KDX REALTY INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED October 31, 2023 (REIT)(May 1, 2023 to October 31, 2023)

December 14, 2023
KDX Realty Investment Corporation (“KDXR”) is listed on the Tokyo Stock Exchange with the securities code number 8972.
https://www.kdx-reit.com/eng/
URL:
Representative:

Hiroaki Momoi, Executive Director

Asset Management Company: Kenedix Real Estate Fund Management, Inc.
Representative:

Hikaru Teramoto, President & CEO

Inquiries:

Michiru Nagamata, Head of Strategic Planning, Listed REIT Department
TEL +81-3-5157-6010
Planned start of distribution payments: January 19, 2024

Planned submission of semiannual securities report: January 31, 2024
Preparing presentation material:

Yes･NoHold a financial brief meeting:Yes･No (presentation material with script of webcast is to be disclosed)

1. PERFORMANCE FOR THE FISCAL PERIOD ENDED October 31, 2023 (May 1, 2023 to October 31, 2023)(Amounts are rounded down to the nearest million yen.)(1) Business Results(Percentages show period-on-period changes.)
Operating Revenues

Operating Income

Ordinary Income

Net Income

For the six months ended

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

October 31, 2023

16,655

(3.7)

7,494

(8.1)

6,572

(8.8)

6,571

(8.8)

April 30, 2023

17,290

6.3

8,157

10.5

7,208

11.7

7,205

11.7

Net Income per Unit

Return on Unitholders’ Equity

Ordinary Income toOperating Revenues

Ordinary Income to Total Assets

For the six months ended

Yen

%

%

%

October 31, 2023

3,872

2.8

1.4

39.5

April 30, 2023

4,246

3.1

1.5

41.7

Note: KDXR implemented a 2-on-1 split of investment units with October 31, 2023, as the record date of the split and November 1, 2023, as the effective date. Net income perunit is calculated based on the assumption that the split of the investment units was implemented at the beginning of the fiscal period ended April 30, 2023.

(2) Distributions
Distributions per Unit Total Distributions(Excluding Excess of (Excluding Excess of
Earnings)
Earnings)

Distributions in
Excess of Earnings
per Unit

Total Distributions in
Excess of Earnings

Distribution Ratio to
Unitholders’ Equity

Payout Ratio

For the six months ended

Yen

Millions of Yen

Yen

Millions of Yen%%

October 31, 2023

7,745

6,571

－

－

100.0

2.8

April 30, 2023

7,647

6,487

－

－

90.0

2.8

Note: Distributions per unit for the fiscal period ended April 30, 2023, are calculated by dividing the amount remaining after deducting the provision of reserve for reduction entry(718 million yen) from unappropriated retained earnings by the total number of investment units issued and outstanding. The main difference between distributions per unit
and net income per unit is due to this calculation.

(3) Financial Position
Total Assets
For the six months ended

Net Assets

Millions of Yen

Net Assets to Total Assets

Millions of Yen

Net Assets per Unit%

Yen

October 31, 2023

475,367

231,52348.7

136,442

April 30, 2023

474,274

230,482

48.6

135,828

Note: Net assets per unit is calculated based on the assumption that the split of the investment units above was implemented at the beginning of the fiscal period ended April 30,
2023.

(4) Cash Flows

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash Equivalents
at Period End

For the six months ended

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

October 31, 2023

8,419

227

(6,487)39,492

April 30, 2023

13,464(903)(6,145)37,333

KDX REALTY INVESTMENT CORPORATION (8972)

2. FORECAST OF RESULTS FOR THE FISCAL PERIODS ENDING April 30, 2024 (November 1, 2023 to April 30, 2024) and October
31, 2024 (May 1, 2024 to October 31, 2024)(Percentages show period-on-period changes.)
Operating
Revenues(Millions of Yen)

Operating Income(Millions of Yen)

Ordinary Income(Millions of Yen)

Net Income(Millions of Yen)Distributions per
Unit (Excluding
Excess ofEarnings)

Distributions in
Excess ofEarnings per
Unit

For the six months ending
April 30, 2024 38,232

%
129.5

16,748%123.5

14,523%121.0

31,794

%
383.8

Yen
3,800

Yen
-

October 31, 2024 36,210(5.3)

17,177

2.6

14,976

3.1

14,976(52.9)

3,800-(Reference) Estimated net income per unit for the fiscal period ending April 30, 2024:
7,674 yen
Forecasted total number of investment units issued and outstanding as of April 30, 2024:
4,142,897 units
Forecasted average number of investment units during the fiscal period ending April 30, 2024:
4,142,897 units
Estimated net income per unit for the fiscal period ending October 31, 2024:
3,615 yen
Forecasted total number of investment units issued and outstanding as of October 31, 2024:
4,142,897 units
Forecasted average number of investment units during the fiscal period ending October 31, 2024: 4,142,897 units
Note: The distribution amount per unit (excluding distributions in excess of earnings) differs from the forecasted net income per unit as it is assumed that the amount excluding
gain on negative goodwill will be distributed in the fiscal period ending April 30, 2024 and that the reversal amount of internal reserves (reserve for adjustment of
temporary differences, profit brought forward from the previous period, and reserve for reduction entry) will be allocated to distributions in the fiscal period ending
October 31, 2024.

*Others(1) Changes in Accounting Policies, Changes in Accounting Estimate, Retrospective Restatement(a) Changes concerning accounting policy accompanying amendments to accounting standards: None(b) Changes other than (a): None(c) Changes in accounting estimate: None(d) Retrospective restatement: None
(2) Total Number of Investment Units Issued and Outstanding(a) Total number of investment units issued and outstanding at period end (including own investment units)
As of October 31, 2023: 848,430 units
As of April 30, 2023:
848,430 units(b) Number of own investment units at period end
As of October 31, 2023: 0 units
As of April 30, 2023:
0 units
Note: Please refer to “Notes on Information per Unit” on page 30 for the number of investment units as the base of the calculation of net income perunit.

* This financial report is not subject to audit by certified public accountants or audit corporations.
* 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 KDXR and on certain assumptions KDXR deems to be reasonable. As such, actual operating and other results may differ materially fromthese forecasts as a consequence of numerous factors. The above-mentioned forecasts are based on “Assumptions for the Earnings Forecasts
for the Fiscal Periods Ending April 30, 2024 and October 31, 2024” on page 9 for calculation, and our judgment as of December 14, 2023.
Actual operating revenues, operating income, ordinary income, net income, distributions per unit and distributions in excess of earnings perunit may vary according to changes in market conditions. These forecasts do not guarantee the distribution amountThis notice is an English-language translation of the original Japanese announcement on our website released on December 14, 2023. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevailin the case of discrepancies between this translation and the Japanese original.

KDX REALTY INVESTMENT CORPORATION (8972)

Contents of Attachments

1. Status of Asset Management············································································································ 2(1) Status of Asset Management ······································································································· 2(2) Investment Risks····················································································································· 7(3) Outlook ······························································································································· 8
2. Financial Statements ···················································································································· 11(1) Balance Sheets ······················································································································ 11(2) Statements of Income ·············································································································· 13(3) Statements of Unitholders’ Equity ································································································14(4) Basis for Calculating Cash Distributions ························································································16(5) Statements of Cash Flows ········································································································· 17(6) Notes on Going Concern ·········································································································· 18(7) Important Accounting Standards··································································································18(8) Notes on Financial Statements ····································································································20(9) Changes in the Total Number of Investment Units Issued and Outstanding·················································33
3. Reference Information·················································································································· 34(1) Information Concerning Price of Assets in the Property Portfolio ····························································34(2) Capital Expenditures ··············································································································· 44(3) Overview of Major Tenants ·······································································································46- 1 -KDX REALTY INVESTMENT CORPORATION (8972)

1. Status of Asset Management(1) Status of Asset Management① Operating Conditions for the Fiscal Period under Review
A. Transition of KDXRKDX Realty Investment Corporation (former trade name: Kenedix Office Investment Corporation) has conducted an absorption typemerger (“the Merger”), whereby KDXR as the surviving corporation, and Kenedix Residential Next Investment Corporation (“KDR”) and
Kenedix Retail REIT Investment Corporation (“KRR”) as the absorbed corporations on November 1, 2023, and changed its name to KDX
Realty Investment Corporation. For the details, please refer to “②Outlook for Next Fiscal Period D. Important Subsequent Events after the
Closing Date (a) The Merger by and among KDXR, KDR and KRR”.
KDXR was established on May 6, 2005, in accordance with the Act on Investment Trusts and Investment Corporations (Act No. 198 of theyear 1951, including amendments thereafter) (“Investment Trust Act”). On July 21, 2005, KDXR was listed on the Real Estate Investment
Trust Market of the Tokyo Stock Exchange, Inc. (“the Tokyo Stock Exchange”) with a total of 75,400 investment units issued andoutstanding (Securities Code: 8972). Subsequentially, KDXR raised funds through public offerings and acquired own investment units, andas a result, as of the end of the fiscal period under review (October 31, 2023), the number of investment units issued and outstanding totaled
848,430 units.
KDXR entrusts Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”) with its asset management and strives
to maximize unitholder profits by securing stable earnings and sustainable growth of investment assets. To this end, KDXR adopts the basic
policy of conducting flexible and dynamic investment that seeks to respond to the environment and market trends, endeavors to ensure atimely response to opportunities, and form a portfolio.
B. Investment Environment and Management Performance(a) Investment Environment
During the fiscal period under review (fiscal period ended October 31, 2023), the Japanese economy saw a positive turn in the growth rateof real GDP. Despite high commodity prices, personal consumption remained strong and inbound demand is also expected to recover. It
was reconfirmed that the economy supported by accommodative fiscal and monetary policies is maintaining a gradual recovery trend. On
the other hand, it is necessary to pay attention to the future financial and interest rate trends such as trends in the U.S. and European financial
systems, which remain uneasy due to the occurrence of events such as the bankruptcy of U.S. regional banks and the relief merger ofEuropean financial institutions, and the Bank of Japan’s monetary policy.
In terms of office leasing market, both average vacancy rate and average rent (including newly built office buildings) in Tokyo’s five central
wards remained generally flat according to the data announced by Miki Shoji Co., Ltd. The slight decrease in vacancy rate was attributable
to the progress in the conclusion of contracts for buildings completed within the past one year as well as the conclusion of contracts including
large relocations for office expansion and floor expansion within the same building despite large vacancies available in existing buildings.
Movements of tenants among Japanese companies also continue to be seen.
April 2023
Average Vacancy Rate
Average Rent

October 2023

Change

6.11%

6.10%

(0.01%)

19,896 yen

19,741 yen(155 yen)

Even in other major cities across Japan, the rise in average vacancy rate slowed down and both average vacancy rate and average rent
remained generally flat with some exceptions.
In the office building transaction market, the amount of sales information of prime mid-sized office buildings remains small, and investors
are concentrating on limited sales deals. Therefore, cap rates remain at low levels. As the investment appetite of domestic and overseas
investors is generally strong and property transactions by real estate companies and other domestic and overseas investors as well as JREITs and private REITs have continued to be conducted, no significant change has been seen in the willingness to invest in office buildings.
(b) Management Performance
KDXR did not acquire or sell any new assets during the fiscal period under review.
The overview of the portfolio at the end of the fiscal period under review (excluding the TK interest (Note 1)) is as follows.
End of Previous End of Fiscal Period
ChangeFiscal Period
Under Review
Number of Properties
97
97±0
Total Acquisition Price (Millions of Yen)
453,316453,316±0
Number of End Tenants in Office Buildings
1,208
1,216
+8
(Note 2) (Note 3)- 2 -KDX REALTY INVESTMENT CORPORATION (8972)

Percentage by Use (Acquisition Price Basis)

Office Buildings
OthersEnd of Previous End of Fiscal Period
Fiscal Period
Under Review
99.4%
99.4%
0.6%
0.6%

Change±0.0%±0.0%

Occupancy Rate of Office Buildings

Office Building Portfolio
Tokyo’s Five Central Wards
Other Tokyo Metropolitan Areas
Regional Areas

End of Previous End of Fiscal Period
Fiscal Period
Under Review
98.4%
98.2%
99.2%
98.1%
97.8%
98.1%
98.0%
98.3%

Change(0.2%)(1.1%)+0.3%+0.3%

Note 1: The initial investment amount for the TK interest is 553 million yen.
Note 2: When a tenant is leasing more than one property, it is counted as one tenant and the number of tenants is indicated accordingly.
Note 3: The number of end tenants for the entire portfolio is 1,217 as of the end of the fiscal period under review.

C. Financing(a) Borrowings and Investment Corporation Bonds
During the fiscal period under review, KDXR undertook borrowings of 9,800 million yen for repayment of borrowings of the same amountthat matured during the fiscal period.
The balance of interest-bearing debt at the end of the fiscal period under review is as follows.
Total borrowings
201,950 million yen
Short-term borrowings (Note 1)
2,000 million yen
Long-term borrowings (Note 1)
199,950 million yen
Investment corporation bonds
13,000 million yen
Balance of interest-bearing debt
214,950 million yen
Furthermore, interest rates for 107,050 million yen of long-term borrowings with floating interest rates have been practically fixed byutilizing interest rate swaps in order to hedge risk of rise in interest rates. As a result, the balance of long-term borrowings with fixed interest
rates including 86,100 million yen of long-term borrowings with fixed interest rates was 193,150 million yen at the end of the fiscal period
under review.
Long-term debt ratio (Note 2)
99.1%
Long-term fixed interest debt ratio (Note 3)
95.9%
Average remaining term of interest-bearing debt (Note 4)
3.3 years
Average interest rate of interest-bearing debt (Note 4)
0.82%
Interest-bearing debt ratio (Note 5)
45.2%
Note 1: Short-term borrowings refer to borrowings with a period of less than or equal to one year from the drawdown date to the repayment date. However,the borrowings whose period until repayment date have surpassed one year because the repayment date one year from the drawdown date is not abusiness day and for which the repayment date has been moved to the following business day are included in short-term borrowings. Long-termborrowings refer to borrowings with a period of more than one year from the drawdown date to the repayment date. The same applies below.
Note 2: Long-term debt ratio = (Balance of long-term borrowings + Balance of investment corporation bonds) / (Total borrowings + Balance of investment
corporation bonds) ×100
Long-term debt ratio is rounded to the first decimal place.
Note 3: Long-term fixed interest debt ratio = (Balance of long-term fixed interest rate borrowings + Balance of investment corporation bonds) / (Total
borrowings + Balance of investment corporation bonds) ×100
The balance of long-term fixed interest rate borrowings includes long-term borrowings with floating interest rates effectively fixed by utilizing
interest-rate swap agreements. Long-term fixed interest debt ratio is rounded to the first decimal place.
Note 4: Average remaining terms and average interest rates are the weighted average of the period-end remaining terms and interest rates including annual
upfront fees based on the balance of interest-bearing debt. Average remaining terms are rounded to the first decimal place and average interest rates
are rounded to the second decimal place, respectively.
Note 5: Interest-bearing debt ratio = Balance of interest-bearing debt at the end of fiscal period / Total assets at the end of fiscal period ×100
Interest-bearing debt ratio is rounded to the first decimal place.
- 3 -KDX REALTY INVESTMENT CORPORATION (8972)(b) Credit Rating
The status of the credit ratings as of the end of fiscal period under review (October 31, 2023) is as follows:
Credit Rating Agency

Details of the Ratings

Japan Credit Rating Agency, Ltd. (JCR)

Long-term Issuer Rating
Ratings on Bonds

AA(Outlook: Stable)
AA(c) Shelf Registration
KDXR filed a shelf registration statement for investment corporation bonds (excluding short-term investment corporation bonds) on
November 30, 2022. Details are as follows.
Planned Issue Amount

100,000 million yen

Planned Issuance Period

December 8, 2022, to December 7, 2024
Acquisition funds for specified assets described in Article 2-1 of Investment Trust Act, repayment of

Use of Funds

borrowings, redemption of investment corporation bonds (including short-term investment corporation
bonds), refund of lease and guarantee deposits, funds to pay for repairs and maintenance, working
capital.

D. Operating Results and Cash Distributions
As a result of the aforementioned management performance, KDXR reported operating revenues of 16,655 million yen, operating incomeof 7,494 million yen, ordinary income of 6,572 million yen and net income of 6,571 million yen for the fiscal period under review (fiscal
period ended October 31, 2023).
Concerning the cash distributions for the fiscal period under review, special taxation measures for investment corporations (Article 67-15
of the Act on Special Measures Concerning Taxation (Act No. 26 of the year 1957, including amendments thereafter; “the Special Taxation
Measures Act”)) are applied based on the cash distribution policies stipulated in the Articles of Incorporation. Following this policy, KDXR
distributed 6,571,090,350 yen, which is the maximum integral multiple of the total number of investment units issued and outstanding(848,430 units) in an amount not exceeding unappropriated retained earnings. As a result, distributions per unit is 7,745 yen.
② Outlook for Next Fiscal Period
A. External Growth Strategy(a) Investment Criteria
KDXR invests in office buildings, residential properties, retail facilities, healthcare facilities, logistics facilities, hotels and various othertypes of real estate without limiting the use under the policy of capturing the trend and investing timely in a flexible and dynamic manner.
(b) Use of Sponsor Support
When acquiring assets, KDXR will aim for sound and stable growth of the portfolio by securing continuous opportunities for acquiringproperties and flexible acquisition methods through multiple pipelines by utilizing the networks of the Asset Management Company andthe support line of the Kenedix Group (Note) centering on Kenedix, Inc., a parent company of the Asset Management Company,
Sumitomo Mitsui Finance and Leasing Co., Ltd. and SMFL MIRAI Partners Co., Ltd. as well as the supports from JYUKYO Holdings
Co., Ltd., JINUSHI Co., Ltd. and P&D Consulting Co., Ltd. Furthermore, based on the premise that KDXR can obtain opportunities forproperty acquisitions in the future, KDXR may invest in TK interest, with co-investment from the Kenedix Group or others. In addition,
KDXR seeks to diversify acquisition methods (direct acquisition, equity investment and co-acquisition with the Kenedix Group, mutualtransaction with a view of asset reshuffle) to secure tactful acquisition of properties such as investments in warehousing-related TK, incooperation with the Kenedix Group with consideration to the timing of funding or the consistency of the investment principles.
Note: Kenedix Group refers to the company group consisting of Kenedix, Inc. and its subsidiaries, related companies. The same applies below.

B. Internal Growth Strategy
KDXR adopts timely and flexible leasing activities, taking into consideration economic and real estate market trends. Accordingly, KDXR
seeks to aim to maintain/increase cash flow by offering building environments with high tenant satisfaction.
From this perspective, the Asset Management Company undertakes asset management activities as follows:・Take measures to maintain and raise competitiveness of properties
・Tailor leasing management according to the market environment
・Apply careful control of management and operating costs by taking advantage of portfolio size
・Ensure appropriate response to relevant laws and regulations
・Develop a proactive response to environmental issues- 4 -KDX REALTY INVESTMENT CORPORATION (8972)

C. Financial Strategy
KDXR continuously strives to improve the terms and conditions of existing borrowings, and aims for stable financial management by taking
the following measures.
・Reduce refinance risks by diversifying maturities of interest-bearing debts
・Maintain the procurement ratio of long-term fixed interest borrowings above a certain level・Control the interest-bearing debt ratio (Note) in a conservative manner (KDXR will aim to keep the interest-bearing debt ratio to total
assets (LTV) at around 45% level as a rule. However, it will also remain open to the option of increasing LTV to the upper 40% levelin the event of debt financing conducted for the purpose of acquiring competitive properties or otherwise.)Moreover, KDXR will undertake stable fund procurement based on existing favorable relations with financial institutions, especially majorbanks, aiming for more robust financial management. In addition, KDXR aspires to pay attention to the share of each bank and consider as
appropriate the introduction of transactions with new banks based on comparison with the conditions with currently transacting banks.
Note: Interest-bearing debt ratio = Balance of interest-bearing debt at the end of fiscal period / Total assets at the end of fiscal period × 100

D. Important Subsequent Events after the Period End(a) The Merger by and among KDXR, KDR and KRRKDXR has conducted the Merger on November 1, 2023 as the effective date, whereby KDXR was the surviving Corporation and KDR
and KRR were the dissolving corporations. It has changed its name to KDX Realty Investment Corporation from Kenedix Office
Investment Corporation on the same day.
i. Purpose of the Merger
The Merger was conducted in order to respond flexibly to environmental changes and attain continued growth as the REITs found that
the Merger will contribute to maximize unitholders’ value by leading to the continued growth by expanding investment target sectors,
improving their presence and stability in the market by increasing the sizes of their assets, and enabling more commitment forsustainability.
ii. Form of the Merger
KDXR was the surviving corporation under an absorption-type merger and KDR and KRR were dissolved in the Merger.
iii. Allocation ratio
KDXR split the investment units at a ratio of two investment units per one investment unit (“the Split of Investment Units”) on
November 1, 2023 as the effective date, for the purpose of providing at least one KDXR’s investment unit to all unitholders of KDR
and KRR as of October 31, 2023 as the record date. As a result of the Split of Investment Units, KDR unitholders were allotted 1.34
KDXR’s investment units after the Split of Investment Units against each KDR investment unit, and KRR unitholders were allotted
1.68 KDXR’s investment units after the Split of Investment Units against each KRR investment unit.
ⅳ. Delivery of Payment upon the Merger
In addition to the above mentioned investment units, KDXR intends to pay unitholders of KDR and KRR (the unitholders stated orrecorded in the final unitholders’ registers of KDR and KRR on the day before the effective date of the Merger (excluding Each REIT
and unitholders of KDR and KRR who has demanded the purchase of their investment units pursuant to Article 149-3 of the Investment
Trusts Act (excluding those who have withdrawn such demand for purchase) (hereinafter referred to as the “Unitholders Subject to
Allocation”)), in lieu of cash distributions (distributions of profits) for the last fiscal period of KDR and KRR which ends the day
before the effective date of the Merger, the Payment upon the Merger in the form of cash distributions based on distributable incomeof KDR and KRR for that same period of an amount (disregarding fractions of a yen) which is the quotient resulting from a divisionof the amount of distributable income of KDR and KRR on the date before the effective date of the Merger by the number of issued
investment units of KDR and KRR on that date as reduced by the number of investment units held by unitholders other than theUnitholders Subject to Allocation. The Payment upon the Merger will be paid in mid-January 2024.
v. Total amount of Unitholders’ Capital
The amount of unitholders’ capital and unitholders’ surplus increased as a result of the Merger are as follows.
Unitholders’ capital: 0 yen
Unitholders’ surplus: The amount obtained by subtracting the above unitholders’ capital from the amount of changes in unitholders’capital as provided in Article 22, Paragraph 1 of the “Regulations Concerning Calculation of KDXR”(Cabinet Office Ordinance No. 47 of 2006, including subsequent amendments).
- 5 -KDX REALTY INVESTMENT CORPORATION (8972)(b) Split of Investment UnitsKDXR implemented a 2-on-1 split of the investment units with October 31, 2023, as the record date of the split and November 1, 2023,
as the effective date.
i. Purpose of Split of Investment Units
The Merger was effected by way of an absorption-type merger with the KDXR as the surviving corporation, with KDR and KRR
having a merger ratio of 0.67 and 0.84, respectively, against one for KDXR, before taking into account the Split of Investment Units.
However, with this merger ratio, 0.67 KDXR’s investment units will be allotted against one KDR investment unit and 0.84 KDXR’s
investment units will be allotted against one KRR investment unit, resulting in a number of KDR and KRR unitholders that would
receive KDXR’s investment units of less than one unit. For this reason, in order to enable the unitholders of KDR and KRR to continue
to hold KDXR’s investment units after the Merger, we decided to split KDXR’s investment units at a ratio of two investment units per
one investment unit, for the purpose of providing at least one KDXR’s investment unit to all unitholders of KDR and KRR.
ii. Method of Split of Investment UnitsKDXR implemented a 2-on-1 split of the investment units held by unitholders of KDXR stated or recorded on the registry ofunitholders as of October 31, 2023.
iii. Number of Investment Units Increased by the Split of Investment Units
1) Total number of KDXR’s investment units issued and outstanding 848,430 units
before the Split of Investment Units:
2) Number of investment units increased through the Split of 848,430 units
Investment Units:
3) Total number of KDXR’s investment units issued and outstanding 1,696,860 units
after the Split of Investment Units:
4) Total number of KDXR’s investment units issued and outstanding 4,142,897 units (Note 1)
after the Merger:
5) Total number of authorized investment units after the Split of 20,000,000 units (Note 2)
Investment Units and the Merger:
Note 1: As a result of the Merger, each KDR investment unit was allotted 1.34 KDXR’s investment units after the Split of Investment Units for all of
KDR’s issued investment units (1,070,433 units), and each KRR investment unit was allotted 1.68 KDXR’s investment units after the Split ofInvestment Units for all of KRR’s issued investment units (602,177 units).
Note 2: In connection with the Split of Investment Units, the Articles of Incorporation of KDXR were partially amended and the total number ofauthorized investment units was changed as of the effective date of the Merger.

- 6 -KDX REALTY INVESTMENT CORPORATION (8972)(c) Acquisition of Properties
KDXR acquired the following properties on November 1, 2023.
Property Name

Type of
Property

Location

Acquisition Price Appraisal Value(Millions of Yen) (Millions of Yen) Contract Date
(Note 1)
(Note 2)

River City 21 East
Towers II(25% quasi coownership interest)

Trust
Chuo-ku,
beneficiaryTokyo
interest

Akishima Distribution
Center (Land)

Trust
Akishima,
beneficiaryTokyo
interest

1,872

remm roppongibuilding(20% quasi coownership interest)

Trust
Minato-ku,
beneficiaryTokyo
interest

3,960

9,232

10,775Acquisition Date

SellerJune 13, 2023

November 1, 2023 KST5 Co., Ltd

2,320

June 13, 2023

SMFL MIRAI
Partners
November 1, 2023
Company,
Limited4,060

June 13, 2023

November 1, 2023 G.K. RRB

Note 1: The amount is excluding acquisition costs, settlement of property tax and city planning tax or consumption tax.
Note 2: Appraisal report is as of October 31, 2023.

(d) Disposition of Properties
KDXR disposed of the following properties as of November 1, 2023.
Property Name

Type of
Property

Location

Disposition Price Appraisal Value(Millions of Yen) (Millions of Yen) Contract Date
(Note 1)
(Note 2)

Disposition Date

Buyer

Harajuku F.F. Building

Trust
Shibuyabeneficiaryku, Tokyo
interest

3,880

3,880

June 13, 2023

November 1, 2023 GK KRF 104

KDX Nagoya Sakae
Building

Trust
Nagoya,beneficiary
Aichiinterest

6,050

5,740

June 13, 2023

November 1, 2023 GK BST 1

Note 1: The amount is excluding acquisition costs, settlement of property tax and city planning tax or consumption tax.
Note 2: Appraisal report is as of October 31, 2023.

(2) Investment Risks
Following risks are added to the “Investment Risks” as described in the latest Securities Report submitted on July 28, 2023.
A. Risks Related to the Types of Investment Assets
As a result of the Merger with KDR and KRR, KDXR has decided to invest in and own assets for various uses, such as residential
properties, residential properties with operators, healthcare facilities, hotels, shopping centers for daily needs, and logistics facilities, inaddition to office buildings. Each asset has risks inherent in each use, for example, residential properties tend to be affected by populationand household trends, economic trends, while shopping centers tend to be affected by overall consumer spending trends and trends in theretail industry, competition within the trade area of the relevant retail properties, population trends and others. Therefore, these inherent
risk factors related to the use of investment assets may have an adverse effect on KDXR’s earnings and distributions.
B. Risks Concerning Negative Goodwill
KDXR has gained negative goodwill due to the Merger with KDR and KRR, however, the interpretation, operation or treatment
concerning the accounting treatment of negative goodwill or the treatment of surplus may be changed. In this case, there is a possibility
that the amount of gain on negative goodwill may change, or the utilization of surplus may become difficult, which may have an adverse
impact on KDXR’s earnings and distributions.

- 7 -KDX REALTY INVESTMENT CORPORATION (8972)(3) Outlook
Forecast for the fiscal periods ending April 30, 2024 (November 1, 2023 to April 30, 2024) and October 31, 2024 (May 1, 2024 to October
31, 2024) are as follows.
Fiscal period ending April 30, 2024 (November 1, 2023 to April 30, 2024)
Operating Revenues

38,232 million yen

Operating Income

16,748 million yen

Ordinary Income

14,523 million yen

Net Income

31,794 million yen

Distributions per Unit

3,800 yen
- yen

Excess of Earnings

Fiscal period ending October 31, 2024 (May 1, 2024 to October 31, 2024)
Operating Revenues

36,210 million yen

Operating Income

17,177 million yen

Ordinary Income

14,976 million yen

Net Income

14,976 million yen

Distributions per Unit

3,800 yen
- yen

Excess of Earnings

Please refer to “Assumptions for the Earnings Forecasts for the Fiscal Periods Ending April 30, 2024 and October 31, 2024.”
Note: Forecast figures above are calculated based on certain assumptions. Readers are advised that actual net income and distributions per unit may differ
significantly from forecasts due to a variety of reasons. Accordingly, KDXR does not guarantee payment of the forecast distributions per unit.

- 8 -KDX REALTY INVESTMENT CORPORATION (8972)

Assumptions for the Earnings Forecasts for the Fiscal Periods Ending April 30, 2024 and October 31, 2024
Item
Assumptions
 Fiscal period ending April 30, 2024 (November 1, 2023 to April 30, 2024) (182 days)
Calculation Period
 Fiscal period ending October 31, 2024 (May 1, 2024 to October 31, 2024) (184 days)
 It is assumed that KDXR owns 350 properties that are composed of real estate and trust beneficiary interestin real estate as of the date of this document. It is assumed that there will be no changes of assets in the property
portfolio by the end of the fiscal period ending October 31, 2024.
Property Portfolio
 KDXR also holds the TK equity other than above, but it is assumed that G.K. KRF43 Silent Partnership Equity
Interest will be sold as described in the “Notice Concerning Sale of Investment Asset (Silent Partnership
Equity Interest)” announced on April 20, 2023.
 The actual results may fluctuate due to changes in the property portfolio.
 Rent revenues are estimated based on the information related conclusion or cancellation of leasing contract ofthe properties which KDXR owns, and by considering variable factors, such as seasonal factors against the
backdrop of historical performance, as well as the recent real estate market conditions.
 It is estimated that gain on sale of real estate of 1,505 million yen for the fiscal period ending April 30, 2024
will be recorded from the sale of Harajuku F.F. Building and KDX Nagoya Sakae Building on November 1,
2023.
Operating Revenues
 Dividends received of 6 million yen for the fiscal period ending April 30, 2024 have been assumed with regard
to the TK equity stated in the above “Property Portfolio.” Forecasts are based on the assumption that there will be no rent in arrears or non-payments from tenants.
 With the sale of G.K. KRF43 Silent Partnership Equity Interest (50% equity interest) on December 20, 2023,
548 million yen is expected to be recorded as gain on sale of securities in the fiscal period ending April 30,
2024.
 Expenses related to rental business other than depreciation are based on the historic expenses, adjusted toreflect expense variables including seasonal factors.
 An amount of 2,866 million yen for the fiscal period ending April 30, 2024, and 2,839 million yen for the
fiscal period ending October 31, 2024, has been assumed for property and facility management fees (property
management and building maintenance fees.).
 An amount of 2,920 million yen for the fiscal period ending April 30, 2024, and 3,029 million yen for the
fiscal period ending October 31, 2024, has been assumed for taxes and public dues (property tax and cityplanning tax.).
 An amount of 4,683 million yen for the fiscal period ending April 30, 2024, and 4,736 million yen for the
fiscal period ending October 31, 2024, has been assumed for depreciation expense.
 An amount of 1,036 million yen for the fiscal period ending April 30, 2024, and 949 million yen for the fiscal
Operating Expenses
period ending October 31, 2024, has been assumed for repairs, maintenance and renovation expenses. Repairs,
maintenance and renovation expenses are estimated based on the amounts budgeted by the Asset Management
Company for each property and considered essential for the period. Actual repairs, maintenance andrenovation expenses for the fiscal period may, however, differ significantly from estimated amounts due tounforeseen circumstances or emergencies.
 In general, property tax and city planning tax are allocated to the seller and buyer on a pro rata basis at thetime of acquisition settlement. In the case of KDXR, an amount equivalent to the portion allocated to thepurchaser is included in the acquisition cost of the property.
 As temporary expenses related to the Merger, it is estimated that 2,900 million yen in merger fees out of theasset management fee and 466 million yen in merger-related expenses for the fiscal period ending April 30,
2024.
Non-Operating Interest payable (including financing related expenses) of 2,218 million yen for the fiscal period ending April
Expenses
30, 2024 and 2,195 million yen for the fiscal period ending October 31, 2024.
 The amount to be recorded as gain on negative goodwill through the Merger is estimated to be 17,271 million
yen. It will be recorded in a lump sum as extraordinary income in the fiscal period ending April 30, 2024 inaccordance with the Accounting Standard for Business Combinations (ASBJ Statement No. 2, last revised on
January 16, 1991) (hereinafter referred to as “ASBJ Statement”). These amounts are estimates based on the
Extraordinary
following assumptions under the Accounting Standards for Business Combinations: total assets of KDR (theProfit / Lossacquiree) of 420,806 million yen, total liabilities assumed of 179,441 million yen, and acquisition cost of the
Merger of 226,058 million yen; and total assets of KRR of 316,041 million yen, total liabilities assumed of
154,640 million yen, and acquisition cost of the Merger of 159,437 million yen (estimates using the closing
price of the investment units of KDXR, the acquiring company that will serve as consideration for the- 9 -KDX REALTY INVESTMENT CORPORATION (8972)

Item



Borrowings andInvestment Corporation
Bonds


Total Number of
Investment Units Issued
and OutstandingDistributions per Unit

Distributions in Excessof Earnings per Unit

Other


Assumptionsacquisition, as of October 31, 2023, which is 157,600 yen). As the gain on negative goodwill as of the effective
date of the Merger has not yet been determined, the amount may change from the above amount.
The balance of the borrowings and investment corporation bonds as of December 14, 2023 is 486,370 million
yen and 29,700 million yen, respectively.
Of the borrowings as of December 14, 2023, a total of 31,900 million yen in borrowings is due for repayment
during the fiscal period ending April 30, 2024, and a total of 32,360 million yen is due for repayment during
the fiscal period ending October 31, 2024. However, it is assumed that all borrowings will be refinanced.
Of investment corporation bonds as of December 14, 2023, 4,000 million yen of investment corporation bonds
will mature by the end of the fiscal period ending October 31, 2024. However, it is assumed that all investment
corporation bonds will be redeemed with the funds procured through the issuance of investment corporation
bonds or borrowings.
The total number of investment units issued and outstanding is assumed to be 4,142,897 units, which is thetotal number of investment units issued and outstanding as of November 1, 2023.
It is assumed that there will be no change until the end of the fiscal period ending October 31, 2024.
Distributions per unit are calculated in accordance with the Cash Distribution Policies outlined in KDXR’s
Articles of Incorporation.
It is assumed that an amount of 16,600 million yen to be transferred to the reserve for adjustment of temporary
differences out of the 17,271 million yen of gain on negative goodwill will be deducted from net income, andthe amount of the reversal of the reserve for reduction entry of 550 million yen will be added to the
distributions for the fiscal period ending April 30, 2024. The amount of gain on negative goodwill and theamount of reversal of reserve for reduction entry may change depending on operating conditions and otherfactors.
It is assumed that an amount equal to net income plus the sum of the reversal amount of the reserve foradjustment for temporary differences, retained earnings, and the reversal amount of the reserve for reduction
entry of 767 million yen will be distributed for the fiscal period ending October 31, 2024.
Actual distributions per unit may differ significantly from forecast figures due to a variety of reasons includingchanges in investment assets, rental revenues impacted by tenant turnover or incidence of major unforeseenrenovation expense.
KDXR does not currently anticipate distributions in excess of earnings.
Forecasts are based on the assumption that any revisions to regulatory requirements, taxation, accounting
standards, public listing regulations or requirements of the Investment Trusts Association, Japan will not
impact forecast figures.
Forecasts are based on the assumption that there will be no major unforeseen changes to economic trends andin real estate and other markets.

- 10 -

KDX REALTY INVESTMENT CORPORATION (8972)

2. Financial Statements(1) Balance Sheets(Thousands of Yen)
Fiscal Period Ended April 30, 2023

Fiscal Period Ended October 31, 2023

(As of April 30, 2023)(As of October 31, 2023)

AssetsCurrent assets
Cash and deposits

26,871,012

28,936,646

Cash and deposits in trust

11,636,598

11,732,485

Accounts receivable-trade352,851

377,718

Prepaid expenses

74,513

111,450

Other

9,398

9,891

38,944,374

41,168,191

Buildings

17,314,188

17,389,133

Accumulated depreciation(7,122,069)(7,409,909)

Buildings, net

10,192,119

9,979,223

Total current assets
Noncurrent assets
Property, plant and equipment

Structures

39,83644,486

Accumulated depreciation(23,007)(24,076)

Structures, net

16,82820,409Machinery and equipment

463,508466,277

Accumulated depreciation(348,262)(361,477)

Machinery and equipment, net

115,245

104,799

Tools, furniture and fixtures

102,389

102,389

Accumulated depreciation(84,747)(87,502)

Tools, furniture and fixtures, net

17,642

14,887

Land

27,918,010

27,918,010

Buildings in trust

131,523,808 *2

132,515,045

Accumulated depreciation(44,709,397)(46,869,269)

Buildings in trust, net

86,814,411

85,645,775

Structures in trust

435,544464,113

Accumulated depreciation(248,540)(260,040)

Structures in trust, net

187,004

204,072

Machinery and equipment in trust

2,245,231

2,284,739

Accumulated depreciation(1,105,353)(1,171,285)

Machinery and equipment in trust, net

1,139,878

1,113,453

Tools, furniture and fixtures in trust

766,142779,059

Accumulated depreciation(484,568)(510,908)

Tools, furniture and fixtures in trust, net

281,574

268,150

Land in trust

305,091,543

305,091,543

Total property, plant and equipment

431,774,258

430,360,327

Land leasehold

285,257

285,257

Land leasehold in trust

344,554343,78039

21

629,852

629,059

1,136,228

571,371

Intangible assets

Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

122,889

122,889

Long-term prepaid expenses

932,240

836,463

Other

678,437

1,631,344- 11 -*2

KDX REALTY INVESTMENT CORPORATION (8972)(Thousands of Yen)
Fiscal Period Ended

Total investments and other assets
Total noncurrent assets

Fiscal Period Ended

April 30, 2023

October 31, 2023

(As of April 30, 2023)(As of October 31, 2023)

2,879,795

3,172,069

435,283,905

434,161,456

45,75438,035

Deferred assets
Investment corporation bond issuance costs
Total deferred assets

45,75438,035474,274,035

475,367,684

1,527,774

2,091,636

Short-term loans payable

300,000

2,000,000

Current portion of investment corporation bonds

2,000,000

4,000,000

Current portion of long-term loans payable

Total assets
Liabilities
Current Liabilities
Accounts payable

19,700,000

25,600,000

Accounts payable-other801,842

650,552

Accrued expenses

106,022

102,677

Income taxes payable

1,509

782

Accrued consumption taxes

437,597294,586

Advances received

2,874,538

2,722,980

Deposits received

16,18075,893566

610

27,766,031

37,539,719

OthersTotal current liabilities
Noncurrent liabilities
Investment corporation bonds

11,000,000

9,000,000

Long-term loans payable

181,950,000

174,350,000

Tenant leasehold and security deposits

2,196,875

2,225,381

Tenant leasehold and security deposits in trust

20,875,109

20,729,239

3,548

-

Total noncurrent liabilities

216,025,533

206,304,621

Total liabilities

243,791,565

243,844,341

220,970,508

220,970,508

Other

Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital(2,999,551) *4

Unitholders’ capital, net(2,999,551)

217,970,957

217,970,957

Reserve for reduction entry

4,630,856

5,348,917

Total voluntary reserve

4,630,856

5,348,917

Unappropriated retained earnings (undisposed loss)

7,206,005

6,571,336*4

Surplus
Voluntary reserve

Total surplus

11,836,861

11,920,254

Total unitholders’ equity

229,807,819

229,891,211

Deferred gains or losses on hedges

674,650

1,632,131

Total valuation and translation adjustments

674,650

1,632,131

Valuation and translation adjustments

Total net assets

230,482,469

Total liabilities and net assets

474,274,035- 12 -*1

231,523,343
475,367,684*1

KDX REALTY INVESTMENT CORPORATION (8972)(2) Statements of Income(Thousands of Yen)
Fiscal Period Ended April 30, 2023
November 1, 2022 toApril 30, 2023

Fiscal Period Ended October 31, 2023
May 1, 2023 to
October 31, 2023

Operating revenues
Rental revenues

13,896,892*1

13,942,073*1

Other rental revenues

2,176,002*1

2,118,858*1

Gain on sales of real estate, etc.

1,168,433*2-

Profit and loss on buying and selling of securities and other
Dividends income
Total operating revenue-

548,130

49,38546,541

17,290,713

16,655,603

Operating expenses
Property related expenses

7,793,647

Asset management fees

1,117,455*1

7,878,787
993,342

Directors’ compensation

6,300

6,300

Asset custody fees

24,075

24,106

Administrative service fees

61,41960,778

Audit fees

13,20013,200Merger-related expenses-

96,891Other operating expenses

116,749

87,820Total operating expenses

9,132,847

9,161,227

8,157,866

7,494,376Interest income

4545Dividends and redemption-prescription

271

264

2

2

319

311

725,038

735,897

Operating income
Non-operating income

Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

35,691

36,209Borrowing related expenses

131,494

132,661

7,592

7,718

Amortization of investment corporation bond issuance costs
Other49,566

9,514

Total non-operating expenses

949,384922,000

Ordinary income

7,208,802

6,572,687

Income before income taxes

7,208,802

6,572,687

Income taxes-current

3,154

1,201

Income taxes-deferred

(140)

148

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 13 -

3,014

1,350

7,205,788

6,571,336

217-

7,206,005

6,571,336*1

KDX REALTY INVESTMENT CORPORATION (8972)(3) Statements of Unitholders’ Equity
Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023)(Thousands of Yen)
Unitholders’ equity
Unitholders' capital

Surplus
Voluntary reserve
Reserve for
reduction entry

Total voluntary
reserve

Unappropriatedretained earnings(undisposed loss)

4,326,003

4,326,003

6,451,096

10,777,100

304,852

304,852(304,852)-

Distribution from surplus(6,146,026)(6,146,026)

Net income

7,205,788

7,205,788

Unitholders’capitalDeduction from Unitholders’ capital,
unitholders' capitalnet

220,970,508

Balance at beginning of period(2,999,551)

217,970,957

Total surplus

Changes during the period
Provision of reserve for
reduction entry

Items other than unitholders’equity, net
Total changes during the period
Balance at end of period

*1

-

-

-

304,852

304,852

754,908

1,059,761

220,970,508(2,999,551)

217,970,957

4,630,856

4,630,856

7,206,005

11,836,861

Valuation and translation
adjustments

Unitholders’ equity

Total unitholders’equityBalance at beginning of period

Deferred gains orlosses on hedges

228,748,057

814,256

Total valuationand translation
adjustments

814,256

Total net assets

229,562,314

Changes during the period
Provision of reserve for reduction
entry

-

-

Distribution from surplus(6,146,026)(6,146,026)

Net income

7,205,788

7,205,788

Items other than unitholders’ equity,net
Total changes during the period
Balance at end of period(139,605)(139,605)(139,605)

1,059,761(139,605)(139,605)

920,155

229,807,819

674,650

674,650

230,482,469- 14 -

KDX REALTY INVESTMENT CORPORATION (8972)

Fiscal Period Ended October 31, 2023 (May 1, 2023 to October 31, 2023)(Thousands of Yen)
Unitholders’ equity
Unitholders’ capital

Surplus
Voluntary reserve
Reserve for
reduction entry

Total voluntary
reserve

Unappropriatedretained earnings(undisposed loss)

4,630,856

4,630,856

7,206,005

11,836,861

718,061

718,061(718,061)-

Distribution from surplus(6,487,944)(6,487,944)

Net income

6,571,336

6,571,336

Unitholders'
capitalDeduction from Unitholders’ capital,
unitholders' capitalnet

220,970,508

Balance at beginning of period(2,999,551)

217,970,957

Total surplus

Changes during the period
Provision of reserve for
reduction entry

Items other than unitholders’equity, net
Total changes during the period
Balance at end of period

*1

-

-

-

718,061

718,061(634,668)

83,392

220,970,508(2,999,551)

217,970,957

5,348,917

5,348,917

6,571,336

11,920,254

Valuation and translation
adjustments

Unitholders’ equity

Total unitholders’equityBalance at beginning of period

Deferred gains orlosses on hedges

229,807,819

Total valuationand translation adjustments

674,650

674,650

Total net assets

230,482,469

Changes during the period
Provision of reserve for
reduction entry--

Distribution from surplus(6,487,944)(6,487,944)

Net income

6,571,336

6,571,336

Items other than unitholders’equity, net
Total changes during the period
Balance at end of period

957,481

957,481

957,481

83,392

957,481

957,4811,040,873

229,891,211

1,632,131

1,632,131

231,523,343- 15 -

KDX REALTY INVESTMENT CORPORATION (8972)(4) Basis for Calculating Cash Distributions(Unit: Yen)
Fiscal Period Ended April 30, 2023
(November 1, 2022 to April 30, 2023)
I.

Unappropriated retained earnings
at the end of fiscal period underreview
II. Total distribution amountFiscal Period Ended October 31, 2023
(May 1, 2023 to October 31, 2023)

7,206,005,509

6,571,336,746

6,487,944,210

6,571,090,350(7,647)(7,745)

718,061,299--

246,396

In accordance with the policy stipulated in Article 35(1) of its Articles of Incorporation, KDXR determinesthat the amount of distribution shall exceed theamount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Act and shall be up to the amount of its
profits as the ceiling. Following this policy, KDXR
has decided to distribute 6,487,944,210 yen, which isthe amount remaining after deducting the provision ofreserve for reduction entry stipulated in Article 65-7 ofthe Special Taxation Measures Act fromunappropriated retained earnings, as profit
distribution.
In addition, KDXR decided not to distribute cash inexcess of distributable profit, stipulated in Article 35(2) of its Articles of Incorporation.

In accordance with the policy stipulated in Article 35(1) of its Articles of Incorporation, KDXR determinesthat the amount of distribution shall exceed theamount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Act and shall be up to the amount of its
profits as the ceiling. Following this policy, KDXR
has decided to distribute 6,571,090,350 yen, which is
the maximum integral multiple of the total number ofinvestment units issued and outstanding (848,430
units) in an amount not exceeding unappropriatedretained earnings, as profit distribution.
In addition, KDXR decided not to distribute cash inexcess of distributable profit, stipulated in Article 35(2) of its Articles of Incorporation.

(Distributions per unit)
III. Voluntary reserve (provision)
Provision of reserve for reduction
entry
IV. Retained earnings brought forward
to the next period
Method of calculating the distribution
amount- 16 -

KDX REALTY INVESTMENT CORPORATION (8972)(5) Statements of Cash Flows(Thousands of Yen)

Fiscal Period Ended April 30, 2023
(November 1, 2022 to April 30, 2023)

Fiscal Period Ended October 31, 2023
(May 1, 2023 to October 31, 2023)

Cash flows from operating activities
Income before income taxes

7,208,802

6,572,687

Depreciation

2,617,548

2,574,098

Amortization of long-term prepaid expenses

119,860

121,863Interest income

(45)

(45)

Interest expenses

760,730

772,106

7,592

7,718

-

(548,130)

Decrease (increase) in accounts receivable-trade

43,391(24,866)

Decrease (increase) in prepaid expenses

38,136(36,936)

Increase (decrease) in accounts payable(209,465)

237,165

Increase (decrease) in accounts payable-other242,170(212,628)

Increase (decrease) in accrued consumption taxes

128,821(143,010)

Increase (decrease) in advances received

100,510(151,558)

Increase (decrease) in deposits received

11,192

59,847

Changes in property, plant and equipment from sale

3,189,768-

Decrease (increase) in long-term prepaid expenses(17,456)(26,086)

Other(19,499)(6,084)

14,222,057

9,196,13945

45(756,547)(775,452)

Amortization of investment corporation bond issuance expenses
Profit and loss on buying and selling of securities and other

SubtotalInterest income received
Interest expenses paid
Income taxes paid

(837)

(1,516)

13,464,718

8,419,216

Purchase of property, plant and equipment(74,720)(49,501)

Purchase of property, plant and equipment in trust(746,370)(968,439)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Sale of securities-

1,175,037

Payments of tenant leasehold and security deposits(191,634)(86,384)

Proceeds from tenant leasehold and security deposits

121,410

97,150

Payments of tenant leasehold and security deposits in trust(697,843)(442,097)

Proceeds from tenant leasehold and security deposits in trust

656,121504,046

Payments of restricted bank deposits in trust(2,513)(2,588)Proceeds from restricted bank deposits in trust

32,441-(903,109)

227,223

Proceeds from short-term loans payable-

2,000,000

Repayment of short-term loans payable-(300,000)

Proceeds from long-term loans payable

4,800,000

7,800,000

Repayment of long-term loans payable(4,800,000)(9,500,000)

Dividends paid

(6,145,636)(6,487,508)

Net cash provided by (used in) financing activities(6,145,636)(6,487,508)

Net increase (decrease) in cash and cash equivalents

6,415,972

2,158,931

Cash and cash equivalents at the beginning of period

30,917,994

37,333,966

Cash and cash equivalents at the end of period

37,333,966

Net cash provided by (used in) investing activities
Cash flows from financing activities- 17 -*

39,492,898*

KDX REALTY INVESTMENT CORPORATION (8972)(6) Notes on Going Concern
Not applicable(7) Important Accounting Standards
1. Evaluation standards and evaluation method ofassetsSecurities
Other securities
Share with no market price, etc.
Cost method through moving-average method
Concerning silent partnership (tokumei kumiai) (TK) interests, the method ofincorporating the amount of equity equivalent to the portion that corresponds to the net
gain or loss of TK is added.

2. Depreciation of fixed assets(1) Property, plant and equipment (includes trust assets)
The straight-line method is applied.
Useful lives of the assets ranging are as follows:
Buildings: 2 to 49 years
Structures: 2 to 45 years
Machinery and equipment: 3 to 17 years
Tools, furniture and fixtures: 3 to 20 years(2) Intangible assets (includes trust assets)
The straight-line method is applied.
Land leasehold: Fixed term land leasehold is amortized over a contractual period of 48 years
and 9 months under the straight-line method.
(3) Long-term prepaid expenses
The straight-line method is applied.

3. Accounting policies for deferred assets(1) Investment unit issuance costs
Unit issuance costs are amortized over a period of 3 years.
(2) Investment corporation bond issuance costs
Bond issuance costs are amortized by applying the straight-line method for the entire
redemption period.

4. Accounting standards for revenues and expenses(1) Accounting method for property tax, etc.
Property-related taxes including property taxes and city planning taxes, etc. are imposed on
properties on a calendar-year basis. These taxes are generally charged to rental expenses for
said fiscal period for the portion of such taxes corresponding to said period.
In connection with the acquisition of real estate or trust beneficiary interests in real estate during
the fiscal period under review, KDXR included its pro rata property portion for the year in theacquisition cost of each property and not as rental expenses. The amount of property tax, etc.
included in the acquisition cost of real estate, etc. was none in the fiscal period Ended April 30,
2023 and the fiscal period ended October 31, 2023..
(2) Standard for recording revenue
The main content of the performance obligation regarding the revenue from contracts with thecustomers of KDXR and the normal point of time when satisfying the said performanceobligation (normal point of time when recognizing revenue) are as follows.
1. Sale of real estate, etc.
For the revenue from sale of real estate, etc., revenue is recorded when the buyer who isa customer gains control of the real estate by performing the obligation of handoverstipulated in the contract for real estate sales.
2. Utility charge reimbursement
For utility charge reimbursement, revenue is recorded in accordance with the supply ofelectricity, tap water, etc. to the lessee who is a customer based on the lease agreement ofreal 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 KDXR, the net amount obtained by deducting the amount paid
to other related parties supplying electricity, gas, etc. from the amount received as the feeof electricity, gas, etc. is recognized as revenue.

- 18 -

KDX REALTY INVESTMENT CORPORATION (8972)

5. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied for interest-rate swap transactions. However, thespecial treatment is applied for the interest rate swaps that meet the requirements for special
treatment.
(2) Hedging instruments and risks hedged
Hedge instruments
KDXR enters into interest-rate swap transactions.
Risks hedged
Interest rates on debt.
(3) Hedging policy
KDXR enters into derivative transactions based on its risk management policies with theobjective of hedging risks in accordance with its Articles of Incorporation.
(4) Method of evaluating the effectiveness of hedging
During the period from the commencement of hedging to the point at which effectiveness is
assessed, KDXR compares the cumulative total of market changes in the targeted objects ofhedging or cash flow changes with the cumulative total of market changes in the hedging
instruments or cash flow changes. KDXR then makes a decision based on the changes andother factors of the two.
However, concerning the interest-rate swaps that meet the requirements for special
treatment, the evaluation of effectiveness is omitted.

6. The scope of cash and cash equivalents onstatements of cash flows

For the purpose of cash flow statements, cash and cash equivalents consist of cash on hand,deposits received that can be withdrawn on demand, and short-term investments with original
maturities of 3 months or less, that are readily convertible to known amounts of cash andpresent insignificant risk of a change in value.

7. Other accounting policies utilized in 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 formof trust beneficiary interests in real estate and other assets are recorded in full in KDXR’sbalance sheets and statements of income.
Important line items included in accounting for financial assets and liabilities in KDXR’sbalance sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furnitureand fixtures in trust, land in trust and construction in progress in trust
3. Land leasehold in trust
4. Lease and guarantee deposits in trust
5. Tenant leasehold and security deposits in trust(2) Accounting method for non-deductible consumption tax
Non-deductible consumption taxes applicable to the acquisition of assets are included in thecost of acquisition for each asset.

- 19 -

KDX REALTY INVESTMENT CORPORATION (8972)(8) Notes on Financial Statements(Notes on Balance Sheets)*1. Minimum unitholders’ equity pursuant to Article 67, paragraph 4 of the Act on Investment Trusts and Investment Corporations(Thousands of Yen)
Fiscal Period Ended April 30, 2023
(as of April 30, 2023)

Fiscal Period Ended October 31, 2023
(as of October 31, 2023)

50,00050,000*2. The amount of advanced depreciation of property, plant and equipment acquired by government subsidy, etc.
(Thousands of Yen)
Fiscal Period Ended April 30, 2023
(as of April 30, 2023)
Buildings in trust

Fiscal Period Ended October 31, 2023
(as of October 31, 2023)

26,23026,2303. Commitment line agreement(Thousands of Yen)

KDXR has concluded a commitment line agreement with bank of account, etc.

Maximum amountFiscal Period Ended April 30, 2023
(as of April 30, 2023)
9,000,000

Drawn credit facility--

9,000,000

9,000,000

Balance

Fiscal Period Ended October 31, 2023
(as of October 31, 2023)
9,000,000*4. Status of cancellation of own investment units
Fiscal Period Ended April 30, 2023
(as of April 30, 2023)
Total number of units cancelled
Total amount of cancellation

Fiscal Period Ending October 31, 2023
(as of October 31, 2023)

4,295 units

4,295 units

2,999,551 thousand yen

2,999,551 thousand yen- 20 -

KDX REALTY INVESTMENT CORPORATION (8972)(Notes on Statements of Income)*1. Breakdown of real estate rental business profit and loss

(Thousands of Yen)

Fiscal Period Ended April 30, 2023
(November 1, 2022 to April 30, 2023)

Fiscal Period Ended October 31, 2023
(May 1, 2023 to October 31, 2023)

A. Rental and other operating revenues
Rental revenues
Leasing income

12,439,185

12,526,016

Common area charges

1,457,707

1,416,057

Subtotal

13,896,892

13,942,073

Parking space rental revenues

516,938

522,316

Utility charge reimbursement

1,286,335

1,315,987

Other rental revenues

Miscellaneous

372,728

280,554

Subtotal

2,176,002

2,118,858

16,072,895

16,060,932

1,509,353

1,494,166

Utilities

1,552,159

1,454,250

Taxes

1,392,970

1,478,415

Repairs and maintenance costs

351,470

491,706

Insurance

20,50021,057

Total rental and other operating revenues
B. Rental and other operating expenses
Property-related expenses
Property management fees and facility
management fees

Trust fees

30,12730,127

Others319,516

334,964

Depreciation

2,617,548

2,574,098

7,793,647

7,878,787

8,279,248

8,182,144

Total rental and other operating expenses
C. Rental operating profit (A – B)
*2. Gain and loss on sale of real estate, etc.

Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023)(Thousands of Yen)KDX Kawasaki-Ekimae Hon-cho Building
Revenue from sale of real estate, etc.

4,508,100

Cost of real estate, etc. sold3,189,768

Other sales expenses

149,898

Gain on sale of real estate, etc.

1,168,433

Fiscal Period Ended October 31, 2023 (May 1, 2023 to October 31, 2023)
Not applicable.

- 21 -

KDX REALTY INVESTMENT CORPORATION (8972)(Notes on Statements of Changes in Unitholders’ Equity)* Total number of authorized investment units and total number of investment units issued and outstanding
Fiscal Period Ended April 30, 2023
(November 1, 2022 to April 30, 2023)
Total number of authorized investment units
Total number of investment units issued andoutstanding

Fiscal Period Ended October 31, 2023
(May 1, 2023 to October 31, 2023)

4,000,000 units

4,000,000 units

848,430 units

848,430 units(Notes on Statements of Cash Flow)* Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flows statements(Thousands of Yen)
Fiscal Period Ended April 30, 2023
(November 1, 2022 to April 30, 2023)

Fiscal Period Ended October 31, 2023
(May 1, 2023 to October 31, 2023)

Cash and deposits

26,871,012

28,936,646

Cash and deposits in trust

11,636,598

11,732,485

Restricted bank deposits held in trust (Note)(1,173,644)(1,176,232)

Cash and cash equivalents

37,333,966

39,492,898

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

(Notes on Lease Transactions)Operating lease transactions(Lessor)(Thousands of Yen)
Fiscal Period Ended April 30, 2023
(as of April 30, 2023)

Fiscal Period Ended October 31, 2023
(as of October 31, 2023)

Unearned lease payments
Due within one year

3,522,908

3,246,442

Due after one year

7,066,262

5,936,156

Total

10,589,171

9,182,599- 22 -

KDX REALTY INVESTMENT CORPORATION (8972)(Notes on Financial Instruments)
1. Items with Regard to the Current Status of Financial Instruments(1) Action Policy with Regard to Financial Instruments
KDXR procures essential funds for acquiring properties and undertaking the repayment of loans primarily through bank loans and theissuance of investment corporation bonds and new investment units. KDXR makes use of derivative instruments primarily as a risk hedge
against interest rate fluctuations and to lessen interest payments. In addition, it is company policy to not conduct speculative derivativetransactions. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety, liquidity, interest
rate conditions and cash flows.
(2) Financial Instruments and Respective Risks
Investment securities are TK interests, which are subject to credit risk of the issuer and risk of fluctuation of value of real estate, etc.
Loans and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties and have a
repayment date of a maximum of about 7 years and 5 months following the closing date. Although a certain portion of said liabilities are
subject to risk of interest rate fluctuation, KDXR utilizes derivative instruments in order to hedge against such risks.
Derivative instruments are interest rate swaps. KDXR hedges against risk of fluctuation in interest rates by fixing its interest payments forfunds procured on a floating-interest-rate basis. With regard to hedge accounting methods, hedging instruments and hedged items, hedge
policy, and the method of evaluation of hedge effectiveness, please refer to “5. Accounting for hedges” in “(7) Important AccountingStandards.”(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
KDXR uses interest rate swap transactions to minimize risks associated with interest payment rate fluctuations on funds procured.
KDXR will periodically grasp the value of real estate, etc. and financial condition, etc. of the issuer with regard to investment securities.
B. Management of Liquidity Risk (Risk of Defaulting on Payments by the Due Date) Associated with Funds Procurement
Although loans and other liabilities are subject to liquidity risks, KDXR reduces such risks by spreading out payment due dates and byusing diversified fund procurement methods. Liquidity risk is also managed by such means as regularly checking the balance of cash
reserves.
(4) Supplemental Explanation of Items with Regard to Fair Value of Financial Instruments
Because the factors incorporated into the calculation of fair value of financial instruments are subject to change, differing assumptions are
adopted which may alter fair value. Moreover, the contract amounts, etc. of derivative transactions in “2. Items with Regard to Fair Valueof Financial Instruments” do not indicate the market risk of derivative transactions.

- 23 -

KDX REALTY INVESTMENT CORPORATION (8972)

2. Items with Regard to Fair Value of Financial Instruments
The book value per the balance sheet, fair values, as well as their difference are as follows. Moreover, because “Cash and deposits,” “Cash anddeposits in trust” and “Short-term loans payable” are settled with cash in the short term, the fair value can be considered as equivalent to thebook value. Therefore, the notes for them have been omitted.
Fiscal Period Ended April 30, 2023 (as of April 30, 2023)(Thousands of Yen)

Book Value(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 transaction

Fair Value

Difference

2,000,000

1,999,400(600)

19,700,000
11,000,000
181,950,000
214,650,000
674,650

19,716,952
10,949,200
181,467,672
214,133,225
674,650

16,952(50,800)(482,327)(516,774)-

Fiscal Period Ended October 31, 2023 (as of October 31, 2023)
Book Value(Thousands of Yen)
Fair Value

Difference(1) Current portion of investment corporation
4,000,000
4,010,000
10,000bonds(2) Current portion of long-term loans payable
25,600,000
25,628,808
28,808(3) Investment corporation bonds
9,000,000
8,853,200(146,800)(4) Long-term loans payable
174,350,000
171,630,090(2,719,909)
Total
212,950,000
210,122,098(2,827,901)
Derivative transaction
1,632,131
1,632,131* Net claims and liabilities arisen from derivative transactions are shown in the net amount and items that will be liabilities in net when totaled are indicatedusing parenthesis.

Note 1: Items with regard to the calculation method of financial instrument fair value, investment securities and 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 market price. The fair value of those for which no market price is available isbased on the quoted price obtained from counterparty financial institutions, etc.
(2) Current portion of long-term loans payable and (4) long-term loans payable
The fair value of long-term borrowings is calculated based on the present value that discounts the total amount of principal and interestby using the estimated interest rate in the event that KDXR conducts new borrowings of the same type. Among long-term borrowings
with floating interest rates, said borrowings, which are subject to special treatment of interest rate swaps, are calculated by discounting
the total amount of principal and interest, which is handled together with applicable interest rate swaps, by the rationally estimated interest
rate in the case that the same type of borrowings is undertaken.

- 24 -

KDX REALTY INVESTMENT CORPORATION (8972)

Derivative Transactions
Please refer to the following “Notes on Derivative Transactions.”

Note 2: Redemption schedule of investment corporation bonds and repayment schedule of loans after the closing dateFiscal Period Ended April 30, 2023 (as of April 30, 2023)
Due within 1 yr.

(Thousands of Yen)
3-4 yrs.

4-5 yrs.

Investment corporation bonds

2,000,000

4,000,000-

2,000,000

4,000,000

1,000,000

Long-term loans payable

19,700,000

27,050,000

32,900,000

37,800,000

33,100,000

51,100,000

21,700,000

31,050,000

32,900,000

39,800,000

37,100,000

52,100,000

Total

1-2 yrs.

2-3 yrs.

Fiscal Period Ended October 31, 2023 (as of October 31, 2023)
Due within 1 yr.

More than 5 yrs.

(Thousands of Yen)

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

Investment corporation bonds

4,000,000

2,000,000

2,000,000

3,000,000

1,000,000

1,000,000

Long-term loans payable

25,600,000

30,950,000

33,600,000

38,500,000

35,300,000

36,000,000

29,600,000

32,950,000

35,600,000

41,500,000

36,300,000

37,000,000

Total

More than 5 yrs.

(Notes on Derivative Transactions)
1. Items that do not apply hedge accounting
Fiscal Period Ended April 30, 2023 (as of April 30, 2023) and Fiscal Period Ended October 31, 2023 (as of October 31, 2023): Not applicable
2. Items that apply hedge accounting(Thousands of Yen)

Fiscal Period Ended April 30, 2023 (as of April 30, 2023)
Hedge accounting
methodType of derivative transactions

Main target ofrisk hedge

Principle method

Interest rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable

Special treatment
of interest rate
swaps

Interest rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable
Total

Contracted amountCalculation method for
Fair value
applicable fair value
More than 1 yr.
Based on the quoted
price obtained from82,450,000
77,950,000
674,650counterparty financial
institutions.
30,100,000

25,400,000*-

112,550,000

103,350,000

674,650-* Special treatment of interest-rate swaps is reported at the fair value of applicable long-term loans payable. This is because such swaps are handled together

with hedged long-term loans payable.

Fiscal Period Ended October 31, 2023 (as of October 31, 2023)
Hedge accounting
Main target ofType of derivative transactions
methodrisk hedge
Principle method

Interest rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable

Special treatment
of interest rate
swaps

Interest rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable
Total(Thousands of Yen)
Contracted amountCalculation method for
Fair value
applicable fair value
More than 1 yr.
Based on the quoted
price obtained from79,950,000
75,050,000 1,632,131
counterparty financial
institutions.
27,100,000

20,400,000*-

107,050,000

95,450,000

1,632,131-* Special treatment of interest rate swaps is reported at the fair value of applicable long-term loans payable. This is because such swaps are handled together

with hedged long-term loans payable.

- 25 -

KDX REALTY INVESTMENT CORPORATION (8972)(Notes on Revenue Recognition)
1. Information on the Breakdown of Revenue from Contracts with Customers
Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023)
Revenue from contracts with customers *1

Net sales to external customers

Revenue from sale of real estate, etc.

4,508,100 thousand yen*2 1,168,433 thousand yen

Utility charge reimbursement

1,286,335 thousand yen

1,286,335 thousand yen

Other- thousand yen

14,835,944 thousand yen

Total

5,794,435 thousand yen

17,290,713 thousand yen*1 The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the sale of real estate, etc.
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 Japanese Institute of Certified Public Accountants) are not included in the above amount as they are notapplied to the Revenue Recognition Accounting Standard. Moreover, the main revenue from contracts with customers are revenue from sale of realestate, etc. and utility charge reimbursement.
*2 Revenue from sale of real estate, etc. is recorded as gain and loss on sale of real estate, etc. in the statement of income. Therefore, the amountcalculated by deducting the cost of real estate, etc. sold and other sales expenses from the revenue from sale of real estate, etc. is indicated.

Fiscal Period Ended October 31, 2023 (May 1, 2023 to October 31, 2023)
Revenue from contracts with customers *1
Revenue from sale of real estate, etc.

Net sales to external customers- thousand yen- thousand yen

1,315,987 thousand yen

1,315,987 thousand yen

Other- thousand yen

15,339,616 thousand yen

Total

1,315,987 thousand yen

16,655,603 thousand yen

Utility charge reimbursement*1 The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the sale of real estate, etc.
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 Japanese Institute of Certified Public Accountants) are not included in the above amount as they are notapplied to the Revenue Recognition Accounting Standard. Moreover, the main revenue from contracts with customers are revenue from sale of realestate, etc. and utility charge reimbursement.

2.

Information Utilized as the Base for Understanding Revenue from Contracts with Customers
The information is as described in the notes on important accounting standards for the fiscal period ended April 30, 2023 (November 1,
2022 to April 30, 2023) and the fiscal period ended October 31, 2023 (May 1, 2023 to October 31, 2023).

3. Information on Relationship of Fulfillment of Performance Obligations Based on Contracts with Customers with Cashflow Generated
from Said Contracts and Amount and Period of Revenue Expected to Be Recognized in the Next Calculation Period or Thereafter fromContracts with Customers Existing at the End of the Current Calculation Period(1) Balance of contract assets and contract liabilities, etc.
Fiscal Period Ended April 30, 2023
(November 1, 2022 to April 30, 2023)

Fiscal Period Ended October 31, 2023
(May 1, 2023 to October 31, 2023)

324,473 thousand yen

309,606 thousand yen

309,606 thousand yen

329,871 thousand yen

Contract assets (balance at beginning of fiscal period)- thousand yen- thousand yen

Contract assets (balance at end of fiscal period)- thousand yen- thousand yen

Contract liabilities (balance at beginning of fiscal
period)- thousand yen- thousand yen

Contract liabilities (balance at end of fiscal period)- thousand yen- thousand yen

Claims generated from contracts with customers(balance at beginning of fiscal period)
Claims generated from contracts with customers(balance at end of fiscal period)(2) Transaction value allocated to remaining performance obligations
Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023)
Not applicable.

- 26 -

KDX REALTY INVESTMENT CORPORATION (8972)

With regard to utility charge reimbursements, as KDXR has the right to receive from customers an amount directly corresponding to
the value for the lessees, or customers, of sections for which performance is complete by the end of the fiscal period, the amount it has
the right to claim is recognized as revenue in accordance with Paragraph 19 of the Implementation Guidance on Accounting Standard
for Revenue Recognition. Accordingly, such is not included in the note on transaction value allocated to remaining performanceobligations through application of the provisions of Paragraph 80-22 (2) of the Accounting Standard for Revenue Recognition.
Fiscal Period Ended October 31, 2023 (May 1, 2023 to October 31, 2023)
As of October 31, 2023, the total transaction price allocated to remaining performance obligations for the sale of real estate is 9,930,000
thousand yen for the real estate for which a sale agreement was executed on June 13, 2023. KDXR expects to recognize revenue on
the remaining performance obligation upon the sale on November 1, 2023.
With regard to utility charge reimbursements, as KDXR has the right to receive from customers an amount directly corresponding to
the value for the lessees, or customers, of sections for which performance is complete by the end of the fiscal period, the amount it has
the right to claim is recognized as revenue in accordance with Paragraph 19 of the Implementation Guidance on Accounting Standard
for Revenue Recognition. Accordingly, such is not included in the note on transaction value allocated to remaining performanceobligations through application of the provisions of Paragraph 80-22 (2) of the Accounting Standard for Revenue Recognition.

- 27 -

KDX REALTY INVESTMENT CORPORATION (8972)(Notes on Segment and Related Information)
1. Segment Information
Disclosure is omitted because KDXR has been engaged in the real estate leasing business as a sole business and it has no reportablesegment subject to disclosure.
2. Related Information
Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of theoperating revenues on the statement of income.
(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 revenues on the statementof income.
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 ofproperty, plant and equipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenues on the statementof income.
Fiscal Period Ended October 31, 2023 (May 1, 2023 to October 31, 2023)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating
revenues on the statement of income.
(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 revenues on the statementof income.
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 ofproperty, plant and equipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenues on the statementof income.

- 28 -

KDX REALTY INVESTMENT CORPORATION (8972)(Notes on Tax-effect Accounting)
1. Significant components of deferred tax assets and liabilities(Thousands of Yen)
Fiscal Period Ended April 30, 2023
(as of April 30, 2023)

Fiscal Period Ended October 31, 2023
(as of October 31, 2023)

Deferred tax assets
Enterprise tax payable

177

28

Amortization of land leasehold in trust

6,049

6,293

Deferred gains or losses on hedges

1,294

192

Subtotal deferred tax assets

7,521

6,514

(7,344)(6,485)

177

28

Valuation allowance
Total deferred tax assets

2. Significant components causing difference between statutory income tax rate and the effective tax rate after tax effect accounting(Unit: %)Fiscal Period Ended April 30, 2023
(as of April 30, 2023)

Fiscal Period Ended October 31, 2023
(as of October 31, 2023)

31.46

31.46

Deductible cash distributions(28.31)(31.45)

Provision amount of reserve for reduction entry(3.13)-

Others0.03

0.01

Effective tax rate

0.04

0.02

Statutory tax rate
(Adjustments)(Notes on Related-party Transactions)
1. Parent Company, Major corporate Unitholders and Other
Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023) and Fiscal Period Ended October 31, 2023 (May 1, 2023 to October
31, 2023):
Not applicable
2. Affiliated Companies and Other
Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023) and Fiscal Period Ended October 31, 2023 (May 1, 2023 to October
31, 2023):
Not applicable
3. Fellow Subsidiary Companies and Other
Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023) and Fiscal Period Ended October 31, 2023 (May 1, 2023 to October
31, 2023):
Not applicable
4. Directors, Major Individual Unitholders and Other
Fiscal Period Ended April 30, 2023 (November 1, 2022 to April 30, 2023) and Fiscal Period Ended October 31, 2023 (May 1, 2023 to October
31, 2023):
Not applicable- 29 -

KDX REALTY INVESTMENT CORPORATION (8972)(Notes on Real Estate for Rental Purposes)
KDXR owns real estate for rental purposes mainly in the Tokyo Metropolitan Area for the purpose of generating rental revenue.
The book value per balance sheet for the fiscal period under review, changes during the period and fair value concerning the above real estate
for rental purposes are as follows.
(Thousands of Yen)
Fiscal Period Ended April 30, 2023
(November 1, 2022 to April 30, 2023)

Fiscal Period Ended October 31, 2023
(May 1, 2023 to October 31, 2023)

Book value
Balance at beginning of period

437,196,489

432,404,110

Changes during the period(4,792,379)(1,414,723)

432,404,110
430,989,387
Balance at end of period
551,161,000
551,696,000
Fair value at the end of period
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Fair value at the end of the fiscal period is the appraisal value determined by outside appraisers. Fair value at the end of the fiscal periods ended April
30, 2023 and October 31, 2023 of Harajuku F.F. Building and KDX Nagoya Sakae Building that were sold on November 1, 2023 respectively arecalculated based on the sale price (Harajuku F.F. Building: 3,880 million yen; KDX Nagoya Sakae Building: 6,050 million yen) in the transaction
agreements on June 13, 2023.
Note 3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period ended April 30, 2023, the principal
increase/decrease factors were the sale of 1 property totaling 3,189,768 thousand yen and depreciation amounting to 2,617,548 thousand yen. For
the fiscal period ended October 31, 2023, the principal increase/decrease factor was depreciation amounting to 2,574,098 thousand yen.

Income and loss for real estate for rental purposes are listed in “Notes on the Statements of Income.”(Notes on Information per Unit)

Net assets per unit

Fiscal Period Ended April 30, 2023
(November 1, 2022 to April 30, 2023)
135,828 yen

Fiscal Period Ended October 31, 2023
(May 1, 2023 to October 31, 2023)
136,442 yen

4,246 yen
3,872 yen
Net income per unit
Note 1: Net income per unit is calculated by dividing net income by the weighted average (based on number of days) number of units. Net income per unit
after adjusting for diluted investment units is not included because there were no dilutive investment units.
Note 2: KDXR implemented a two-for-one split of the investment units with October 31, 2023, as the record date of the split and November 1, 2023, as theeffective date. Net assets per unit and net income per unit are calculated based on the assumption that the split was implemented at the beginning of
the fiscal period ended April 30, 2023.
Note 3: The basis of calculation for the net income per unit is as follows.
Fiscal Period Ended April 30, 2023
Fiscal Period Ended October 31, 2023
(November 1, 2022 to April 30, 2023)(May 1, 2023 to October 31, 2023)
Net income
7,205,788
6,571,336(Thousands of Yen)
Amount not vested in ordinary unitholders(Thousands of Yen)
Net income for ordinary investment units
7,205,788
6,571,336(Thousands of Yen)
Average number of investment units
1,696,860
1,696,860
during the period (unit)- 30 -

KDX REALTY INVESTMENT CORPORATION (8972)(Notes on Important Subsequent Events)
1.The Merger by and among KDXR, KDR and KRRKDXR has conducted the Merger on November 1, 2023 as the effective date, whereby KDXR was the surviving Corporation and KDR and
KRR were the dissolving corporations, and has changed its name to KDX Realty Investment Corporation on the same day.
i. Purpose of the Merger
In order to respond flexibly to environmental changes and attain continued growth, Each REIT has conducted the Merger as it found that it
will contribute to maximize unitholders’ value by leading to the continued growth by expanding investment target sectors, improving theirpresence and stability in the market by increasing the sizes of their assets, and enabling more commitment for sustainability.
ii. Form of the Merger
KDXR was the surviving corporation under an absorption-type merger and KDR and KRR were dissolved in the Merger.
iii. Allocation ratio
KDXR split the investment units at a ratio of two investment units per one investment unit (“the Split of Investment Units”) on November
1, 2023 as the effective date, for the purpose of providing at least one Investment Corporation’s investment unit to all unitholders of KDR
and KRR as of October 31, 2023 as the record date. As a result of the Split of Investment Units, KDR unitholders were allotted 1.34
Investment Corporation’s investment units after the Split of Investment Units against each KDR investment unit, and KRR unitholders wereallotted 1.68 Investment Corporation’s investment units after the Split of Investment Units against each KRR investment unit.
iv Delivery of Payment upon the Merger

In addition to the above mentioned investment units, KDXR intends to pay unitholders of KDR and KRR (the unitholders stated or recordedin the final unitholders’ registers of KDR and KRR on the day before the effective date of the Merger (excluding Each REIT and unitholders
of KDR and KRR who has demanded the purchase of their investment units pursuant to Article 149-3 of the Investment Trusts Act(excluding those who have withdrawn such demand for purchase) (hereinafter referred to as the “Unitholders Subject to Allocation”)), in
lieu of cash distributions (distributions of profits) for the last fiscal period of KDR and KRR which ends the day before the effective date of
the Merger, the Payment upon the Merger in the form of cash distributions based on distributable income of KDR and KRR for that same
period of an amount (disregarding fractions of a yen) which is the quotient resulting from a division of the amount of distributable incomeof KDR and KRR on the date before the effective date of the Merger by the number of issued investment units of KDR and KRR on thatdate as reduced by the number of investment units held by unitholders other than the Unitholders Subject to Allocation. The Payment upon
the Merger will be paid in mid-January 2024.
ⅴ. Total amount of Unitholders' Capital

The amount of unitholders' capital and unitholders' surplus increased as a result of the Merger are as follows.
Unitholders' capital: 0 yen
Unitholders' surplus: The amount obtained by subtracting the above unitholders' capital from the amount of changes in unitholders'
capital as provided in Article 22, Paragraph 1 of the "Regulations Concerning Calculation of Investment
Corporation” (Cabinet Office Ordinance No. 47 of 2006, including subsequent amendments).

- 31 -

KDX REALTY INVESTMENT CORPORATION (8972)

2. Split of Investment UnitsKDXR implemented a 2-on-1 split of the investment units with October 31, 2023, as the record date of the split and November 1, 2023, as
the effective date.
i. Purpose of Split of Investment UnitsWith the merger ratio, 0.67 KDXR’s investment units would be allotted against one KDR investment unit and 0.84 KDXR’s investment
units would be allotted against one KRR investment unit, resulting in a number of KDR and KRR unitholders that would receive
KDXR’s investment units of less than one unit; therefor, KDXR split the investment units at a ratio of two investment units per one
investment unit on November 1, 2023 as the effective date, for the purpose of providing at least one KDXR’s investment unit to all
unitholders of KDR and KRR as of October 31, 2023 as the record date.
ii. Method of Split of Investment UnitsKDXR implemented a 2-on-1 split of the investment units held by unitholders of KDXR stated or recorded on the registry of unitholders
as of October 31, 2023.
iii. Number of Investment Units to be Increased by the Split of Investment Units
1) Total number of KDXR’s investment units issued and outstanding 848,430 units
before the Split of Investment Units:
2) Number of investment units increased through the Split of 848,430 units
Investment Units:
3) Total number of KDXR’s investment units issued and outstanding 1,696,860 units
after the Split of Investment Units:
4) Total number of KDXR’s investment units issued and outstanding 4,142,897 units (Note 1)
after the Merger:
5) Total number of authorized investment units after the Split of 20,000,000 units (Note 2)
Investment Units and the Merger:
Note 1: As a result of the Merger, one KDR investment unit were allotted 1.34 KDXR’s investment units after the Split of Investment Units for all of
KDR’s issued investment units (1,070,433 units), and one KRR investment unit were allotted 1.68 KDXR’s investment units after the Split ofInvestment Units for all of KRR’s issued investment units (602,177 units).
Note 2: In connection with the Split of Investment Units, the Articles of Incorporation of KDXR were partially amended and the total number ofauthorized investment units was changed as of the effective date of the Merger.

- 32 -

KDX REALTY INVESTMENT CORPORATION (8972)(9) Changes in the Total Number of Investment Units Issued and Outstanding
Changes in the total number of investment units issued and outstanding and unitholders’ capital in the last 5 years from the fiscal period underreview are summarized in the following table.
Total Number of Investment
Unitholders’ Capital
Units Issued and Outstanding(Millions of Yen)
(Units)Date
Particulars
Remarks
Increase
Increase
Balance
Balance(Decrease)(Decrease)
September 30, 2022
Cancellation(4,295)424,215(2,999)217,970(Note 1)
November 1, 2022
Investment unit split
424,215
848,430
217,970(Note 2)
Note 1: KDXR acquired own investment units through the market purchase on the Tokyo Stock Exchange pursuant to a discretionary trading contract
pertaining to the acquisition of own investment units with a securities company from June 15, 2022, to September 9, 2022. As for the acquired own
investment units (4,295 units), KDXR cancelled all the acquired units on September 30, 2022, based on the resolution at its board of directors’ meeting
held on September 22, 2022.
Note 2: KDXR implemented a 2-on-1 split of its investment units owned by the investors stated or recorded in the final unitholder registry as of October 31,
2022, with such date as the record date and November 1, 2022, as the effective date.
Note 3: KDXR implemented a 2-on-1 split of its investment units owned by the investors stated or recorded in the final unitholder registry as of October 31,
2023, with such date as the record date and November 1, 2023, as the effective date. As a result, the total number of investment units issued andoutstanding is 1,696,860 units. There is no change in the total amount of unitholders' capital as a result of this change.
Note 4: Upon the Merger, KDXR issued 2,446,037 investment units through the allotment of 1.34 post-split units for each unit of KDR and 1.68 post-split
units for each unit of KRR on November 1, 2023. As a result, the total number of investment units issued and outstanding is 4,142,897 units.

- 33 -

KDX REALTY INVESTMENT CORPORATION (8972)

3. Reference Information(1) Information Concerning Price of Assets in the Property Portfolio① Component of Assets

Asset Class

Type

Area

Tokyo Metropolitan Area

Office Buildings

Real Estate

Fiscal Period Ended
April 30, 2023
(as of April 30, 2023)
Total Amount Held
Ratio
(Millions of Yen)(%)
(Note 1)
(Note 2)
23,4394.915,105

3.2

14,996

3.2

38,545

8.1

38,322

8.1

38,545

8.1

38,322

8.1

Tokyo Metropolitan Area

321,02167.7

319,898

67.3

Other Regional Areas

69,863

14.7

69,795

14.7

390,88582.4

389,693

82.0

2,973

0.6

2,973

0.6

2,973

0.6

2,973

0.6

393,859

83.0

392,666

82.6

Other Regional Areas

Total for Office Buildings
Total for Real Estate
Trust
BeneficiaryInterest in Real
EstateOffice Buildings

Total for Office Buildings
Tokyo Metropolitan Area

OthersFiscal Period Ended
October 31, 2023
(as of October 31, 2023)
Total Amount Held
Ratio
(Millions of Yen)(%)
(Note 1)
(Note 2)
23,326
4.9

Total for Others
Total of Trust Beneficiary Interests in Real Estate
Investment Securities (Note 3)

1,136

0.2

571

0.1

Bank Deposits and Other Assets

40,7338.6

43,806

9.2

Total Assets

474,274100.0

475,367

100.0

Note 1: “Total Amount Held” is the amount allocated in the balance sheets at the end of the fiscal period (figures are on a net book value basis after deducting
depreciation) and rounded down to the nearest million yen.
Note 2:“Ratio” is the ratio of the amount allocated in the balance sheets to the total assets, rounded to the first decimal place.
Note 3:
Interests in a silent partnership operated by G.K. KRF43 are indicated.
Fiscal Period Ended April 30, 2023
(as of April 30, 2023)
AmountRatio(Millions of Yen)(%)

Fiscal Period Ended October 31, 2023
(as of October 31, 2023)
AmountRatio(Millions of Yen)(%)

Total Liabilities

243,79151.4

243,844

51.3

Total Net Assets

230,48248.6

231,523

48.7

Total Assets

474,274100.0

475,367

100.0② Details of Investment Assets
A. Major Components of Investment Securities
Details of investment assets held by KDXR as of October 31, 2023, are as follows.
Name

Area

Interests in a silent partnership
operated by G.K. KRF43(Note 3)Total

Domestic
Area

Asset
Class
Interests
in a silent
partnershipBook Value(Millions of Yen)

Numberof Units

Appraisal Value(Millions of Yen)
(Note 1)

Ratio (%)
(Note 2)

Appraisal
profit/loss(Millionsof Yen)Unit Price

AmountUnit Price

Amount

-

-

571

-

571

0.1

-

-

-

571

-

571

0.1

-

Note 1: Book value is stated as the appraisal value.
Note 2: “Ratio” is the ratio of the amount allocated in the balance sheets to the total assets, rounded to the first decimal place.
Note 3: The asset under management is the trust beneficiary interest in real estate of Shinjuku Sanei Building.

- 34 -

KDX REALTY INVESTMENT CORPORATION (8972)

B. Property List(a) Value of Investment Properties and the Investment Ratio

Type

Area

No.

A-1
A-3

OfficeBuildings

Tokyo
Metropolitan
Area

Property NameKDX Nihonbashi 313 Building
KDX Higashi-Kayabacho Sanyo
Building(Millions of Yen)

Appraisal Value at the End of Fiscal Period Ended October 31, 2023
Amount on
Direct Capitalization
Acquisition
Ratio
Discounted Cash Flow Method
Appraiser
the Balance
Method
Price
(%)
Sheet
(Note 4)OverallTerminal(Note 1)
(Note 3)(Note 5)
Discount(Note 2)
Capitalization
Value Capitalization
Value
Rate (%)
Rate (%)
Rate (%)

5,940

5,569

7,110

7,300

3.6

7,030

3.4

3.8

B

1.3

4,450

3,914

5,300

5,320

3.8

5,280

3.5

3.8

A

1.0

A-4

KDX Hatchobori Building

3,680

3,176

3,580

3,640

3.9

3,550

3.7

4.1

B

0.8

A-5

KDX Nakano-Sakaue Building

2,533

2,281

2,540

2,570

4.1

2,530

3.9

4.3

B

0.6

A-6

Harajuku F.F. Building

2,450

2,337

3,880

3,880

4.2

3,870

3.9

4.2

A

0.5

A-7

KDX Minami Aoyama Building

2,270

2,166

2,840

2,840

3.6

2,840

3.3

3.6

A

0.5

A-8

KDX Kanda Kitaguchi Building

1,950

1,721

1,650

1,690

3.9

1,630

3.7

4.1

B

0.4

A-13

KDX Kojimachi Building

5,950

5,377

5,540

5,530

3.3

5,540

3.0

3.3

A

1.3

A-14

KDX Funabashi Building

2,252

2,130

3,240

3,260

4.6

3,220

4.3

4.7

A

0.5

A-16

Toshin 24 Building

5,300

4,716

5,760

5,750

3.9

5,760

3.6

3.9

A

1.2

A-17

KDX Ebisu Building

4,640

4,228

6,230

6,190

3.6

6,260

3.2

3.6

A

1.0

A-19

KDX Hamamatsucho Building

3,460

3,044

3,610

3,740

3.5

3,560

3.3

3.7

B

0.8

A-20

KDX Kayabacho Building

2,780

2,583

3,340

3,350

4.0

3,320

3.6

4.1

A

0.6

A-21

KDX Shinbashi Building

3,728

3,636

5,370

5,370

3.3

5,370

3.0

3.3

A

0.8

A-22

KDX Shin-Yokohama Building

2,520

2,073

2,760

2,750

4.3

2,770

4.0

4.3

A

0.6

A-27

KDX Kajicho Building

2,350

2,223

2,330

2,400

3.9

2,300

3.7

4.1

B

0.5

A-29

KDX Higashi-Shinjuku Building

2,950

2,832

4,260

4,380

4.0

4,210

3.8

4.2

B

0.7

A-30

KDX Nishi-Gotanda Building

4,200

3,537

3,710

3,750

3.9

3,660

3.7

4.0

A

0.9

A-31

KDX Monzen-Nakacho Building

1,400

1,212

1,160

1,210

4.4

1,140

4.2

4.6

B

0.3

A-32

KDX Shiba-Daimon Building

6,090

5,722

6,380

6,370

3.8

6,380

3.5

3.8

A

1.3

A-33

KDX Okachimachi Building

2,000

1,967

2,100

2,160

3.9

2,080

3.7

4.1

B

0.4

A-35

KDX Hachioji Building

1,155

1,112

1,250

1,270

4.8

1,240

4.6

5.0

B

0.3

A-37

KDX Ochanomizu Building

6,400

6,392

8,440

8,430

3.6

8,440

3.3

3.6

A

1.4

A-38

KDX Nishi-Shinjuku Building

1,500

1,502

1,560

1,550

4.0

1,560

3.7

4.0

A

0.3

A-41

KDX Shinjuku 286 Building

2,300

2,323

2,900

2,880

3.6

2,910

3.3

3.6

A

0.5

A-46

Hiei Kudan-Kita Building

7,600

7,355

8,680

8,950

3.5

8,560

3.3

3.7

B

1.7

A-51

KDX Hamacho Nakanohashi Building

2,310

2,137

2,190

2,190

4.1

2,190

3.8

4.1

A

0.5

A-55

Shin-toshin Maruzen Building

2,110

2,005

1,710

1,710

4.0

1,700

3.6

4.1

A

0.5

A-56

KDX Jimbocho Building

2,760

2,769

2,370

2,380

3.9

2,360

3.5

4.0

A

0.6

A-59

KDX Iwamoto-cho Building

1,864

1,528

1,690

1,680

4.0

1,700

3.7

4.0

A

0.4

A-60

KDX Harumi Building

10,250

8,089

8,440

8,450

3.6

8,420

3.3

3.6

A

2.3

A-62

Koishikawa TG Building

3,080

2,992

3,410

3,410

3.9

3,410

3.6

3.9

A

0.7

A-63

KDX Gotanda Building

2,620

2,593

3,660

3,660

4.0

3,660

3.7

4.0

A

0.6

A-64

KDX Nihonbashi 216 Building

2,010

1,738

2,910

2,910

3.5

2,900

3.2

3.5

A

0.4

A-66

KDX Shinjuku Building

6,800

6,847

10,50010,4003.2

10,500

2.9

3.2

A

1.5

A-67

KDX Ginza 1chome Building

4,300

4,062

6,050

6,230

3.3

5,970

3.1

3.5

B

0.9

A-71

KDX Iidabashi Building

4,670

4,688

5,880

6,020

3.8

5,820

3.6

4.0

B

1.0

A-72

KDX Higashi-Shinagawa Building

4,590

4,517

4,860

4,990

3.9

4,800

3.7

4.1

B

1.0

A-73

KDX Hakozaki Building

2,710

2,549

3,680

3,740

4.1

3,650

3.9

4.3

B

0.6

A-78

KDX Tachikawa Ekimae Building

1,267

1,309

1,890

1,890

4.6

1,890

4.3

4.6

A

0.3

- 35 -

KDX REALTY INVESTMENT CORPORATION (8972)
Appraisal Value at the End of Fiscal Period Ended October 31, 2023

Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Amount on
Acquisition
the Balance
Price
Sheet
(Note 1)
(Note 3)(Note 2)

Direct Capitalization
MethodOverall
Value Capitalization
Rate (%)

Discounted Cash Flow Method
Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-83

KDX Fuchu Building

6,120

5,819

8,760

9,000

4.4

8,650

4.2

4.6

B

1.4

A-84

KDX Kasuga Building

2,800

2,628

4,250

4,240

3.8

4,250

3.5

3.8

A

0.6

A-85

KDX Nakameguro Building

1,880

1,854

3,550

3,610

4.0

3,530

3.8

4.2

B

0.4

A-86

KDX Omiya Building

2,020

2,062

3,270

3,300

4.7

3,250

4.5

4.9

B

0.4

A-87

Nihonbashi Horidomecho First

2,200

2,227

3,240

3,300

3.9

3,220

3.7

4.1

B

0.5

A-88

KDX Shinjuku 6-chome Building

1,900

1,918

3,310

3,390

3.9

3,270

3.7

4.1

B

0.4

A-89

KDX Takanawadai Building

5,250

5,509

7,370

7,370

3.8

7,370

3.5

3.8

A

1.2

A-90

KDX Ikebukuro Building

3,900

3,401

5,340

5,460

3.6

5,290

3.4

3.8

B

0.9

A-91

KDX Mita Building

3,180

3,108

4,140

4,150

3.6

4,130

3.3

3.6

A

0.7

A-92

KDX Akihabara Building

2,600

2,428

3,130

3,120

3.6

3,130

3.3

3.6

A

0.6

A-93

KDX Iidabashi Square

4,350

4,668

6,400

6,530

3.7

6,340

3.5

3.9

B

1.0

A-94

KDX Musashi-Kosugi Building

12,000

10,152

18,60018,6003.8

18,500

3.5

3.8

A

2.6

A-95

KDX Toyosu Grand Square

8,666

7,312

9,950

10,100

4.2

9,880

4.0

4.4

B

1.9

A-96

KDX Takadanobaba Building

3,650

3,516

4,790

4,860

4.0

4,760

3.7

4.2

B

0.8

A-99

KDX Ikebukuro West Building

1,934

1,947

2,660

2,730

3.9

2,630

3.7

4.1

B

0.4

A-101

KDX Yokohama Building

7,210

7,167

9,950

10,200

4.1

9,840

3.9

4.3

B

1.6

A-102

KDX Yokohama Nishiguchi Building

2,750

2,568

3,600

3,680

4.1

3,560

3.9

4.3

B

0.6

A-107

KDX Ginza East Building

3,600

3,584

4,170

4,160

3.7

4,180

3.4

3.7

A

0.8

A-108

Pentel Building

3,350

3,560

4,306

4,392

3.6

4,263

3.4

3.8

B

0.7

A-109

KDX Hamamatsucho Center Building

3,950

3,986

4,720

4,880

3.4

4,650

3.2

3.6

B

0.9

A-112

KDX Toranomon 1Chome Building

14,616

14,66925,00024,9002.9

25,000

2.6

2.9

A

3.2

A-113

KDX Shin-Nihonbashi Ekimae Building

3,829

3,925

4,700

4,690

3.3

4,710

3.0

3.3

A

0.8

A-115

ARK Mori Building

4,169

4,183

5,070

5,240

3.3

5,000

3.1

3.5

B

0.9

A-116

KDX Nishi-Shinbashi Building

8,400

8,442

9,540

9,840

3.2

9,410

3.0

3.4

B

1.9

A-117

BR Gotanda

2,200

2,258

2,590

2,640

3.9

2,540

3.5

4.1

A

0.5

A-119

KDX Shibuya Nanpeidai Building

3,500

3,519

3,850

3,950

3.3

3,810

3.3

3.5

B

0.8

A-120

KDX Yoyogi Building

2,479

2,363

2,420

2,420

4.2

2,420

3.7

4.3

A

0.5

A-121

Ginza 4chome Tower

9,800

9,258

15,40015,3002.9

15,400

2.6

2.9

A

2.2

A-122

Mitsubishijuko Yokohama Building

14,72014,43315,00015,2003.7

14,900

3.2

3.9

B

3.2

A-123

KDX Yokohama Kannai Building

9,500

9,364

10,40010,7003.8

10,200

3.6

4.0

B

2.1

A-124

KDX Hamamatsucho Place

20,70020,047

24,20025,0003.1

23,900

2.9

3.3

B

4.6

A-125

KDX Chofu Building

8,700

8,948

10,30010,300

4.3

10,200

3.9

4.4

A

1.9

A-127

KDX Kanda Ekimae Building

3,300

3,383

3,570

3,590

3.3

3,550

3.0

3.3

A

0.7

A-128

KDX Shinbashi Ekimae Building

16,300

16,246

20,90020,9002.7

20,800

2.4

2.7

A

3.6

A-130

KDX Edobashi Building

9,600

9,785

10,200

10,2003.2

10,100

2.9

3.2

A

2.1

A-12

Portus Center Building

5,570

3,903

5,010

5,210

5.3

4,920

5.1

5.5

B

1.2

A-42

KDX Karasuma Building

5,400

5,165

6,140

6,310

4.5

6,070

4.3

4.7

B

1.2

A-44

KDX Sendai Building

2,100

1,786

1,910

1,920

5.0

1,900

5.0

5.2

B

0.5

A-53

KDX Hakata-Minami Building

4,900

4,162

5,490

5,530

5.2

5,450

4.9

5.3

A

1.1

A-54

KDX Kitahama Building

2,220

1,963

1,650

1,650

4.6

1,650

4.1

4.7

A

0.5

A-58

KDX Nagoya Sakae Building

7,550

5,919

5,740

5,840

4.1

5,690

3.9

4.3

B

1.7

A-69

KDX Kobayashi-Doshomachi Building

2,870

1,580

2,900

2,920

7.9

2,880

3.8

12.3

A

0.6

A-70

KDX Sapporo Building

2,005

1,891

2,860

2,940

4.5

2,820

4.3

4.7

B

0.4

A-79

KDX Nagoya Ekimae Building

7,327

7,741

10,20010,300

3.4

10,000

3.2

3.5

A

1.6

A-82

KDX Higashi Umeda Building

2,770

2,100

4,200

4,290

4.0

4,160

3.8

4.2

B

0.6

A-97

KDX Utsunomiya Building

2,350

2,124

2,720

2,730

5.2

2,720

5.0

5.4

B

0.5

A-98

KDX Hiroshima Building

1,300

1,288

2,010

2,010

4.8

2,010

4.5

4.8

A

0.3

A-100

Senri Life Science Center Building

13,00011,84914,00014,3004.2

13,900

4.0

4.4

B

2.9

A-104

KDX Minami-Honmachi Building

2,200

1,821

3,310

3,290

3.8

3,320

3.5

3.8

A

0.5

- 36 -

KDX REALTY INVESTMENT CORPORATION (8972)
Appraisal Value at the End of Fiscal Period Ended October 31, 2023

Type

OfficeBuildings

OthersArea

No.

Property Name

Amount on
Acquisition
the Balance
Price
Sheet
(Note 1)
(Note 3)(Note 2)

Direct Capitalization
MethodOverall
Value Capitalization
Rate (%)

Discounted Cash Flow Method
Value

Terminal
Discount
Capitalization
Rate (%)
Rate (%)

Appraiser(Note 4)

Ratio(%)
(Note 5)A-106

KDX Sakura-dori Building

5,900

6,548

8,600

8,750

4.3

8,540

4.1

4.5

B

1.3

A-110

KDX Shin-Osaka Building

4,550

4,459

5,700

5,850

3.9

5,630

3.7

4.1

B

1.0

A-111

KDX Nagoya Nichigin-mae Building

3,500

3,269

4,320

4,310

3.6

4,330

3.3

3.6

A

0.8

A-118

KDX Sapporo Kitaguchi Building

1,800

2,080

2,460

2,540

4.5

2,420

4.3

4.7

B

0.4

A-126

KDX Tosabori Building

5,000

5,038

4,890

4,900

3.7

4,880

3.4

3.7

A

1.1

A-129

KDX Sendai Honcho Building

6,360

6,471

6,500

6,790

4.5

6,370

4.3

4.7

B

1.4

A-131

KDX Kobe Building

3,450

3,626

3,620

3,750

4.2

3,560

3.9

4.3

B

0.8

Subtotal of Office Buildings (96 properties)

450,436

428,016547,636554,262-

543,833

-

-

-

99.4

2,880

2,973

3,750

3,780

3.2

3,730

3.1

3.2

B

0.6

Subtotal of Others (1 property)

2,880

2,973

3,750

3,780

-

3,730

-

-

0.6

Total of 97 properties

453,316

430,989

551,386

558,042-

547,563

-

-

-

Other
Regional
Areas

Tokyo
Metropolitan
Area

D-2

Shinjuku 6chome Building (Land)

100.0

Note 1: Acquisition prices are the purchase prices for trust beneficiary interests or properties acquired by KDXR (excluding acquisition costs, property tax, city
planning tax, consumption tax, rounded down to the nearest million yen.).
Note 2: Figures of less than 1 million are rounded down from the amounts on the balance sheet.
Note 3: Appraisal values at the end of fiscal period are based on the asset valuation method and standards outlined in KDXR’s Articles of Incorporation andregulations formulated by the Investment Trusts Association, Japan. Appraisal values are transcribed from valuation reports prepared by Japan Real Estate
Institute and Daiwa Real Estate Appraisal Co., Ltd.
Note 4: Appraisals of the properties were entrusted to two appraisers: Japan Real Estate Institute and Daiwa Real Estate Appraisal Co., Ltd. In the table, theappraisers are referred to as “A” for Japan Real Estate Institute and “B” for Daiwa Real Estate Appraisal Co., Ltd.
Note 5: Figures are the acquisition price of each asset as a percentage of the total acquisition prices for the portfolio rounded to the first decimal place. The figuresentered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding to each
subtotal and total column by the total acquisition price of the entire assets (97 properties).

- 37 -

KDX REALTY INVESTMENT CORPORATION (8972)(b) Property Distribution
Distribution by Property TypesType

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note)(%)

Office Buildings

96

450,436

99.4

Others

1

2,880

0.6

97

453,316

100.0

Total
Geographic Distribution
Area

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note)(%)

Tokyo Metropolitan Area

76

361,194

79.7

Other Regional Areas

21

92,12220.3

97453,316

100.0

Total
Property Distribution by Acquisition Price
Acquisition Price (Millions of Yen)

Number of
Properties

Acquisition Price(Millions of Yen)

Ratio (Note)(%)

Less than 1,000

-

-

-

1,000 - 2,499

29

57,77712.7

2,500 - 4,999

38

133,51929.5

5,000 - 7,499

15

90,61720.0

7,500 - 9,999

8

69,81615.4

10,000 - 12,499

2

22,2504.9

12,500 - 14,999

3

42,3369.3

15,000 - 17,499

1

16,3003.6

17,500 - 19,999

-

-

-

20,000 or more

1

20,7004.6

97453,316

100.0

Total

Note: “Ratio” refers to the percentage of the acquisition price by each category to the acquisition price of the entire portfolio.
Figures are rounded to the first decimal place. Accordingly, the sum total of each item may be less than 100%.

- 38 -

KDX REALTY INVESTMENT CORPORATION (8972)(c) Overview of Investment Real Estate Properties and Trust Real Estate
Type

OfficeBuildings

Area

Tokyo
Metropolitan
Area

No.

Property Name

Site Area(m2) (Note 1)

A-1

KDX Nihonbashi 313 Building

1,047.72

Offices

8,613.09

A-3

KDX Higashi-Kayabacho Sanyo Building

773.43

Offices

5,916.48

A-4

KDX Hatchobori Building

992.20

Offices

4,800.43

Usage(Note 2)

Total Floor Area(m2) (Note 3)

Offices, Retail Shops
1,235.16
Residence, Garage Storage
Retail Shops, Offices
708.35Parking
Offices, Retail Shops
369.47
Residence

A-5

KDX Nakano-Sakaue Building

A-6

Harajuku F.F. Building

A-7

KDX Minami Aoyama Building

A-8

KDX Kanda Kitaguchi Building

410.18

Offices

2,393.94

A-13

KDX Kojimachi Building

612.17

Offices, Retail Shops

5,323.81

A-14

KDX Funabashi Building

1,180.41

Offices, Retail Shops

5,970.12

A-16

Toshin 24 Building

1,287.16

Offices, Retail Shops
Parking

8,483.17

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58

Offices, Retail Shops
Parking

3,592.38

Offices, Parking

3,804.86

A-19

KDX Hamamatsucho Building

504.26

A-20

KDX Kayabacho Building

617.17

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking

6,399.42
3,812.44
1,926.98

A-21

KDX Shinbashi Building

536.11

3,960.22

A-22

KDX Shin-Yokohama Building

705.00A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
7,885.40

6,180.51

A-29

KDX Higashi-Shinjuku Building

1,340.97

Offices
Storage, Parking

A-30

KDX Nishi-Gotanda Building

684.41

Offices, Parking

5,192.87

A-31

KDX Monzen-Nakacho Building

580.99

Offices, Retail Shops

2,668.91

A-32

KDX Shiba-Daimon Building

1,188.28

Offices

7,824.03

A-33

KDX Okachimachi Building

239.72

Offices

1,882.00

A-35

KDX Hachioji Building

460.62A-37

KDX Ochanomizu Building

1,515.28

A-38

KDX Nishi-Shinjuku Building

626.06A-41

KDX Shinjuku 286 Building

Offices, Parking
Retail Shops
Offices, Storage
Retail Shops, Parking
Mechanical Room

2,821.21
7,720.08

Offices, Parking

2,017.63

421.70

Offices, Parking

3,432.04
11,425.31

A-46

Hiei Kudan-Kita Building

1,844.83

Offices, Retail Shops
Office Room
Parking, Storage

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
3,439.37

A-55

Shin-toshin Maruzen Building

457.64

Offices, Retail Shops
Parking

A-56

KDX Jimbocho Building

465.92

Offices

3,292.13
1,618.65

A-59

KDX Iwamoto-cho Building

266.86

Offices
Residential Complex

A-60

KDX Harumi Building

2,230.69

Offices, Retail Shops

12,694.32

A-62

Koishikawa TG Building

1,250.42

Offices, Clinic, Parking

5,862.02

A-63

KDX Gotanda Building

582.90

Offices, Garage

4,440.61

A-64

KDX Nihonbashi 216 Building

307.77

Offices

1,871.62
10,348.02

A-66

KDX Shinjuku Building

1,118.12

Offices, Retail Shops
Parking

A-67

KDX Ginza 1chome Building

678.24

Offices, Bank

4,724.62

A-71

KDX Iidabashi Building

967.38

Offices, Parking

5,422.64

A-72

KDX Higashi-Shinagawa Building

3,115.45

Offices

10,138.65

A-73

KDX Hakozaki Building

971.83

Offices, Parking

6,332.48

A-78

KDX Tachikawa Ekimae Building

464.95

Offices

2,896.48

A-83

KDX Fuchu Building

2,400.00

Offices, Parking

16,647.00

1,319.24

Offices, Retail Shops
Parking

6,444.31

A-84

KDX Kasuga Building- 39 -

Type of Structure(Note 4)
SRC
B2F9
SRC
B1F9
SRC・RC
B1F8
SRC
B1F11
SRC
F11
SRC
B1F9
SRC・RC・S
B1F8
SRC
B2F9
SRC
B1F8
SRC
B1F8
SRC
B1F7
S
F9
SRC
F8
SRC・S
B1F8
S
B1F9
SRC
B1F8
SRC
B1F9
SRC
B1F8
SRC
F8
SRC
B1F9
S
F10
SRC
F9
SRC
B1F7
RC
F5
SRC・RC
B1F9
SRC・S
B1F11
SRC
F9
SRC
B1F8
SRC
B1F8
S
F9
S・SRC
B1F11
SRC
B1F8
SRC
B1F9
SRC
F9
S・RC
B4F11
SRC
F9
SRC
B1F8
S・RC
B1F5
SRC
B1F10
S
B1F8
SRC・S
B1F14
SRC
B1F10

Completion Date
(Note 5)PML(%)
(Note 6)

April 1974

6.8

January 1987

7.0

June 1993

7.0

August 1992

5.0

November 1985

4.4

November 1988

6.7

May 1993

5.4

May 1994

4.7

April 1989

7.8

September 1984

7.9

January 1992

7.6

September 1999

7.4

October 1987

7.0

February 1992

7.7

September 1990

9.3

March 1990

6.5

January 1990

6.8

November 1992

8.0

September 1986

6.4

July 1986

7.0

June 1988

7.7

December 1985

5.5

August 1982

8.5

October 1992

8.9

August 1989

6.4

March 1988

5.0

September 1988

6.9

July 1990

6.5

May 1994

6.3

March 2008

8.4

February 2008

2.8

November 1989

6.8

April 1988

8.1

October 2006

6.9

May 1993

4.8

November 1991

6.9

March 1990

6.4

January 1993

8.1

November 1993

6.9

February 1990

3.5

March 1996

2.7

June 1992

6.4

KDX REALTY INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Site Area(m2) (Note 1)

A-85

KDX Nakameguro Building

730.26Usage(Note 2)

Total Floor Area(m2) (Note 3)
Offices

Offices, Retail Shops
Parking, Residence
Offices, Residence
Parking
Offices, Retail Shops,
Parking

3,455.90

A-86

KDX Omiya Building

775.67

A-87

Nihonbashi Horidomecho First

1,193.91

A-88

KDX Shinjuku 6-chome Building

1,072.03

A-89

KDX Takanawadai Building

2,546.89

A-90

KDX Ikebukuro Building

472.94

A-91

KDX Mita Building

548.72

A-92

KDX Akihabara Building

374.88Retail Shops, Offices

2,979.14

A-93

KDX Iidabashi Square

1,341.98

Offices, Parking

6,764.37

A-94

KDX Musashi-Kosugi Building

3,210.09

Offices, Retail Shops

16,094.14

A-95

KDX Toyosu Grand Square

20,403.07

Offices, Retail Shops

63,419.60

A-96

KDX Takadanobaba Building

1,511.58

Offices, Parking

6,576.07
3,477.86

Offices
Offices, Retail Shops
Parking
Offices, Retail Shops
Garage5,055.50
7,362.25
5,907.00
9,265.03
3,848.18
5,007.98

A-99

KDX Ikebukuro West Building

603.21

Offices, Retail Shops,
Parking

A-101

KDX Yokohama Building

2,499.38

Offices, Parking

15,894.75

A-102

KDX Yokohama Nishiguchi Building

1,029.45

Offices

6,556.59

A-107

KDX Ginza East Building

1,216.99

Offices, Parking

6,413.60

Offices, Bank,
Residence

18,880.89

A-108

Pentel Building

2,502.63

A-109

KDX Hamamatsucho Center Building

835.83

Offices, Garage

3,981.69
11,212.05

A-112

KDX Toranomon 1Chome Building

1,449.82

Offices, Retail Shops
Parking

A-113

KDX Shin-Nihonbashi Ekimae Building

531.64

Offices, Parking

4,254.07

A-115

ARK Mori Building

39,602.42

Offices

177,486.95

A-116

KDX Nishi-Shinbashi Building

1,406.56

Offices, Garage

8,851.60

A-117

BR Gotanda

914.80

Offices, Parking

7,395.72

A-119

KDX Shibuya Nanpeidai Building

1,276.02

Offices

2,832.58

A-120

KDX Yoyogi Building

228.74Retail Shops, Offices

1,269.06

A-121

Ginza 4chome Tower

688.52Retail Shops, Offices,
Parking

6,787.33

A-122

Mitsubishijuko Yokohama Building

10,100.58

Offices, Retail Shops

109,472.69

A-123

KDX Yokohama Kannai Building

1,687.26

Offices, Parking

15,883.21

A-124

KDX Hamamatsucho Place

1,917.71

Offices

12,280.77

A-125

KDX Chofu Building

13,265.06

Offices, Parking

31,536.86

A-127

KDX Kanda Ekimae Building

435.14

Offices

2,543.00

Offices, Clinic,
Retail Shops

7,327.63

A-128

KDX Shinbashi Ekimae Building

874.36A-130

KDX Edobashi Building

924.00

Offices

8,076.42
79,827.08

A-12

Portus Center Building

13,936.63

Offices, Retail Shops
Storage, Parking

A-42

KDX Karasuma Building

1,788.67

Offices

12,632.68

A-44

KDX Sendai Building

987.78

Offices

5,918.30

A-53

KDX Hakata-Minami Building

1,826.25

A-54

KDX Kitahama Building

751.92

A-58

KDX Nagoya Sakae Building

1,192.22

Offices, Retail Shops

9,594.00

A-69

KDX Kobayashi-Doshomachi Building(Note 7)

1,561.04

Offices, Garage
Retail Shops

10,723.83

A-70

KDX Sapporo Building

819.44

Offices

5,503.90

A-79

KDX Nagoya Ekimae Building

1,354.10

Offices, Retail Shops

13,380.30

804.50

Offices, Retail Shops
Parking

6,805.76

A-82

KDX Higashi Umeda Building- 40 -

Offices, Retail Shops
Parking
Offices, Storage
Parking

13,238.16
4,652.96

Type of Structure(Note 4)SRC
F7①S・SRC B1F8
②S F3
SRC
B1F10
SRC・RC
B2F10
SRC
B1F9
S・RC
B1F10
S・SRC
B3F11
SRC
B1F9
SRC
B1F8
S
B1F11
S
F11
SRC・RC
B2F7
SRC
F10
SRC・S
B1F11
SRC
B1F9
SRC
B1F9
S・SRC
B3F14
SRC
F7
S・SRC
B1F11
SRC
B1F10
RC・SRC・S
B4F37
SRC
B1F11
SRC・S
B2F11
S
F4
SRC
F8
S
B1F13
S・SRC
B2F34
S・SRC・RC
B2F14
S
F10
SRC・RC
B1F7
S
F8
S・SRC
B1F11
SRC
B1F10
SRC・S
B2F25
SRC
B1F8
SRC
B1F10
SRC
B1F9
S
F10
S
F11
S・SRC
B1F12
SRC
B1F9
S・SRC
B2F15
S・SRC
B1F10

Completion Date
(Note 5)PML(%)
(Note 6)

October 1985

6.9

April 1993

3.8

July 1995

6.8

March 1990

5.2

October 1985

6.5

March 2009

4.7

March 1993

4.8

December 1973

7.9

January 1994

6.6

May 2013

7.0

April 2008

6.8

October 1988

6.9

July 1988

5.7

March 1994

8.8

October 1988

6.2

August 1991

5.6

November 1990

6.4

December 1985

8.0

October 2013

7.4

May 1992

5.8

March 1986

2.2

August 1992

5.2

September 1991

7.8

December 2003

7.4

August 1991

5.1

November 2008

5.9

February 1994

3.5

September 2007

1.1

February 2015

0.4

January 1995

7.2

February 1991

6.2

September 2018

4.6

November 1986

6.5

September 1993

3.6

October 1982

1.0

February 1984

1.3

June 1973

0.9

July 1994

2.3

April 2009

0.3

July 2009

2.7

October 1989

1.3

April 1986

3.7

July 2009

2.2

KDX REALTY INVESTMENT CORPORATION (8972)
Type

OfficeBuildings

Other

Area

No.

Property Name

Site Area(m2) (Note 1)

Usage(Note 2)

Total Floor Area(m2) (Note 3)

Type of Structure(Note 4)PML(%)
(Note 6)

February 1999

0.1

January 1990

1.1

June 1992

1.1

December 2009

2.4

August 1992

3.8

May 1992

3.3

September 2006

4.3

September 1992

1.8

October 1987

3.3

November 1984

1.0

May 1992

2.0

A-97

KDX Utsunomiya Building

1,412.00

Offices, Retail Shops
Parking

7,742.18

A-98

KDX Hiroshima Building

706.78

Offices, Parking Tower

5,718.83

A-100

Senri Life Science Center Building

5,911.08

A-104

KDX Minami-Honmachi Building

882.96A-106

KDX Sakura-dori Building

2,420.43

A-110

KDX Shin-Osaka Building

1,016.54

A-111

KDX Nagoya Nichigin-mae Building

732.14

Offices

5,862.22

A-118

KDX Sapporo Kitaguchi Building

782.69

Offices

4,639.44

A-126

KDX Tosabori Building

993.68

Offices, Garage

8,307.73

A-129

KDX Sendai Honcho Building

1,995.04

Offices, Retail Shops

13,049.82

A-131

KDX Kobe Building

1,290.18

Offices

8,501.91

Subtotal of Office Buildings (96 properties)

-

-

-

-

Avg. 27.5 yrs.

-

1,355.13

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Avg. 27.5 yrs.

3.1

Other
Regional
Areas

Tokyo
Metropolitan
Area

D-2

Shinjuku 6chome Building (Land)

Subtotal of Others (1 property)
Total of 97 properties

Offices, Retail Shops
Parking
Offices, Retail Shops
GarageOffices, Retail Shops
Lounge, Storage
Offices, Parking
Retail Shops

49,260.78
7,694.03
19,680.16
7,987.35

S・SRC
B1F10
SRC
B1F10
SRC・S
B3F21
S・RC
B1F12
S
B1F18
SRC
B1F11
S
B1F10
SRC・RC
B1F9
SRC
B1F10
SRC
B1F12
S・SRC
B1F10

Completion Date
(Note 5)Note 1: Site area data is based on figures recorded in the land register (including relevant figures for land leasehold, if any). Data may not match with the actual
current status. In the case of buildings with compartmentalized ownership, the figure indicates the site area of the entire land subject to site rights.
Note 2: Usage is based on data recorded in the land register. For buildings with compartmentalized ownership, the usage type of exclusively owned area is shown.
Note 3: Total floor area is based on figures recorded in the land register and does not include related structures. The total floor area for the entire building isreported for compartmentalized ownership.
Note 4: Type of structure data is based on data recorded in the land register. For buildings with compartmentalized ownership, the structure and the number offloors of the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating tostructure and the number of floors:
SRC: Steel-Reinforced Concrete; RC: Reinforced Concrete; S: Steel Frame; B: Below Ground Level; F: Above Ground Level.
For example: B2F9: Two floors below ground level and nine floors above ground level.
Note 5: Completion date is the date of construction completion recorded in the land register. Average age subtotal and total data are calculated using the weighted
average based on acquisition prices as of October 31, 2023, and are rounded down to the first decimal place.
Note 6: Probable Maximum Loss (PML) data is based on a survey provided by Sompo Risk Management Inc. as of October 31, 2023.
Note 7: KDX Kobayashi Doshomachi Building includes the fixed-term land leasehold with a special agreement to transfer building.

- 41 -

KDX REALTY INVESTMENT CORPORATION (8972)(d) Details of the Tenants
Type

Area

No.

Property Name

A-1

KDX Nihonbashi 313 Building
KDX Higashi-Kayabacho Sanyo
Building
KDX Hatchobori Building
KDX Nakano-Sakaue Building
Harajuku F.F. Building
KDX Minami Aoyama Building
KDX Kanda Kitaguchi Building
KDX Kojimachi Building
KDX Funabashi Building
Toshin 24 Building
KDX Ebisu Building
KDX Hamamatsucho Building
KDX Kayabacho Building
KDX Shinbashi Building
KDX Shin-Yokohama Building
KDX Kajicho Building
KDX Higashi-Shinjuku Building
KDX Nishi-Gotanda Building
KDX Monzen-Nakacho Building
KDX Shiba-Daimon Building
KDX Okachimachi Building
KDX Hachioji Building
KDX Ochanomizu Building
KDX Nishi-Shinjuku Building
KDX Shinjuku 286 Building
Hiei Kudan-Kita Building
KDX Hamacho Nakanohashi
Building
Shin-toshin Maruzen Building
KDX Jimbocho Building
KDX Iwamoto-cho Building
KDX Harumi Building
Koishikawa TG Building
KDX Gotanda Building
KDX Nihonbashi 216 Building
KDX Shinjuku Building
KDX Ginza 1chome Building
KDX Iidabashi Building
KDX Higashi-Shinagawa Building
KDX Hakozaki Building
KDX Tachikawa Ekimae Building
KDX Fuchu Building
KDX Kasuga Building
KDX Nakameguro Building
KDX Omiya Building
Nihonbashi Horidomecho FirstKDX Shinjuku 6-chome Building
KDX Takanawadai Building
KDX Ikebukuro Building
KDX Mita Building
KDX Akihabara Building
KDX Iidabashi Square
KDX Musashi-Kosugi Building
KDX Toyosu Grand Square
KDX Takadanobaba Building
KDX Ikebukuro West Building
KDX Yokohama Building
KDX Yokohama Nishiguchi
Building
KDX Ginza East Building
Pentel Building
KDX Hamamatsucho Center
Building
KDX Toranomon 1Chome Building
KDX Shin-Nihonbashi Ekimae
Building

5,732.83

-

-

16

100.0

202,784

279,304

4,379.20

-

-

9

100.0

116,982

218,776

3,323.14
4,286.99
3,071.15
1,810.19
1,918.23
3,719.37
3,845.90
6,616.68
3,072.34
2,724.35
3,019.94
2,803.96
4,768.94
2,564.79
5,859.92
3,883.02
2,008.74
5,997.36
1,792.54
2,159.05
5,861.72
1,593.59
2,445.22
6,908.96

3,323.14
4,286.99
3,071.15
1,577.01
1,918.23
3,719.37
3,845.90
6,616.68
3,072.34
2,388.48
2,582.53
2,434.32
4,768.94
2,564.79
5,859.92
3,883.02
2,008.74
5,997.36
1,792.54
2,159.05
5,861.72
1,593.59
2,445.22
6,908.96

19
-

19
-

4
28
2
7
10
9
23
20
5
8
6
8
23
10
6
12
6
8
2
10
9
10
9
15

100.0
100.0
100.0
87.1
100.0
100.0
100.0
100.0
100.0
87.7
85.5
86.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

113,634
93,777
112,541
69,02052,145
145,311116,150
182,822
154,90999,26389,980120,813
101,557
67,926
148,534
119,788
47,966
181,734
64,64750,957
203,90851,50275,032
248,794

113,376
117,137
144,075
80,30476,876
255,253
169,636
281,886
271,338
111,757
147,764
202,097
176,219
99,777130,288
155,871
48,898263,030
103,663
56,102
319,41283,284
98,615362,991

2,237.07

2,237.07

-

-

9

100.0

72,553

101,753

1,912.24
2,323.44
1,529.70
9,294.00
3,934.35
3,157.04
1,615.20
5,801.65
3,573.59
4,350.61
7,117.94
3,992.60
1,613.25
10,151.50
4,348.15
2,726.69
3,833.23
3,106.42
4,037.44
6,970.54
3,110.77
3,272.19
2,287.40
4,571.92
12,978.59
11,797.84
4,596.20
2,532.71
10,875.91

1,912.24
2,323.44
1,529.70
8,432.48
3,934.35
3,157.04
1,413.30
5,801.65
3,573.59
4,350.61
5,452.06
3,565.24
1,613.25
9,902.52
4,348.15
2,726.69
3,743.53
3,106.42
4,037.44
6,970.54
3,110.77
2,959.12
2,287.40
4,571.92
12,978.59
11,331.92
4,596.20
2,532.71
10,611.67

3
1
8
-

3
8
-

6
5
8
11
2
10
7
23
4
12
6
7
5
40
11
7
16
13
6
7
7
11
8
8
17
14
11
7
26

100.0
100.0
100.0
90.7
100.0
100.0
87.5
100.0
100.0
100.0
76.6
89.3
100.0
97.5
100.0
100.0
97.7
100.0
100.0
100.0
100.0
90.4
100.0
100.0
100.0
96.1
100.0
100.0
97.6

55,07665,35943,589247,014
127,185
111,186
58,693
266,304
153,989
186,166
132,964
121,549
70,232
307,145
128,230
96,811
125,908
104,479
103,832
209,474
128,494
98,132
74,208
176,705
413,651
323,413
149,264
78,598285,11476,475
104,865
72,873351,941
155,102
156,650
108,948
337,646
193,218
189,096
173,248
138,255
111,199478,754
170,421
177,801
214,066
124,386
101,443
284,173
205,794
152,431
131,144
337,076
823,726
458,417
171,670
92,416453,785

4,985.72

4,985.72

-

-

14

100.0

127,321

180,053

4,400.92
4,346.66

4,400.92
4,346.66

5

5

12
10

100.0
100.0

124,551
143,388

157,044
206,116

3,052.76

3,052.76

-

-

7

100.0

118,177

183,578

8,179.00

8,179.00

-

-

3

100.0

531,492

664,0143,279.09

3,279.09

-

-

10

100.0

120,829

196,054

A-115 ARK Mori Building

2,442.60

2,442.60

-

-

100.0

A-116
A-117
A-119
A-120
A-121
A-122
A-123
A-124
A-125
A-127
A-128

5,735.58
3,320.24
2,205.33
1,173.55
5,624.23
13,495.34
10,052.67
9,325.18
11,834.73
2,175.29
5,403.25

5,735.58
3,320.24
2,205.33
1,173.55
5,624.23
13,289.61
10,052.67
9,325.18
11,834.73
2,175.29
5,020.73--

1(Note 9)N/A
(Note 10)

N/A
(Note 10)

A-4
A-5
A-6
A-7
A-8
A-13
A-14
A-16
A-17
A-19
A-20
A-21
A-22
A-27
A-29
A-30
A-31
A-32
A-33
A-35
A-37
A-38
A-41
A-46
A-51

Tokyo
Metropolitan
Area

A-55
A-56
A-59
A-60
A-62
A-63
A-64
A-66
A-67
A-71
A-72
A-73
A-78
A-83
A-84
A-85
A-86
A-87
A-88
A-89
A-90
A-91
A-92
A-93
A-94
A-95
A-96
A-99
A-101
A-102
A-107
A-108
A-109
A-112
A-113

KDX Nishi-Shinbashi Building
BR Gotanda
KDX Shibuya Nanpeidai Building
KDX Yoyogi Building
Ginza 4chome Tower
Mitsubishijuko Yokohama Building
KDX Yokohama Kannai Building
KDX Hamamatsucho PlaceKDX Chofu Building
KDX Kanda Ekimae Building
KDX Shinbashi Ekimae Building

5,732.83

No. ofNo. ofRental and Other
Tenant Leasehold
Total Leased
Occupancy
Leasable
LeasedNo. ofOperatingand Security
Floor Area
Rate
Residential Residential Tenants
Revenues
Deposits
(m2)
(%)
Units
Units
(Note 5)
(Thousands of Yen) (Thousands of Yen)
(Note 2)
(Note 6)(Note 3) (Note 4)(Note 7)(Note 8)4,379.20

A-3

OfficeBuildings

Total Leasable
Floor Area(m2)
(Note 1)

- 42 -

7
6
1
10
4
22
11
12
7
7
7

100.0
100.0
100.0
100.0
100.0
98.5
100.0
100.0
100.0
100.0
92.9

222,110109,201
98,811
76,285309,564
424,234
322,732
516,685
342,957
77,648363,973

313,015
120,129
176,681
106,034
338,450
667,397
437,591
991,230
276,680
92,242578,963

KDX REALTY INVESTMENT CORPORATION (8972)

Type

Area

No.

Property Name

A-130
A-12
A-42
A-44
A-53
A-54
A-58

KDX Edobashi Building
Portus Center Building
KDX Karasuma Building
KDX Sendai Building
KDX Hakata-Minami Building
KDX Kitahama Building
KDX Nagoya Sakae Building
KDX Kobayashi-Doshomachi
Building
KDX Sapporo Building
KDX Nagoya Ekimae Building
KDX Higashi Umeda Building
KDX Utsunomiya Building
KDX Hiroshima Building
Senri Life Science Center Building
KDX Minami-Honmachi Building
KDX Sakura-dori Building
KDX Shin-Osaka Building
KDX Nagoya Nichigin-mae Building
KDX Sapporo Kitaguchi Building
KDX Tosabori Building
KDX Sendai Honcho Building
KDX Kobe Building

A-69

OfficeBuildings

A-70
A-79
A-82
A-97
A-98
A-100
A-104
A-106
A-110
A-111
A-118
A-126
A-129
A-131

Other
Regional
Areas

Subtotal of Office Buildings (96 properties)
OthersTokyo
Metropolitan
Area

D-2

Shinjuku 6Chome Building (Land)

Subtotal of Others (1 property)
Total of 97 properties

Total Leasable
Floor Area(m2)
(Note 1)

5,689.60
11,500.89
8,730.20
3,948.03
10,112.80
4,007.96
6,923.12

No. ofNo. ofRental and Other
Tenant Leasehold
Total Leased
Occupancy
Leasable
LeasedNo. ofOperatingand Security
Floor Area
Rate
Residential Residential Tenants
Revenues
Deposits
(m2)
(%)
Units
Units
(Note 5)
(Thousands of Yen) (Thousands of Yen)
(Note 2)
(Note 6)(Note 3) (Note 4)(Note 7)(Note 8)5,689.60
10,457.93
8,730.20
3,701.16
10,112.80
3,729.22
6,685.69--

7,072.26

7,072.26-

3,779.73
7,904.22
4,994.88
5,278.51
4,000.15
17,155.65
5,280.02
12,314.52
5,985.76
4,363.96
3,319.15
5,635.37
8,886.10
5,669.74

3,697.01
7,904.22
4,994.88
5,278.51
4,000.15
16,970.10
5,280.02
12,314.52
5,985.76
4,363.96
3,319.15
5,414.39
8,679.95
5,669.74-

493,403.06

484,398.74

1,355.13
1,355.13
494,758.19

7
31
42
29
52
14
17

100.0
90.9
100.0
93.7
100.0
93.0
96.6

178,331240,977
225,993
93,580224,862
77,266
203,727

303,237
298,302327,877
176,201
309,703
100,034
279,225

-

8

100.0

212,360

223,136

-

18
19
4
25
23
62
16
36
20
16
18
12
45
21

97.8
100.0
100.0
100.0
100.0
98.9
100.0
100.0
100.0
100.0
100.0
96.1
97.7
100.0

106,107
340,990
155,459
131,285
76,167
721,139
114,289
368,334
170,253
124,201
78,641
131,095
217,568
102,530

153,825534,080
149,964
156,730
113,655
961,880
166,416
521,442
232,315
179,345
129,690
212,069
287,908
140,144

36

35

1,285

98.2

15,992,065

22,897,236

1,355.13

-

-

1

100.0

68,86657,385

1,355.13

-

-

1

100.0

68,86657,38598.2

16,060,932

22,954,621

485,753.87

36

35

1,286
(Note
11)

Note 1: Total leasable floor area refers to the leasable floor area for a building (aggregate total of the leasable floor area of each building in the case of more than
one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans. However, theindicated figure of rentable area for Pentel Building includes leasable area for land stated in the lease agreement. The indicated figure of leasable areafor Shinjuku 6chome Building (Land) is leasable area stated in the land lease agreement.
Note 2: Total leased floor area refers to the area identified in lease agreements with end tenants or sub-lease agreements.
Note 3: The number of leasable residential units refers to the portion of the building used for residential purposes.
Note 4: The number of leased residential units refers to the number of residential units among leasable residential units for which lease agreements with end
tenants or sub-lease agreements are signed.
Note 5: The number of tenants refers to the actual number of end tenants for each property.
Note 6: Occupancy rate is calculated by dividing leased floor area by total leasable floor area. Figures are rounded to the first decimal place. The figures enteredin the subtotal and total columns are those obtained by dividing the subtotal (total) of total leased floor area by the subtotal (total) of total leasable floorarea of properties corresponding to each subtotal and total column.
Note 7: Rental and other operating revenues refer to the total amount of revenues generated during the fiscal period under review from real estate rental
operations including leasing revenues, common charges and parking revenues rounded down to the nearest thousand yen.
Note 8: Tenant leasehold and security deposits refer to the total of the balances of security deposits held (including net security deposits in the case of discount)and guarantee deposits, both identified in lease agreements or sub-lease agreements, with the figure rounded down to the nearest thousand yen.
Note 9: Since we have concluded a building lease agreement and a property management agreement with Mori Building Co., Ltd., a master lessee, the total
number of tenants is indicated as 1.
Note 10: Figures are not disclosed because the company that is a master lessee and a property manager has not given consent.
Note 11: The number presented does not reflect the adjustment for end-tenants who are overlapping in multiple properties.

- 43 -

KDX REALTY INVESTMENT CORPORATION (8972)(2) Capital Expenditures① Planned Capital Expenditures
Major capital expenditure plans for renovation of properties held by KDXR for the fiscal period ending April 30, 2024 (November
1, 2023 to April 30, 2024) are as follows. Planned capital expenditures may include portions classified into expenses for accounting
purposes as a result.
Property Name
(Location)

PurposeSchedule

Planned Amount of Capital Expenditures(Millions of Yen)
Paid in the
Total Amount
Total
Fiscal Period
Previously Paid
under Review

KDX Karasuma Building(Kyoto, Kyoto)

Renewal of air-conditioning
systemNovember 2023
to April 2024

182

-

-

Resora Obu Shopping Terrace *2(Obu, Aichi)
KDX Residence Ohori Harbor View
Tower *3
(Fukuoka, Fukuoka)
Activa Biwa *3(Otsu, Shiga)

Renewal of air-conditioning
systemAs above

131

-

-

Upgrade of common area

As above

130

-

-

Renovation of plumbing
equipment

As above

105

-

-

Renovation of external wall

As above

101

-

-

Upgrade of common area

As above98--

Solar panel installation

As above84--

Upgrade of common area

As above

75--

Ginza 4chome Tower(Chuo-ku, Tokyo)
Activa Biwa *3(Otsu, Shiga)
iias Kasugai *2(Kasugai, Aichi)
KDX Residence Iriya *3(Taito-ku, Tokyo)
KDX Sakaisuji Hommachi
Residence *3(Osaka, Osaka)
KDX Sendai Honcho Building(Sendai, Miyagi)

Upgrade of common area

As above73--

Renewal of disaster prevention
equipment

As above

70--

Portus Center Building(Sakai, Osaka)

Upgrade of exclusively owned
area

As above64--

KDX Nagoya Ekimae Building(Naogya, Aichi)

Renovation of transformers

As above

63--

RIVER CITY21 East Towers II(Chuo-ku, Tokyo)

Upgrade of exclusively owned
area

As above

62--

Renovation of elevator

As above

60--

Upgrade of common area

As above

50--

Rooftop waterproof work

As above47--

Upgrade of common area

As above

45--

KDX Takadanobaba Building(Toshima-ku, Tokyo)

Renovation of mechanicalparking lot

As above43--

KDX Nishi-Gotanda Building(Shinagawa-ku, Tokyo)

Renovation of mechanicalparking lot

As above42--

KDX Yoyogi Building(Shibuya-ku, Tokyo)

Renovation of external wall

As above38--

KDX Yokohama Nishiguchi Building(Yokohama, Kanagawa)

Upgrade of exclusively owned
area

As above

28--

Excellent Nishinomiya *3(Nishinomiya-shi, Hyogo)

Renewal of air-conditioning
systemAs above28--

Irise Kamata/Yuseien *3(Ota-ku, Tokyo)
Gran Hills Ogawarako *3(Tohokumachi, Kamikita-gun,
Aomori)KDX Residence Futako Tamagawa*3(Setagaya-ku, Tokyo)
Tenri Distribution Center *2(Tenri, Nara)

Renewal of air-conditioning
systemAs above21--

Upgrade of exclusively owned
area

As above

20--

Renovation of mechanicalparking lot

As above

19--

Lighting system replacement

As above18--

KDX Sapporo Building(Sapporo, Hokkaido)
KDX Residence Nishi-oji *3(Kyoto, Kyoto)
Habikigaoka Shopping Center *2(Habikino, Osaka)
KDX Residence Kamishakujii *3(Nerima-ku, Tokyo)- 44 -

KDX REALTY INVESTMENT CORPORATION (8972)

Property Name
(Location)

Planned Amount of Capital Expenditures(Millions of Yen)
Paid in the
Total Amount
Total
Fiscal Period
Previously Paid
under Review

PurposeSchedule

Lighting system replacement

As above

18--

Renovation of mechanicalparking lot

As above

17--

KDX Hiroshima Building(Hiroshima, Hiroshima)

Upgrade of common area

As above

16--

Excellent Nishinomiya *3(Nishinomiya, Hyogo)

Renovation of plumbing
equipment

As above

15

-

-

15

-

-

13

-

-

Gran Hills Ogawarako *3(Tohokumachi, Kamikita-gun,
Aomori)KDX Tachikawa Ekimae Building(Tachikawa, Tokyo)

Excellent Nishinomiya *3
Renewal of air-conditioning
As above(Nishinomiya, Hyogo)systemShinjuku Nishiochiai Distribution
Upgrade of exclusively owned
Center *2
As abovearea(Shinjuku-ku, Tokyo)
Note 1: The planned amounts of capital expenditures are rounded down to the nearest million yen.
Note 2: These assets were succeeded from KRR, which was merged on November 1, 2023.
Note 3: These assets were succeeded from KDR, which was merged on November 1, 2023.

② Capital Expenditures During the Fiscal Period under Review (Fiscal Period Ended October 31, 2023)
KDXR undertook the following major capital expenditures. In the fiscal period under review (fiscal period ended October 31, 2023),
KDXR completed works across its entire portfolio totaling 1,660 million yen, consisting of 1,168 million yen of capital expendituresand 491 million yen of repairs and maintenance expenses in the fiscal period under review.
Property Name
(Location)

PurposeTerm

KDX Karasuma Building(Kyoto, Kyoto)

Renewal of air-conditioning
systemPortus Center Building(Sakai, Osaka)

Amount of Capital Expenditures(Millions of Yen)

May 2023 to
October 2023

246

Renovation of elevator

As above211

KDX Fuchu Building(Fuchu, Tokyo)

Upgrade of common area

As above87

KDX Kasuga Building(Bunkyo, Tokyo)

Upgrade of common area

As above

62

Other

560

Portfolio Total

1,168

Note: The amounts of the capital expenditures are rounded down to the nearest million yen.

③ Reserved Amount for Long-Term Repairs and Maintenance Plans
Not Applicable- 45 -

KDX REALTY INVESTMENT CORPORATION (8972)(3) Overview of Major Tenants① Information Concerning Major Real Estate Properties
There were no major real estate properties with rental and other operating revenues exceeding 10% of total rent and other operating
revenues for the fiscal period under review (fiscal period ended October 31, 2023).
② Information Concerning Major Tenants
A. Tenant which holds more than 10% of the total leased area: Not applicable
B. Reference: Major end tenants(As of October 31, 2023)
Name of End Tenant

Property Name

Leased Floor
Area (m2)Percentage of Total Leased
Floor Area (Note 1)

1

Mitsubishi Heavy Industries, Ltd.

Mitsubishijuko Yokohama Building

11,267.43

2.3

2

WeWork Japan G.K.

KDX Toranomon 1Chome Building

6,347.27

1.3

3

JASTEC Co., Ltd.

KDX Takanawadai Building

4,892.89

1.0

4Japan Pension Service

KDX Chofu Building

4,710.40

1.0

5N / A (Note 2)

KDX Kobayashi-Doshomachi Building

4,324.10

0.9

Subtotal

31,542.09

6.5

Total Portfolio

485,753.87

100.0

Note 1: Percentage of total leased floor area refers to the floor area leased to each end tenant as a proportion of total leased floor area. Figures are rounded
to the first decimal place.
Note 2: Not disclosed because the tenant has not given consent.

- 46 -