Net income per unit
6,484 yen
6,535 yen
Note 1: Net income per unit is calculated by dividing net income by the day-weighted average number of investment units outstanding during the period. Net income per unit after
adjusting for residual units is not included because there were no residual investment units.
Note 2: The basis for calculating net income per unit is as follows:
16th Fiscal Period
15th Fiscal Period(From October 1, 2022
(From April 1, 2022
to September 30, 2022)
to March 31, 2023)
3,774,920

3,922,396--

Net income attributable to ordinary unitholders (in thousands of yen)

3,774,920

3,922,396

Weighted average number of units during the period (units)582,177

600,199

Net income (in thousands of yen)
Net income not attributable to ordinary unitholders (in thousands of yen)

(Notes to Significant Subsequent Events)
Not applicable.

(Omission of Disclosure)Notes to Securities, Equity-Method Income and Retained Earnings, and Retirement Payment are omitted as immaterial to disclose.

(9) Changes in Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ capital for the most recent five years until March 31, 2023, aresummarized in the following table.
Total number of units issued andUnitholders’ capital
outstanding (units)(Millions of yen) (Note 1)
Date
Type of issue
Notes
Increase
Balance
Increase
Balance
October 23, 2019

Public offering

27,300535,000

7,462

120,861(Note 2)

November 14, 2019

Capital increase throughthird-party allocation

1,177

536,177

321

121,183(Note 3)

April 20, 2021

Public offering

43,800579,977

11,350132,533(Note 4)

May 18, 2021

Capital increase throughthird-party allocation

2,200

582,177570

133,103(Note 5)23

October 19, 2022
Note 1:
Note 2:
Note 3:Note 4:Note 5:Note 6:

Public offering

20,000602,177

4,954

138,058

Distributions in excess of earnings for the allowance for temporary difference adjustments are not considered.
Issued at issue price of 282,847 yen per unit (issue amount of 273,360 yen per unit) for acquisition of new properties.
Issued at issue amount of 273,360 yen per unit for part of future purchase funds for specified assets or repayment of borrowings.
Issued at issue price of 267,930 yen per unit (issue amount of 259,136 yen per unit) for acquisition of new properties.
Issued at issue amount of 259,136 yen per unit for part of future purchase funds for specified assets or repayment of borrowings.
Issued at issue price of 256,132 yen per unit (issue amount of 247,725 yen per unit) for acquisition of new properties.

24(Note 6)

3. Reference Information(1) Information on Price of the Managed Assetsi) Component of Assets
Type ofspecified asset

Areas(Note 1)

Property type

Shopping centers
for daily needs
Trust beneficiaryinterest in real estate

15th fiscal period
as of September 30, 2022
Ratio
Total amount held
(Millions of yen)(%)
(Note 2)
(Note 3)Tokyo
metropolitan area
Greater Osaka
area
Greater Nagoya
area

16th fiscal period
as of March 31, 2023
Ratio
(%)
(Note 3)

Total amount held
(Millions of yen)
(Note 2)

108,09339.1

109,02337.9

49,941

18.0

49,76817.3

21,6607.8

36,650

12.7

Fukuoka area

13,7645.0

13,702

4.8

Ordinancedesignated cities,
core cities andother areas

44,51316.1

45,513

15.8

Other retailproperties

-

-

-

-

-

Logistics facilities-

12,083

4.4

12,053

4.2

Total of trust beneficiary interests in real estate

250,057

90.4

266,711

92.7

3,658

1.3

3,655

1.3

Total of real estate

3,658

1.3

3,655

1.3

Bank deposits and other assets

22,983

8.3

17,202

6.0

Total assets

276,699100.0

287,569

100.0

Real estate

Logistics facilities-

15th fiscal period
as of September 30, 2022
Ratio
Amount(%)(Millions of yen)
(Note 3)16th fiscal period
as of March 31, 2023
Ratio
Amount(%)(Millions of yen)
(Note 3)

Total liabilities (Note 4)

139,27150.3

145,002

50.4

Total net assets (Note 4)

137,42849.7

142,566

49.6

Total assets

276,699100.0

287,569

100.0

Note 3:“Areas” are categorized to the Tokyo metropolitan area, the Greater Osaka area, the Greater Nagoya area, the Fukuoka area and Ordinance-designated cities, core cities andother areas. References to “Tokyo metropolitan area” are to the area that consists of Tokyo, Kanagawa, Saitama and Chiba prefectures. References to the “Greater Osakaarea” are to the area that consists of Osaka, Kyoto, Hyogo, Nara and Shiga prefectures. References to the “Greater Nagoya area” are to the area that consists of Aichi, Gifu
and Mie prefectures. References to the “Fukuoka area” are to the area that consists of Fukuoka Prefecture. “Ordinance-designated cities, core cities and other areas” refers
to cities designated by government ordinance, which have populations of 500,000 persons or more, core cities, which have populations of 200,000 persons or more, and toother areas with a population fewer than 200,000 persons, which we believe will have suitable customer traffic from surrounding areas.
“Total amount held” is the amount allocated in the balance sheets as of the end of fiscal period (figures are on a net book value basis after deducting depreciation), and isrounded down to the nearest million.
“Ratio” is the ratio of the amount allocated in the balance sheets to the total assets rounded to the nearest tenth.

Note 4:“Total liabilities” and “Total net assets” are those on the balance sheets.

Note 1:

Note 2:25ii) Overview of the Portfolio(A) Overview of Assets Owned
The following summarizes the properties owned by KRR as of March 31, 2023.
Property
number

T-2

T-3

Propertytype
Urban
Station-Front
SC
Urban
Station-Front
SC

Ownership
formBook value Evaluation value Acquisition(Millions of (Millions of yen)
price
yen)
(Note 1)
(Millions of yen)

Share
(%)
(Note 2)

Property nameLocation

MONA Shin-Urayasu

Urayasu, Chiba

Trust beneficiaryinterest in real estate

9,497

9,210

8,063

3.0

Passaggio Nishiarai

Adachi ward, Tokyo

Trust beneficiaryinterest in real estate

5,590

6,630

5,850

2.2

3,583
(Note 3)

4,696
(Note 3)3,748
(Note 3)

1.4
(Note 3)

3,776

4,350

4,000

1.5

3,450

3,890

3,600

1.3

2,386

2,710

2,586

1.0

4,890

5,880

4,815

1.8

3,043

3,090

3,000

1.1

1,726

1,830

1,700

0.6

1,462

1,380

1,442

0.5

3,229

3,750

3,360

1.2

1,702

1,780

1,724

0.6

1,466

1,480

1,450

0.5

4,228

4,350

4,170

1.5

3,342

3,650

3,416

1.3

3,073

3,290

3,097

1.1

1,794

1,960

1,880

0.7

1,261

1,350

1,263

0.5

3,590

3,300

3,400

1.3

11,434

12,10011,567

4.3

5,909

6,190

5,980

2.2

2,859

3,040

2,753

1.0

2,386

2,250

2,300

0.9

2,283

2,320

2,248

0.8

1,987

2,140

1,920

0.7

10,49911,40010,500

3.9

748

837

732

0.3

3,712

3,680

3,543

1.3

4,104

4,650

4,080

1.5

8,260

10,100

8,389

3.1

2,727

3,340

2,685

1.0

T-5

NSC

Unicus Ina

Kitaadachi-gun,
Saitama

T-6

NSC

Yorktown Kita-Kaname

Hiratsuka, Kanagawa

T-7

NSC

Unicus Yoshikawa

Yoshikawa, Saitama

T-8

SS

Nerima ward, Tokyo

T-9

NSC

Sports Club Renaissance
Fujimidai
Super Viva Home
Iwatsuki (Land)

Saitama, Saitama

T-11

NSC

Unicus Kamisato (Land)

Kodama-gun, Saitama

T-12

NSC

Unicus Konosu (Land)

Konosu, Saitama

T-13

SM

Inageya Yokohama
Minamihonjuku (Land)

Yokohama, Kanagawa

T-15

NSC

Nakamachidai Tokyu Store Yokohama, Kanagawa

T-16

SS

Central Wellness Club
Nagatsuta Minamidai

Yokohama, Kanagawa

T-17

SM

Life Kameido

Koto ward, Tokyo

T-18

NSC

Yokohama, Kanagawa

T-19

NSC

Totsuka-Fukaya Shopping
Center (Land)
Yumemachi Narashinodai
Mall

T-20

NSC

Kawamachi Yahagi Mall

Chiba, Chiba

T-22

SS

Round1 Ichikawa-Onitaka

Ichikawa, Chiba

T-23

SM

Ozeki Tokiwadai

Itabashi ward, Tokyo

T-24

SS

Shibuya ward, Tokyo

T-25

NSC

Konami Sports Club
Shibuya
Apita Terrace Yokohama
Tsunashima

T-26

NSC

Kalsa Hiratsuka

Hiratsuka, Kanagawa

T-27

NSC

Monenosato Mall

Yotsukaido, Chiba

T-28

NSC

T-29

NSC

T-30

SM

T-31

NSC

Kitera Town Chofu

Chofu, Tokyo

T-32

NSC

Unicus Urawamisono(Land)

Saitama, Saitama

T-33

NSC

Kitera Plaza Aobadai

Yokohama, Kanagawa

T-34

NSC

Higashimatsuyama
Shopping Center

Higashimatsuyama,
Saitama

O-1

NSC

Blumer Maitamon

Kobe, Hyogo

O-2

SM

Life Takadono (Land)

Osaka, Osaka

O-3

NSC

DCM MEGA Don
Quijote UNY
Omihachiman

Omihachiman, Shiga

Trust beneficiaryinterest in real estate

2,074

2,630

2,140

0.8

O-4

NSC

Blumer HAT Kobe

Kobe, Hyogo

Trust beneficiaryinterest in real estate

11,090

11,10011,0004.1

KDX Chofu Building(Retail wing)
Across Plaza Urayasu
Higashino (Land)
Comfort Market NishiMagome

Funabashi, Chiba

Yokohama, Kanagawa

Chofu, Tokyo
Urayasu, Chiba
Ota ward, Tokyo

Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate26

Property
numberO-5
O-6

Propertytype
Urban StationFront SC
Urban StationFront SC

Property name

Ownership
form

Location

Carino Esaka

Suita, Osaka

COMBOX Komyoike

Izumi, Osaka

Life Nishi-Tengachaya

Osaka, Osaka

Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estateBook value Evaluation value Acquisition(Millions of (Millions of yen)
price
yen)
(Note 1)
(Millions of yen)

Share
(%)
(Note 2)

6,790

6,810

6,555

2.4

6,041

6,070

6,450

2.4

1,511

1,790

1,505

0.6

3,772

4,260

3,723

1.4

2,035

2,020

2,000

0.7

5,464

5,780

5,440

2.0

2,351

2,790

2,311

0.9

2,096

2,410

2,174

0.8

6,684

7,500

7,140

2.6

7,873

6,630

7,911

2.9

2,587

2,630

2,551

0.9

15,057(Note 3)

14,490(Note 3)

14,490(Note 3)

5.4
(Note 3)

1,323

1,660

1,497

0.6

4,842

5,880

5,020

1.9

1,522

1,870

1,515

0.6

6,012

6,270

6,000

2.2

9,572

12,30010,046

3.7

1,404

1,550

1,469

0.5

840

928

898

0.3

4,315

4,890

4,180

1.5

3,179

2,600

3,252

1.2

911

980

830

0.3

4,135

4,060

4,010

1.5

O-9

SM

O-10

NSC

O-11

NSC

O-12

NSC

Merado Daikai

Kobe, Hyogo

N-1

SS

DCM Nakagawa Tomita(Land)

Nagoya, Aichi

N-2

NSC

Valor Ichinomiya-Nishi

Ichinomiya, Aichi

N-4

SS

N-6

NSC

N-7

SM

N-8

NSC

iias Kasugai

Kasugai, Aichi

F-1

SM

Sunny Noma

Fukuoka, Fukuoka

F-2

SS

F-3

NSC

F-4

NSC

R-1

NSC

R-2

SS

R-3

SS

R-4

NSC

Ashico Town Ashikaga

Ashikaga, Tochigi

R-5

NSC

Sendai, Miyagi

R-6

SM

Yorktown
Shinden-Higashi
Kasumi Technopark
SakuraR-8

NSC

P-1 Plaza Tenno

Hamamatsu, Shizuoka

R-9

NSC

Seiyu Rakuichi Moriya(Land)Moriya, Ibaraki

Trust beneficiaryinterest in real estate

4,320

4,320

4,111

1.5

R-10

NSC

Sun Street Hamakita

Hamamatsu, Shizuoka

Trust beneficiaryinterest in real estate

11,558

12,10011,946

4.4

R-11

SS

Costco Wholesale Sapporo
Sapporo, Hokkaido
Warehouse

Trust beneficiaryinterest in real estate

4,116

4,620

4,210

1.6

R-12

NSC

Coop Sapporo Shunko

Asahikawa, Hokkaido

Trust beneficiaryinterest in real estate

1,158

1,220

1,110

0.4

L-1

L

Zama Distribution Center

Zama, Kanagawa

Real estate

1,456

1,870

1,400

0.5

L-2

L

Yokosuka, Kanagawa

Real estate

1,332

1,780

1,300

0.5

L-3

L

3,659
(Note 3)

4,540
(Note 3)3,879
(Note 3)

1.4
(Note 3)

L-4

L

953

1,080

918

0.3

L-5

L

Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate

3,222

3,840

3,160

1.2

L-6

L

866

886

810

0.3

L-7

L

1,230

1,590

1,250

0.5

L-8

L

816

1,080

800

0.3

L-9

L

1,103

1,140

1,070

0.4

Million Town Tsukaguchi(Land)
Habikigaoka Shopping
CenterHomecenter Kohnan
Sunadabashi
Resora Obu Shopping
Terrace
Valor Nakashidami(Land)

Round1 Stadium HakataHanmichibashi
Kurume-Nishi Shopping
CenterKitera Town Fukuoka
Nagahama
Roseo Mito
K’s Denki Aomori
HontenSuper Sports Xebio
Aomori-Chuo

Oppama Distribution
CenterMusashi Ranzan
Distribution Center
Yokohama Kamigo
Distribution Center
Gyoda Distribution Center
Shinjuku Nishiochiai
Distribution Center
Chiba-Kita Distribution
Center
Sapporo Shiroishi
Distribution Center
Tenri Distribution Center

Amagasaki, Hyogo
Habikino, Osaka

Nagoya, Aichi
Obu, Aichi
Nagoya, Aichi

Fukuoka, Fukuoka
Kurume, Fukuoka
Fukuoka, Fukuoka
Mito, Ibaraki
Aomori, Aomori
Aomori, Aomori

Tsukuba, Ibaraki

Hiki-gun, Saitama
Yokohama, Kanagawa
Gyoda, Saitama
Shinjuku ward, Tokyo
Chiba, Chiba
Sapporo, Hokkaido
Tenri, Nara

Real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate
Trust beneficiaryinterest in real estate27

Property
number

Property
type

L-10

L

Property name

Ownership
form

Location

Prima Meat Packers
Kinki Center

Osaka, Osaka

Trust beneficiaryinterest in real estate

Total

Book value Evaluation value Acquisition(Millions of (Millions of yen)
price
yen)
(Note 1)
(Millions of yen)

Share
(%)
(Note 2)

1,066
(Note 3)

1,107
(Note 3)

1,047
(Note 3)0.4
(Note 3)

270,366

291,694

270,381100.0

Note 2:“Evaluation value” shows the appraisal value stated on the real estate appraisal report created by the real estate appraisers of Daiwa Real Estate Appraisal Co., Ltd., Japan
Real Estate Institute and The Tanizawa Sōgō Appraisal Co., Ltd. in accordance with the methods and standards for asset valuation as stipulated in the KRR Articles ofIncorporation as well as the regulations as stipulated by The Investment Trusts Association, Japan.
“Share” represents the percentage of the acquisition price for each property in the total acquisition price, rounded to the nearest tenth.

Note 3:

The amount and proportion of quasi co-ownership interests that KRR owns are shown.

Note 1:28

(B) Overview of Tenants as of March 31, 2023
The following summarizes leasable area, leased area, occupancy rate, number of tenants, annual rent, and amount of security deposits.
Property
number

Property nameLeasable area(m2)
(Note 1)

Leased area(m2)
(Note 2)

Occupancy
rate(%)(Note 3)

Number oftenants(Note 4)

Annual rent
(Thousands ofyen)(Note 5)Tenant leasehold
and security
deposits(Millions of yen)
(Note 6)

T-2

MONA Shin-Urayasu

9,961.48

9,782.07

98.2

1(56)

646,040

612

T-3

Passaggio Nishiarai

10,527.40

10,527.40

100.0

1(43)

444,033

271

T-5

Unicus Ina

11,303.42(Note 7)

11,303.42(Note 7)100.0

1240,408(Note 7)

121
(Note 7)

T-6

Yorktown Kita-Kaname(Note 8)(Note 8)100.0

1(Note 8)(Note 8)

T-7

Unicus Yoshikawa

10,648.27

10,648.27

100.0

1(10)

263,076

205

T-8

Sports Club Renaissance Fujimidai

3,120.87

3,120.87

100.0

1(Note 8)(Note 8)

T-9

Super Viva Home Iwatsuki (Land)

67,325.95

67,325.95

100.0

1

T-11

Unicus Kamisato (Land)

67,854.47

67,854.47

100.0

1

150,595

70

T-12

Unicus Konosu (Land)

19,329.00

19,329.00

100.0

1

86,063

39

T-13

Inageya Yokohama Minamihonjuku (Land)

4,405.41

4,405.41

100.0

1

T-15

Nakamachidai Tokyu Store

5,968.71

5,968.71

100.0

1

T-16

Central Wellness Club Nagatsuta Minamidai

3,996.68

3,996.68

100.0

2(Note 8)(Note 8)

T-17

Life Kameido

2,929.58

2,929.58

100.0

1

T-18

Totsuka-Fukaya Shopping Center (Land)

14,092.51

14,092.51

100.0

2

T-19

Yumemachi Narashinodai Mall

7,827.96

7,662.41

97.9

1(13)

218,129

151

T-20

Kawamachi Yahagi Mall

6,397.05

6,397.05

100.0

1(12)

193,105

106

T-22

Round1 Ichikawa-Onitaka

11,963.61

11,963.61

100.0

1

T-23

Ozeki Tokiwadai

1,217.02

1,217.02

100.0

1

T-24

Konami Sports Club Shibuya(Note 8)(Note 8)100.0

1(Note 8)(Note 8)

T-25

Apita Terrace Yokohama Tsunashima

44,568.05

44,568.05

100.0

1

T-26

Kalsa Hiratsuka

14,195.00

14,195.00

100.0

3

T-27

Monenosato Mall

6,861.59

6,861.59

100.0

1(11)

168,496

104

T-28

KDX Chofu Building (Retail wing)

12,119.00

12,101.00

99.9

2149,699

74

T-29

Across Plaza Urayasu Higashino (Land)

6,229.32

6,229.32

100.0

1(Note 8)(Note 8)T-30

Comfort Market Nishi-Magome

1,456.86

1,456.86

100.0

196,00080

T-31

Kitera Town Chofu

10,665.73

9,858.98

92.4

1(26)

625,673

616

T-32

Unicus Urawamisono (Land)3,533.59

3,533.59

100.0

138,62919

T-33

Kitera Plaza Aobadai

3,030.58

2,363.53

78.0

1(11)

158,656

83

T-34

Higashimatsuyama Shopping Center

36,490.48

36,490.48

100.0

2

(Note 8)(Note 8)O-1

Blumer Maitamon

30,290.85

29,784.32

98.3

49

706,783430

O-2Life Takadono (Land)

4,437.07

4,437.07

100.0

1(Note 8)(Note 8)

O-3

DCM MEGA Don Quijote UNY
Omihachiman

14,313.00

14,313.00

100.0

2

O-4

Blumer HAT Kobe

23,775.88

23,286.14

97.9

1(39)

702,151802

O-5

Carino Esaka

7,542.69

7,542.69

100.0

1(31)

321,178236

29

Property
number

Property nameLeasable area(m2)
(Note 1)

Leased area(m2)
(Note 2)

Occupancy
rate(%)(Note 3)Tenant leasehold
and security
deposits(Millions of yen)
(Note 6)452,434
303(Note 10)(Note 11)

Annual rent
(Thousands ofyen)(Note 5)

Number oftenants(Note 4)

O-6

COMBOX Komyoike

25,530.44(Note 9)25,530.44

100.0

1

O-9

Life Nishi-Tengachaya

2,679.52

2,679.52

100.0

1

O-10

Million Town Tsukaguchi (Land)8,264.46

8,264.46

100.0

1

O-11

Habikigaoka Shopping Center

6,447.81

6,447.81

100.0

2

O-12

Merado Daikai

11,922.77

11,922.77

100.0

7

N-1

DCM Nakagawa Tomita (Land)(Note 8)(Note 8)

100.0

1

N-2

Valor Ichinomiya-Nishi

9,447.48

9,447.48

100.0

1

N-4

Homecenter Kohnan Sunadabashi

20,329.07

20,329.07

100.0

1

N-6

Resora Obu Shopping Terrace

19,909.33

19,781.31

99.4

N-7

Valor Nakashidami (Land)

13,480.42

13,480.42

N-8iias Kasugai

27,772.12(Note 7)

F-1

Sunny Noma

F-2

89,740178(Note 8)(Note 8)297,906

312(Note 8)(Note 8)1(41)429,055

268

100.0

1

(Note 8)(Note 8)27,350.13(Note 7)

98.5

1(71)

712,722(Note 7)460
(Note 7)2,814.67

2,814.67

100.0

1(Note 8)(Note 8)Round1 Stadium Hakata-Hanmichibashi

28,026.61

28,026.61

100.0

1

F-3

Kurume-Nishi Shopping Center

4,641.10

4,641.10

100.0

4104,61762

F-4

Kitera Town Fukuoka Nagahama

6,355.66

5,906.20

92.9

1(16)

299,570

161

R-1

Roseo Mito

48,296.76

48,296.76

100.0

1(23)

705,820464

R-2

K’s Denki Aomori Honten

10,083.41

10,083.41

100.0

1

174
(Note 8)

R-3

Super Sports Xebio Aomori-Chuo(Note 8)(Note 8)

100.0

1

R-4

Ashico Town Ashikaga

65,181.05

64,646.98

99.2

1(29)

R-5

Yorktown Shinden-Higashi

12,768.77

12,768.77

100.0

2

(Note 8)393,664332(Note 8)(Note 8)R-6

Kasumi Technopark Sakura

2,228.04

2,228.04

100.0

1

R-8

P-1 Plaza Tenno

12,030.83

12,030.83

100.0

1(7)

238,320210

R-9

Seiyu Rakuichi Moriya (Land)(Note 8)(Note 8)100.0

1(Note 8)(Note 8)R-10

Sun Street Hamakita

54,108.12

53,205.67

98.3

1(49)

900,128

521

R-11

Costco Wholesale Sapporo Warehouse

24,006.16

24,006.16

100.0

1

R-12

Coop Sapporo Shunko

7,214.92

7,214.92

100.0

1(Note 8)(Note 8)

L-1

Zama Distribution Center

5,479.92

5,479.92

100.0

1

L-2

Oppama Distribution Center

6,543.87

6,543.87

100.0

1

L-3

Musashi Ranzan Distribution Center

32,935.54(Note 7)32,935.54(Note 7)100.0

1(Note 7)(Note 8)(Note 7)(Note 8)

L-4

Yokohama Kamigo Distribution Center

2,040.05

2,040.05

100.0

2

L-5

Gyoda Distribution Center

21,956.09

21,956.09

100.0

1

L-6

Shinjuku Nishiochiai Distribution Center

790.52790.52100.0

1(Note 8)(Note 8)

L-7

Chiba-Kita Distribution Center

5,684.13

5,684.13

100.0

1

L-8

Sapporo Shiroishi Distribution Center

11,181.15

11,181.15

100.0

1

L-9

Tenri Distribution Center

7,393.08

7,393.08

100.0

1

30

31

Property
number

Property nameLeasable area(m2)
(Note 1)

Leased area(m2)
(Note 2)

Occupancy
rate(%)(Note 3)Tenant leasehold
and security
deposits(Millions of yen)
(Note 6)(Note 7)(Note 7)(Note 8)(Note 8)Annual rent
(Thousands ofyen)(Note 5)

Number oftenants(Note 4)

6,274.32(Note 7)

6,274.32(Note 7)100.0

11,077,363.72

1,072,094.70

99.5

608

L-10

Prima Meat Packers Kinki Center (Note 5)

Note 1:“Leasable area” is equivalent to gross floor area of space that we consider to be available for lease in each property, rounded to the nearest tenth. For land-only properties,
leasable area is equivalent to land area as described in the property registry. The same applies hereafter.
“Leased area” indicates the total leased area based on the lease agreements for each property as of March 31, 2023. As for lease agreements of buildings, the leased area of
warehouses and land are excluded. As for pass-through type master leases, the leased area based on the lease agreements between the master lessee and the end-tenants asof March 31, 2023, is shown. As for sublease type master leases, the leased area to the master lessee is shown. The same applies hereafter.
“Occupancy rate” is calculated by dividing leased area by leasable area as of March 31, 2023, rounded to the nearest tenth. The “Total” of “Occupancy rate” represents theaverage occupancy rate of all properties in the initial portfolio. The same applies hereafter.
“Number of tenants” is based upon the number of lease agreements with respect to the building(s) (or land in the case of land-only properties with leasehold interest) on eachsuch property used mainly as stores and offices, as of March 31, 2023. Where one lessee leases more than one section of the property, the lessee is counted as a tenant foreach section leased within the property. Where pass-through type master lease agreements are entered into, the number of master lessees is with the number of end-tenants
indicated in parentheses. Where sublease type master lease agreements are entered into, the indicated number of master lessee is shown. The “Total” of “Number of tenants”
shows the total number of tenants. As for pass-through type master leases, the number of end-tenants is used for calculation. As for sublease type master leases, the numberof master lessee is used for calculation. The same applies hereafter.
“Annual rent” is generally calculated by multiplying the monthly fixed rent and common area charges under a leasing contract with tenants at portfolio properties as of March
31, 2023 (excluding warehouses in the case of retail building lease agreements) by twelve and rounding down to the nearest thousand yen. For master leases, where themaster lease company subleases space to other tenants, the fixed monthly rent under the master lease contract is multiplied by twelve, rounded down to the nearest thousandyen.
“Tenant leasehold and security deposits” indicates the outstanding balance of any tenant leasehold and security deposit from the relevant end-tenant(s) set forth in leaseagreement(s) effective as of March 31, 2023 (excluding warehouses in the case of building lease agreements), rounded down to the nearest million yen.
The area and amount as proportion to the quasi-co-ownership interests that KRR owns are shown. The figures are reflected in total even if the figures are undisclosed. The
same applies hereafter.
We have not obtained consent from the tenant(s) to release this information.
The total area that we own exclusively as a compartmentalized ownership interest (retail space) is shown.
Calculated by multiplying the monthly rent and common area charges for March 2023 under the leasing contract by twelve and also taking into consideration the ownership
ratio (93.20%) under the compartmentalized ownership agreement.
Calculated by multiplying the tenant leasehold and security deposits for the whole building as of March 2023 by the ownership ratio (93.20%).

Total

Note 2:
Note 3:Note 4:Note 5:Note 6:Note 7:Note 8:Note 9:Note 10:Note 11:31

16,865,610

12,463

(C) Overview of the Appraisal Reports
The following show the summaries of the appraisal reports is the appraisal value of the acquired properties described in each real estate appraisal report
prepared by real estate appraisers, including Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute, and The Tanizawa Sōgō Appraisal Co., Ltd.
as requested by KRR, based on an important notice concerning real estate appraisal in the context of the Act on Investment Trusts and Investment
Corporations, Act on Real Estate Appraisal (Act No. 152 of 1963, including subsequent revisions) and real estate appraisal standards. The appraisal value isthe judgment and opinion of the appraiser at a fixed point in time, with no guarantees as to the validity or accuracy of the report, nor to the possibility oftransactions at the appraised value. There are no special relations of interest between Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute, and
The Tanizawa Sōgō Appraisal Co., Ltd. and KRR or KFM.
Estimated value

Property
number

Property nameAppraiser

Cash flow-based method
Appraisal
Evaluationvalue
DCF method
Cost method Direct capitalization methoddate(Millions of (Millions ofEstimated
yen)
yen)
value
Estimated value
Discount rate
Cap rate (%)(Millions of(Millions of yen)
(%)
yen)

Japan Real Estate Mar. 31,
Institute
2023
Daiwa Real EstateMar. 31,
T-3 Passaggio Nishiarai
Appraisal Co.,
2023
Ltd.
Japan Real Estate Mar. 31,
T-5 Unicus Ina (Note 5)
Institute
2023
Daiwa Real EstateMar. 31,
T-6 Yorktown Kita-Kaname Appraisal Co.,
2023
Ltd.
Daiwa Real EstateMar. 31,
T-7 Unicus Yoshikawa
Appraisal Co.,
2023
Ltd.
Daiwa Real Estate
Sports Club
Mar. 31,
T-8
Appraisal Co.,
Renaissance Fujimidai
2023
Ltd.
The Tanizawa
Mar. 31,
Super Viva Home
T-9
Sōgō Appraisal
Iwatsuki (Land)
2023
Co., Ltd.
The Tanizawa
Mar. 31,
T-11 Unicus Kamisato (Land) Sōgō Appraisal
2023
Co., Ltd.
The Tanizawa
Mar. 31,
T-12 Unicus Konosu (Land)
Sōgō Appraisal
2023
Co., Ltd.
Inageya Yokohama
Japan Real Estate Mar. 31,
T-13
Minamihonjuku (Land)
Institute
2023
Daiwa Real Estate
Nakamachidai Tokyu
Mar. 31,
T-15
Appraisal Co.,
Store
2023
Ltd.
Daiwa Real Estate
Central Wellness Club
Mar. 31,
T-16
Appraisal Co.,
Nagatsuta Minamidai
2023
Ltd.
Daiwa Real EstateMar. 31,
T-17 Life Kameido
Appraisal Co.,
2023
Ltd.
Daiwa Real EstateTotsuka-FukayaMar. 31,
T-18
Appraisal Co.,
Shopping Center (Land)
2023
Ltd.
Daiwa Real Estate
Yumemachi
Mar. 31,
T-19
Appraisal Co.,
Narashinodai Mall
2023
Ltd.
Daiwa Real EstateMar. 31,
T-20 Kawamachi Yahagi Mall Appraisal Co.,
2023
Ltd.
Daiwa Real Estate
Round1 IchikawaMar. 31,
T-22
Appraisal Co.,
Onitaka
2023
Ltd.
Daiwa Real EstateMar. 31,
T-23 Ozeki Tokiwadai
Appraisal Co.,
2023
Ltd.
The Tanizawa
Konami Sports Club
Mar. 31,
T-24
Sōgō Appraisal
Shibuya2023
Co., Ltd.
Daiwa Real Estate
Apita Terrace YokohamaMar. 31,
T-25
Appraisal Co.,
Tsunashima
2023
Ltd.
Japan Real Estate Mar. 31,
T-26 Kalsa Hiratsuka
Institute
2023
Japan Real Estate Mar. 31
T-27 Monenosato Mall
Institute
2023
T-2

MONA Shin-Urayasu

Appraisal

Terminal
capitalization
rate (%)

Appraisal NOI yield(%)
NOI(Millions of (Note 2)yen)(Note 1)

9,210

8,120

9,300

4.5

9,120

4.2

4.7

485

6.0

6,630

10,300

6,660

4.3

6,610

4.1

4.5

294

5.0

4,696

4,520

5,890

4.4

5,840

4.1

4.6

218

5.8

4,350

2,160

4,380

4.9

4,340

4.7

5.1

216

5.4

3,890

4,220

3,930

4.7

3,870

4.5

4.9

187

5.2

2,710

1,910

2,740

4.7

2,690

4.5

4.9

129

5.0

5,880

－

－

－

5,880

(year 1-10)
4.5(year 11-29.7) 4.6

－

202

4.2

3,090

－

－

－

3,090

－

138

4.6

1,830

－

－

－

1,830

－

77

4.6

1,380

－

－

－

1,380

4.0

－

64

4.5

3,750

2,730

3,780

4.6

3,730

4.4

4.8

181

5.4

1,780

2,360

1,780

5.0

1,780

4.8

5.2

91

5.3

1,480

2,120

1,500

4.2

1,470

3.9

4.4

63

4.4

4,350

4,750

4,330

4.7
(Note 3)

4,360

4.6

－

191

4.6

3,650

3,210

3,640

4.9

3,650

4.7

5.1

179

5.3

3,290

3,500

3,310

4.8

3,280

4.6

5.0

159

5.2

1,960

3,530

1,950

4.8

1,970

4.6

5.0

97

5.2

1,350

1,570

1,370

4.2

1,340

4.0

4.4

57

4.6

3,300

3,890

3,360

3.7

3,280

3.7

3.9

132

3.9

12,10015,60012,200

4.3

12,100

4.1

4.5

543

4.7

6,190

6,130

6,260

4.3

6,120

4.0

4.5

280

4.7

3,040

2,820

3,090

4.9

2,980

4.7

5.2

151

5.5

(year 1-8)
(year 9-23)(year 24-32.5)(year 1-8)
(year 9-23)(year 24-32.5)

4.5
4.6
4.7
4.4
4.5
4.6

T-28

KDX Chofu Building(Retail wing)

Japan Real Estate Mar. 31,
Institute
2023

2,250

2,200

2,250

4.6

2,240

4.2

4.8

116

5.1

T-29

Across Plaza Urayasu
Higashino (Land)

Daiwa Real Estate Mar. 31,
Appraisal Co.,
2023

2,320

－

2,340

4.2
(Note 3)

2,310

4.1

－

89

4.0

32

Estimated value

Property
number

Property nameAppraiser

Cash flow-based method
Appraisal
Evaluationvalue
DCF method
Cost method Direct capitalization methoddate(Millions of (Millions ofEstimated
yen)
yen)
value
Estimated value
Discount rate
Cap rate (%)(Millions of(Millions of yen)
(%)
yen)

Appraisal

Terminal
capitalization
rate (%)

Appraisal NOI yield(%)
NOI(Millions of (Note 2)yen)(Note 1)

T-30

Comfort Market NishiMagome

The Tanizawa
Sōgō Appraisal
Co., Ltd.

Mar. 31,
2023

2,140

2,020

2,170

3.9

2,130

(year 1-10) 3.9(year 11) 4.0

4.1

84

4.4

T-31

Kitera Town Chofu

Japan Real Estate Mar. 31,
Institute2023

11,400

11,20011,500

4.6

11,200

4.3

4.8

528

5.0

T-32

Unicus Urawamisono(Land)

Japan Real Estate Mar. 31,
Institute
2023

837

－

842

4.0

832

3.9

4.0

33

4.6

T-33

Kitera Plaza Aobadai(Note 6)

Daiwa Real EstateMar. 31,
Appraisal Co.,
2023
Ltd.

3,680

3,400

3,740

4.3

3,660

4.1

4.5

162

4.6

T-34

Higashimatsuyama
Shopping Center

Daiwa Real Estate Mar. 31,
Appraisal Co.,
2023

4,650

4,770

4,680

4.8

4,640

4.6

5.0

259

6.4

O-1

Blumer Maitamon

Mar. 31,2023

10,100

9,460

9,950

5.0

10,100

5.1

5.2

510

6.1

O-2

Life Takadono (Land)

Mar. 31,
2023

3,340

－

－

－

3,340

(year 1-2)
3.6
(year 3-12)
3.7(year 13-32.3) 3.8

－

128

4.8

O-3

DCM MEGA Don
Quijote UNY
Omihachiman

Japan Real Estate Mar. 31,
Institute
2023

2,630

2,310

2,650

5.7

2,610

5.4

5.9

152

7.1

O-4

Blumer HAT Kobe

11,10017,000

11,2004.9

11,000

4.7

5.1

558

5.1

O-5

Carino Esaka

6,810

6,910

6,870

4.3

6,750

4.0

4.5

319

4.9

O-6

COMBOX Komyoike

6,070

7,350

6,370

5.3

5,940

4.9

5.4

363

5.6

O-9

Life
Nishi-Tengachaya

1,790

1,770

1,820

4.3

1,780

4.4

4.5

78

5.2

O-10

Million Town
Tsukaguchi (Land)

4,260

－

－

－

4,260

(year 1-13)
3.7(year 14-32.9) 3.9

－

157

4.2

O-11

Habikigaoka Shopping
Center

2,020

1,690

2,030

5.1

2,020

(year 1-6)
(year 7+)

5.1
5.2

5.3

106

5.3

5,780

5,680

5,820

4.9

5,740

4.6

5.1

290

5.3

2,790

－

－

－

2,790

(year 1-10)
4.1(year 11-30.2) 4.2

－

116

5.0

2,410

1,830

2,420

5.0

2,390

4.7

5.2

130

6.0

7,500

7,310

7,610

4.9

7,450

4.7

5.1

389

5.5

6,630

7,440

6,780

4.9

6,570

5.0

5.1

344

4.4

2,630

－

－

－

2,630

3.9

－

119

4.7

14,49020,00020,9004.5

20,500

4.2

4.7

660

4.6

O-12 Merado Daikai

N-1
N-2
N-4

N-6

N-7
N-8

The Tanizawa
Sōgō Appraisal
Co., Ltd.
The Tanizawa
Sōgō Appraisal
Co., Ltd.

Daiwa Real EstateMar. 31,
Appraisal Co.,
2023
Ltd.
Japan Real Estate Mar. 31,
Institute
2023
Daiwa Real EstateMar. 31,
Appraisal Co.,
2023
Ltd.
The Tanizawa
Mar. 31,
Sōgō Appraisal
2023
Co., Ltd.
The Tanizawa
Mar. 31,
Sōgō Appraisal
2023
Co., Ltd.
The Tanizawa
Mar. 31,
Sōgō Appraisal
2023
Co., Ltd.
Japan Real Estate Mar. 31,
Institute
2023

The Tanizawa
DCM Nakagawa Tomita
Mar. 31,
Sōgō Appraisal(Land)
2023
Co., Ltd.
Japan Real Estate Mar. 31,
Valor Ichinomiya-Nishi
Institute
2023
Daiwa Real Estate
Homecenter Kohnan
Mar. 31,
Appraisal Co.,
Sunadabashi
2023
Ltd.
The Tanizawa
Resora Obu Shopping
Mar. 31,
Sōgō Appraisal
Terrace2023
Co., Ltd.
The Tanizawa
Valor Nakashidami
Mar. 31,
Sōgō Appraisal(Land)
2023
Co., Ltd.
Japan Real Estate Mar. 31,
iias Kasugai
Institute
2023

F-1

Sunny NomaJapan Real Estate Mar. 31,
Institute
2023

1,660

1,660

1,700

4.4

1,610

4.2

4.8

78

5.3

F-2

Round1 Stadium Hakata- Japan Real Estate Mar. 31,
Hanmichibashi
Institute
2023

5,880

5,760

5,920

4.8

5,840

4.5

5.0

285

5.7

F-3

Kurume-Nishi Shopping
CenterJapan Real Estate Mar. 31,
Institute
2023

1,870

1,580

1,880

4.7

1,850

4.4

4.9

92

6.1

F-4

Kitera Town Fukuoka
Nagahama

Japan Real Estate Mar. 31,
Institute
2023

6,270

6,200

6,260

4.4

6,280

4.0

4.5

277

4.6

R-1

Roseo Mito

Japan Real Estate Mar. 31,
Institute2023

12,3009,110

12,400

4.7

12,200

4.4

4.9

598

6.0

R-2

K’s Denki Aomori
HontenJapan Real Estate Mar. 31,
Institute
2023

1,550

1,680

1,550

5.4

1,540

5.1

5.6

91

6.2

R-3

Super Sports Xebio
Aomori-Chuo

Japan Real Estate Mar. 31,
Institute
2023

928

853

933

5.4

922

5.1

5.6

56

6.3

33

Estimated value

Property
number

Property name

R-4

Ashico Town Ashikaga

R-5

Yorktown ShindenHigashi

R-6

Kasumi Technopark
SakuraR-8

P-1 Plaza Tenno

R-9

Seiyu Rakuichi Moriya(Land)

R-10

Sun Street Hamakita(Note 5)

Appraiser

Cash flow-based method
Appraisal
Evaluationvalue
DCF method
Cost method Direct capitalization methoddate(Millions of (Millions ofEstimated
yen)
yen)
value
Estimated value
Discount rate
Cap rate (%)(Millions of(Millions of yen)
(%)
yen)

Daiwa Real EstateMar. 31,
Appraisal Co.,
2023
Ltd.
Daiwa Real EstateMar. 31,
Appraisal Co.,
2023
Ltd.
Daiwa Real EstateMar. 31,
Appraisal Co.,
2023
Ltd.
Japan Real Estate Mar. 31,
Institute
2023
Daiwa Real EstateMar. 31,
Appraisal Co.,
2023
Ltd.
Japan Real Estate Mar. 31,
Institute
2023

Japan Real Estate Mar. 31,
Institute
2023
Daiwa Real EstateMar. 31,R-12 Coop Sapporo Shunko
Appraisal Co.,
2023
Ltd.
The Tanizawa
Mar. 31,L-1 Zama Distribution Center Sōgō Appraisal
2023
Co., Ltd.
The Tanizawa
Oppama Distribution
Mar. 31,
L-2
Sōgō Appraisal
Center2023
Co., Ltd.
Musashi Ranzan
The Tanizawa
Mar. 31,
L-3 Distribution Center
Sōgō Appraisal
2023(Note 5)
Co., Ltd.
The Tanizawa
Yokohama Kamigo
Mar. 31
L-4
Sōgō Appraisal
Distribution Center
2023
Co., Ltd.
The Tanizawa
Gyoda Distribution
Mar. 31,
L-5
Sōgō Appraisal
Center2023
Co., Ltd.
Shinjuku Nishiochiai
Japan Real Estate Mar. 31,
L-6
Distribution Center
Institute
2023
Daiwa Real Estate
Chiba-Kita Distribution
Mar. 31,
L-7
Appraisal Co.,
Center2023
Ltd.
Daiwa Real Estate
Sapporo Shiroishi
Mar. 31,
L-8
Appraisal Co.,
Distribution Center
2023
Ltd.
Daiwa Real EstateMar. 31,
L-9 Tenri Distribution Center Appraisal Co.,
2023
Ltd.
Prima Meat Packers
Japan Real Estate Mar. 31,
L-10
Kinki Center
Institute
2023
R-11

Costco Wholesale
Sapporo Warehouse

Total (Simple Average)

Note 1:

Note 2:
Note 3:Note 4:Note 5:

Appraisal

Terminal
capitalization
rate (%)

Appraisal NOI yield(%)
NOI(Millions of (Note 2)yen)(Note 1)

4,890

7,020

4,840

5.4
(Building)
5.0(Land)(Note 4)

2,600

4,030

2,600

5.5

2,600

5.3

5.7

154

4.7

980

899

990

5.1

976

4.9

5.3

51

6.2

4,060

4,470

4,090

4.9

4,020

4.6

5.1

207

5.2

4,320

－

4,350

4.3
（Note 3）

4,300

4.2

－

166

4.1

12,10010,00012,2005.1

11,900

4.8

5.4

649

5.4

4,620

3,950

4,650

4.4

4,590

4.1

4.6

207

4.9

1,220

678

1,210

5.5

1,230

5.3

5.7

70

6.3

1,870

1,760

1,870

4.2

1,870

4.2

4.4

84

6.1

1,780

1,650

1,760

4.3

1,790

4.4

4.5

86

6.6

4,540

4,670

5,030

4.7

5,040

(year 1)
4.7
(year 2-11) 4.8

4.9

222

5.7

1,080

1,030

1,100

4.1

1,070

4.2

4.3

46

5.0

3,840

3,650

3,780

4.5

3,860

(year 1-5) 4.4(year 6-11) 4.5

4.7

180

5.7

886

874

891

3.8

880

3.4

3.9

35

4.4

1,590

1,000

1,600

3.8

1,580

3.6

4.0

62

5.0

1,080

395

1,100

5.1

1,070

4.9

5.3

57

7.2

1,140

838

1,170

4.7

1,120

4.5

4.9

59

5.5

1,107

1,180

1,250

4.3

1,210

4.0

4.6

54

5.2

291,694－－－

297,850－－

13,988

5.2

4,910

5.2
(Building)
5.0(Land)

5.6

259

6.2

“Appraisal NOI” is the Net Operating Income calculated by subtracting the amount of operating expenses from the operating revenues described in relevant appraisal reports,
and it is the income before depreciation and differs from NCF (Net Cash Flow) which is calculated by adding investment gains from such as deposits and subtracting capexfrom NOI. The above appraisal NOI is calculated using the direct capitalization method. However, where the direct capitalization method is not applicable, appraisal NOI
indicates the net operating income for the first year based on the DCF method. The amounts are rounded down to the nearest one million yen.
“Appraisal NOI yield” indicates the value calculated using the following formula and rounded to the nearest tenth. The “Total/average” of “Appraisal NOI yield” indicatesthe average appraisal NOI yield which is a weighted average of appraisal NOI yields of the acquired properties (rounded to the nearest tenth).
Appraisal NOI of each property / Acquisition price for each property.
Inwood method discount rate is shown for discount rate of land-only portion.
Inwood method discount rate is shown for discount rate of land-only properties.
“Appraisal value” and “Appraisal NOI” are calculated in proportion to the co-ownership interest. Other figures refer to the entire land and building.

34

(D) Overview of Seismic PML Evaluation Report
The following summary is based on the Portfolio Earthquake PML Evaluation Report created by Sompo Risk Management Inc. However, KRR does notguarantee the accuracy of evaluations in the report. The report only represents the judgement and opinion of the appraiser for a fixed point of time, with noguarantees as to the validity or accuracy of the report. There is no special interest between Sompo Risk Management Inc. and KRR or KFM.
Property
Property name
PML value in seismic review (%)
numberRetail building 12.0
T-2
MONA Shin-Urayasu
Parking building 9.5
T-3
Passaggio Nishiarai
8.8Mall building 4.2
T-5
Unicus Ina
Restaurant A building 6.6
Restaurant B building 5.2
T-6
Yorktown Kita-Kaname
7.8
T-7

Unicus Yoshikawa

6.6

T-8

Sports Club Renaissance Fujimidai

6.7

T-9

Super Viva Home Iwatsuki (Land)

-

T-11

Unicus Kamisato (Land)

-

T-12

Unicus Konosu (Land)

-

T-13

Inageya Yokohama Minamihonjuku (Land)

-

T-15

Nakamachidai Tokyu Store

9.1
Retail building 8.5
Parking building 7.2

T-16

Central Wellness Club Nagatsuta Minamidai

T-17

Life Kameido

T-18

Totsuka-Fukaya Shopping Center (Land)

T-19

Yumemachi Narashinodai Mall

T-20

Kawamachi Yahagi Mall

T-22

Round1 Ichikawa-Onitaka

T-23

Ozeki Tokiwadai

T-24

Konami Sports Club Shibuya

5.3

T-25

Apita Terrace Yokohama Tsunashima

11.3

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

8.5

T-31

Kitera Town Chofu

8.0

T-32

Unicus Urawamisono (Land)

T-33

Kitera Plaza Aobadai

T-34

Higashimatsuyama Shopping Center

O-1

Blumer Maitamon

O-2

Life Takadono (Land)

6.7
7.2
Main building 7.3
Uniqlo building 7.4
Holiday building 7.3
Main / Tenant building 8.3
Parking building 9.0
7.0

9.4
Main building 5.6
Service building 5.7
Restaurant building 5.4
Clinic building 5.6
6.3
-

7.2
Seiyu building 5.5
Sundrug building 6.3
2.0
MEGA Don Quijote UNY building 3.1
DCM building 3.2

O-3

DCM MEGA Don Quijote UNY Omihachiman

O-4

Blumer HAT Kobe

3.6

O-5

Carino Esaka

1.7

O-6

COMBOX Komyoike

4.3

O-9

Life Nishi-Tengachaya

5.5

O-10

Million Town Tsukaguchi (Land)

O-11

Habikigaoka Shopping Center

O-12

Merado Daikai

Sunplaza A building 3.6
Sunplaza B building 3.4
Joshin building 3.5
South wing 2.3
North wing 2.8
35

Property
numberN-1

Property name

PML value in seismic review (%)-

DCM Nakagawa Tomita (Land)

N-2

Valor Ichinomiya-Nishi

4.8

N-4

Homecenter Kohnan Sunadabashi

5.2

N-6

Resora Obu Shopping Terrace

8.9

N-7

Valor Nakashidami (Land)

N-8

iias Kasugai

F-1

Sunny Noma

F-2

Round1 Stadium Hakata-Hanmichibashi

F-3

Kurume-Nishi Shopping Center

F-4

Kitera Town Fukuoka Nagahama

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

Shopping mall building 1.8
Extensions 1.7
Cinema building 1.5
Road-side building 2.1
2.9

R-6

Kasumi Technopark Sakura

4.2

Main building 3.0
New parking building 3.2
Existing parking building 2.7
1.1
Main building 0.4
Parking building 0.3
Tenant building A 0.1
Tenant building B 0.1
M building 1.6
AB building 1.6
C building 2.5
0.4
A building (Coffee shop building) 5.4
B building (Mall building) 4.7
C building (Sports facility building) 5.9
D building (Hardware store building) 5.8
E building (Secondhand shop building) 5.5
K’s Denki building 1.6
TSUTAYA/ Hard-off building 1.5
1.6

A building 12.1
B building 6.1
C building 10.9
D building 6.9
E building 8.9
F building 8.7
G building 9.6
H building 8.7

R-8

P-1 Plaza Tenno

R-9

Seiyu Rakuichi Moriya (Land)

R-10

Sun Street Hamakita

R-11

Costco Wholesale Sapporo Warehouse

R-12

Coop Sapporo Shunko

0.4

L-1

Zama Distribution Center

6.2

L-2

Oppama Distribution Center

8.6

L-3

Musashi Ranzan Distribution Center

L-4

Yokohama Kamigo Distribution Center

L-5

Gyoda Distribution Center

L-6

Shinjuku Nishiochiai Distribution Center

L-7

Chiba-Kita Distribution Center

L-8

Sapporo Shiroishi Distribution Center

L-9

Tenri Distribution Center

L-10

Main building 7.0
Mall building 9.6
Colore building 6.2
Wing building 6.2
1.8

1.0
Distribution center building 5.3
Restaurant building 7.7
Employee Lounge building 4.8
3.7
4.7
6.6
Building 1 2.1
Building 2 2.5
Warehouse building 3.3
Office building 3.3
4.3

Prima Meat Packers Kinki Center
Portfolio PML value (Note)

Note:

2.8

“Portfolio PML value” is the portfolio PML value of 58 properties that KRR owns as of March 31, 2023, excluding land with leasehold interest, based on the
Portfolio Earthquake PML Evaluation Report dated April 2023, created by Sompo Risk Management Inc.
36

(E) Overview of Portfolio
i. Distribution by Property Type
Property type

Number ofproperties

Shopping centers for daily needs

Acquisition price(Millions of yen)

Percentage of total portfolio
acquisition price (%) (Note)60

254,746

94.2

NSC (Neighborhood Shopping Centers)

37

182,047

67.3

SM (Supermarkets)

915,143

5.6

CSC (Community shopping Centers)

－

－

－

Urban Station-Front Shopping Centers

4

26,918

10.0

SS (Specialty Store)

10

30,638

11.3

Other retail properties

－

－

－

Logistics facilities

10

15,6355.8

70

270,381

100.0

Total
Note:

The percentage of total portfolio acquisition price is rounded to the nearest tenth. Therefore, the sum of the percentage of total acquisition price may differ from the portfolio
total.

ii. Distribution by Location
RegionNumber ofproperties

Four major metropolitan areas

Acquisition price(Millions of yen)

Percentage of total portfolio
acquisition price (%) (Note)58

223,519

82.7

Tokyo metropolitan area

36

120,906

44.7

Greater Osaka area

1252,004

19.2

Greater Nagoya area

636,577

13.5

Fukuoka area

4

14,032

5.2

12

46,86217.3

70

270,381100.0

Ordinance-designated cities, core cities and other areas
Total

The percentage of total portfolio acquisition price is rounded to the nearest tenth. Therefore, the sum of the percentage of total acquisition price may differ from the portfolio
total.

Note:

iii. Distribution by Property Age
Property age(Note 1)

Number ofproperties

Acquisition price(Millions of yen)

Percentage of total portfolio
acquisition price (%) (Note 2)Less than 5 years

3

10,673

4.5

5 years or more but less than 10 years

7

45,251

19.1

10 years or more

48

180,96976.4

58

236,893

100.0

Total
Note 1:
Note 2:

Property age refers to the number of years from the date of the new construction of the property set out in the real estate registry to March 31, 2023. Where multiple
buildings exist on the property, the property age is calculated using the average age of those buildings.
The percentage of total portfolio acquisition price is rounded to the nearest tenth. Therefore, the sum of the percentage of total portfolio acquisition price may differ from theportfolio total.

37

iv. Distribution by Lease Expiry
Lease expiry (remaining period)(Note 1)

Annual fixed rent (Millions of yen)
(Note 2)

Ratio (%)
(Note 3)

Less than 2 years

2,507

14.9

2 to less than 5 years

4,547

27.0

5 to less than 10 years

4,673

27.7

10 to less than 15 years

2,200

13.0

15 to less than 20 years

1,184

7.0

20 years or more

1,752

10.4

16,863

100.0

Total
Note 1:
Note 2:
Note 3:“Lease expiry (remaining period)” is based on period until the last date of the lease as set forth in the relevant lease agreements as of March 31, 2023 (excluding warehouses
for building lease agreements) for each acquired property and to-be acquired property.
“Annual fixed rent” for acquired property is calculated by multiplying the monthly fixed rent and common area charges for the month ended March 31, 2023 (excluding
warehouses in the case of building lease agreements) by twelve and rounding down to the nearest million yen. For master leases, where the master lease company subleases
space to other tenants, the fixed monthly rent under the master lease contract is multiplied by 12, rounded down to the nearest million yen. The same applies hereafter.
“Ratio” is based on the annual fixed rent, rounded to the nearest tenth. As a result, simple aggregation of “ratio” figures may not be the same as the total figure.

v. Distribution by Lease Contract TypeType of lease contract

Ratio (%) (Note)

Fixed-term building lease

76.0

Regular building lease

12.9

Commercial fixed-term land lease

11.1

Others

－
100.0

Total

“Ratio” is based on the annual fixed rent as indicated in Note 2 of iv. above, rounded to the nearest tenth. As a result, simple aggregation of “ratio” figures may not be thesame as the total figure.

Note:

vi. Rent Type (Fixed / Sales-linked Rent)
Rent type (Note 1)(Fixed / Sales-linked rent)

Ratio (%) (Note 2)

Fixed rent

86.7

Fixed rent with sales-linked rent

11.2

Sales-linked rent

2.1
100.0

Total
Note 1:
Note 2:“Fixed rent” refers to rent that remains unchanged regardless of actual tenant sales revenues as set forth in the relevant lease agreements. “Fixed rent with sales-linked rent”
refers to rent that consist of a portion that remains unchanged regardless of actual tenant sales revenues and a portion that is based on tenant sales as set forth in the relevant
lease agreements. “Sales-linked rent” refers to rent that is based on actual tenant sales revenues as set forth in the relevant lease agreements.
“Ratio” is calculated according to the actual rent effective between October 1, 2022 and March 31, 2023, rounded to the nearest tenth. As a result, simple aggregation of“ratio” figures may not be the same as the total figure.

38

(2) Capital Expenditures on the Managed Assetsi) Planned Capital Expenditures
The table below shows major capital expenditures (Note) for renovations, repairs and other projects that are planned for the 17th fiscal period ending
September 30, 2023. These expenditures are for real estate owned by KRR and real estate in trusts in which KRR owns trust beneficiary rights. Theseplanned projects may include some expenditures that will be recorded as expenses rather than capital expenditures for accounting purposes.
Planned amount of capital expenditure(Millions of yen)
Property
Property nameLocation
PurposeSchedule
Total
number
Payment for the
Totalamountperiodalready paid
From April 2023
O-1
Blumer Maitamon Kobe, Hyogo
Toilet repair work (phase 2)
61
to September 2023
From May 2023
Kitaadachi-gun,
T-5
Unicus Ina
Exterior wall repainting work
57
Saitamato September 2023
From April 2023
Rooftop waterproof work (HCR-1
Roseo Mito
Mito, Ibaraki
60
building) (phase 3)
to September 2023
Kitera Town
Tenant section formation work
From July 2023
T-31
Chofu, Tokyo
51
Chofu(2nd floor)
to September 2023
From April 2023
F-1
Sunny Noma
Fukuoka, Fukuoka Exterior wall repair work19
to June 2023
ii) Capital Expenditures During the Period under Review
The table below shows major capital expenditures for renovations, repairs and other projects in the period under review.
The amount of capital expenditures in the period under review was 521 million yen. There were also expenditures of 134 million yen that were recorded
as repair expenses. In total, we spent 655 million yen on the projects.
Property
Capital expenditure
Property nameLocation
PurposeSchedule
number(Millions of yen)
T-2
O-1
L-5

MONA ShinUrayasu
BlumerMaitamon
Gyoda
Distribution
CenterUrayasu, Chiba

Air conditioning equipment
replacement (phase 6)

From October 2022
to March 2023

171

Kobe, Hyogo

Toilet repair work (phase 1)

From December 2022
to March 2023

57

From October 2022
to December 2022

53

Gyoda, Saitama

R-1

Roseo Mito

N-2

Valor IchinomiyaIchinomiya, Aichi
Nishi

Note:

Mito, Ibaraki

Exterior wall repair work (Building A)
and rooftop waterproof work
(Building B)
Rooftop waterproof work (HCbuilding) (phase 2)
Rooftop waterproof work

From October 2022
to March 2023
From November 2022
to March 2023

41
40

Others

155

Total

521

The property expansion at Unicus Ina is not included in the above list since it involves a new acquisition. Furthermore, construction work related to the conversion and air
conditioning equipment installment work at Kitera Plaza Aobadai are not included as well since they were a series of construction work with the acquisition.

iii) Reserved Amount for Long-term Repairs, Maintenance and Renovation Plans
Not applicable39

(3) Information Concerning Major Tenantsi) Top End-tenants in Terms of Rent
The following summarizes top ten tenants (end-tenants or sublease type master lessee) as of March 31, 2023.

Name of end tenants

P&D Consulting Co., Ltd.

Type ofbusiness(Note 1)

Real estate

York Co., Ltd.

RetailLife Corporation

Retail

Kohnan Shoji Co., Ltd.

RetailArclands Corporation

RetailRound One Corporation

Service

UNY Co., Ltd.

RetailDaiwa House Realty Mgt.
Co., Ltd.

Real estate

Kansai Super Market Ltd.

RetailSeiyu Co., Ltd.

RetailNote 1:
Note 2:
Note 3:Note 4:

Total
leasedarea(m2)

Property name

A Unicus Ina
B Unicus Kamisato (Land)
C Unicus Konosu (Land)
D Unicus Urawamisino (Land)
E Ashico Town Ashikaga
A Yorktown Kita-Kaname
B Totsuka-Fukaya Shopping
Center (Land)
C Monenosato Mall
D Comfort Market NishiMagome
A Unicus Yoshikawa,
B Life Kameido
C Kitera Town Chofu
D Life Takadono (Land)
E Life Nishi-Tengachaya
A Unicus Yoshikawa
B Homecenter Kohnan
Sunadabashi
A Super Viva Home Iwatsuki(Land)B Roseo Mito
A Round1 Ichikawa-Onitaka
B Round1 Stadium HakataHanmichibashi
C iias Kasugai
A Apita Terrace Yokohama
Tsunashima
B DCM MEGA Don Quijote
UNY Omihachiman
A Across Plaza Urayasu
Higashino (Land)
B COMBOX Komyoike
A Blumer Maitamon
B Blumer HAT Kobe
C Merado Daikai
A Sunny Noma
B Kitera Town Fukuoka
Nagahama
C Seiyu Rakuichi Moriya (Land)
D Sun Street Hamakita
E Higashimatsuyama Shopping
CenterF iias Kasugai

Ratio
(%)
(Note 2)

Annualfixed rent
(Thousandsof yen)Tenantleaseholdand security
deposits(Millions of yen)
(Note 3)

106,185.01

9.9

515,697250(Note 4)(Note 4)(Note 4)(Note 4)

16,185.56

1.5(Note 4)(Note 4)27,819.27

2.6(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)

46,389.79

4.3(Note 4)(Note 4)52,910.05

4.9(Note 4)(Note 4)31,759.76

2.9(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)

“Type of business” is based on Japan Standard Industrial Classification. The same applies hereafter.
“Ratio” is the ratio of leased area of the end-tenant to total leasable area of the portfolio as of March 31, 2023, rounded to the nearest tenth.
Indicates the outstanding balance of any tenant leasehold and security deposit from the relevant end-tenant(s) set forth in lease agreement(s) effective rounded down to thenearest million yen. The same applies hereafter.
We have not obtained consent from the tenant to release this information.

40ii) Top End-tenants in Terms of Leased Area
The top five end-tenants or the sublease type master lessees in terms of total leased area of portfolio as of March 31, 2023 are as follows.
AnnualTenant leasehold
Total
Name of end
Type offixed rent
and security
Lease renewal
Property nameleased area
Lease term end
tenantsbusiness(Thousands
deposits2(m )of yen)(Millions of yen)
A Unicus Ina
A Sep. 25, 2042 A Not Applicable
B Unicus Kamisato (Land)(Note 1)
(Note 1)
P&D Consulting
C Unicus Konosu (Land)
B Oct. 1, 2055
B Not ApplicableCo., Ltd.
Real estate
D Unicus Urawamisino
106,185.01
515,697
250 C Oct. 1, 2055
C Not Applicable(Note 3)
(Land)
D Apr. 8, 2061 D Not Applicable
E Ashico Town Ashikaga
E Mar. 31, 2026 E Not Applicable
A Sunny Noma
B Kitera Town Fukuoka
Nagahama
C Seiyu Rakuichi Moriya
Not disclosed
Not disclosed
Not disclosed
Not disclosed
Not disclosed(Land)
Seiyu Co., Ltd.
Retail(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)D Sun Street Hamakita
E Higashimatsuyama
Shopping Center
F iias Kasugai
A Super Viva Home
ARCLANDS
Not disclosed
Not disclosed
Not disclosed
Not disclosed
Not disclosed
Iwatsuki (Land)
Retail(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
Co., Ltd.
B Roseo Mito
A Apita Terrace Yokohama
Tsunashima
Not disclosed
Not disclosed
Not disclosed
Not disclosed
52,910.05
UNY Co., Ltd.
RetailB DCM MEGA Don Quijote(Note 2)
(Note 2)
(Note 2)
(Note 2)UNY Omihachiman
A Round1 Ichikawa-Onitaka
ROUND ONE
B Round1 Stadium HakataNot disclosed
Not disclosed
Not disclosed
Not disclosed
46,389.79
ServiceHanmichibashi(Note 2)
(Note 2)
(Note 2)
(Note 2)
Corporation
C iias Kasugai
Note 1:

Based on Mall building’s leasing contract.

Note 2:Not disclosed as the lessees’ consent has not been obtained.

Note 3:

P&D Consulting Co., Ltd. is a pass-through master leasing company for a portion of the assets held by KRR, in addition to the above. The following is an overview of thelease as a pass-through master lease company, showing the total leased area, annual fixed rent and leasehold deposits to P&D Consulting Co., Ltd., including leases as endtenants.
Tenant leasehold
Total leased area Annual fixed rent
and security deposits Lease term end
Property nameLease renewal(m2)(Thousands of yen)
(Millions of yen)
Lease as a pass-throughmaster leasing company
Leases to the relevant
tenant (total)

Unicus Yoshikawa-

702.27

31,202

25

Mar. 31, 2035

Not Applicable

106,887.28

546,899276--

41