Kenedix Retail REIT Corporation (3453)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED MARCH 31, 2022 (REIT)(October 1, 2021 to March 31, 2022)
May 18, 2022
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:
Masahiko Tajima, President & CEO
Inquiries:
Koichiro Nobata, 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 23, 2022
June 17, 2022
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, 2022 (October 1, 2021 to March 31, 2022)(1) Business Results
Operating revenues
Fiscal period ended
March 31, 2022
September 30, 2021

Millions of yen
10,254
9,576

Operating income
%
7.1
9.8

Net income per unit
Fiscal period ended
March 31, 2022
September 30, 2021
Note:

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

Millions of yen
4,756
4,881

%
-2.6
11.5

Return on net assets
Yen
7,089
7,384

Millions of yen
4,131
4,262

%
-3.1
12.2

Ordinary income to total assets
%
3.0
3.3

Millions of yen
4,127
4,261

%
-3.1
12.2

Ordinary income to operating
revenues

%
1.5
1.6

%
40.3
44.5

Net income per unit is calculated by dividing the net income by the weighted average number of units.

(2) Distribution

Fiscal period ended
March 31, 2022
September 30, 2021
Note 1:
Note 2:
Note 3:Distributions per Distributions perDistributions in Total distributions Total distributions Total distributions
unit (including
unit (excludingexcess of earnings (including excess (excluding excess
in excess ofexcess ofexcess of
per unitof earnings)
of earnings)
earnings
earnings)
earnings)
Yen
Yen
Yen
Millions of yen
Millions of yen
Millions of yen
7,090
7,090
4,127
4,127
7,328
7,274
54
4,266
4,234
31

Payout ratio

Distribution ratio
to net assets

%
100.0
99.4

%
3.0
3.1

Total distributions in excess of earnings for the fiscal period ended September 30, 2021 account for the distributions in regard to the allowance for temporary adjustment.
There is no distribution by decreasing unitholders’ capital on taxation.
The payout ratio is 100.1% for the fiscal period ended September 30, 2021 when calculated as follows.
Payout ratio = Total distributions (including excess of earnings) / Net income x 100
Due to the issuance of new investment units, the payout ratio for the fiscal period ended September 30, 2021 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, 2022
September 30, 2021

Net assets

Net assets to total assets

Net asset per unit

Millions of yen
275,833
272,622

Millions of yen
137,354
137,052

%
49.8
50.3

Yen
235,932
235,414

Cash flows fromoperating activities
Millions of yen
13,6808,757

Cash flows frominvesting activities
Millions of yen-10,493-22,416

Cash flows fromfinancing activities
Millions of yen-1,281
15,571

Cash and cash equivalents
at the end of the period
Millions of yen
26,047
24,143(4) Cash Flows
Fiscal period ended
March 31, 2022
September 30, 2021

Kenedix Retail REIT Corporation (3453)

2．EARNINGS FORECASTS FOR THE FISCAL PERIODS ENDING SEPTEMBER 30, 2022 (April 1, 2022 to September
30, 2022) AND MARCH 31, 2023 (October 1, 2022 to March 31, 2023)(Percentages show period-on-period changes)
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
Fiscal period ending
9,250
-9.8
4,459
-6.3
3,835
-7.2
3,834
-7.1
6,586
September 30, 2022
March 31, 2023
9,135
-1.2
4,392
-1.5
3,780
-1.4
3,779
-1.4
6,491
Forecasted net income per unit (Forecasted net income / Forecasted average number of investment units during the period)
Reference:
6,586 yen for the fiscal period ending September 30, 2022 and 6,491 yen for the fiscal period ending March 31, 2023
Note:

Distributions
in excess ofearnings per
unit
Yen
9
9

Distributions
per unit(includingexcess of
earnings)
Yen
6,595
6,500

Distributions per unit are calculated based on the number of investment units issued and outstanding totaled 582,177 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, 2022: 582,177 units
As of September 30, 2021: 582,177 units(b) Number of treasury investment units at the end of the period
As of March 31, 2022: 0 units
As of September 30, 2021: 0 units
Note: Please refer to “Notes to Per Unit Information” on page 27 for 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 of Financial
Results for the Fiscal Periods Ending September 30, 2022 and March 31, 2023” on page 7 for calculation, and our judgment as of May 18, 2022.
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 18, 2022. 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.

Kenedix Retail REIT Corporation (3453)

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

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

Investment Risks …………………………………………………………………………………………………………………92. Financial Statements……………………………………………………………………………………………………………………10(1) Balance Sheets ..…………………………………………………………………………………………………………………10(2)

Statements of Income and Retained Earnings ……………………………………………………………………………………12(3)

Statements of Changes in Net Assets ……………………………………………………………………………………………13(4)

Statements of Cash Distributions …………………………………………………………………………………………………15(5)

Statements of Cash Flows ………………………………………………………………………………………………………16(6)

Notes on Assumption of Going Concern …………………………………………………………………………………………17(7)

Summary of Significant Accounting Policies ……………………………………………………………………………………17(8)

Notes to Financial Statements ……………………………………………………………………………………………………18(9)

Changes in Investment Units Issued and Outstanding ……………………………………………………………………………28

3. Reference Information …………………………………………………………………………………………………………29(1)

Information on Price of the Managed Assets ……………………………………………………………………………………29(2)

Capital Expenditures on the Managed Assets ……………………………………………………………………………………43(3)

Information Concerning Major Tenants …………………………………………………………………………………………44

1

Kenedix Retail REIT Corporation (3453)

1. Status of Asset Management(1) Status of Asset Management(Overview of the Period ended March 31, 2022)
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 30, 2014, KRR was registered with the Director-General of the Kanto Local Finance Bureau (registration number:
Director-General of the Kanto Local Finance Bureau No. 97). KRR was listed on the Real Estate Investment Trust Securities (“J-REIT”)
Market of Tokyo 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, 2022 was582,177 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 remained challenging with weak consumer spending, particularly in service
spending, due to the impact of rapid spread of COVID-19 variant since the beginning of 2022 and the accompanying quasi-state of
emergency.
Shopping centers for daily needs, in which KRR focuses its investment, sales of service-oriented tenants including restaurants and someapparel stores have been declining amid the COVID-19 pandemic, but specialty stores such as supermarkets and home & garden stores thatcater to the day-to-day needs of customers are expected to maintain steady demand.
The financial environment remains unstable due to the global economic trends affected by soaring resource prices, the emergence ofgeopolitical risks, and the shift to a tighter monetary policy in the United States and other countries.
In the real estate trading market, investors continue to be eager to invest in real estate against the backdrop of monetary easing policies inJapan, and active transactions are taking place.
iii) Status of Asset Management(A) Management Performance
KRR acquired three properties (Kitera Town Fukuoka Nagahama with acquisition price (Note 1) of 6,000 million yen, Kitera Plaza Aobadai
with acquisition price of 2,553 million yen and Tenri Distribution Center with acquisition price of 1,070 million yen), and disposed of threeproperties (Daikanyama Address Dixsept (30% trust beneficiary quasi co-ownership interests) with sale price (Note 2) of 1,993 million yen(acquisition price was 1,617 million yen), K’s Denki Shonan-Fujisawa (Land) and Prime Square Jiyugaoka with total sale price of 6,360
million yen (total acquisition price was 5,989 million yen)).
As a result, the portfolio at the end of the period under review (March 31, 2022) consists of 66 properties with the total acquisition price of
247,291 million yen. Portfolio as a whole performed well with an overall occupancy ratio of 99.2% (Note 3). Furthermore, the portfolio isdiversified in terms of tenants as there are 519 end-tenants (Note 4) in KRR’s retail properties and distribution centers.
Note 1: “Acquisition price” indicates the transfer price of the property to be acquired designated sale and purchase agreement (excluding the acquisition expenses, property taxes,
city planning taxes and consumption taxes, and rounded down to the nearest million yen). (As for the properties with building expansion, the price includes the amountdescribed in the construction contract and construction design/supervision outsourcing contracts (excluding expenses and taxes and rounded down to the nearest millionyen)). The same applies hereafter.
Note 2: “Sale price” represents the amount specified in the purchase and sale agreement for the trust beneficiary interests, exclusive of the various expenses (sale expenses, property
tax, etc.) required in the sale of the asset. The same applies hereafter.
Note 3: As Kitera Plaza Aobadai is under conversion, its occupancy rate is 0.0% as of March 31, 2022. However, if we exclude this property, the occupancy rate is 99.5%.
Note 4: 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 the proper balance between financial stability and the cost of the funds with theobjectives to achieve stable medium- to long-term returns and consistent growth of assets under management.
2

Kenedix Retail REIT Corporation (3453)(Debt Finance)
During the fiscal period under review, KRR borrowed 3,000 million yen for the acquisition of properties and 8,750 million yen forrefinancing and redemption of investment corporation bonds. Consequently, borrowings totaled 114,300 million yen and interest-bearing
debt including investment corporation bonds (excluding interest-bearing tenant leasehold and security deposits) totaled 123,300 million yen
at the end of the fiscal period under review (March 31, 2022). Furthermore, KRR has procured its first green loan for the portion of theborrowing (7,000 million yen) for the purpose of refinancing existing borrowings.
When undertaking borrowings, KRR seeks to spread out repayment dates and lengthen borrowing periods. KRR may use swaps to fix theinterest payments to hedge against the risk of a rise in interest rates.
(Investment Corporation Bonds)
During the fiscal period under review, KRR issued the following investment corporation bonds, and the balance is 9,000 million yen as ofthe end of the period (March 31, 2022). Moreover, the proceeds were used for repayment of borrowings raised on January 29, 2021.
Interest
Issuance
Total issue amount
Redemption
Redemption
Bonds
rate
Remarks
date(Millions of yen)datemethod(%)
7th Series Unsecured
January 28,
January
Full onInvestment Corporation
2,000
0.460
(Note)
2022
28, 2032
maturity
Bonds (Green Bonds)
Note:

Ranking pari passu among the specified investment corporation bonds

As a result, the average debt maturity is 4.5 years, the weighted average interest rate is 0.96%, the long-term debt ratio (Note 1) is 99.4%
and the LTV ratio (Note 2) is 44.7%.
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, 2022 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 October
1, 2020. Details are as follows.
Planned issue amount

100,000,000,000 yen

Planned issuance period October 9, 2020 to October 8, 2022
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
Use of proceeds
bonds (including short-term investment corporation bonds), refund funds for lease andguarantee deposits, funds to pay for repairs and maintenance, working capital, etc.
KRR issued 7th Series Unsecured Investment Corporation Bonds (Green Bonds) (2,000 million yen) based on the shelf registration
statement on January 28, 2022.
iv) Results of Operations
For this period, revenue was 10,254 million yen, operating income was 4,756 million yen, ordinary income was 4,131 million yen and net
income was 4,127 million yen.
Furthermore, in accordance with the distribution policy in the KRR Articles of Incorporation, KRR made a distribution of 4,127,634,930
yen which is almost equivalent to the earnings (as defined in Article 136-1 of Act of Investment Trust and Investment Corporation) excluding
the reversals of allowance for temporary adjustment (as defined in Article 2-2-30 of the Ordinance on Accountings of 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 7,090 yen.

3

Kenedix Retail REIT Corporation (3453)(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 1), 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., (Note 2) and P&D Consulting Co., Ltd. We are implementing a growth strategy that takes full advantage ofthe external 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 comprehensive evaluation of the outlook for future profitability and asset value determined based on its current
profitability and market trends.
Note 1:
Note 2:The Kenedix Group consists of Kenedix, Inc. and its subsidiaries and affiliates.
Nippon Commercial Development has changed its name to JINUSHI Co., Ltd. as of January 10, 2022.

(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Kenedix Retail REIT Corporation (3453)(Reference Material)(A) Property Acquisition
KRR acquired the following properties.
Property
number

Property
type(Note 1)

R-10

NSC

T-34

NSC

L-10

L

Note 1:

Note 2:

Property name
Sun Street Hamakita(10% quasi-co-ownership interest)
Higashimatsuyama Shopping
CenterPrima Meat Packers Kinki Center

Acquisition price(Millions of yen)Appraisal value(Millions of yen) Acquisition date
(Note 2)

Location

SellerHamamatsu, Shizuoka

Sojitz Commerce
Development Corporation

1,200

1,210

April 15, 2022

Higashimatsuyama,
Saitama

SMFL MIRAI Partners
Company, Limited

4,080

4,650

April 28, 2022

Osaka, Osaka

Fukuda & Partners, Co., Ltd.

1,047

1,080

April 28, 2022

Properties are categorized into the following six types of properties: NSC (Neighborhood Shopping Center), SM (Supermarket), CSC (Community Shopping Center),Urban Station-Front SC (Urban Station-Front Shopping Center), SS (Specialty Store) and L (Logistics facility).
We categorize shopping centers for daily needs as follows.
Features
Trade area
Type of shopping centers for daily needs
NSC (Neighborhood Shopping Centers)

Shopping centers with a supermarket as an anchor or core tenant and several specialty store
tenants

3km-5km

SM (Supermarkets)

Stand-alone stores that primarily provide groceries, with a retail trade area

3km

CSC (Community Shopping Centers)

Larger shopping centers than NSC, which have a supermarket as an anchor or core tenant inaddition to specialty store tenants

5km-10km

Urban Station-Front Shopping Centers

Shopping centers that are located in the immediate vicinity of an urban public transportation
station, which take advantage of stable foot traffic

3km-10km

SS (Specialty Stores)

Single- or multiple-tenant shopping centers that specialize in a single type of merchandise orservice, such as drug stores, convenience stores, health clubs or electronic appliance stores

1km-10km

Appraisal values are as of March 1, 2022.

(B) Property under Construction
A new building with approximately 666.57 m2 gross floor area (Note 1) is being constructed (the “New Building”) on the underutilized site ofUnicus Ina, a property owned by KRR. KRR expects the total construction cost (Note 2) to be approximately 169 million yen and plans tocomplete the construction by late November 2022.
Note 1:
Note 2:Gross floor area shown is the entire figure of the New Building indicated on the construction confirmation certificate without taking into account the ratio of quasi-coownership interest of the trust beneficiary right to be held by KRR. Construction plan and other matters related to the New Building construction may change andaccordingly gross floor area may increase or decrease.
Total construction cost is based on the construction confirmation certificate and represents the amount corresponding to the ratio of quasi-co-ownership interest of thetrust beneficiary right to be held by KRR. Construction plan and other matters related to the New Building construction may change and accordingly construction cost
may increase or decrease.

(C) Debt Financing
KRR borrowed 1,000 million yen (Series 47) on April 15, 2022 for the purpose to acquire additional interest (Sun Street Hamakita (10% quasi-co-ownershipinterest)).

5

Kenedix Retail REIT Corporation (3453)

ii) Earnings Forecasts
For the fiscal period ending September 30, 2022 (from April 1, 2022 to September 30, 2022) and the fiscal period ending March 31, 2023
(from October 1, 2022 to March 31, 2023), the earnings forecasts are estimated as set forth below.
Fiscal period ending September 30, 2022
Operating revenues

9,250 million yen

Operating Income

4,459 million yen

Ordinary income

3,835 million yen

Net Income

3,834 million yen

Distributions per unit

6,595 yen

Of the above, distributions in excess of earnings

9 yen

Fiscal period ending March 31, 2023
Operating revenues

9,135 million yen

Operating Income

4,392 million yen

Ordinary income

3,780 million yen

Net Income

3,779 million yen

Distributions per unit

6,500 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, 2022 and March 31, 2023” set forth
below for information on current assumptions for the forecasts of operating results.
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.

6Kenedix Retail REIT Corporation (3453)

Assumptions for the Earnings Forecasts for the Fiscal Periods Ending September 30, 2022 and March 31, 2023
Item

Assumptions
・The 15th fiscal period: April 1, 2022 to September 30, 2022 (183 days)
Calculation period
・The 16th fiscal period: October 1, 2022 to March 31, 2023 (182 days)
・Earnings forecasts for the fiscal periods ending September 30, 2022 and March 31, 2023 are based on 68
properties which consist of properties and trust beneficiary interest (66 properties in total) owned by KRR asof March 31, 2022 (the “Properties Owned as of the End of 14th Fiscal Period”) and Sun Street Hamakita(10% quasi-co-ownership interest (additional interest)) acquired on April 15, 2022, Higashimatsuyama
Shopping Center and Prima Meat Packers Kinki Center (90% quasi-co-ownership interest) acquired on
Property portfolio
April 28, 2022 (the “Properties Acquired during the 15th Fiscal Period.”)・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 based on the information provided by the sellers for the Properties Acquired during
the 15th Fiscal Period and operating results held by KFM for the Properties Owned as of the End of 14th
Operating revenues
Fiscal Period, the leasing agreements on the properties that are effective on the acquisition dates, and otherfactors, including expectations based on market trends.
・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 1,248 million yen, and 1,278 million yen are assumed for the fiscal periods ending
September 30, 2022 and March 31, 2023, respectively, using the straight-line depreciation method.
・Property-related taxes are assumed at 810 million yen and 811 million yen for the fiscal periods ending
September 30, 2022 and March 31, 2023, respectively. When a property is sold, the purchaser of the property
Operating expenses
typically reimburses the seller, pursuant to the purchase agreement, for the pro rata portion of the propertyrelated taxes that relates to the period from the acquisition date to the end of the calendar year in which theacquisition occurs. As is customary for property transactions in Japan and in accordance with Japanese
GAAP, KRR intends to capitalize the portions of the property-related taxes on the properties to be acquired.
・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 expensed 15 million yen and 7 million yen for
the fiscal periods ending September 30, 2022 and March 31, 2023, respectively. It is assumed that the
Non-operating expenses
offering-related costs are amortized using the straight-line method over three years.
・For interest expenses and other debt-related costs, 608 million yen and 604 million yen are expected for the
fiscal periods ending September 30, 2022 and March 31, 2023, respectively.
・As of today, KRR has an outstanding balance of 115,300 million yen in borrowings and 9,000 million yen
in investment corporation bonds.
・It is assumed that KRR will fully refinance 3,050 million yen and 8,750 million yen which are due forrepayment during the fiscal periods ending September 30, 2022 and March 31 2023, respectively.
・It is assumed that 1,000 million yen of investment corporation bonds, which is due during the fiscal period
Borrowings andending September 30, 2022, will be redeemed with the funds procured through the issuance of investment
investment corporation bonds
corporation bonds or borrowings. There are no investment corporation bonds maturing during the fiscal
period ending March 31, 2023.
・LTV ratios are estimated to be approximately 45.0% at the end of both periods ending September 30, 2022
and March 31, 2023.
・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 582,177 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, 2023.
・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, 2022 and March 31, 2023.
(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, 2022 and March
7

Kenedix Retail REIT Corporation (3453)
Item

Assumptions
31, 2023.

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.

8

Kenedix Retail REIT Corporation (3453)(2) Investment Risks
There are no significant changes to the “Investment Risks” in the most recent Securities Registration Statement (submitted on December 23,
2021; prepared in Japanese only). The disclosure is omitted.

9Kenedix Retail REIT Corporation (3453)

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
Land
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

10

13th Fiscal Period(As of September 30, 2021)

14th Fiscal Period(As of March 31, 2022)

10,026,355
14,309,262
181,400
153,774
343,985
6,645
25,021,425

11,738,047
14,487,445
174,355
24,748
1,912
26,426,509

755,598(77,533)
678,064
46,777(5,425)41,351
2,956,465
67,921,666(9,332,397)
58,589,268
3,491,894(644,494)
2,847,400
248,014(58,898)
189,115
179,449(75,697)
103,751
176,754,774
7,254
242,167,446

764,808(93,931)
670,877
46,777(6,827)39,9492,956,465
70,054,703(10,272,226)
59,782,476
3,495,870(705,818)
2,790,051
308,571(61,564)
247,007
183,512(86,187)
97,325
176,940,236
153,057
243,677,447

4,296,869
6,938
4,303,807

4,292,890
5,695
4,298,585

10,00060,236870,267
102,079
3,602
1,046,184
247,517,438

10,00060,236998,151
95,680186,275
1,350,342
249,326,375

29,851
53,832
83,683
272,622,547

42,32738,42980,757
275,833,642

Kenedix Retail REIT Corporation (3453)(in thousands of yen)

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other
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

11

13th Fiscal Period(As of September 30, 2021)

14th Fiscal Period(As of March 31, 2022)

815,1392,000,000
11,800,000
631,767
58,268
1,177
53,674
1,420,317
22,202563
16,803,109

972,907750,000
1,000,000
10,050,000
603,279
64,266
4,045
296,493
1,413,214
18,70915,172,916

6,000,000
100,500,000
148,083
11,789,113
24,688
304,728
118,766,613
135,569,722

8,000,000
103,500,000
148,083
11,586,510
24,84346,800123,306,238
138,479,155

133,103,750

133,103,750(285,940)(285,940)
132,817,810(317,378)(317,378)
132,786,372

4,511,908
4,511,908
137,329,718

4,404,711
4,404,711
137,191,084(276,894)(276,894)
137,052,824
272,622,547

163,403
163,403137,354,487
275,833,642

Kenedix Retail REIT Corporation (3453)(2) Statements of Income and Retained Earnings
13th Fiscal Period(From April 1, 2021
to September 30, 2021)
Operating revenues
Rent revenue-real estate
Other lease business revenue
Gain on sale of real estate property
Total operating revenues
Operating expenses
Expenses related to rent business
Loss on sale of real estate property
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)
14th Fiscal Period(From October 1, 2021
to March 31, 2022)

*1
*1
*2

7,829,366
1,072,230
674,513
9,576,109

7,882,731
1,074,082
1,297,793
10,254,608*1*2

3,662,177
873,967
10,18233,9364,500
109,9454,694,708
4,881,401

3,588,893
861,164
864,525
10,86034,822
3,750
133,883
5,497,899
4,756,708

58
343
402

65
376
856
1,297

470,736
21,540107,352
4,340
15,402
619,373
4,262,430
4,262,430

476,880
22,389107,871
3,847
15,402
626,392
4,131,614
4,131,614

1,186
1,186
4,261,244
250,664
4,511,908

4,055
4,055
4,127,558
277,152
4,404,711

12

Kenedix Retail REIT Corporation (3453)(3) Statements of Changes in Net Assets

13th Fiscal Period (From April 1, 2021 to September 30, 2021)(in thousands of yen)
Unitholders' equity

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

121,183,494

Unitholders' capital
Deduction from unitholders' capital
Allowance for
Total deduction
temporaryfrom unitholders'difference
capitaladjustments(384,773)(384,773)

11,920,256

Surplus
Unitholders'
capital, net

Unappropriatedretained earnings

120,798,721

4,153,672

Balance at the end of the period

Balance at the beginning of theperiodChanges of items during theperiodIssuance of new investment
units(5,361)(5,361)(5,361)

104,194

104,194

104,194(3,798,814)(3,798,814)(5,361)(104,194)(104,194)-4,261,244

4,261,244

4,261,244

98,832

98,832

12,019,088

358,235

358,235

12,377,324*1 133,103,750(285,940)(285,940)

132,817,810

4,511,908

4,511,908

137,329,718

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

Total net assets(250,501)(250,501)

124,701,892

11,920,256(3,798,814)

Distributions in excess ofearnings from allowance fortemporarydifference
adjustments
Reversal of allowance fortemporarydifference
adjustments(5,361)-

Net income

Balance at the end of the period

124,952,393

11,920,256

Dividends from surplus

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

4,153,672

11,920,256(3,798,814)

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

Totalunitholders'equity11,920,256

Dividends from surplus
Distributions in excess ofearnings from allowance fortemporarydifference
adjustments
Reversal of allowance fortemporarydifference
adjustments

Total
surplus4,261,244(26,392)(26,392)(26,392)(26,392)(26,392)

12,350,932(276,894)(276,894)

137,052,824

13

Kenedix Retail REIT Corporation (3453)

14th Fiscal Period (From October 1, 2021 to March 31, 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(285,940)(285,940)

Surplus(31,437)(31,437)

Balance at the end of the period

Balance at the beginning of theperiodChanges of items during theperiod137,329,718(4,234,755)(4,234,755)(4,234,755)(31,437)(31,437)

4,127,558

4,127,558

4,127,558(31,437)(31,437)(31,437)(107,196)(107,196)(138,634)*1 133,103,750(317,378)(317,378)

132,786,372

4,404,711

4,404,711

137,191,084

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

Total net assets(276,894)(276,894)

137,052,824(4,234,755)

Distributions in excess ofearnings from allowance fortemporarydifference
adjustments(31,437)

Net income

4,127,558

Balance at the end of the period

4,511,908-

Dividends from surplus

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

4,511,908

132,817,810

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

Totalunitholders'equityUnappropriatedretained earnings

Dividends from surplus
Distributions in excess ofearnings from allowance fortemporarydifference
adjustments

Total
surplus

Unitholders'
capital, net

440,297

440,297

440,297

440,297

440,297

301,663

163,403

163,403137,354,487

14

Kenedix Retail REIT Corporation (3453)(4) Statements of Cash Distributions(in yen)
13th Fiscal Period(From April 1, 2021
to September 30, 2021)

14th Fiscal Period(From October 1, 2021
to March 31, 2022)

I.

Retained earnings at the end of period

4,511,908,436

4,404,711,898

II.

Distributions in excess of earnings

31,437,558-

Of which, allowance for temporary difference
adjustments

31,437,558-

Incorporation into unitholders’ capital-

276,855,799

Of which, reversal of allowance for temporary
difference adjustments-

276,855,799

4,266,193,056

4,127,634,930

7,328

7,090

4,234,755,498

4,127,634,930

7,274

7,090

31,437,558

-

54

-

277,152,938

221,169

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
4,234,755,498 yen which is almost the entire amount ofincome as defined in Article 136-1 of the Investment Trust
Act.
Furthermore, in accordance with the policy for“Distribution of Money in Excess of Profits” as stated in
Article 39-2 of KRR’s Articles of Incorporation, KRR
made a distribution in excess of earnings of 31,437,558 yen
for allowance for temporary difference adjustments (asdefined in Article 2-2-30 of the Ordinance on Accountingsof Investment Corporations) for the purpose of reflecting
the effect on distributions of the difference in earnings
calculated under Japanese GAAP and Japanese tax laws
(as defined in Article 2-2-30 (a) of the Ordinance on
Accountings of Investment Corporations) in association
with the amortization of fixed-term land leasehold rights
and of the item deducted from net asset (as defined in
Article 2-2-30 (b) of the Ordinance on Accountings ofInvestment Corporations) in association with deferredlosses on hedges .

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
4,127,634,930 yen which is almost the entire amount ofincome as defined in Article 136-1 of the Investment Trust
Act after deduction of reversal of allowance for temporary
difference adjustments (as defined in Article 2-2-30 of theOrdinance on Accountings of Investment Corporations).
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 39-2 of KRR’s
Articles of Incorporation. In the14th fiscal period, KRR has
decided not to distribute cash in excess of distributableprofit.

III.

IV.

Total distributions
Distributions per unit
Of which, distributions of earnings
Of which, distributions of earnings per unit

Of which, allowance for temporary difference
adjustments
Of which, distributions in excess of earnings perunit (allowance for temporary difference
adjustments)
V.
Retained earnings brought forward to the next
periodMethod of calculating distribution amount15

Kenedix Retail REIT Corporation (3453)(5) Statements of Cash Flows(in thousands of yen)
14th Fiscal Period(From October 1, 2021
to March 31, 2022)

13th Fiscal Period(From April 1, 2021
to September 30, 2021)
Net cash provided by (used in) operating activities
Income before income taxes

4,262,430

4,131,614

Depreciation and amortization

1,167,650

1,190,803

Amortization of investment corporation bond issuance costs

4,340

3,847

Amortization of investment unit issuance costs

15,402

15,402

Interest income

(58)

(65)

Interest expenses

492,277

499,270

Decrease (increase) in operating accounts receivable(34,523)

7,044

Decrease (increase) in consumption taxes receivable(343,985)

343,985

Decrease (increase) in prepaid expenses(124,170)

129,026

60,978(43,882)

Increase (decrease) in accounts payable-other

85,723(28,915)

Increase (decrease) in accrued consumption taxes(24,041)

242,818

Increase (decrease) in advances received

99,530(7,102)

Increase (decrease) in operating accounts payable

5,591(3,492)(46,218)(127,883)

6,399

6,399

Decrease in net property, plant and equipment held in trust due to sale

3,765,046

7,812,059

Other(155,716)

3,450

Subtotal

9,236,657

14,174,380

Increase (decrease) in deposits received
Decrease (increase) in long-term prepaid expenses
Decrease (increase) in long-term deposits

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

58

65(478,202)(493,232)(882)(1,187)

8,757,631

13,680,026(8,026)(9,028)Net cash provided by (used in) investing activities
Purchase of property, plant and equipment(23,312,613)(10,296,807)

Repayments of tenant leasehold and security deposits in trust(262,886)(480,882)

Proceeds from tenant leasehold and security deposits in trust

1,151,556

278,278

Purchase of property, plant and equipment in trust

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

15,00015,000(22,416,969)(10,493,439)

Net cash provided by (used in) financing activities
Proceeds from short-term loans payable-

750,000

Proceeds from long-term loans payable

14,700,000

11,000,000

Repayments of long-term loans payable(7,200,000)(9,750,000)

Proceeds from issuance of investment corporation bonds-

1,983,675

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

Proceeds from issuance of investment units

11,874,201-

Dividends paid

(3,802,528)(4,265,387)

Net cash provided by (used in) financing activities

15,571,672(1,281,712)

Net increase (decrease) in cash and cash equivalents

1,912,335

1,904,874

Cash and cash equivalents at the beginning of the period

22,230,783

24,143,118

Cash and cash equivalents at the end of the period

24,143,118

26,047,993*1

16

Kenedix Retail REIT Corporation (3453)(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 59 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 106,958 thousand yen and 26,508 thousand yen as of September 30, 2021 and March 31, 2022, 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.

17Kenedix Retail REIT Corporation (3453)(Additional Information)(Notes to Allowance for Temporary Difference Adjustments Additions and Reversals)
13th Fiscal Period (From April 1, 2021 to September 30, 2021)
1. Reasons, related assets and allowance
Related assets, etc.
Buildings in trust,
Leasehold right in trust
Deferred gains or losses onhedges(in thousands of yen)
Allowance for temporary
difference adjustments

ReasonAmortization of leasehold right in trust and the amount in excess ofdepreciation

5,045

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

26,392

2. Method of reversal
Method of reversal
Buildings in trust,
Leasehold right in trust
Deferred gains or losses onhedgesUpon sale, the corresponding amount is scheduled to be reversed.
Based on changes in the fair value of the hedging instruments, the corresponding amount is scheduled to be reversed.

14th Fiscal Period (From October 1, 2021 to March 31, 2022)
1. Reasons, related assets and reversal of allowance
Related assets, etc.
Deferred gains or losses on
Hedges(in thousands of yen)
Reversal of allowance for temporary
difference adjustments

ReasonChanges in the fair value of derivative instruments

276,855

2. Method of reversal
Method of reversal
Buildings in trust,
Leasehold right in trust
Deferred gains or losses on
HedgesUpon sale, the corresponding amount is scheduled to be reversed.
Based on changes in the fair value of the hedging instruments, the corresponding amount is scheduled to be reversed.

(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)
13th Fiscal Period(As of September 30, 2021)

14th Fiscal Period(As of March 31, 2022)

Buildings in trust

640,897

Structures in trust

20,37919,1752,709,001

2,709,001

3,370,278

3,359,164

Land in trust
Total

630,987

Secured liabilities are as follows.
13th Fiscal Period(As of September 30, 2021)
Tenant leasehold and security deposits in trust
Total

14th Fiscal Period(As of March 31, 2022)
392,072

370,075

392,072

370,075

2. Commitment line contracts
KRR has commitment line contracts with the banks with which it does business.
(in thousands of yen)
13th Fiscal Period(As of September 30, 2021)
Total amount of commitment line contracts

14th Fiscal Period(As of March 31, 2022)
3,000,000

Balance of loans payable outstanding
Remaining amount18

3,000,000--

3,000,000

3,000,000

Kenedix Retail REIT Corporation (3453)* 3. Allowance for temporary difference adjustments
13th Fiscal Period (As of September 30, 2021)
1. Reasons, related assets, initial amount, allowance and reversal

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

35,47730,115

Deferred gains or losses
on hedges

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

Allowance
during theperiod5,361(in thousands of yen)
Balance at theReason forend of thereversal
periodReversalduring theperiod-35,477-354,657

354,657-(104,194)

250,463

Changes infair value ofderivativetransactions

390,135

384,773

5,361(104,194)285,940-

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.

14th Fiscal Period (As of March 31, 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

40,52235,477

5,045-

40,522-

Deferred gains or losses
on hedges

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

276,855

250,463

26,392-276,855-

317,378285,940

31,437-317,378-

Total

Allowance
during theperiodReversalduring theperiodBalance at theend of theperiodReason forreversal

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.

* 4. Minimum net assets prescribed in Article 67-4 of the Investment Trust Act(in thousands of yen)
13th Fiscal Period(As of September 30, 2021)

14th Fiscal Period(As of March 31, 2022)
50,00050,00019

Kenedix Retail REIT Corporation (3453)(Notes to Statements of Income and Retained Earnings)* 1. Breakdown of real estate rental revenues and expenses(in thousands of yen)
13th Fiscal Period(From April 1, 2021
to September 30, 2021)

14th Fiscal Period(From October 1, 2021
to March 31, 2022)

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

6,572,739

6,654,040

Rental revenues from limited proprietary rights of land

1,008,625

964,805

Common area charges

248,000

263,886

7,829,366

7,882,731

Parking space rental revenues

197,192

186,834

Utility charge reimbursement625,364

606,713

Miscellaneous

249,673

280,534

Subtotal

1,072,230

1,074,082

8,901,596

8,956,814

Property management fees and facility management fees

693,617

681,763

Utilities

543,389565,594

Taxes

729,881

722,391

Repairs and maintenance

247,928

146,170

Insurance

14,642

16,783

Trust fees

26,48225,705

Depreciation

1,166,365

1,189,560

Others239,869

240,923

3,662,177

3,588,893

5,239,419

5,367,920

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）* 2. Gain on sale of real estate property
13th Fiscal Period (From April 1, 2021 to September 30, 2021)(in thousands of yen)
Daikanyama Address Dixsept (30.0% quasi co-ownership interest)
Revenue from sale of real estate property

1,993,200

Cost of real estate property

1,607,332

Other sales expenses

40,216

Gain on sale of real estate property

345,651

Unicus Ina (20.0% quasi co-ownership interest)
Revenue from sale of real estate property

1,048,000

Cost of real estate property

872,862

Other sales expenses

7,443

Gain on sale of real estate property

167,694

Hankyu Oasis Hirakatadeguchi
Revenue from sale of real estate property

1,500,000

Cost of real estate property

1,284,851

Other sales expenses

53,981Gain on sale of real estate property

161,16720

Kenedix Retail REIT Corporation (3453)
14th Fiscal Period (From October 1, 2021 to March 31, 2022)(in thousands of yen)
Daikanyama Address Dixsept (30.0% quasi co-ownership interest)
Revenue from sale of real estate property

1,993,200

Cost of real estate property

1,602,750

Other sales expenses

40,391Gain on sale of real estate property

350,057

K’s Denki Shonan-Fujisawa (Land) and Prime Square Jiyugaoka (Note)
Revenue from sale of real estate property

6,360,000

Cost of real estate property

6,209,308

Other sales expenses

64,118Gain on sale of real estate property

86,572

Note：Each of revenue from sale of real estate property is not disclosed as KRR has not obtained the buyer’s consent. The properties were acquired by the same buyer. The dispositions
were negotiated and agreed as impartible deals. Gain on sale of real estate property includes both of gain and loss on sales of real estate property.

(Notes to Statements of Changes in Net Assets)* 1. Total number of authorized investment units and total number of investment units issued and outstanding
13th Fiscal Period(From April 1, 2021
to September 30, 2021)

14th Fiscal Period(From October 1, 2021
to March 31, 2022)

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

582,177 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
13th Fiscal Period(From April 1, 2021
to September 30, 2021)(in thousands of yen)
14th Fiscal Period(From October 1, 2021
to March 31, 2022)

Cash and deposits

10,026,355

11,738,047

Cash and deposits in trust

14,309,262

14,487,445

Restricted bank deposits in trust (Note)(192,500)(177,500)

Cash and cash equivalents

24,143,118

26,047,993

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(in thousands of yen)
13th Fiscal Period(From April 1, 2021
to September 30, 2021)

14th Fiscal Period(From October 1, 2021
to March 31, 2022)

Due within 1 year

10,50010,500Due after 1 year

151,798

146,548

Total

162,298

157,048

Operating lease transactions (Lessor)
Future minimum lease income(in thousands of yen)
13th Fiscal Period(From April 1, 2021
to September 30, 2021)

14th Fiscal Period(From October 1, 2021
to March 31, 2022)

Due within 1 year

10,388,223

9,999,070

Due after 1 year

59,556,245

55,719,923

Total

69,944,468

65,718,993

21

Kenedix Retail REIT Corporation (3453)（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 9 years and 1 month for loans payable and also have a redemption date of a maximum of 9 years and 10 months for investment
corporation bonds as of March 31, 2022, the end of the 14th 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 theloans 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.
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” 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 intrust” is omitted as it lacks in significance.

13th Fiscal Period (As of September 30, 2021)(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

Carrying amount
2,000,000
11,800,000
6,000,000
100,500,000
120,300,000(276,894)

Estimated fair value
1,998,700
11,798,045
5,991,000
100,837,304
120,625,049(276,894)(in thousands of yen)
Difference(1,300)(1,954)(9,000)337,304
325,049-*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.
14th Fiscal Period (As of March 31, 2022)(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

Carrying amount
1,000,000
10,050,000
8,000,000
103,500,000
122,550,000
163,403

Estimated fair value
999,600
10,083,678
7,930,500
103,615,372
122,629,151
163,403(in thousands of yen)
Difference(400)
33,678(69,500)
115,372
79,151-*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 changed22Kenedix Retail REIT Corporation (3453)
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
13th Fiscal Period (As of September 30, 2021)(in thousands of yen)
Investment corporation bonds
Long-term loans payable
Total

Due in 1 year or
less
2,000,000
11,800,000
13,800,000

Due after 1 year
through 2 years

Due after 2 years
through 3 years

7,500,000
7,500,000

9,490,000
9,490,000

Due in 1 year or
less
1,000,000
10,050,000
11,050,000

Due after 1 year
through 2 years

Due after 2 years
through 3 years

7,500,000
7,500,000

9,310,000
9,310,000

Due after 3 years
through 4 years
1,000,000
15,320,000
16,320,000

Due after 4 years
through 5 years

Due after 5 years

19,850,000
19,850,000

5,000,000
48,340,000
53,340,000

Due after 3 years
through 4 years
1,000,000
19,090,000
20,090,000

Due after 4 years
through 5 years
1,000,000
19,960,000
20,960,000

14th Fiscal Period (As of March 31, 2022)(in thousands of yen)
Investment corporation bonds
Long-term loans payable
Total

Due after 5 years
6,000,000
47,640,000
53,640,000(Notes to Derivative Transactions)(1) Transactions not subject to hedge accounting
13th Fiscal Period (As of September 30, 2021) and 14th Fiscal Period（As of March 31, 2022）: Not applicable(2) Transactions subject to hedge accounting
13th Fiscal Period (As of September 30, 2021)
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
Principle method
60,210,000
58,160,000(276,894) provided by counterparty
Receive/floating andpayablefinancial institutions
pay/fixed
Interest rate swap
Special treatment
transaction:
Long-term loansof interest-rate
26,400,000
21,000,000*
Receive/floating andpayableswaps
pay/fixed
Total
86,610,000
79,160,000(276,894)*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.)
14th Fiscal Period (As of March 31, 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
66,410,000
64,360,000
163,403 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
87,410,000
81,360,000
163,403*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 method23

Kenedix Retail REIT Corporation (3453)(Notes to the Related-Party Transactions)
1．Parent Company, major corporate unitholders and other13th Fiscal Period (From April 1, 2021 to September 30, 2021)) and 14th Fiscal Period（From October 1, 2021 to March 31, 2022）: Not applicable
2．Affiliated companies and other13th Fiscal Period (From April 1, 2021 to September 30, 2021)) and 14th Fiscal Period（From October 1, 2021 to March 31, 2022）: Not applicable
3．Fellow subsidiary companies and other13th Fiscal Period (From April 1, 2021 to September 30, 2021)) and 14th Fiscal Period（From October 1, 2021 to March 31, 2022）: Not applicable
4．Directors, major individual unitholders and other13th Fiscal Period (From April 1, 2021 to September 30, 2021)) and 14th Fiscal Period（From October 1, 2021 to March 31, 2022）: Not applicable(Notes to the Tax-Effect Accounting)
1. The significant components of deferred tax assets and liabilities:(in thousands of yen)
14th Fiscal Period(As of March 31, 2022)

13th Fiscal Period(As of September 30, 2021)
Deferred tax assets:
Enterprise tax payable

27

252

16,688

17,940

6,007
7,767
87,110117,601

6,457
7,815
32,466

Valuation allowance(117,601)(32,466)

Total deferred tax assets--

Amortization of leasehold right in trust
Depreciation
Asset retirement obligations
Deferred gains or losses on hedges
Subtotal deferred tax assets

2. The significant differences between the statutory tax rate and the effective tax rate:(unit: %)14th Fiscal Period(As of March 31, 2022)

13th Fiscal Period(As of September 30, 2021)
Statutory tax rate

31.46

31.46

Deductible cash distributions(31.49)(31.43)

Others0.05

0.07

Effective tax rate

0.02

0.10

(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)
13th Fiscal Period
14th Fiscal Period
From April 1, 2021
From October 1, 2021
to September 30, 2021
to March 31, 2022
Balance at the beginning of the period
24,534
24,688
Accretion adjustment
154
155
Balance at the end of the period
24,68824,843(Notes on Revenue Recognition)
1. Disaggregation of revenue from contracts with customers
13th Fiscal Period (From April 1, 2021 to September 30, 2021)(in thousands of yen)
Revenues generated from contracts withcustomers *1

Sales to external customers

Revenue from sale of real estate property

2,548,000*2

328,862

Utility charge reimbursements

625,364

625,364

Other-

8,621,883

Total

3,173,364

9,576,109*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.
24Kenedix Retail REIT Corporation (3453)*2 As proceeds from sale of real estate property is recorded as gain on sale of real estate property in the statements of income and retained earnings, the amount sought by deducting thecost of real estate property sales and other sales expenses from proceeds from sale of real estate property is indicated.
14th Fiscal Period (From October 1, 2021 to March 31, 2022)(in thousands of yen)
Revenues generated from contracts withcustomers *1

Sales to external customers

Revenue from sale of real estate property

6,360,000*2 86,572

Utility charge reimbursements

606,713606,713

Other-

9,561,322

Total

6,966,713

10,254,608*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 As proceeds from sale of real estate property is recorded as gain on sale of real estate property in the statements of income and retained earnings, the amount sought by deducting thecost of real estate property sales and other sales expenses from proceeds from sale of real estate property is indicated.
2．Basis for understanding revenues generated from contracts with customers
13th Fiscal Period (From April 1, 2021 to September 30, 2021) and 14th Fiscal Period（From October 1, 2021 to March 31, 2022）
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
13th Fiscal Period (From April 1, 2021 to September 30, 2021)(1) Balance of contract assets and contract liabilities, etc.
(in thousands of yen)
13th Fiscal Period(From April 1, 2021
to September 30, 2021)
Receivables generated from contracts with customers(balance at beginning of fiscal year)
Receivables generated from contracts with customers(balance at end of fiscal year)

95,208138,197

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.
14th Fiscal Period（From October 1, 2021 to March 31, 2022）(1) Balance of contract assets and contract liabilities, etc.
(in thousands of yen)
14th Fiscal Period(From October1, 2021
to March 31, 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)

138,197
124,784

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 of25

Kenedix Retail REIT Corporation (3453)
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.

(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)
13th Fiscal Period (From April 1, 2021 to September 30, 2021)
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.
14th Fiscal Period (From October 1, 2021 to March 31, 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.

(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.
13th Fiscal Period(From April 1, 2021
to September 30, 2021)(in thousands of yen)
14th Fiscal Period(From October 1, 2021
to March 31, 2022)

Book value
Balance at the beginning of the period

228,086,747

Changes during the period

18,382,952

246,469,699
1,505,042

Balance at the end of the period

246,469,699

247,974,742

Fair value at the end of the period
264,092,200
266,837,000
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 13th fiscal period, the principal increase was the acquisition of real estate trust
beneficiary interest in 3 properties totaling 16,922,833 thousand yen and additional acquisition of 1 real estate trust beneficiary interests amounting to 5,761,375
thousand yen and the principal decrease was the sales of real estate trust beneficiary interests in 3 properties totaling 3,765,046 thousand yen and depreciation of
1,167,191 thousand yen and during the 14th fiscal period, the principal increase was the acquisition of real estate trust beneficiary interest in 3 properties totaling
9,680,298 thousand yen and the principal decrease was the sales of real estate trust beneficiary interests in 3 properties totaling 7,812,059 thousand yen and depreciationof 1,189,405 thousand yen.
Note 3: The fair value at the end of the period is the appraisal value determined by outside appraisers. The fair value of Daikanyama Address Dixsept (30.0% quasi co-ownershipinterest) as of September 30, 2021 is based on the sales price (1,993,200 thousand yen) under the trust beneficiary interest sales contracts entered on November 17, 2020.
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.”

26

Kenedix Retail REIT Corporation (3453)(Notes to Per Unit Information)
13th Fiscal Period(From April 1, 2021
to September 30, 2021)
Net asset value per unit

14th Fiscal Period(From October 1, 2021
to March 31, 2022)

235,414 yen

235,932 yen

Net income per unit
7,384 yen
7,089 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:
13th Fiscal Period
14th Fiscal Period(From April 1, 2021
(From October 1, 2021
to September 30, 2021
to March 31, 2022)
4,261,244

4,127,558--

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

4,261,244

4,127,558

Weighted average number of units during the period (units)

577,064

582,177

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.

27

Kenedix Retail REIT Corporation (3453)(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, 2022 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
April 18, 2017

Public offering

81,250503,700

18,244

112,500(Note 2)

May 17, 2017

Capital increase throughthird-party allocation

4,000

507,700

898

113,399(Note 3)October 23, 2019

Public offering

27,300535,000

7,462

120,861(Note 4)

November 14, 2019

Capital increase throughthird-party allocation

1,177

536,177

321

121,183(Note 5)

April 20, 2021

Public offering

43,800579,977

11,350132,533(Note 6)

May 18, 2021

Capital increase throughthird-party allocation

2,200

582,177570

133,103(Note 7)Note 1:
Note 2:
Note 3:Note 4:Note 5:Note 6:Note 7:

Distributions in excess of earnings for the allowance for temporary difference adjustments are not considered.
Issued at issue price of 232,537 yen per unit (issue amount of 224,547 yen per unit) for acquisition of new properties.
Issued at issue amount of 224,547 yen per unit for repayment of borrowings.
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.

28

Kenedix Retail REIT Corporation (3453)

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

13th fiscal period
as of September 30, 2021
Total amount held
Ratio
(Millions of yen)(%)
(Note 2)
(Note 3)Tokyo
metropolitan area
Greater Osaka
area
Greater Nagoya
area

14th fiscal period
as of March 31, 2022
Ratio
(%)
(Note 3)

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

109,23640.1

104,084

37.7

50,22718.4

50,05418.1

21,8598.0

21,767

7.9

Fukuoka area

7,815

2.9

13,823

5.0

Ordinancedesignated cities,
core cities andother areas

43,671

16.0

43,466

15.8

Other retailproperties

-

-

-

-

-

Logistics facilities

-

9,983

3.7

11,110

4.0

Total of trust beneficiary interests in real estate

242,79389.1

244,307

88.6

3,675

1.3

3,667

1.3

Total of real estate

3,675

1.3

3,667

1.3

Bank deposits and other assets

26,152

9.6

27,858

10.1

Total assets

272,622100.0

275,833

100.0

Real estate

Logistics facilities-

13th fiscal period
as of September 30, 2021
Ratio
Amount(%)(Millions of yen)
(Note 3)14th fiscal period
as of March 31, 2022
Ratio
Amount(%)(Millions of yen)
(Note 3)

Total liabilities (Note 4)

135,56949.7

138,479

50.2

Total net assets (Note 4)

137,052

50.3

137,354

49.8

Total assets

272,622100.0

275,833

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 2:29

Kenedix Retail REIT Corporation (3453)
ii) Overview of the Portfolio(A) Overview of Assets Owned
The following summarizes the real estate or the real estate properties in trust owned by KRR as of March 31, 2022.
Property
number

T-2

T-3

Propertytype
Urban
Station-Front
SC
Urban
Station-Front
SC

Share
(%)
(Note 3)

Location(Note 1)MONA Shin-Urayasu

Urayasu, Chiba

Trust beneficiaryinterest in real estate

9,340

9,760

8,063

3.3

Passaggio Nishiarai

Adachi ward, Tokyo

Trust beneficiaryinterest in real estate

5,626

6,570

5,850

2.4

3,446
(Note 4)4,216
(Note 4)

3,576
(Note 4)

1.4
(Note 4)

3,818

4,340

4,000

1.6

3,474

3,870

3,600

1.5

2,414

2,770

2,586

1.0

4,890

5,600

4,815

1.9

3,043

3,050

3,000

1.2

1,726

1,790

1,700

0.7

1,462

1,380

1,442

0.6

3,270

3,740

3,360

1.4

1,717

1,780

1,724

0.7

1,472

1,480

1,450

0.6

4,228

4,340

4,170

1.7

3,340

3,580

3,416

1.4

3,094

3,250

3,097

1.3

1,816

1,950

1,880

0.8

1,266

1,340

1,263

0.5

3,609

3,370

3,400

1.4

11,546

12,10011,567

4.7

5,953

6,050

5,980

2.4

2,892

2,990

2,753

1.1

2,394

2,410

2,300

0.9

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

T-9

NSC

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

T-25

NSC

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

T-32

Sports Club Renaissance
Fujimidai
Super Viva Home
Iwatsuki (Land)

Konami Sports Club
Shibuya
Apita Terrace Yokohama
Tsunashima

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

Nerima ward, Tokyo
Saitama, Saitama

Funabashi, Chiba

Shibuya ward, Tokyo
Yokohama, Kanagawa

Chofu, Tokyo

Ownership
formBook value Evaluation value Acquisition(Millions of (Millions of yen)
price
yen)
(Note 2)
(Millions of yen)

Property name

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

Urayasu, Chiba

Trust beneficiaryinterest in real estate

2,283

2,310

2,248

0.9

Ota ward, Tokyo

Trust beneficiaryinterest in real estate

1,993

2,040

1,920

0.8

Kitera Town Chofu

Chofu, Tokyo

Trust beneficiaryinterest in real estate

10,58011,40010,5004.2

NSC

Unicus Urawamisono(Land)

Saitama, Saitama

Trust beneficiaryinterest in real estate

748

817

732

0.3

T-33

NSC

Kitera Plaza Aobadai

Yokohama, Kanagawa

2,631

3,610
(Note 5)

2,553

1.0

O-1

NSC

Blumer Maitamon

Kobe, Hyogo

8,316

9,600

8,389

3.4

O-2

SM

Life Takadono (Land)

Osaka, Osaka

2,727

3,200

2,685

1.1

O-3

NSC

DCM Kahma MEGADon Quijote UNY
Omihachiman

Omihachiman, Shiga

2,090

2,590

2,140

0.9

O-4

NSC

Blumer HAT Kobe

Kobe, Hyogo

11,105

11,10011,0004.4

O-5

Urban StationFront SC

Carino Esaka

Suita, Osaka

6,869

7,330

6,555

2.7

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 estate30

Kenedix Retail REIT Corporation (3453)

Property
number

Property
type

Location(Note 1)

O-6

Urban StationFront SC

COMBOX Komyoike

Izumi, Osaka

O-9

SM

Life Nishi-Tengachaya

Osaka, Osaka

O-10

NSC

O-11

NSC

O-12

NSC

Merado Daikai

Kobe, Hyogo

N-1

SS

DCM Kahma
Nakagawa Tomita (Land)

Nagoya, Aichi

N-2

NSC

Valor Ichinomiya-Nishi

Ichinomiya, Aichi

N-4

SS

N-6

NSC

N-7

SM

F-1

SM

F-2

SS

F-3

NSC

F-4

NSC

R-1

NSC

R-2

SS

R-3

SS

R-4

NSC

R-5

NSC

R-6

SM

R-8

NSC

P-1 Plaza Tenno

Hamamatsu, Shizuoka

R-9

NSC

Seiyu Rakuichi Moriya(Land)Moriya, Ibaraki

R-10

NSC

Sun Street Hamakita

Hamamatsu, Shizuoka

R-11

SS

Costco Wholesale Sapporo
Sapporo, Hokkaido
Warehouse

L-1

L

Zama Distribution Center

L-2

L

L-3

L

L-4

L

L-5

L

L-6

L

L-7

L

L-8

L

L-9

L

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

6,450

2.6

1,521

1,710

1,505

0.6

3,772

4,080

3,723

1.5

2,047

2,020

2,000

0.8

5,495

5,780

5,440

2.2

2,351

2,680

2,311

0.9

2,088

2,360

2,174

0.9

6,765

7,500

7,140

2.9

7,974

6,950

7,911

3.2

2,587

2,550

2,551

1.0

1,353

1,650

1,497

0.6

4,887

5,760

5,020

2.0

1,533

1,830

1,515

0.6

6,049

6,140

6,000

2.4

9,580

12,10010,046

4.1

1,417

1,520

1,469

0.6

849

911

898

0.4

4,377

4,930

4,180

1.7

3,198

2,580

3,252

1.3

916

981

830

0.3

4,111

4,050

4,010

1.6

Trust beneficiaryinterest in real estate

4,320

4,300

4,111

1.7

Trust beneficiaryinterest in real estate

10,512(Note 4)

10,890(Note 4)

10,746(Note 4)4.3
(Note 4)

Trust beneficiaryinterest in real estate

4,180

4,430

4,210

1.7

Zama, Kanagawa

Real estate

1,460

1,790

1,400

0.6

Yokosuka, Kanagawa

Real estate

1,338

1,680

1,300

0.5

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

3,724(Note 4)4,330
(Note 4)

3,879
(Note 4)

1.6
(Note 4)

960

1,040

918

0.4

3,220

3,660

3,160

1.3

868

842

810

0.3

1,249

1,510

1,250

0.5

834

1,040

800

0.3

1,120

1,090

1,070

0.4

247,974

266,837

247,291

100.0

Amagasaki, Hyogo
Habikino, Osaka

Nagoya, Aichi
Fukuoka, Fukuoka

Roseo Mito

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

K’s Denki Aomori
HontenSuper Sports Xebio
Aomori-Chuo

Aomori, Aomori
Aomori, Aomori

Ashico Town Ashikaga
Yorktown
Shinden-Higashi
Kasumi Technopark
SakuraAshikaga, Tochigi
Sendai, Miyagi
Tsukuba, Ibaraki

Oppama Distribution
CenterMusashi Ranzan
Distribution Center
Yokohama Kamigo
Distribution Center

Hiki-gun, Saitama
Yokohama, Kanagawa

Gyoda Distribution Center
Shinjuku Nishiochiai
Distribution Center
Chiba-Kita Distribution
Center
Sapporo Shiroishi
Distribution Center
Tenri Distribution Center

Share
(%)
(Note 3)

6,430

Obu, Aichi

Round1 Stadium HakataHanmichibashi
Kurume-Nishi Shopping
CenterKitera Town Fukuoka
Nagahama

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 2)
(Millions of yen)
6,107

Nagoya, Aichi

Sunny Noma

Ownership
form

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 estate

Total

31

Kenedix Retail REIT Corporation (3453)
Note 1:“Location” indicates the residential address. For those without a residential address, the building or land address on the registry is shown.

Note 2:
Note 3:“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 4:

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

Note 5:The appraisal value is based on the appraisal value after the completion of the conversion.

32

Kenedix Retail REIT Corporation (3453)(B) Overview of Tenants as of March 31, 2022
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

9,651.53

96.9

1(55)

628,873

604

T-3

Passaggio Nishiarai

10,530.60

10,320.15

98.0

1(41)

439,937

274

T-5

Unicus Ina

10,770.16(Note 7)

10,770.16(Note 7)100.0

1223,202(Note 7)

113
(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

7,827.96

100.0

1(14)

226,829

155

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

12,119.00

100.0

3

150,41957

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

9,748.06

91.4

1(25)

620,843

612

T-32

Unicus Urawamisono (Land)3,533.59

3,533.59

100.0

138,48419

T-33

Kitera Plaza Aobadai

3,037.22

0.00

0.0

1(0)

(Note 8)(Note 8)O-1

Blumer Maitamon

30,290.85

29,784.32

98.3

49

706,689430

O-2Life Takadono (Land)

4,437.07

4,437.07

100.0

1

DCM Kahma MEGA Don Quijote UNY
Omihachiman(Note 8)(Note 8)O-3

14,313.00

14,313.00

100.0

2

O-4

Blumer HAT Kobe

23,775.88

23,566.77

99.1

1(41)

709,928

819

O-5

Carino Esaka

7,542.69

7,440.84

98.6

1(29)

300,663230

O-6

COMBOX Komyoike

25,530.44(Note 9)25,530.44

100.0

1

452,060(Note 10)327
(Note 11)33

Kenedix Retail REIT Corporation (3453)

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)89,740192(Note 8)(Note 8)297,906

312(Note 8)(Note 8)424,320256(Note 8)(Note 8)O-9Life 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 Kahma 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

19,610.98

98.5

1(41)

N-7

Valor Nakashidami (Land)

13,480.42

13,480.42

100.0

1

F-1

Sunny Noma

2,814.67

2,814.67

100.0

1

F-2

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

5,353.70

84.2

1(14)

280,214154

R-1

Roseo Mito

48,296.76

48,296.76

100.0

1(23)

703,420464

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)393,183

331(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)

265,920242

R-9

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

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

Sun Street Hamakita

48,697.31(Note 7)47,996.90(Note 7)

98.6

1(50)

849,610(Note 7)484
(Note 7)

R-11

Costco Wholesale Sapporo Warehouse

24,006.16

24,006.16

100.0

1

L-1

Zama Distribution Center

5,479.92

5,479.92

100.0

1(Note 8)(Note 8)

L-2

Oppama Distribution Center

6,543.87

6,543.87

100.0

1

L-3

Musashi Ranzan Distribution Center

32,935.55(Note 7)32,935.55(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

7,393.18

7,393.18

100.0

1993,677.76

985,850.19

99.2

519

15,421,121

11,734

Total
Note 1:
Note 2:31“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, 2022. 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, 2022 is shown. As for sublease type master leases, the leased area to the master lessee is shown. The same applies hereafter.
34

Kenedix Retail REIT Corporation (3453)
Note 3:Note 4:Note 5:Note 6:Note 7:Note 8:Note 9:Note 10:Note 11:“Occupancy rate” is calculated by dividing leased area by leasable area as of March 31, 2022, rounded to the nearest tenth. The “Total” of “Occupancy rate” represents theaverage occupancy rate of all properties in the initial portfolio. Furthermore, As Kitera Plaza Aobadai is under conversion, its occupancy rate is 0% as of March 31, 2022.
However, if we exclude this property, the occupancy rate is 99.5%. 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, 2022. 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, 2022 (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, 2022 (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 2022 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 2022 by the ownership ratio (93.20%).

35

Kenedix Retail REIT Corporation (3453)(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
2022
Daiwa Real EstateMar. 31
T-3 Passaggio Nishiarai
Appraisal Co.,
2022
Ltd.
Japan Real Estate Mar. 31
T-5 Unicus Ina (Note 5)
Institute
2022
Daiwa Real EstateMar. 31
T-6 Yorktown Kita-Kaname Appraisal Co.,
2022
Ltd.
Daiwa Real EstateMar. 31
T-7 Unicus Yoshikawa
Appraisal Co.,
2022
Ltd.
Daiwa Real Estate
Sports Club
Mar. 31
T-8
Appraisal Co.,
Renaissance Fujimidai
2022
Ltd.
The Tanizawa
Mar. 31
Super Viva Home
T-9
Sōgō Appraisal
Iwatsuki (Land)
2022
Co., Ltd.
The Tanizawa
Mar. 31
T-11 Unicus Kamisato (Land) Sōgō Appraisal
2022
Co., Ltd.
The Tanizawa
Mar. 31
T-12 Unicus Konosu (Land)
Sōgō Appraisal
2022
Co., Ltd.
Inageya Yokohama
Japan Real Estate Mar. 31
T-13
Minamihonjuku (Land)
Institute
2022
Daiwa Real Estate
Nakamachidai Tokyu
Mar. 31
T-15
Appraisal Co.,
Store
2022
Ltd.
Daiwa Real Estate
Central Wellness Club
Mar. 31
T-16
Appraisal Co.,
Nagatsuta Minamidai
2022
Ltd.
Daiwa Real EstateMar. 31
T-17 Life Kameido
Appraisal Co.,
2022
Ltd.
Daiwa Real EstateTotsuka-FukayaMar. 31
T-18
Appraisal Co.,
Shopping Center (Land)
2022
Ltd.
Daiwa Real Estate
Yumemachi
Mar. 31
T-19
Appraisal Co.,
Narashinodai Mall
2022
Ltd.
Daiwa Real EstateMar. 31
T-20 Kawamachi Yahagi Mall Appraisal Co.,
2022
Ltd.
Daiwa Real Estate
Round1 IchikawaMar. 31
T-22
Appraisal Co.,
Onitaka
2022
Ltd.
Daiwa Real EstateMar. 31
T-23 Ozeki Tokiwadai
Appraisal Co.,
2022
Ltd.
The Tanizawa
Konami Sports Club
Mar. 31
T-24
Sōgō Appraisal
Shibuya2022
Co., Ltd.
Daiwa Real Estate
Apita Terrace YokohamaMar. 31
T-25
Appraisal Co.,
Tsunashima
2022
Ltd.
Japan Real Estate Mar. 31
T-26 Kalsa Hiratsuka
Institute
2022
Japan Real Estate Mar. 31
T-27 Monenosato Mall
Institute
2022
T-2

MONA Shin-Urayasu

Appraisal

Terminal
capitalization
rate (%)

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

9,760

8,120

9,870

4.6

9,650

4.3

4.8

520

6.5

6,570

10,200

6,670

4.3

6,520

4.1

4.5

295

5.0

4,216

3,940

5,290

4.5

5,250

4.2

4.7

201

5.6

4,340

2,270

4,380

4.9

4,320

4.7

5.1

216

5.4

3,870

4,300

3,920

4.7

3,850

4.5

4.9

186

5.2

2,770

1,880

2,800

4.6

2,750

4.4

4.8

129

5.0

5,600

8,260

-

-

5,600

(year 1-11)(year 12-30.7)

4.6
4.7

-

197

4.1

3,050

3,030

-

-

3,050

138

4.6

1,910

-

-

1,790

4.6
4.7
4.8
4.5
4.6
4.7

-

1,790

(year 1-9)
(year 10-24)(year 25-33.5)(year 1-9)
(year 10-24)(year 25-33.5)

-

77

4.6

1,380

1,180

-

-

1,380

4.0

-

64

4.5

3,740

2,730

3,780

4.6

3,720

4.4

4.8

181

5.4

1,780

2,360

1,790

5.0

1,780

4.8

5.2

91

5.3

1,480

2,060

1,500

4.2

1,470

3.9

4.4

63

4.4

4,340

4,750

4,330

4.7
(Note 3)

4,340

4.6

-

191

4.6

3,580

3,240

3,630

4.9

3,560

4.7

5.1

178

5.2

3,250

3,430

3,310

4.8

3,220

4.6

5.0

159

5.2

1,950

3,500

1,950

4.8

1,950

4.6

5.0

97

5.2

1,340

1,550

1,370

4.2

1,330

4.0

4.4

57

4.6

3,370

3,730

3,440

3.8

3,340

3.8

4.0

135

4.0

12,10015,40012,200

4.3

12,000

4.1

4.5

542

4.7

6,050

6,160

6,120

4.4

5,980

4.1

4.6

280

4.7

2,990

2,740

3,040

4.9

2,930

4.7

5.2

148

5.4

T-28

KDX Chofu Building(Retail wing)

Japan Real Estate Mar. 31
Institute
2022

2,410

2,400

2,410

4.6

2,400

4.2

4.8

124

5.4

T-29

Across Plaza Urayasu
Higashino (Land)

Daiwa Real Estate Mar. 31
Appraisal Co.,
2022

2,310

2,560

2,330

4.2
(Note3)

2,300

4.1

-

89

4.0

36

Kenedix Retail REIT Corporation (3453)
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)

T-30

Comfort Market NishiMagome

The Tanizawa
Sōgō Appraisal
Co., Ltd.

Mar. 31
2022

2,040

2,020

2,070

4.1

2,020

T-31

Kitera Town Chofu

Japan Real Estate Mar. 31
Institute2022

11,40011,40011,400

4.8

T-32

Unicus Urawamisono(Land)

Japan Real Estate Mar. 31
Institute
2022

817

901

821

T-33

Kitera Plaza Aobadai(Note 7)

3,610

3,340

O-1

Blumer Maitamon

9,600

O-2

Life Takadono (Land)

O-3

DCM Kahma MEGADon Quijote UNY
Omihachiman

O-4

Blumer HAT Kobe

O-5

Carino Esaka

O-6

COMBOX Komyoike

O-9

Life
Nishi-Tengachaya

O-10

Million Town
Tsukaguchi (Land)

O-11

Habikigaoka Shopping
CenterO-12 Merado Daikai

N-1
N-2
N-4

N-6

N-7
F-1

Daiwa Real EstateMar. 31
Appraisal Co.,
2022
Ltd.
The Tanizawa
Mar. 31
Sōgō Appraisal
2022
Co., Ltd.
The Tanizawa
Mar. 31
Sōgō Appraisal
2022
Co., Ltd.
Japan Real Estate
InstituteMar. 312022

Daiwa Real EstateMar. 31
Appraisal Co.,
2022
Ltd.
Japan Real Estate Mar. 31
Institute
2022
Daiwa Real EstateMar. 31
Appraisal Co.,
2022
Ltd.
The Tanizawa
Mar. 31
Sōgō Appraisal
2022
Co., Ltd.
The Tanizawa
Mar. 31
Sōgō Appraisal
2022
Co., Ltd.
The Tanizawa
Mar. 31
Sōgō Appraisal
2022
Co., Ltd.
Japan Real Estate
InstituteMar. 31
2022

The Tanizawa
DCM Kahma Nakagawa
Mar. 31
Sōgō Appraisal
Tomita (Land)
2022
Co., Ltd.
Japan Real Estate Mar. 31
Valor Ichinomiya-Nishi
Institute
2022
Daiwa Real Estate
Homecenter Kohnan
Mar. 31
Appraisal Co.,
Sunadabashi
2022
Ltd.
The Tanizawa
Resora Obu Shopping
Mar. 31
Sōgō Appraisal
Terrace2022
Co., Ltd.
The Tanizawa
Valor Nakashidami
Mar. 31
Sōgō Appraisal(Land)
2022
Co., Ltd.
Japan Real Estate Mar. 31
Sunny Noma
Institute2022(year 1-10)(year 11)

Appraisal

Terminal
capitalization
rate (%)

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

4.1
4.2

4.3

84

4.4

11,300

4.5

5.0

550

5.2

4.1

812

4.0

4.1

33

4.6

3,710

4.3

3,570

4.1

4.5

162

4.7

9,500

9,580

5.2

9,610

5.3

5.4

511

6.1

3,200

2,580

-

-

3,200

3.8
3.9
4.0

-

128

4.8

2,590

2,330

2,600

5.8

2,570

5.5

6.0

152

7.1

11,10017,100

11,2004.9

11,000

4.7

5.1

558

5.1

7,330

7,710

7,400

4.3

7,260

4.0

4.5

342

5.2

6,430

7,380

6,800

5.3

6,270

4.9

5.4

385

6.0

1,710

1,740

1,740

4.5

1,700

4.6

4.7

78

5.2

4,080

3,830

-

-

4,080

(year 1-14)(year 15-33.9)

3.9
4.1

-

157

4.2

2,020

1,690

2,030

5.1

2,010

(year 1-7)
(after year 8)

5.1
5.2

5.3

106

5.3

5,780

5,560

5,830

4.9

5,730

4.6

5.1

290

5.3

2,680

2,060

-

-

2,680

4.3
4.4

-

116

5.0

2,360

1,800

2,370

5.1

2,340

4.8

5.3

130

6.0

7,500

7,270

7,610

4.9

7,450

4.7

5.1

389

5.4

6,950

7,400

7,130

4.9

6,870

5.0

5.1

359

4.5

2,550

1,980

-

-

2,550

4.1

-

119

4.7

1,650

1,640

1,690

4.4

1,600

4.2

4.8

78

5.3

(year 1-3)
(year 4-13)(year 14-33.3)(year 1-11)(year 12-31.2)

F-2

Round1 Stadium Hakata- Japan Real Estate
Hanmichibashi
InstituteMar. 31
2022

5,760

5,770

5,800

4.9

5,710

4.6

5.1

285

5.7

F-3

Kurume-Nishi Shopping
CenterJapan Real Estate
InstituteMar. 31
2022

1,830

1,570

1,840

4.8

1,810

4.5

5.0

92

6.1

F-4

Kitera Town Fukuoka
Nagahama

Japan Real Estate
InstituteMar. 31
2022

6,140

6,100

6,190

4.5

6,080

4.1

4.7

280

4.7

R-1

Roseo Mito

Japan Real Estate
InstituteMar. 312022

12,1009,220

12,200

4.8

12,000

4.5

5.0

598

5.9

R-2

K’s Denki Aomori
HontenJapan Real Estate
InstituteMar. 31
2022

1,520

1,670

1,520

5.5

1,510

5.2

5.7

91

6.2

R-3

Super Sports Xebio
Aomori-Chuo

Japan Real Estate
InstituteMar. 31
2022

911

848

916

5.5

905

5.2

5.7

56

6.3

Ashico Town Ashikaga

Daiwa Real EstateMar. 31
Appraisal Co.,
2022
Ltd.

4,900

5.3
(Building)
5.0(Land)(Note 4)

4,940

5.1
(Building)
5.0(Land)

5.5

259

6.2

R-4

4,930

7,170

37

Kenedix Retail REIT Corporation (3453)
Estimated value

Property
number

Property name

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.,
2022
Ltd.
Daiwa Real EstateMar. 31
Appraisal Co.,
2022
Ltd.
Japan Real Estate Mar. 31
Institute
2022
Daiwa Real EstateMar. 31
Appraisal Co.,
2022
Ltd.
Japan Real Estate Mar. 31
Institute
2022

5.5

Appraisal

Terminal
capitalization
rate (%)

5.3

5.7(Note 6)(Note 6)

976

4.9

4.9

4,010

4,330

4.3
(Note 3)

2,580

3,860

2,600

981

916

992

5.1

4,050

4,460

4,080

4,300

5,160

(Note 6)

2,590

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

154

4.7

5.3

51

6.2

4.6

5.1

207

5.2

4,280

4.2

-

166

4.1

10,89010,10012,3005.3

11,900

5.0

5.6

612

5.7

Costco Wholesale
R-11
Sapporo Warehouse

4,430

3,630

4,460

4.5

4,390

4.2

4.7

204

4.8

L-1

1,790

1,740

1,780

4.4

1,800

4.4

4.6

84

6.0

1,680

1,610

1,670

4.5

1,690

4.6

4.7

85

6.6

4,330

4,530

4,820

4.9

4,810

4.9
5.0

5.1

222

5.7

1,040

1,030

1,050

4.3

1,030

4.4

4.5

46

4.4

3,660

3,430

3,620

4.7

3,670

4.6
4.7

4.9

180

5.7

842

858

847

4.0

837

3.6

4.1

35

4.4

1,510

996

1,520

4.0

1,500

3.8

4.2

62

5.0

1,040

375

1,060

5.3

1,030

5.1

5.5

58

7.3

1,090

851

1,120

4.9

1,070

4.7

5.1

59

5.5

266,837

276,825

247,7264.7

267,640

4.5

4.9

13,005

5.2

L-2

L-3

L-4

L-5
L-6
L-7

L-8

L-9

Japan Real Estate Mar. 31
Institute2022
The Tanizawa
Mar. 31
Zama Distribution Center Sōgō Appraisal
2022
Co., Ltd.
The Tanizawa
Oppama Distribution
Mar. 31
Sōgō Appraisal
Center2022
Co., Ltd.
Musashi Ranzan
The Tanizawa
Mar. 31
Distribution Center
Sōgō Appraisal
2022(Note 5)
Co., Ltd.
The Tanizawa
Yokohama Kamigo
Mar. 31
Sōgō Appraisal
Distribution Center
2022
Co., Ltd.
The Tanizawa
Gyoda Distribution
Mar. 31
Sōgō Appraisal
Center2022
Co., Ltd.
Shinjuku Nishiochiai
Japan Real Estate Mar. 31
Distribution Center
Institute
2022
Daiwa Real Estate
Chiba-Kita Distribution
Mar. 31
Appraisal Co.,
Center2022
Ltd.
Daiwa Real Estate
Sapporo Shiroishi
Mar. 31
Appraisal Co.,
Distribution Center
2022
Ltd.
Daiwa Real EstateMar. 31
Tenri Distribution Center Appraisal Co.,
2022
Ltd.
Total/Average

Note 1:

Note 2:
Note 3:Note 4:Note 5:Note 6:Note 7:(year 1-2)
(year 3-11)(year 1-6)
(year 7-11)“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.
Figures are rounded to the nearest tenth.
The appraisal value is based on the appraisal value after the completion of the conversion. The appraisal NOI is based on the NOI after the completion of the conversion,
which is on the appraisal report as of March 31, 2022. The appraisal NOI yield is calculated by dividing the appraisal NOI by the sum of the acquisition price and the assumed
costs of the conversion. The same shall apply to the calculation of the average appraisal NOI yield of the portfolio.

38

Kenedix Retail REIT Corporation (3453)(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 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 building 6.6
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

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

7.2

O-1

Blumer Maitamon

2.0

O-2

Life Takadono (Land)

O-3

DCM Kahma 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

N-1

DCM Kahma Nakagawa Tomita (Land)

N-2

Valor Ichinomiya-Nishi

9.1
Retail building 8.5
Parking building 7.2
6.7
7.2
Main building 7.3
Uniqlo building 7.3
Holiday building 7.4
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
-

-

MEGA Don Quijote UNY building 3.1
DCM Kahma building 3.2

Sunplaza A building 3.6
Sunplaza B building 3.4
Joshin building 3.5
South wing 2.3
North wing 2.8
4.8
39Kenedix Retail REIT Corporation (3453)
Property
numberN-4

Homecenter Kohnan Sunadabashi

5.2

N-6

Resora Obu Shopping Terrace

8.9

N-7

Valor Nakashidami (Land)

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

Property name

PML value in seismic review (%)

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

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
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

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

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
2.9

Portfolio PML value (Note)
Note:“Portfolio PML value” is the portfolio PML value of 54 properties that KRR owns as of March 31, 2022, excluding land with leasehold interest, based on the
Portfolio Earthquake PML Evaluation Report dated March 2022, created by Sompo Risk Management Inc.

40

Kenedix Retail REIT Corporation (3453)(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)57

232,704

94.1

NSC (Neighborhood Shopping Centers)

34

160,005

64.7

SM (Supermarkets)

915,143

6.1

CSC (Community shopping Centers)

-

-

-

Urban Station-Front Shopping Centers

4

26,918

10.9

SS (Specialty Store)

10

30,638

12.4

Other retail properties

-

-

-

Logistics facilities

9

14,5875.9

66247,291

100.0

Total
Note:

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)55

202,739

82.0

Tokyo metropolitan area

35

115,663

46.8

Greater Osaka area

11

50,957

20.6

Greater Nagoya area

5

22,087

8.9

Fukuoka area

4

14,032

5.7

1144,55218.0

66247,291

100.0

Ordinance-designated cities, core cities and other areas
Total

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

6

34,003

15.9

5 years or more but less than 10 years

3

7,431

3.5

10 years or more

45

172,36980.6

54

213,803

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, 2022. Where multiple
buildings exist on the property, the property age is calculated using the average age of those buildings.
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.

41

Kenedix Retail REIT Corporation (3453)
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

2,110

13.7

2 to less than 5 years

3,055

19.8

5 to less than 10 years

5,420

35.1

10 to less than 15 years

1,210

7.8

15 to less than 20 years

1,716

11.1

20 years or more

1,908

12.4

15,421

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, 2022 (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, 2022 (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 period.

v. Distribution by Lease Contract TypeType of lease contract

Ratio (%) (Note)

Fixed-term building lease

76.3

Regular building lease

11.6

Commercial fixed-term land lease

12.0

Others

0.0
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

89.3

Fixed rent with sales-linked rent

9.1

Sales-linked rent

1.5
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, 2021 and March 31, 2022, rounded to the nearest tenth. As a result, simple aggregation of“ratio” figures may not be the same as the total figure.

42

Kenedix Retail REIT Corporation (3453)(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 15th fiscal period ending
September 30, 2022. 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
MONA
Air conditioning equipment
From April 2022
T-2
Urayasu, Chiba
145
Shin-Urayasu
replacement (phase 5)
to September 2022
From April 2022
Blumer HAT
O-4
Kobe, Hyogo
Exterior wall repair work
83
Kobe
to September 2022
From April 2022
Rooftop waterproof
R-1
Roseo Mito
Mito, Ibaraki
54(HC building) (phase 1)
to August 2022
Hamamatsu,
Spa equipment replacement
From April 2022
R-8
P-1 Plaza Tenno
47
Shizuoka
and repair workto September 2022
From April 2022
Yumemachi
T-19
Funabashi, Chiba
Solar panel installation
33
Narashinodai Mall
to May 2022
Note:

The property expansion at Unicus Ina is not included in the above list because it involves a new acquisition. Furthermore, construction work related to the conversion at
Kitera Plaza Aobadai is not included as well because it is a series of construction work with the acquisition.

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 680 million yen. There were also expenditures of 146 million yen that were recorded
as repair expenses. In total, we spent 827 million yen on the projects.
Property
Capital expenditure
Property nameLocation
PurposeSchedule
number(Millions of yen)
T-2

MONA
Shin-Urayasu

Urayasu, Chiba

Air conditioning equipment
replacement (phase 4)

From October 2021
to March 2022

276

L-5

Gyoda
Distribution
Center

Gyoda, Saitama

Air conditioning equipment
replacement

From October 2021
to March 2022

66

T-27

Monenosato Mall Yotsukaido, Chiba

Solar panel installation

From February 2022
to March 2022

65

From March 2022
to March 2022

10

From September 2021
to October 2021

10

L-8
L-8

Sapporo Shiroishi
Distribution
Sapporo, Hokkaido Elevator renewal
Center
Sapporo Shiroishi
Distribution
Sapporo, Hokkaido Cubicle replacement
CenterOthers

251

Total

680

iii) Reserved Amount for Long-term Repairs, Maintenance and Renovation Plans
Not applicable43Kenedix Retail REIT Corporation (3453)(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, 2022.

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.

RetailViva Home 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
A Apita Terrace Yokohama
Tsunashima
B DCM Kahma 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

Ratio
(%)
(Note 2)

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

105,651.76

10.6

498,345242(Note 4)(Note 4)(Note 4)(Note 4)

16,185.56

1.6(Note 4)(Note 4)27,819.27

2.8(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)39,990.22

4.0(Note 4)(Note 4)52,910.05

5.3(Note 4)(Note 4)31,759.76

3.2(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.
“Ratio” is the ratio of leased area of the end-tenant to total leasable area of the portfolio as of March 31, 2022, 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.
We have not obtained consent from the tenant to release this information.

44

Kenedix Retail REIT Corporation (3453)
ii) Top End-tenants in Terms of Leased Area
The end-tenants or the sublease type master lessees that cover over 10% of the total leased area of portfolio as of March 31, 2022 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 Applicable
105,651.76
498,345
242
Co., Ltd.
Real estate
D Unicus Urawamisino
C Oct. 1, 2055
C Not Applicable(Note 2)(Land)
D Apr. 8, 2061 D Not Applicable
E Ashico Town Ashikaga
E Mar. 31, 2026 E Not Applicable
Note 1:

Based on Mall building’s leasing contract.

Note 2:

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. When including the leased area as apass-through master leasing company, the total leased area to P&D Consulting Co., Ltd. accounts for 10.7% of the total leased area of the portfolio as of March 31, 2022,
accounting for 10% or more of the total leased area of the portfolio and making P&D Consulting Co., Ltd. a major tenant. The following is an overview of the lease as apass-through master lease company, showing the total leased area, annual fixed rent and leasehold deposits to P&D Consulting Co., Ltd., including leases as end-tenants.
Tenant leasehold
Total leased area Annual fixed rent
and security deposits Lease term end
Property nameLease renewal
2(m )(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

106,354.03

529,547268--

45