KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED April 30, 2023 (REIT)(November 1, 2022, to April 30, 2023)

June 13, 2023

Kenedix Office Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number 8972.
URL:

https://www.kdo-reit.com/en/

Representative:

Hiroaki Momoi, Executive Director

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

Hikaru Teramoto, President & CEO

Inquiries:

Tomoya Shigaki, Head of Strategic Planning, Office REIT Department
TEL +81-3-5157-6010

Planned submission of semiannual securities report: July 28, 2023

Planned start of distribution payments: July 14, 2023

Preparing presentation material:

Yes･NoHold a financial brief meeting:Yes･No (transcript of webcast is to be disclosed)

1. PERFORMANCE FOR THE FISCAL PERIOD ENDED April 30, 2023 (November 1, 2022, to April 30, 2023)(Amounts are rounded down to the nearest one million yen.)(1) Business Results(% indications are increase-decrease rate of period-over-period.)
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%

April 30, 2023

17,290

6.3

8,157

10.5

7,208

11.7

7,205

11.7

October 31, 2022

16,266

2.4

7,379

(0.6)

6,452

(0.7)

6,451

(0.7)

Net Income per Unit

Return on Unitholders’ Equity

Ordinary Income to Total Assets

Ordinary Income toOperating Revenues

For the six months ended

Yen

%

%

%

April 30, 2023

8,493

3.1

1.5

41.7

October 31, 2022

7,566

2.8

1.4

39.7

Note: The Investment Corporation implemented a two-for-one split of investment units with October 31, 2022, as the record date of the split and November 1, 2022, as theeffective date. Net income per unit is calculated based on the assumption that the split of the investment units was implemented at the beginning of the fiscal period ended
October 31, 2022.

(2) Distribution
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

YenMillions of Yen

Yen

Millions of Yen%%

April 30, 2023

7,647

6,487

－

－

90.0

2.8

October 31, 2022

14,488

6,146

－

－

95.3

2.7

For the six months ended

Note 1: 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.
Note 2: Distributions per unit for the fiscal period ended October 31, 2022, are calculated by dividing the amount remaining after deducting the provision of reserve for reduction
entry (304 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.
Note 3: The Investment Corporation implemented a two-for-one split of the investment units with October 31, 2022, as the record date of the split and November 1, 2022, as theeffective date.

(3) Financial Position
Total Assets

Net Assets

Net Assets to Total Assets

Net Assets per Unit

For the six months ended

Millions of Yen

Millions of Yen%

Yen

April 30, 2023

474,274

230,48248.6

271,657

October 31, 2022

473,013229,56248.5

270,573

Note: The Investment Corporation implemented a two-for-one split of investment units with October 31, 2022, as the record date of the split and November 1, 2022, as theeffective date. Net assets per unit is calculated based on the assumption that the split of the investment units was implemented at the beginning of the fiscal period ended
October 31, 2022.

This notice is an English-language translation of the original Japanese announcement on our website released on June 13, 2023. However, no assurance
or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in the caseof discrepancies between this translation and the Japanese original.

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(4) Cash Flow Situations
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

April 30, 2023

13,464(903)(6,145)37,333October 31, 2022

10,496(13,525)791

30,917

2. FORECAST OF RESULTS FOR THE FISCAL PERIODS ENDING October 31, 2023 (May 1, 2023, to October 31, 2023)(% indications are increase-decrease rate of period-over-period.)
Operating Revenues(Millions of Yen)%

For the six months ending
October 31, 2023

Operating Income(Millions of Yen)

16,600(4.0)

Ordinary Income(Millions of Yen)

%
7,379

(9.5)

%
6,449

Distributions per
Unit (Excluding
Excess of Earnings)

Distributions in
Excess of Earnings
per Unit

%

Yen

Yen

(10.5)

7,600－

Net Income(Millions of Yen)

(10.5)

6,448(Reference) Estimated net income per unit for the fiscal period ending October 31, 2023:
7,600 yen
Forecasted total number of investment units issued and outstanding as of October 31, 2023:
848,430 units
Forecasted average number of investment units during the fiscal period ending October 31, 2023: 848,430 units
Note: The Investment Corporation, Kenedix Residential Next Investment Corporation (“KDR”) and Kenedix Retail REIT Corporation (“KRR”; and KRR, KDO, and KDR arecollectively referred to as “Each REIT”) announced that each of them has, at Each REIT’s Board of Directors Meeting held June 13, 2023, resolved to undertake anabsorption-type merger, with November 1, 2023 as the effective date, whereby KDO will be the surviving corporation and KDR and KRR will be the dissolving
corporations in the merger (the “Merger”), and have also executed a merger agreement (the “Merger Agreement”) on the same date. For the business result forecasts after
the Merger, please refer to the press release “Notice Concerning the Operating Forecast and Distribution Forecast for the Fiscal Period Ending April 30, 2024 Following
the Merger of Kenedix Office Investment Corporation, Kenedix Residential Next Investment Corporation, and Kenedix Retail REIT Corporation” dated June 13, 2023 by
Each REIT. For details of the Merger, please refer to “1. Operating Conditions (1) Operating Conditions ② Outlook for next fiscal period D. Important Subsequent
Events after the Closing Date (a) Execution of the Merger Agreement by and among the Investment Corporation, KDR and KRR” on page 5 below.

*OTHER(1) Changes in Accounting Policies・Changes in Accounting Estimate・Retrospective Restatement(a) Changes concerning accounting policy accompanying amendments to accounting standards: No(b) Changes other than (a): No(c) Changes in accounting estimate: No(d) Retrospective restatement: No(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 April 30, 2023:
848,430 units
As of October 31, 2022: 424,215 units(b) Number of own investment units at period end
As of April 30, 2023:
0 units
As of October 31, 2022: 0 units
Note: Please refer to page 30, “Notes on Information per Unit” for the number of investment units as the base of the calculation of net income per unit.

* The financial report is not subject to audit by certified public accountants or audit corporations.
* Special Consideration
Readers are advised that the outlook on management conditions and other forward-looking statements contained herein are based on
information currently available to the Investment Corporation and certain assumptions that the Investment Corporation considers to bereasonable. Actual management conditions, etc. may differ materially from these forecasts due to various factors.
In addition, the forecast figures are calculated as of the date of this document under the assumptions indicated in “Preconditions andAssumptions for the Thirty-Seventh Fiscal Period Ending October 31, 2023” on page 12, and the actual operating revenues, operating income,ordinary income, net income, distributions per unit and distributions in excess of earnings per unit may differ from forecasts due to the change
in the situation. Accordingly, the Investment Corporation does not guarantee payment of the forecast distributions.

This notice is an English-language translation of the original Japanese announcement on our website released on June 13, 2023. However, no assurance
or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in the caseof discrepancies between this translation and the Japanese original.

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Index
1. Operating Conditions ························································································································ 2(1) Operating Conditions ·················································································································· 2(2) Risk Factors ···························································································································· 11(3) Outlook ································································································································· 11
2. Financial Statements ························································································································ 14(1) Balance Sheets ························································································································· 14(2) Statements of Income ················································································································· 16(3) Statements of Unitholders’ Equity··································································································· 17(4) Basis for Calculating Cash Distribution ···························································································· 19(5) Statements of Cash Flows ············································································································ 20(6) Notes on Going Concern ············································································································· 21(7) Important Accounting Standards ···································································································· 21(8) Notes on Financial Statements ······································································································· 22(9) Changes in the Total Number of Investment Units Issued and Outstanding ··················································· 35
3. Reference Information ······················································································································ 36(1) Information Concerning Price of Assets in the Property Portfolio, Etc. ························································ 36(2) Capital Expenditures ·················································································································· 46(3) Overview of Major Tenants ·········································································································· 47- 1 -KENEDIX OFFICE INVESTMENT CORPORATION (8972)

1. Operating Conditions(1) Operating Conditions① Operating conditions for the fiscal period under review
A. The Investment Corporation
The Investment Corporation was established on May 6, 2005, in accordance with the Act on Investment Trusts and Investment
Corporations (Act No. 198 of the year 1951, including amendments thereafter) (“Investment Trust Act”). On July 21, 2005, theInvestment Corporation 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 and outstanding (Securities Code: 8972). Subsequentially, the Investment
Corporation raised funds through public offerings and such as well as acquired and cancelled own investment units (4,295 units) during
the previous fiscal period (fiscal period ended October 31, 2022) and implemented a split of its investment units with November 1, 2022,
as the effective date. As a result, as of the end of the fiscal period under review (April 30, 2023), the number of investment units issued
and outstanding totaled 848,430 units.
The Investment Corporation 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 thisend, the Investment Corporation adopts the basic policy of conducting flexible and dynamic investment that seeks to respond to theenvironment and market trends, endeavors to ensure a timely 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 April 30, 2023), the Japanese economy saw a positive turn in the growthrate of real GDP. Despite high commodity prices, personal consumption remained strong and inbound demand is also expected torecover. 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 fluctuation in
the U.S. and European financial systems, which remain uneasy due to the occurrence of events such as the bankruptcy of U.S. regionalbanks and the relief merger of European financial institutions, and the Bank of Japan’s monetary policy.
In terms of the office leasing market, both the average vacancy rate and average rent (including for newly built office buildings) inTokyo’s five central wards remained generally flat according to the data announced by Miki Shoji Co., Ltd. The slight decrease invacancy 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 theoccurrence of new vacancies due to office reduction and consolidation in April. Movements of tenants centering on Japanesecompanies also continue to be seen.
October 2022
Average Vacancy Rate
Average Rent

April 2023

Change

6.44%

6.11%

(0.33%)

20,114 yen

19,896 yen(218 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 except in some cities.
In the office building transaction market, the amount of sales information of prime mid-sized office buildings remains small, andinvestors are concentrating on limited sales projects. Therefore, cap rates remain at continuously low levels. As the investment appetiteof domestic and overseas investors is generally strong and property transactions by real estate companies and other domestic andoverseas investors as well as listed real estate investment corporations (J-REITs) 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
The Investment Corporation sold an office building (KDX Kawasaki-Ekimae Hon-cho Building: Acquisition price 3,760 million yen,
Sale price 4,508 million yen) 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.
Number of Properties
Total Acquisition Price (Millions of yen)
Number of End Tenants for Office Buildings(Note 2) (Note 3)

End of Previous
Fiscal Period
98
457,076

End of Fiscal Period
Under Review
97453,316

1,189

1,208

- 2 -

Change(1)(3,760)+19

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Percentage by Use (Acquisition Price Basis)

End of Previous
Fiscal Period
99.4%
0.6%

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

Change(0.0%)+0.0%

Occupancy Rate of Office Buildings

End of Previous
End of Fiscal Period
ChangeFiscal Period
Under Review
Entire Office Building
97.8%
98.4%
+0.6%
Tokyo’s Five Central Wards
98.7%
99.2%
+0.5%
Other Tokyo Metropolitan Areas
97.1%
97.8%
+0.7%
Regional Areas
97.4%
98.0%
+0.6%
Note 1: The initial investment amount for the TK interest is 1,107 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 1,209 as of the end of the fiscal period under review.

C. Capital Financing(a) Status of Borrowings and Investment Corporation Bonds
During the fiscal period under review, the Investment Corporation undertook borrowings of 4,800 million yen for repayment ofborrowings of the same amount that 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)

300 million yen

Long-term borrowings (Note 1)

201,650 million yen

Investment corporation bonds

13,000 million yen

Balance of interest-bearing debt

214,950 million yen

Furthermore, interest rates for 112,550 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 fixedinterest rates including 84,100 million yen of long-term borrowings with fixed interest rates was 196,650 million yen at the end of the
fiscal period under review.
Long-term debt ratio (Note 2)

99.9%

Long-term fixed interest debt ratio (Note 3)

97.5%

Average remaining term of interest-bearing debt (Note 4)

3.7 years

Average interest rate of interest-bearing debt (Note 4)

0.82%

Interest-bearing debt ratio (Note 5)

45.3%

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 a business day and for which the repayment date has been moved to the following business day are included in short-term borrowings.
Long-term borrowings 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 ofinvestment 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 averageinterest 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.

(b) Status of Credit Rating
The status of the credit ratings as of the end of fiscal period under review (April 30, 2023) is as follows:
Credit Rating Agency
Japan Credit Rating Agency, Ltd. (JCR)

Details of the Ratings
Long-term Issuer Rating
Ratings on Bonds
- 3 -

AA
(Outlook: Stable)
AA

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(c) Status of Shelf Registration
The Investment Corporation 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
Planned Issuance Period

100,000 million yen
December 8, 2022, to December 7, 2024
Acquisition funds for specified assets described in Article 2-1 of Investment Trust Act, repayment ofborrowings, 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, etc.

Use of Funds

D. Operating Results and Cash Distribution
As a result of the aforementioned management performance, the Investment Corporation reported operating revenues of 17,290 million
yen, operating income of 8,157 million yen, ordinary income of 7,208 million yen and net income of 7,205 million yen for the fiscal
period under review (fiscal period ended April 30, 2023).
Concerning the cash distributions for the fiscal period under review, special taxation measures for investment corporations (Article 6715 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. In addition, theInvestment Corporation decided to apply the “Special Provisions for Taxation in Cases of Repurchase of Specified Assets” (Article 657 of the Special Taxation Measures Act) in the fiscal period under review and internally reserve part of the unappropriated retained
earnings as reserve for reduction entry. Following this policy, the Investment Corporation distributed 6,487,944,201 yen, which is theamount remaining after deducting 718 million yen within the scope of application of the provisions of both Article 67-15 and Article 657 of the Special Taxation Measures Act as provision of reserve for reduction entry from unappropriated retained earnings. As a result,distribution per unit is 7,647 yen.
② Outlook for next fiscal period
A. External Growth Strategy(a) Investment Criteria
The Investment Corporation continues to invest mainly in mid-sized office buildings in the Tokyo Metropolitan Area under the policy of
capturing the trend and investing timely in a flexible and dynamic manner.
Distribution Target by Property Type

Office Buildings

Central Urban Retail
Properties
OthersOf office buildings, rental office buildings of which the main use under the
Building Standard Act is office and for which the total floor area of the entire
building stated in the certificate of all registered matters (“total floor area”) fulfills
the following criteria (“mid-sized office building”).
・Tokyo 23 wards
Total floor area: 13,000 m2 or less・Outside Tokyo 23 wards
Total floor area: 20,000 m2 or lessOf office buildings, those that do not fall under the category of mid-sized officebuildings
Central urban retail properties with high tenant substitutability located in districts
with a high degree of bustle
Land with leasehold (limited proprietary right of land) or buildings with floor areaof which use under the Building Standards Act is not subject to investment inaccordance with the Investment Corporation’s investment policy

80-100%0-20%

Distribution Target by Area
The Investment Corporation mainly invests in real estate, etc. located in the Tokyo Metropolitan area (Tokyo and its three neighboring
prefectures: Kanagawa, Saitama and Chiba), which is the largest economic area and the most densely populated region in Japan. We
also make some diversified investments in real estate in rural economic zones (major urban areas such as government-designated cities)
to minimize risks seen when concentrating on a certain region, such as fluctuations in the local economy and real estate market,
population fluctuation and natural disasters such as earthquakes and typhoons.

- 4 -KENEDIX OFFICE INVESTMENT CORPORATION (8972)(b) Use of Sponsor Support
Moreover, when acquiring assets, the Investment Corporation will aim for the sound and stable growth of the portfolio by securingcontinuous opportunities for acquiring properties and flexible acquisition methods in utilizing the networks of the Asset Management
Company and the 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. through building multiple pipelines.
Furthermore, based on the premise that the Investment Corporation can obtain opportunities for property acquisitions in the future, theInvestment Corporation may invest in TK interest, etc., with the Kenedix Group and others on a conjoint basis. In addition, the Investment
Corporation seeks to diversify acquisition methods (direct acquisition, equity investment and co-acquisition with the Kenedix Group,
mutual transaction with a view of asset reshuffle, etc.) to secure tactful acquisition of properties such as investments in warehousingrelated TK, etc., in cooperation 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, etc. The same applies below.

B. Internal Growth Strategy
Taking into consideration economic and real estate market trends, the Investment Corporation adopts “a tenant-oriented approach which
will lead to revenue” for its leasing activities with aims of ensuring a timely and flexible response as well as optimizing tenant satisfaction.
Accordingly, the Investment Corporation seeks to aim to maintain/increase cash flow by offering office environments with high tenantsatisfaction.
Based on the aim to become “the mid-sized office building of choice,” 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
C. Financial Strategy
The Investment Corporation continuously strives to improve the terms and conditions of existing borrowings, and aims for stablefinancial management by taking the following measures, etc.
・Reduce refinance risks by diversifying maturities of interest-bearing debts
・Have the procurement ratio of long-term fixed interest borrowings above a certain level・Control the interest-bearing debt ratio (Note) in a conservative manner (the Investment Corporation will aim to keep the interestbearing 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% level in the event of debt financing conducted for the purpose of acquiring competitive properties or otherwise.)Moreover, the Investment Corporation will undertake stable fund procurement based on existing favorable relations with financial
institutions, especially major banks, aiming for more robust financial management. In addition, the Investment Corporation 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 Closing Date(a) Execution of the Merger Agreement by and among the Investment Corporation, KDR and KRR
The Investment Corporation, KDR and KRR announced that each of them has, at Each REIT’s Board of Directors Meeting held June 13,2023, resolved to undertake the Merger with November 1, 2023 as the effective date, and have also executed the Merger Agreement on
the same date.

- 5 -KENEDIX OFFICE INVESTMENT CORPORATION (8972)

i. Purpose of the Merger
The Japanese economy is making a moderate recovery as movement restrictions to prevent the spread of COVID-19 infections wasremoved, and its economic and social activities are being normalized. However, there are uncertain factors in the economic conditionsin and outside Japan such as changes in the global affairs, emergence of geopolitical risks and effects of economic sanctions related tothese risks as a result of the invasion of Ukraine by Russia, continuous global inflation related to rising commodity prices and fuel costs,
increase of the policy interest rates by major countries, and bankruptcies of overseas financial institutions.
In such environment, the current real estate investment trust securities market (the “J-REIT market”) is unstable and affected by theconcern for rising operational costs due to inflation and the fear for the rise in the long-term interest rates due to future changes of themonetary policies by the Bank of Japan.
The asset management company of Each REIT, the Asset Management Company was established as follows: Kenedix Residential
Partners, Inc. established in March 2011 merged with Kenedix Office Partners, Inc. and Kenedix Advisors, Inc. (both established in
November 2003) in October 2013 in an absorption-type merger, and changed its corporate name to the current name of the asset
management company. Each REIT has received sponsor support from Kenedix Group and has achieved operational results.
Each REIT has implemented various measures to ensure the acquisition of stable profits and the continued growth of investment assets
by leveraging each characteristic.
However, the real estate market’s evaluations of the mid-sized office buildings, which are the Investment Corporation’s main investment
target, have not changed because of their scarcity and liquidity. Thus, the capitalization rate remains low and it remains hard to acquire
mid-sized office buildings. Moreover, recently, unit prices of the Investment Corporation are significantly below NAV per unit due to theconcern for the market outlook regarding secondary vacancies and rent decline due to large supplies of large office buildings, and there
are limited opportunities for external growth that involve public offering. Therefore, there are issues with ensuring continued future
growth. As for KDR, although KDR has conducted public offerings for five consecutive years, there is the possibility that the acquisitioncompetition may escalate and the acquisition opportunities may decrease due to the relatively stable profitability of residential properties,
and recently unit price is below NAV per unit. Moreover, KDR’s LTV is relatively high in the J-REIT market, and KDR has concerns
regarding the increase in costs when interest rates are rising. As for KRR, although KRR has a rich real estate pipeline, it has been
increasingly difficult to acquire shopping centers for daily needs since the COVID-19 pandemic. In addition, there are concerns overincrease in costs caused by inflation, and there are issues such as limited room for the future internal growth as a whole due to the longterm fixed rents.
Moreover, Each REIT is watching the trends of interest levels and price levels such as costs of utilities, which may have an impact on
the profitability of their portfolios in the future, and Each REIT recognizes this situation as their common issues.
In such circumstances, Each REIT agreed to start negotiation for merger and carefully deliberated on the issues in order to deal with theissues described above, respond flexibly to environmental changes and attain continued growth. As a result, Each REIT came to the sameconclusion 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
for sustainability. Therefore, the Merger Agreement was made and entered into by and among Each REIT.
Each Investment Corporation considers that the Merger has the following rationale:(i) Sustainable growth driven by expansion of investment universe
The New REIT (defined below) will continue to focus on their main investment target, i.e. mid-sized office buildings, residential
properties, healthcare facilities, and shopping centers for daily needs, and it will start to additionally focus on logistics facilities andhotels, in which Each REIT has conducted only limited investments until now, to increase opportunities for acquisitions. In addition,
the Merger will enable asset reshuffling among different asset types, disposing of properties with less competitiveness or profitability,
allow flexibly to the changes of the external environment surrounding the real estate market, and activate the investments in theinvestment target sectors that are expected to grow, and thus leading to the improvement of portfolio profitability. As describedabove, the New REIT aims to attain continued growth beyond the boundary of the strategic management for the existing specialized
REIT through a strategic management that ensures a wide range of opportunities for acquisitions and flexibility related to the
expansion of the investment target sectors.
(ii) Improvement in the market presence and ability
Through the Merger, the asset size of the investment corporation after the Merger (the “New REIT”) will be ranked third in the JREIT market (Note 1) and this will significantly improve the presence in the market and liquidity of investment units, and theportfolio is expected to own a total of 350 (Note 2) properties after the Merger. Having the largest expected number of properties in
the J-REIT market will enhance diversification and contribute to improve the stability of the portfolio. In addition, a property
manager that leverages the advantage of its scale will contribute to increase resilience against the pressure of the rising costs.

- 6 -KENEDIX OFFICE INVESTMENT CORPORATION (8972)(iii) Further commitment to sustainability
Each REIT has recognized sustainability as a significant issue and has taken the initiative in implementing various initiatives.
Specifically, the Investment Corporation has become the first investment corporation in the J-REIT market to participate in GRESBReal Estate Assessment, KDR was the first J-REIT to issue social bonds, and KRR was the first J-REIT to introduce investment
unit performance fee. The New REIT plans to integrate and elevate expertise accumulated by Each REIT through the Merger andaims to be a leading company in the sustainability initiatives. Moreover, the New Investment Corporation plans to further enforce
the sustainability initiatives under the management system with a high degree of specialization and diversity by introducing a new
management fee structure that is linked to unitholder value and sustainability metric, improving governance through theenhancement of supervisory officers, and promoting diversity.
Note 1: The amount of asset size after the Merger is calculated by totaling the asset size of Each REIT. The asset size of the Investment Corporation isassumed to be the total of acquisition price of the properties in the portfolio as of April 30, 2023, plus the acquisition (scheduled) price reflecting
the acquisitions and sales (including one that are scheduled) of the properties from May 1, 2023 to the effective date of the Merger. The asset sizeof KDR and KRR is considered to be the appraisal values of the properties as of the end of the latest fiscal period (relating to KDR, as of January
31, 2023 (provided, however, that, this includes the acquisitions of Sunny Life Tachikawa and Rehabili-home Bon Sejour Minamisenzoku;
relating to KRR, as of March 31, 2023). The asset sizes of the other investment corporations in the J-REIT market are calculated based on theasset sizes including any properties that the other investment corporations announced the acquisition and sale thereof in the J-REIT market as ofApril 30, 2023 (acquisition (scheduled) price basis). Therefore, it is not guaranteed that the New REIT after the Merger will have the third largest
asset size in the J-REIT market as of the effective date of the Merger. In regard to the asset size after the Merger, because it is planned that assets
of KDR and KRR will be succeeded at market price based on the purchase method by the Investment Corporation as the acquiring corporation,
the asset size will not be a simple sum of the total (scheduled) acquisition price of the Investment Corporation and the total appraisal values of
KDR and KRR as of the end of the latest accounting period.
Note 2: The number of properties of the portfolio after the Merger is based on the number of properties of the Investment Corporation, KDR and KRR
as of the date hereof and reflecting the change in the number of the acquisitions and sales of the properties (including ones that are scheduled) by
the effective date of the Merger. KDX Chofu Building is treated as one property in the calculation of the number of properties of the portfolio
after the Merger though the Investment Corporation owns its office tower and KRR owns its retail wing respectively as of June 13, 2023. The
numbers of the properties of the other investment corporations in the J-REIT market is calculated based on the number of properties including
those that the other investment corporations announced acquisition and sale thereof in the J-REIT market as of April 30, 2023. Therefore, it is notguaranteed that the portfolio of the New REIT after the Merger will have the largest number of properties in the J-REIT market as of the effective
date of the Merger.

ii. Form of the Merger
The Investment Corporation will be the surviving corporation under an absorption-type merger and KDR and KRR will be dissolved in
the Merger.
iii. Allocation ratio etc.
The Investment Corporation(Surviving corporationin the absorption-type merger)
Allocation of investment units
under the Merger

1

KDR(Dissolving corporationin the absorption-type merger)

KRR(Dissolving corporationin the absorption-type merger)

1.34

1.68

(Reference)
Before the Investment Unit Split
0.67(Reference)
Before the Investment Unit Split
0.84

Note 1: The number of the Investment Corporation’s new investment units to be issued as a result of the Merger (the number of units taking into
account the Investment Unit Split of the Investment Corporation): 2,446,037
Note 2: For details of the investment unit split refer to “iv. Split of Investment Units” below. The same applies hereinafter.

- 7 -KENEDIX OFFICE INVESTMENT CORPORATION (8972)

iv. Split of Investment Units
The Merger will be effected by way of an absorption-type merger with the Investment Corporation as the surviving corporation, with
KDR and KRR having a merger ratio of 0.67 and 0.84, respectively, against one for the Investment Corporation, before taking into
account the Split of Investment Units. However, with this merger ratio, 0.67 Investment Corporation’s investment units will be allottedagainst one KDR investment unit and 0.84 Investment Corporation’s investment units will be allotted against one KRR investment unit,
resulting in a number of KDR and KRR unitholders that will receive Investment Corporation’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 the Investment Corporation’s investment units
after the Merger, we decided to split the Investment Corporation’s investment units at a ratio of two investment units per one investment
unit, for the purpose of providing at least one Investment Corporation’s investment unit to all unitholders of KDR and KRR. As a resultof the Split of Investment Units, KDR unitholders will be allotted 1.34 Investment Corporation’s investment units after the Split ofInvestment Units against each KDR investment unit, and KRR unitholders will be allotted 1.68 Investment Corporation’s investment
units after the Split of Investment Units against each KRR investment unit.
(i) Method of Split of Investment Units
The Investment Corporation will implement a two for one split of the investment units held by unitholders of the Investment
Corporation stated or recorded on the registry of unitholders as of Tuesday, October 31, 2023, which is the day preceding the effective
date of the Merger. The Split of Investment Units will become effective on Wednesday, November 1, 2023, which is the effective dateof the Merger, provided that the merger agreement pertaining to the Merger has not been terminated or expired by the day before theeffective date of the Merger.
(ii) Number of Investment Units to be Increased by the Split of Investment Units
1) Total number of Investment Corporation’s investment units issued 848,430 units
and outstanding before the Split of Investment Units:
2) Number of investment units to be increased through the Split of 848,430 units
Investment Units:
3) Total number of Investment Corporation’s investment units issued 1,696,860 units
and outstanding after the Split of Investment Units:
4) Total number of Investment Corporation’s investment units issued 4,142,897 units (Note 1)
and outstanding 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: The number of investment units will be calculated based on the assumption that one KDR investment unit will be allotted 1.34 Investment
Corporation’s investment units after the Split of Investment Units for all of KDR’s issued investment units as of June 13, 2023 (1,070,433
units), and one KRR investment unit will be allotted 1.68 Investment Corporation’s investment units after the Split of Investment Units forall of KRR’s issued investment units as of June 13, 2023 (602,177 units).
Note 2: The current total number of authorized Investment Corporation’s investment units is 4,000,000 units. However, in connection with the Split
of Investment Units, the Articles of Incorporation of the Investment Corporation will be partially amended and the total number ofauthorized investment units will be changed as of the effective date of the Merger.

(iii) Effect on the information per unit of the Investment Corporation
The information per unit for the fiscal period under assuming that the Split of Investment Units was conducted at the beginning of thisfiscal period is described as follows.
1) Net Assets per Unit:
135,828 yen
2) Net Income per Unit:
4,246 yen

- 8 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

v. Delivery of Payment upon the Merger
In addition to the above mentioned investment units, the Investment Corporation intends to pay unitholders of KDR and KRR (theunitholders stated or recorded 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 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 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 thanthe Unitholders Subject to Allocation. The Payment upon the Merger will be paid within a reasonable period from the effective date of
the Merger.
vi. Overview of the Previous Fiscal Period for KDR and KRR
Overview of the Previous Fiscal Period (ending January 31, 2023) for KDR
Business: To invest assets mainly in specified assets as set forth in the Investment Trust Act
Operating Revenues : 9,936 million yen
Net Profit: 4,593 million yen
Total Assets: 327,014 million yen
Total liabilities: 175,381 million yen
Net assets: 151,632 million yen
Overview of the Previous Fiscal Period (ending March 31, 2023) for KRR
Business: To invest assets mainly in specified assets as set forth in the Investment Trust Act
Operating Revenues : 9,924 million yen
Net Profit: 3,922 million yen
Total Assets: 287,569 million yen
Total liabilities: 145,002 million yen
Net Assets: 142,566 million yen

vii. Time of the Merger
Effective date of the Merger: November 1, 2023 (planned)- 9 -KENEDIX OFFICE INVESTMENT CORPORATION (8972)(b) Decision of the disposition of properties
The Investment Corporation executed the Sales and Purchase Agreement regarding the disposition of the following properties (The
anticipated disposition properties are hereinafter referred to as the “Anticipated Disposition Properties”.) as of June 13, 2023, and decided
to dispose the Anticipated Disposition Properties. The execution of disposition of the Anticipated Disposition Properties is subject to theentry into force of the Merger.

Property name

Harajuku F.F. Building

KDX Nagoya
Building

Type of property

Location

Anticipateddisposition price(millions yen)
(Note 1)

Trust beneficiary
Shibuya-ku, Tokyo
interest

Sakae Real estate(Note 3)

Nagoya, Aichi

Contract date

Scheduled date ofdisposition

Buyer(Note 2)3,880 June 13, 2023

November 1, 2023 Kenedix, Inc.

6,050 June 13, 2023

November 1, 2023 Kenedix, Inc.

Note 1: Anticipated disposition price excludes the acquisition expenses, property taxes, city planning taxes and consumption taxes.
Note 2: Under the Sales and Purchase Agreement for trust beneficiary interest in the Anticipated Disposition Properties, the buyer may dispose the buyer's position under the theSales and Purchase Agreement for trust beneficiary interest in the Anticipated Disposition Properties to a special purpose company formed by the buyer or its affiliate thatsatisfies certain requirements such as financial resources to pay the sale price. Therefore, the filal buyer may change from Kenedix, Inc. to a special purpose company
formed by Kenedix, Inc. or an affiliate of Kenedix, Inc.
Note 3: KDX Nagoya Sakae Building is owend as real estate as of June 13, 2023. However, the Investment Corporation has agreed with the Buyer that the Investment Corporation
will entrust KDX Nagoya Sakae Building by the scheduled date of disposition.
Note 4: The execution of disposition is subject to the entry into force of the Merger.
Note 5: The Sales and Purchase Agreement for trust beneficiary interest in the Anticipated Disposition Properties fall under the forward commitments, etc. by The Investment
Corporation as specified in the Financial Services Agency “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.” are applicable.
If The Investment Corporation violate any of the provisions of the Transaction Agreement for trust beneficiary interest in the Anticipated Disposition Properties and thenthe Sales and Purchase Agreement is cancelled for the reason that purposes of the Transaction Agreement cannot be fulfilled due to such violation, The Investment
Corporation shall pay a certain ratio of the transaction price from which consumption taxes, etc. are excluded as a penalty fee. Such penalty fee is set at 5% from June 13,2023 to August 21, 2023 and 10% from August 22, 2023 to November 1, 2023.

- 10 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Reference Information)(a) Sale of Asset
The Investment Corporation sold the following silent partnership equity interest on May 31, 2023.
Date of Sale

Asset Name

Asset Sold

Real Estate in Trust

Buyer

May 31, 2023

G. K. KRF43 Silent
Partnership Equity
Interest(50.0% equity interest)(Note 1) (Note 2)

Equity interest in silent
partnership investing in realestate in trust beneficiaryinterest

Shinjuku Sanei
Building

Not
disclosed(Note 3)

Sale Price(Millions of
Yen)(Note 4)1,150

Note 1: Interests in a silent partnership operated by G.K. KRF43 are indicated.
Note 2: The percentage of silent partnership equity interest specified in the sale contract is shown.
Note 3: Not disclosed because the consent of the buyer has not been obtained.
Note 4: Sale costs and distributions payable are excluded.

(2) Risk Factors
Following risks are added to the “Investment Risks” as described in the latest Securities Report submitted on January 27, 2023.
A. Risk that the Anticipated Disposition Properties cannot be disposed
If there is a significant change in the economic environment or if precondition as stipulated in the Sales and Purchase Agreement is not
fulfilled due to other circumstances, etc., the disposition of the Anticipated Disposition Properties for which the Sales and Purchase
Agreement was executed on June 13, 2023 may not be executed. In such a case, the Investment Corporation may not realize the profit
intended by the disposition of the Anticipated Disposition Properties and may cause damage to the unitholders.
B. Risk concerning a series of initiatives for the merger of the Investment Corporation
The Investment Corporation has executed the Merger Agreement with KDR and KRR on June 13, 2023. However, there is no guaranteethat the Merger will be realized. Furthermore, the terms and conditions of the Merger may be changed in the process of future discussions
and deliberations. If the Merger is not realized or the terms and conditions of the Merger are changed, the market price of the investment
Units may be affected. Also, even if the Merger is realized, there is no guarantee that the Investment Corporation will be able to achieve
the objectives contemplated in the Merger and a series of related transactions.

(3) Outlook
Forecast for the thirty-seventh fiscal period (May 1, 2023, to October 31, 2023) is presented as follows.
Thirty-seventh fiscal period (May 1, 2023, to October 31, 2023)
Operating Revenues

16,600 million yen

Operating Income

7,379 million yen

Ordinary Income

6,449 million yen

Net Income

6,448 million yen

Distributions per Unit

7,600 yen
- yen

Excess of Earnings

For preconditions and assumptions of the outlook, please refer to the following “Preconditions and Assumptions for the Thirty-Seventh
Fiscal Period Ending October 31, 2023.”
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, the Investment Corporation does not guarantee payment of the forecast
distributions per unit.

- 11 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Preconditions and Assumptions for the Thirty-Seventh Fiscal Period Ending October 31, 2023,
Item
Preconditions and Assumptions
 The thirty-seventh fiscal period (May 1, 2023, to October 31, 2023) (184 days)
Calculation Period*Assuming that the effectiveness of this merger will take place on November 1, 2023.
 It is assumed that the Investment Corporation owns 97 properties that are composed of real estate and trust
beneficiary interest in real estate as of the date of this document. It is assumed that there will be no changes ofassets in the property portfolio by the end of the thirty-seventh fiscal period ending October 31, 2023.
Property Portfolio
 The Investment Corporation 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.
 Rental revenues are estimated based on valid leasing agreements as of June 13, 2023, and by considering
variable factors, such as seasonal factors against the backdrop of historical performance, as well as the recent
real estate market conditions, in addition to the difference in number of operating days due to changes inexisting investment assets described in Property Portfolio.
 Dividends received of 39 million yen for the thirty-seventh fiscal period ending October 31, 2023 have been
Operating Revenues
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 May 31, 2023, 545
million yen is expected to be recorded as gain on sale of securities in the thirty-seventh fiscal period ending
October 31, 2023.
 Expenses related to rental business other than depreciation are based on the historic expenses, adjusted toreflect expense variables including seasonal factors.
 An amount of 1,490 million yen for the thirty-seventh fiscal period ending October 31, 2023 has been assumed
for property and facility management fees (property management and building maintenance fees, etc.).
 An amount of 1,478 million yen for the thirty-seventh fiscal period ending October 31, 2023 has been assumed
for taxes and public dues (property tax and city-planning tax, etc.).
 An amount of 2,581 million yen for the thirty-seventh fiscal period ending October 31, 2023 has been assumed
for depreciation expense.
 An amount of 481 million yen for the thirty-seventh fiscal period ending October 31, 2023 has been assumed
Operating Expenses
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 andconsidered essential for the period. Actual repairs, maintenance and renovation expenses for the fiscal period
may, however, differ significantly from estimated amounts due to unforeseen 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 the Investment Corporation, an amount equivalent to the portion
allocated to the purchaser is included in the acquisition cost of the property.
 An amount of 95 million yen for the thirty-seventh fiscal period ending October 31, 2023 has been assumed
for the temporary merger expenses.
 Interest payable (including financing related expenses, etc.) of 912 million yen for the thirty-seventh fiscal
Non-Operating Expenses
period ending October 31, 2023.
Extraordinary Profit/Loss  Extraordinary profit/loss is not assumed.
 The balance of the borrowings and the investment corporation bonds as of June 13, 2023, is 201,950 million
yen and 13,000 million yen, respectively.
 Of the borrowings as of June 13, 2023, a total of 9,800 million yen in borrowings is due for repayment during
Borrowings andthe thirty-seventh fiscal period ending October 31, 2023. However, it is assumed that all borrowings will be
Investment Corporation
refinanced.
Bonds
 Of the investment corporation bonds as of June 13, 2023, it is assumed that no investment corporation bonds
will mature by the end of the thirty-seventh fiscal period ending October 31, 2023.
 The total number of investment units issued and outstanding is assumed to be 848,430 units, which is the total
Total Number of
number of investment units issued and outstanding as of April 30, 2023.
Investment Units Issued
 It is assumed that there will be no change until the end of the thirty-seventh fiscal period ending October 31,
and Outstanding2023.
 Distributions per unit are calculated in accordance with the Cash Distribution Policies outlined in theInvestment Corporation’s Articles of Incorporation.
Distributions per Unit
 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.
- 12 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Item
Distributions in Excessof Earnings per Unit

Preconditions and Assumptions


The Investment Corporation 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.

Other


- 13 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

2. Financial Statements(1) Balance Sheets(Thousands of Yen)
Thirty-Fifth Fiscal Period

Thirty-Sixth Fiscal Period(As of October 31, 2022)(As of April 30, 2023)

Cash and deposits

20,376,036

26,871,012

Cash and deposits in trust

11,745,529

11,636,598

Accounts receivable-trade396,242352,851

Prepaid expenses

112,649

74,513

AssetsCurrent assets

Other
Total current assets

13,2409,398

32,643,699

38,944,374

19,208,618

17,314,188

Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation(7,768,708)(7,122,069)

Buildings, net

11,439,910

10,192,119

Structures

44,224

39,836

Accumulated depreciation(22,699)(23,007)

Structures, net

21,524

16,828

Machinery and equipment

464,676

463,508

Accumulated depreciation(336,018)(348,262)

Machinery and equipment, net

128,658

115,245

Tools, furniture and fixtures

106,355

102,389

Accumulated depreciation(83,487)(84,747)

Tools, furniture and fixtures, net

22,86817,642

Land

30,128,905

27,918,010

Buildings in trust

130,699,106 *2

131,523,808

Accumulated depreciation(42,535,054)(44,709,397)

Buildings in trust, net

88,164,051

86,814,411

Structures in trust

429,675

435,544

Accumulated depreciation(235,561)(248,540)

Structures in trust, net

194,114

187,004

Machinery and equipment in trust

2,123,432

2,245,231

Accumulated depreciation(1,038,762)(1,105,353)

Machinery and equipment in trust, net

1,084,669

1,139,878

Tools, furniture and fixtures in trust

748,177

766,142

Accumulated depreciation(458,579)(484,568)

Tools, furniture and fixtures in trust, net

289,597

281,574

Land in trust

305,091,543

305,091,543

Total property, plant and equipment

436,565,845

431,774,258

Land leasehold

285,257

285,257

Land leasehold in trust

345,329

344,554

Intangible assets

Other

57

39

630,644629,852

1,138,413

1,136,228

10,00010,000

Lease and guarantee deposits in trust

122,889

122,889

Long-term prepaid expenses

1,034,645

932,240

Other

813,924

678,437

Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits- 14 -*2

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Thousands of Yen)

Total investments and other assets
Total noncurrent assets

Thirty-Fifth Fiscal Period

Thirty-Sixth Fiscal Period(As of October 31, 2022)(As of April 30, 2023)

3,119,872

2,879,795

440,316,362

435,283,905

53,34645,754

Deferred assets
Investment corporation bond issuance costs
Total deferred assets

53,34645,754

473,013,408

474,274,035

Accounts payable

1,737,357

1,527,774

Short-term loans payable

300,000

300,000－

2,000,000

Total assets
Liabilities
Current Liabilities

Current portion of investment corporation bonds
Current portion of long-term loans payable

14,300,000

19,700,000

Accounts payable-other559,553

801,842

Accrued expenses

101,839

106,022

Income taxes payable

831

1,509

Accrued consumption taxes

308,775

437,597

Advances received

2,774,028

2,874,538

Deposits received

4,987

16,180－566

20,087,373

27,766,031

Investment corporation bonds

13,000,000

11,000,000

Long-term loans payable

OthersTotal current liabilities
Noncurrent liabilities

187,350,000

181,950,000

Tenant leasehold and security deposits

2,284,874

2,196,875

Tenant leasehold and security deposits in trust

20,728,309

20,875,109

537

3,548

Total noncurrent liabilities

223,363,720

216,025,533

Total liabilities

243,451,094

243,791,565

Unitholders’ capital

220,970,508

220,970,508

Deduction from unitholders’ capital(2,999,551) *4

Unitholders’ capital, net

217,970,957

217,970,957

Other

Net assets
Unitholders’ equity(2,999,551) *4

Surplus
Voluntary reserve
Reserve for reduction entry

4,326,003

4,630,856

Total voluntary reserve

4,326,003

4,630,856

Unappropriated retained earnings (undisposed loss)

6,451,096

7,206,005

Total surplus

10,777,100

11,836,861

Total unitholders’ equity

228,748,057

229,807,819

Valuation and translation adjustments
Deferred gains or losses on hedges

814,256

674,650

Total valuation and translation adjustments

814,256

674,650

Total net assets

229,562,314

Total liabilities and net assets

473,013,408- 15 -*1

230,482,469
474,274,035*1

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(2) Statements of Income(Thousands of Yen)
Thirty-Fifth Fiscal Period
May 1, 2022, toOctober 31, 2022

Thirty-Sixth Fiscal Period
November 1, 2022, toApril 30, 2023

Operating revenues
Rental revenues

13,841,688*1

13,896,892*1

Other rental revenues

2,119,236*1

2,176,002*1

Gain on sales of real estate, etc.

240,982*2

1,168,433*2

Dividends income

64,462

49,385

16,266,370

17,290,713

Total operating revenue
Operating expenses
Property related expenses

7,707,795*1

Asset management fees

976,930

1,117,455

Directors’ compensation

6,300

6,300

Asset custody fees

23,87024,075Administrative service fees

59,53061,419Audit fees

12,80013,2007,793,647

Other operating expenses

99,583

116,749

Total operating expenses

8,886,810

9,132,847

7,379,560

8,157,866

Interest income

4545Dividends and redemption-prescription

383

271

Interest on refund525

2

Total non-operating income

954

319

Interest expenses

732,865

725,038

Interest expenses on investment corporation bonds

35,98735,691

Borrowing related expenses

139,175

131,494

7,659

7,592

Operating income
Non-operating income

Non-operating expenses

Amortization of investment corporation bond issuance costs
Other

12,38649,566

Total non-operating expenses

928,074

949,384

Ordinary income

6,452,439

7,208,802

Income before income taxes

6,452,439

7,208,802

Income taxes-current

1,349

3,154

Income taxes-deferred

(6)

(140)

1,343

3,014

6,451,096

7,205,788－

217

6,451,096

7,206,005

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 16 -*1

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(3) Statements of Unitholders’ Equity
Thirty-Fifth Fiscal Period (May 1, 2022, to October 31, 2022)(Thousands of Yen)
Unitholders’ equity
Unitholders' capital

Surplus
Voluntary reserve
Reserve for
reduction entry

Total voluntary
reserve

Unappropriatedretained earnings(undisposed loss)

3,828,434

3,828,434

6,496,709

10,325,143

497,569

497,569(497,569)-

Distribution from surplus(5,999,140)(5,999,140)

Net income

6,451,096

6,451,096

Unitholders’capitalBalance at beginning of period

Deduction from Unitholders’ capital,
unitholders' capitalnet-

220,970,508

220,970,508

Total surplus

Changes during the period
Provision of reserve for
reduction entry

Acquisition of own
investment units
Cancellation of own
investment units(2,999,551)(2,999,551)-(2,999,551)(2,999,551)

497,569

497,569(45,612)451,956* 220,970,508(2,999,551)

217,970,957

4,326,003

4,326,003

6,451,096

10,777,100

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

Valuation and translation
adjustments

Unitholders’ equity

Balance at beginning of period

Own investment
units

Total unitholders’equityDeferred gains orlosses on hedges

Total valuationand translation
adjustments

Total net assets-

231,295,652

468,158

468,158

231,763,810

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

Distribution from surplus(5,999,140)(5,999,140)

Net income

6,451,096

6,451,096(2,999,551)(2,999,551)(2,999,551)

2,999,551--

Acquisition of own
investment units
Cancellation of own
investment units
Items other than unitholders’equity, net

346,097

346,097

346,097

Total changes during the period-(2,547,594)

346,097

346,097(2,201,496)

Balance at end of period-

228,748,057

814,256

814,256

229,562,314- 17 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Thirty-Sixth Fiscal Period (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'
capitalBalance at beginning of period

Deduction from Unitholders’ capital,
unitholders' capitalnet

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

217,970,957

Total surplus

Changes during the period
Provision of reserve for
reduction entry

Items other than unitholders’equity, net---

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

Total changes during the period
Balance at end of period

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- 18 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(4) Basis for Calculating Cash Distribution(Unit: Yen)
Thirty-Fifth Fiscal Period
May 1, 2022, to October 31, 2022
I.

Unappropriated retained earnings at theend of fiscal period under review
II. Total distribution amountThirty-Sixth Fiscal Period
November 1, 2022, to April 30, 2023

6,451,096,681

7,206,005,509

6,146,026,920

6,487,944,210(14,488)(7,647)

304,852,318

718,061,299

217,443-

In accordance with the policy stipulated in Article 35(1) of its Articles of Incorporation, the Investment
Corporation determines that the amount of distribution
shall exceed the amount equivalent to 90% of its
distributable profit as stipulated in Article 67-15 of theSpecial Taxation Measures Act and shall be up to theamount of its profits as the ceiling. Following thispolicy, the Investment Corporation has decided to
distribute 6,146,026,920 yen, which is part of theamount 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, the Investment Corporation decided not to
distribute cash in excess of distributable profit,
stipulated in Article 35 (2) of its Articles ofIncorporation.

In accordance with the policy stipulated in Article 35(1) of its Articles of Incorporation, the Investment
Corporation determines that the amount of distribution
shall exceed the amount equivalent to 90% of its
distributable profit as stipulated in Article 67-15 of theSpecial Taxation Measures Act and shall be up to theamount of its profits as the ceiling. Following thispolicy, the Investment Corporation has decided to
distribute 6,487,944,210 yen, which is the amountremaining after deducting the provision of reserve for
reduction entry stipulated in Article 65-7 of the Special
Taxation Measures Act from unappropriated retained
earnings, as profit distribution.
In addition, the Investment Corporation decided not to
distribute cash in excess of distributable profit,
stipulated in Article 35 (2) of its Articles ofIncorporation.

(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- 19 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(5) Statements of Cash Flows(Thousands of Yen)

Thirty-Fifth Fiscal Period
May 1, 2022, to October 31, 2022

Thirty-Sixth Fiscal Period
November 1, 2022, to April 30, 2023

Cash flows from operating activities
Income before income taxes

6,452,439

7,208,802

Depreciation

2,631,665

2,617,548

117,004

119,860

Interest income

(45)

(45)

Interest expenses

768,853

760,730

7,659

7,592

Decrease (increase) in accounts receivable-trade(116,515)

43,391

Decrease (increase) in prepaid expenses(41,429)

38,136

Increase (decrease) in accounts payable

205,756(209,465)

Increase (decrease) in accounts payable-other(19,922)242,170

Increase (decrease) in accrued consumption taxes

89,892

128,821

Increase (decrease) in advances received(71,540)

100,510

Increase (decrease) in deposits received(2,211)

11,192

1,350,357-

Changes in property, plant and equipment from sale-

3,189,768

Decrease (increase) in long-term prepaid expenses(107,663)(17,456)

Other(11,589)(19,499)

11,252,712

14,222,057

4545(755,906)(756,547)

(801)

(837)

10,496,050

13,464,718

Purchase of property, plant and equipment(3,668,262)(74,720)

Purchase of property, plant and equipment in trust(11,021,726)(746,370)

Payments of tenant leasehold and security deposits(30,007)(191,634)

Proceeds from tenant leasehold and security deposits

172,628

121,410

Payments of tenant leasehold and security deposits in trust(551,922)(697,843)

Proceeds from tenant leasehold and security deposits in trust

1,302,971

656,121

Amortization of long-term prepaid expenses

Amortization of investment corporation bond issuance
expenses

Changes in property, plant and equipment held in trust fromsale

SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Payments of restricted bank deposits in trust(31,536)(2,513)

Proceeds from restricted bank deposits in trust

302,201

32,441(13,525,653)(903,109)

Proceeds from short-term loans payable

7,800,000-

Repayment of short-term loans payable(16,100,000)-

Proceeds from long-term loans payable

26,750,000

4,800,000

Repayment of long-term loans payable(8,650,000)(4,800,000)

990,148-

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

Purchase of own investment units(3,000,300)-

Dividends paid

(5,998,599)(6,145,636)

Net cash provided by (used in) financing activities

791,248(6,145,636)

Net increase (decrease) in cash and cash equivalents(2,238,355)

6,415,972

Cash and cash equivalents at the beginning of period

33,156,349

30,917,994

Cash and cash equivalents at the end of period

30,917,994

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

Proceeds of investment corporation bond issuance- 20 -*

37,333,966*

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(6) Notes on Going Concern
Not applicable(7) Important Accounting Standards
1. Evaluation standards and evaluation method of assets

Securities
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, the Investment Corporation included its pro rata
property portion for the year in the acquisition 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 28,034 thousand yen in the thirty-fifth fiscal period and none in the thirty-sixth fiscal
period.
(2) Standard for recording revenue
The main content of the performance obligation regarding the revenue from contracts withthe customers of the Investment Corporation and the normal point of time when satisfying
the said performance obligation (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
is a 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 supplyof electricity, tap water, etc. to the lessee who is a customer based on the leaseagreement of real estate, etc. and the content of agreement incidental to it.
Of the utility charge reimbursement, for those that are determined to fall under the
category of an agent by the Investment Corporation, the net amount obtained bydeducting the amount paid to other related parties supplying electricity, gas, etc. fromthe amount received as the fee of electricity, gas, etc. is recognized as revenue.

- 21 -

KENEDIX OFFICE 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
The Investment Corporation enters into interest-rate swap transactions.
Risks hedged
Interest rates on debt.
(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk
management policies with the objective of hedging risks in accordance with its Articles ofIncorporation.
(4) Method of evaluating the effectiveness of hedging
During the period from the commencement of hedging to the point at which effectivenessis assessed, the Investment Corporation compares the cumulative total of market changes
in the targeted objects of hedging or cash flow changes with the cumulative total of market
changes in the hedging instruments or cash flow changes. The Investment Corporation
then makes a decision based on the changes and other 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 on statementsof 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 withoriginal maturities of 3 months or less, that are readily convertible to known amounts of cash
and present insignificant risk of a change in value.

7. Other accounting policies utilized in the preparation offinancial 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 theform of trust beneficiary interests in real estate and other assets are recorded in full in theInvestment Corporation’s balance sheets and statements of income.
Important line items included in accounting for financial assets and liabilities in theInvestment Corporation’s balance sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools,
furniture and fixtures in trust, land in trust 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
the cost of acquisition for each asset.

(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)
Thirty-Fifth Fiscal Period(as of October 31, 2022)

Thirty-Sixth Fiscal Period(as of April 30, 2023)
50,00050,000*2. The amount of advanced depreciation of property, plant and equipment acquired by government subsidy, etc.
(Thousands of Yen)
Thirty-Fifth Fiscal Period(as of October 31, 2022)
Buildings in trust

Thirty-Sixth Fiscal Period(as of April 30, 2023)
26,230- 22 -

26,230KENEDIX OFFICE INVESTMENT CORPORATION (8972)

3. Commitment line agreement
The Investment Corporation has concluded a commitment line agreement with bank of account, etc.

(Thousands of Yen)

Maximum amountThirty-Fifth Fiscal Period(as of October 31, 2022)
9,000,000

Drawn credit facility--

9,000,000

9,000,000

Balance

Thirty-Sixth Fiscal Period(as of April 30, 2023)
9,000,000*4. Status of cancellation of own investment units
Thirty-Fifth Fiscal Period(as of October 31, 2022)
Total number of units cancelled
Total amount of cancellation

Thirty-Sixth Fiscal Period(as of April 30, 2023)

4,295 units

4,295 units

2,999,551 thousand yen

2,999,551 thousand yen(Notes on Statements of Income)*1. Breakdown of real estate rental business profit and loss

(Thousands of Yen)

Thirty-Fifth Fiscal Period(May 1, 2022, to October 31, 2022)

Thirty-Sixth Fiscal Period(November 1, 2022, to April 30, 2023)

A. Rental and other operating revenues
Rental revenues
Leasing income

12,335,332

12,439,185

Common area charges

1,506,356

1,457,707

Subtotal

13,841,688

13,896,892

Other rental revenues
Parking space rental revenues

507,846

516,938

Utility charge reimbursement

1,268,984

1,286,335

Miscellaneous

342,405

372,728

Subtotal
Total rental and other operating revenues

2,119,236

2,176,002

15,960,925

16,072,895

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

1,482,699

1,509,353

Utilities

1,445,057

1,552,159

Taxes

1,369,695

1,392,970

Repairs and maintenance costs

398,775

351,470

Insurance

20,28020,500Trust fees

30,19430,127

Others329,428

319,516

Depreciation

2,631,665

2,617,548

7,707,795

7,793,647

8,253,129

8,279,248

Total rental and other operating expenses
C. Rental operating profit (A – B)

- 23 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)*2. Gain and loss on sale of real estate, etc.

Thirty-Fifth Fiscal Period (May 1, 2022, to October 31, 2022)(Thousands of Yen)KDX Kiba Building
Revenue from sale of real estate, etc.

1,650,000

Cost of real estate, etc. sold1,350,357

Other sales expenses

58,659Gain on sale of real estate, etc.

240,982

Thirty-Sixth Fiscal Period (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(Notes on Statements of Changes in Unitholders’ Equity)* Total number of authorized investment units and total number of investment units issued and outstanding
Thirty-Fifth Fiscal Period
May 1, 2022, to October 31, 2022
Total number of authorized investment units
Total number of investment units issued andoutstanding

Thirty-Sixth Fiscal Period
November 1, 2022, to April 30, 2023

2,000,000 units

4,000,000 units

424,215 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)
Thirty-Fifth Fiscal Period
May 1, 2022, to October 31, 2022

Thirty-Sixth Fiscal Period
November 1, 2022, to April 30, 2023

Cash and deposits

20,376,036

26,871,012

Cash and deposits in trust

11,745,529

11,636,598

Restricted bank deposits held in trust (Note)(1,203,571)(1,173,644)

Cash and cash equivalents

30,917,994

37,333,966

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)
Thirty-Fifth Fiscal Period(as of October 31, 2022)

Thirty- Sixth Fiscal Period(as of April 30, 2023)

Unearned lease payments
Due within one year

3,478,791

3,522,908

Due after one year

7,628,983

7,066,262

Total

11,107,775

10,589,171- 24 -

KENEDIX OFFICE 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
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily throughbank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation makes use ofderivative instruments primarily as a risk hedge against interest rate fluctuations and to lessen interest payments. In addition, it iscompany policy to not conduct speculative derivative transactions. Management of surplus funds is undertaken in a prudent mannerthat 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 11 months following the closing date. Although a certain portion of said liabilities
are subject to risk of interest rate fluctuation, the Investment Corporation utilizes derivative instruments in order to hedge against suchrisks.
Derivative instruments are interest rate swaps. The Investment Corporation hedges against risk of fluctuation in interest rates by fixing
its interest payments for funds 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 Accounting Standards.”(3) Risk Management Structure with Regard to Financial Instruments
A. Management of Market Risk (Risk Associated with Fluctuations in Interest Rates and Others)
The Investment Corporation uses interest rate swap transactions to minimize risks associated with interest payment rate fluctuations
on funds procured. The Investment Corporation 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, the Investment Corporation reduces such risks by spreading out
payment due dates and by using 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
Value of Financial Instruments” do not indicate the market risk of derivative transactions.
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,” “Cashand deposits in trust” and “Short-term loans payable” are settled with cash in the short term, the fair value can be considered as equivalent
to the book value. Therefore, the notes for them have been omitted.
Thirty-Fifth Fiscal Period (as of October 31, 2022)(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

-

-

-

14,300,000
13,000,000
187,350,000
214,650,000
814,256

14,338,060
12,971,800
186,596,720
213,906,580
814,256

38,060(28,200)(753,279)(743,419)-- 25 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Thirty-Sixth Fiscal Period (as of April 30, 2023)(Thousands of Yen)
Book Value

Fair Value

Difference(1) Current portion of investment corporation
2,000,000
1,999,400
(600)
bonds
(2) Current portion of long-term loans payable
19,700,000
19,716,952
16,952(3) Investment corporation bonds
11,000,000
10,949,200(50,800)(4) Long-term loans payable
181,950,000
181,467,672(482,327)
Total
214,650,000
214,133,225(516,774)
Derivative transaction
674,650
674,650* 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
indicated using 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
is based 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 the Investment Corporation 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, arecalculated 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.
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 date
Thirty-Fifth Fiscal Period (as of October 31, 2022)(Thousands of Yen)

Due within 1 yr.

1-2 yrs.

2-3 yrs.

3-4 yrs.

4-5 yrs.

-

4,000,000

2,000,000

2,000,000

3,000,000

2,000,000

14,300,000

25,600,000

29,950,000

30,800,000

38,500,000

62,500,000

14,300,000

29,600,000

31,950,000

32,800,000

41,500,000

64,500,000

Investment corporation bonds
Long-term loans payable
Total

Thirty-Sixth Fiscal Period (as of April 30, 2023)
Due within 1 yr.

More than 5 yrs.

(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.

- 26 -

2-3 yrs.

More than 5 yrs.

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on Derivative Transactions)
1. Items that do not apply hedge accounting
Thirty-Fifth Fiscal Period (as of October 31, 2022) and Thirty-Sixth Fiscal Period (as of April 30, 2023): Not applicable
2. Items that apply hedge accounting
Thirty-Fifth Fiscal Period (as of October 31, 2022)
Hedge accounting
methodPrinciple method

Type of derivative transactions

Main target ofrisk hedge

Interest rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable(Thousands of Yen)
Contracted amountCalculation method for
Fair value
applicable fair value
More than 1 yr.
Based on the quoted
price obtained from82,450,000
79,950,000 814,256
counterparty financial
institutions.

Special treatment of Interest rate swap transactions
Long-term loansinterest rate swaps
Fixed rate payable･Floating rate receivable payable

30,100,000

27,100,000

*

-

Total

112,550,000

107,050,000

814,256-* 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.

Thirty-Sixth Fiscal Period (as of April 30, 2023)
Hedge accounting
Type of derivative transactions
methodPrinciple method

Main target ofrisk hedge

Interest rate swap transactions
Long-term loans
Fixed rate payable･Floating rate receivable payable(Thousands of Yen)
Contracted amountCalculation method for
Fair value
applicable fair value
More than 1 yr.
Based on the quoted
price obtained from82,450,000
77,950,000 674,650
counterparty financial
institutions.

Special treatment of Interest rate swap transactions
Long-term loansinterest rate swaps
Fixed rate payable･Floating rate receivable payable

30,100,000

25,400,000

*

-

Total

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.

(Notes on Revenue Recognition)
1. Information on the Breakdown of Revenue from Contracts with Customers
Thirty-Fifth Fiscal Period (May 1, 2022, to October 31, 2022)
Revenue from contracts with customers *1

Net sales to external customers

Revenue from sale of real estate, etc.

1,650,000 thousand yen*2 240,982 thousand yen

Utility charge reimbursement

1,268,984 thousand yen

1,268,984 thousand yen

Other- thousand yen

14,756,403 thousand yen

Total

2,918,984 thousand yen

16,266,370 thousand yen*1 The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the sale of realestate, 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 notincluded in the above amount as they are not applied to the Revenue Recognition Accounting Standard. Moreover, the main revenue
from contracts with customers are revenue from sale of real estate, 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, theamount calculated by deducting the cost of real estate, etc. sold and other sales expenses from the revenue from sale of real estate, etc.
is indicated.

Thirty-Sixth Fiscal Period (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 realestate, 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 notincluded in the above amount as they are not applied to the Revenue Recognition Accounting Standard. Moreover, the main revenue
from contracts with customers are revenue from sale of real estate, etc. and utility charge reimbursement.
- 27 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)*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, theamount calculated by deducting the cost of real estate, etc. sold and other sales expenses from the revenue from sale of real estate, etc.
is indicated.

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 thirty-fifth fiscal period (May 1, 2022, to October 30,2022) and the thirty-sixth fiscal period (November 1, 2022, to April 30, 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 from Contracts
with Customers Existing at the End of the Current Calculation Period(1) Balance of contract assets and contract liabilities, etc.
Thirty-Fifth Fiscal Period(May 1, 2022, to October 31, 2022)
Claims generated from contracts with customers(balance at beginning of fiscal period)
Claims generated from contracts with customers(balance at end of fiscal period)

Thirty-Sixth Fiscal Period(November 1, 2022, to April 30, 2023)

247,784 thousand yen

324,473 thousand yen

324,473 thousand yen

309,606 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(2) Transaction value allocated to remaining performance obligations
Not applicable for the thirty-fifth fiscal period (May 1, 2022, to October 31, 2022) and the thirty-sixth fiscal period (November 1, 2022,
to April 30, 2023).
With regard to utility charge reimbursements, as the Investment Corporation 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
performance obligations through application of the provisions of Paragraph 80-22 (2) of the Accounting Standard for Revenue
Recognition.
(Notes on Segment and Related Information)
1. Segment Information
Disclosure is omitted because the Investment Corporation has been engaged in the real estate leasing business as a sole business and it has
no reportable segment subject to disclosure.
2. Related Information
Thirty-Fifth Fiscal Period (May 1, 2022, to October 31, 2022)(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating
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 thestatement of 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 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Thirty-Sixth Fiscal Period (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 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 thestatement of 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.
(Notes on Tax-effect Accounting)
1. Significant components of deferred tax assets and liabilities(Thousands of Yen)
Thirty-Fifth Fiscal Period(as of October 31, 2022)

Thirty-Sixth Fiscal Period(as of April 30, 2023)

Deferred tax assets
37

177

Amortization of land leasehold in trust

5,806

6,049

Deferred gains or losses on hedges

168

1,294

Enterprise tax payable

Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets

6,012

7,521

(5,974)(7,344)37

177

2. Significant components causing difference between statutory income tax rate and the effective tax rate after tax effect accounting(Unit: %)Thirty-Fifth Fiscal Period(as of October 31, 2022)

Thirty-Sixth Fiscal Period(as of April 30, 2023)
31.46

31.46

Deductible cash distributions(29.97)(28.31)

Provision amount of reserve for reduction entry(1.49)(3.13)

Others0.01

0.03

Effective tax rate

0.02

0.04

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

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on Real Estate for Rental Purposes)
The Investment Corporation 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)
Thirty-Fifth Fiscal Period
May 1, 2022, to October 31, 2022

Thirty-Sixth Fiscal Period
November 1, 2022, to April 30, 2023

Book value
Balance at beginning of period

426,967,143

437,196,489

Changes during the period

10,229,346(4,792,379)

437,196,489
432,404,110
Balance at end of period
553,221,000
551,161,000
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 period
under review of Harajuku F.F. Building and KDX Nagoya Sakae Building that are scheduled to be sold on November 1, 2023 respectively
are calculated based on the anticipated 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 thirty-fifth fiscal period, the principal
increase/decrease factors were the acquisitions of 1 real estate property and trust beneficiary interest in real estate of 1 property totaling
13,346,136 thousand yen, sale of trust beneficiary interest in real estate of 1 property totaling 1,350,357 thousand yen and depreciation
amounting to 2,631,665 thousand yen. For the thirty-sixth fiscal period, the principal increase/decrease factors were the sale of 1 real estate
property totaling 3,189,768 thousand yen and depreciation amounting to 2,617,548 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

Thirty-Fifth Fiscal Period
May 1, 2022, to October 31, 2022
270,573 yen

Thirty-Sixth Fiscal Period
November 1, 2022, to April 30, 2023
271,657 yen

7,566 yen
8,493 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: The Investment Corporation implemented a two-for-one split of the investment units with October 31, 2022, as the record date of the split
and November 1, 2022, as the effective 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 thirty-fifth fiscal period.
Note 3: The basis of calculation for the net income per unit is as follows.
Thirty-Fifth Fiscal Period
Thirty-Sixth Fiscal Period
May 1, 2022, to October 31, 2022
November 1, 2022, to April 30, 2023
Net income
6,451,096
7,205,788(Thousands of Yen)
Amount not vested in ordinary unitholders(Thousands of Yen)
Net income for ordinary investment units
6,451,096
7,205,788(Thousands of Yen)
Average number of investment units
852,530
848,430
during the period (unit)- 30 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(Notes on Important Subsequent Events)
Execution of the Merger Agreement by and among the Investment Corporation, KDR and KRR
The Investment Corporation, KDR and KRR announced that each of them has, at Each Investment Corporation’s Board of Directors Meeting
held June 13, 2023, resolved to undertake the Merger with November 1, 2023 as the effective date, and have also executed the Merger
Agreement on the same date.
i. Purpose of the Merger
The Japanese economy is making a moderate recovery as movement restrictions to prevent the spread of COVID-19 infections wasremoved, and its economic and social activities are being normalized. However, there are uncertain factors in the economic conditionsin and outside Japan such as changes in the global affairs, emergence of geopolitical risks and effects of economic sanctions related tothese risks as a result of the invasion of Ukraine by Russia, continuous global inflation related to rising commodity prices and fuel costs,
increase of the policy interest rates by major countries, and bankruptcies of overseas financial institutions.
In such environment, the current real estate investment trust securities market (the “J-REIT market”) is unstable and affected by theconcern for rising operational costs due to inflation and the fear for the rise in the long-term interest rates due to future changes of themonetary policies by the Bank of Japan.
The asset management company of Each REIT, the Asset Management Company was established as follows: Kenedix Residential
Partners, Inc. established in March 2011 merged with Kenedix Office Partners, Inc. and Kenedix Advisors, Inc. (both established in
November 2003) in October 2013 in an absorption-type merger, and changed its corporate name to the current name of the asset
management company. Each REIT has received sponsor support from Kenedix Group and has achieved operational results.
Each REIT has implemented various measures to ensure the acquisition of stable profits and the continued growth of investment assets
by leveraging each characteristic.
However, the real estate market’s evaluations of the mid-sized office buildings, which are the Investment Corporation’s main investment
target, have not changed because of their scarcity and liquidity. Thus, the capitalization rate remains low and it remains hard to acquire
mid-sized office buildings. Moreover, recently, unit prices of the Investment Corporation are significantly below NAV per unit due to theconcern for the market outlook regarding secondary vacancies and rent decline due to large supplies of large office buildings, and there
are limited opportunities for external growth that involve public offering. Therefore, there are issues with ensuring continued future
growth. As for KDR, although KDR has conducted public offerings for five consecutive years, there is the possibility that the acquisitioncompetition may escalate and the acquisition opportunities may decrease due to the relatively stable profitability of residential properties,
and recently unit price is below NAV per unit. Moreover, KDR’s LTV is relatively high in the J-REIT market, and KDR has concerns
regarding the increase in costs when interest rates are rising. As for KRR, although KRR has a rich real estate pipeline, it has been
increasingly difficult to acquire shopping centers for daily needs since the COVID-19 pandemic. In addition, there are concerns overincrease in costs caused by inflation, and there are issues such as limited room for the future internal growth as a whole due to the longterm fixed rents.
Moreover, Each REIT is watching the trends of interest levels and price levels such as costs of utilities, which may have an impact on
the profitability of their portfolios in the future, and Each REIT recognizes this situation as their common issues.
In such circumstances, Each REIT agreed to start negotiation for merger and carefully deliberated on the issues in order to deal with theissues described above, respond flexibly to environmental changes and attain continued growth. As a result, Each REIT came to the sameconclusion 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
for sustainability. Therefore, the Merger Agreement was made and entered into by and among Each REIT.
Each Investment Corporation considers that the Merger has the following rationale:(i) Sustainable growth driven by expansion of investment universe
The New REIT (defined below) will continue to focus on their main investment target, i.e. mid-sized office buildings, residential
properties, healthcare facilities, and shopping centers for daily needs, and it will start to additionally focus on logistics facilities andhotels, in which Each REIT has conducted only limited investments until now, to increase opportunities for acquisitions. In addition,
the Merger will enable asset reshuffling among different asset types, disposing of properties with less competitiveness or profitability,
allow flexibly to the changes of the external environment surrounding the real estate market, and activate the investments in theinvestment target sectors that are expected to grow, and thus leading to the improvement of portfolio profitability. As described above,
the New REIT aims to attain continued growth beyond the boundary of the strategic management for the existing specialized REIT
through a strategic management that ensures a wide range of opportunities for acquisitions and flexibility related to the expansion of
the investment target sectors.

- 31 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(ii) Improvement in the market presence and ability
Through the Merger, the asset size of the investment corporation after the Merger (the “New REIT”) will be ranked third in the J-REIT
market (Note 1) and this will significantly improve the presence in the market and liquidity of investment units, and the portfolio is
expected to own a total of 350 (Note 2) properties after the Merger. Having the largest expected number of properties in the J-REIT
market will enhance diversification and contribute to improve the stability of the portfolio. In addition, a property manager thatleverages the advantage of its scale will contribute to increase resilience against the pressure of the rising costs.
(iii) Further commitment to sustainability
Each REIT has recognized sustainability as a significant issue and has taken the initiative in implementing various initiatives.
Specifically, the Investment Corporation has become the first investment corporation in the J-REIT market to participate in GRESBReal Estate Assessment, KDR was the first J-REIT to issue social bonds, and KRR was the first J-REIT to introduce investment unit
performance fee. The New REIT plans to integrate and elevate expertise accumulated by Each REIT through the Merger and aims to
be a leading company in the sustainability initiatives. Moreover, the New Investment Corporation plans to further enforce thesustainability initiatives under the management system with a high degree of specialization and diversity by introducing a new
management fee structure that is linked to unitholder value and sustainability metric, improving governance through the enhancementof supervisory officers, and promoting diversity.
Note 1: The amount of asset size after the Merger is calculated by totaling the asset size of Each REIT. The asset size of the Investment Corporation isassumed to be the total of acquisition price of the properties in the portfolio as of April 30, 2023, plus the acquisition (scheduled) price reflecting
the acquisitions and sales (including one that are scheduled) of the properties from May 1, 2023 to the effective date of the Merger. The asset sizeof KDR and KRR is considered to be the appraisal values of the properties as of the end of the latest fiscal period (relating to KDR, as of January
31, 2023 (provided, however, that, this includes the acquisitions of Sunny Life Tachikawa and Rehabili-home Bon Sejour Minamisenzoku;
relating to KRR, as of March 31, 2023). The asset sizes of the other investment corporations in the J-REIT market are calculated based on theasset sizes including any properties that the other investment corporations announced the acquisition and sale thereof in the J-REIT market as ofApril 30, 2023 (acquisition (scheduled) price basis). Therefore, it is not guaranteed that the New REIT after the Merger will have the third largest
asset size in the J-REIT market as of the effective date of the Merger. In regard to the asset size after the Merger, because it is planned that assets
of KDR and KRR will be succeeded at market price based on the purchase method by the Investment Corporation as the acquiring corporation,
the asset size will not be a simple sum of the total (scheduled) acquisition price of the Investment Corporation and the total appraisal values of
KDR and KRR as of the end of the latest accounting period.
Note 2: The number of properties of the portfolio after the Merger is based on the number of properties of the Investment Corporation, KDR and KRR
as of the date hereof and reflecting the change in the number of the acquisitions and sales of the properties (including ones that are scheduled) by
the effective date of the Merger. KDX Chofu Building is treated as one property in the calculation of the number of properties of the portfolio
after the Merger though the Investment Corporation owns its office tower and KRR owns its retail wing respectively as of June 13, 2023. The
numbers of the properties of the other investment corporations in the J-REIT market is calculated based on the number of properties including
those that the other investment corporations announced acquisition and sale thereof in the J-REIT market as of April 30, 2023. Therefore, it is notguaranteed that the portfolio of the New REIT after the Merger will have the largest number of properties in the J-REIT market as of the effective
date of the Merger.

ii. Form of the Merger
The Investment Corporation will be the surviving corporation under an absorption-type merger and KDR and KRR will be dissolved in
the Merger.
iii. Allocation ratio etc.
The Investment Corporation(Surviving corporationin the absorption-type merger)
Allocation of investment units
under the Merger

1

KDR(Dissolving corporationin the absorption-type merger)

KRR(Dissolving corporationin the absorption-type merger)

1.34

1.68

(Reference)
Before the Investment Unit Split
0.67(Reference)
Before the Investment Unit Split
0.84

Note 1: The number of the Investment Corporation’s new investment units to be issued as a result of the Merger (the number of units taking into
account the Investment Unit Split of the Investment Corporation): 2,446,037
Note 2: For details of the investment unit split refer to “iv. Split of Investment Units” below. The same applies hereinafter.

- 32 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

iv. Split of Investment Units
The Merger will be effected by way of an absorption-type merger with the Investment Corporation as the surviving corporation, with
KDR and KRR having a merger ratio of 0.67 and 0.84, respectively, against one for the Investment Corporation, before taking into
account the Split of Investment Units. However, with this merger ratio, 0.67 Investment Corporation’s investment units will be allottedagainst one KDR investment unit and 0.84 Investment Corporation’s investment units will be allotted against one KRR investment unit,
resulting in a number of KDR and KRR unitholders that will receive Investment Corporation’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 the Investment Corporation’s investment units
after the Merger, we decided to split the Investment Corporation’s investment units at a ratio of two investment units per one investment
unit, for the purpose of providing at least one Investment Corporation’s investment unit to all unitholders of KDR and KRR. As a resultof the Split of Investment Units, KDR unitholders will be allotted 1.34 Investment Corporation’s investment units after the Split ofInvestment Units against each KDR investment unit, and KRR unitholders will be allotted 1.68 Investment Corporation’s investment
units after the Split of Investment Units against each KRR investment unit.
(i) Method of Split of Investment Units
The Investment Corporation will implement a two for one split of the investment units held by unitholders of the Investment
Corporation stated or recorded on the registry of unitholders as of Tuesday, October 31, 2023, which is the day preceding the effective
date of the Merger. The Split of Investment Units will become effective on Wednesday, November 1, 2023, which is the effective dateof the Merger, provided that the merger agreement pertaining to the Merger has not been terminated or expired by the day before theeffective date of the Merger.
(ii) Number of Investment Units to be Increased by the Split of Investment Units
1) Total number of Investment Corporation’s investment units issued 848,430 units
and outstanding before the Split of Investment Units:
2) Number of investment units to be increased through the Split of 848,430 units
Investment Units:
3) Total number of Investment Corporation’s investment units issued 1,696,860 units
and outstanding after the Split of Investment Units:
4) Total number of Investment Corporation’s investment units issued 4,142,897 units (Note 1)
and outstanding 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: The number of investment units will be calculated based on the assumption that one KDR investment unit will be allotted 1.34 Investment
Corporation’s investment units after the Split of Investment Units for all of KDR’s issued investment units as of June 13, 2023 (1,070,433
units), and one KRR investment unit will be allotted 1.68 Investment Corporation’s investment units after the Split of Investment Units forall of KRR’s issued investment units as of June 13, 2023 (602,177 units).
Note 2: The current total number of authorized Investment Corporation’s investment units is 4,000,000 units. However, in connection with the Split
of Investment Units, the Articles of Incorporation of the Investment Corporation will be partially amended and the total number ofauthorized investment units will be changed as of the effective date of the Merger.

(iii) Effect on the information per unit of the Investment Corporation
The information per unit for the fiscal period under assuming that the Split of Investment Units was conducted at the beginning of thisfiscal period is described as follows.
1) Net Assets per Unit: 135,828 yen
2) Net Income per Unit: 4,246 yen- 33 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

v. Delivery of Payment upon the Merger
In addition to the above mentioned investment units, the Investment Corporation intends to pay unitholders of KDR and KRR (theunitholders stated or recorded 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 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 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 thanthe Unitholders Subject to Allocation. The Payment upon the Merger will be paid within a reasonable period from the effective date of
the Merger.
vi. Overview of the Previous Fiscal Period for KDR and KRR
Overview of the Previous Fiscal Period (ending January 31, 2023) for KDR
Business: To invest assets mainly in specified assets as set forth in the Investment Trust Act
Operating Revenues : 9,936 million yen
Net Profit: 4,593 million yen
Total Assets: 327,014 million yen
Total liabilities: 175,381 million yen
Net assets: 151,632 million yen
Overview of the Previous Fiscal Period (ending March 31, 2023) for KRR
Business: To invest assets mainly in specified assets as set forth in the Investment Trust Act
Operating Revenues : 9,924 million yen
Net Profit: 3,922 million yen
Total Assets: 287,569 million yen
Total liabilities: 145,002 million yen
Net Assets: 142,566 million yen
vii. Time of the Merger
Effective date of the Merger: November 1, 2023 (planned)- 34 -

KENEDIX OFFICE 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)
May 28, 2018
Public offering
22,500427,385
14,067220,267(Note 1)
June 15, 2018
Third-party allotment
1,125
428,510703
220,970(Note 2)September 30, 2022
Cancellation(4,295)424,215(2,999)217,970(Note 3)
November 1, 2022
Investment unit split
424,215
848,430
217,970(Note 4)Note 1: The Investment Corporation undertook an additional issue of new investment units (public offering) with the aim of procuring a portion offunds for the acquisition of new properties. The offer price was 646,425 yen per unit with an issue amount of 625,209 yen per unit.
Note 2: The Investment Corporation undertook an additional issue of new investment units with an issue amount of 625,209 yen per unit by wayof third-party allotment with the aim of procuring a portion of funds for the acquisition of new properties.
Note 3: The Investment Corporation acquired own investment units through the market purchase on the Tokyo Stock Exchange pursuant to adiscretionary trading contract pertaining to the acquisition of own investment units with a securities company from June 15, 2022, toSeptember 9, 2022. As for the acquired own investment units (4,295 units), the Investment Corporation 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 4: The Investment Corporation implemented a two for one 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.

- 35 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

3. Reference Information(1) Information Concerning Price of Assets in the Property Portfolio, Etc.
① Component of Assets
Asset Class

Type

Area

Office Buildings

Real Estate

Thirty-Fifth Fiscal Period(as of October 31, 2022)

Tokyo Metropolitan Area

Total Amount Held
(Millions of Yen)
(Note 1)26,807

Ratio(%)(Note 2)
5.7

Total Amount Held
(Millions of Yen)
(Note 1)
23,439

Ratio(%)(Note 2)
4.9

15,2193.2

15,105

3.2

42,027

8.9

38,545

8.1

Other Regional Areas

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

Tokyo Metropolitan Area
Other Regional Areas

Total for Office Buildings
Tokyo Metropolitan Area

OthersThirty-Sixth Fiscal Period(as of April 30, 2023)

42,027

8.9

38,5458.1

322,13168.1

321,02167.7

70,064

14.8

69,86314.7

392,195

82.9

390,885

82.4

2,973

0.6

2,973

0.6

2,973

0.6

2,973

0.6

395,169

83.5

393,859

83.0

Investment Securities (Note 3)

1,138

0.2

1,136

0.2

Bank Deposits and Other Assets

34,678

7.3

40,733

8.6

Total Assets

473,013100.0

474,274

100.0

Total for Others
Total of Trust Beneficiary Interests in Real Estate

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.
Thirty-Sixth Fiscal Period(as of April 30, 2023)
AmountRatio(Millions of Yen)(%)

Thirty-Fifth Fiscal Period(as of October 31, 2022)
AmountRatio(Millions of Yen)(%)
Total Liabilities

243,451

Total Net Assets
Total Assets

51.5

243,791

51.4

229,56248.5

230,48248.6

473,013100.0

474,274

100.0② Details of Investment Assets
A. Major Components of Investment Securities
Details of investment assets held by the Investment Corporation as of April 30, 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
partnership

Numberof Units

Book Value(Millions of Yen)

Appraisal Value(Millions of Yen)
(Note 1)

Ratio (%)
(Note 2)

Appraisal
profit/loss(Millionsof Yen)Unit Price

AmountUnit Price

Amount

-

-

1,136

-

1,136

0.2

-

-

-

1,136

-

1,136

0.2

-

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.

- 36 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

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

Type

Area

No.

A-1
A-3

Tokyo
OfficeMetropolitan
Buildings
Area

Property NameKDX Nihonbashi 313 Building
KDX Higashi-Kayabacho Sanyo
Building (Note 6)(Unit: Millions of Yen)

Appraisal Value at the End of Thirty-Sixth Fiscal Period
Amount on
Direct Capitalization
Acquisition
Ratio
Discounted Cash Flow Method
the BalanceAppraiser
Method
Price
(%)
Sheet
(Note 4)OverallTerminal(Note 1)
(Note 3)(Note 5)
Discount(Note 2)
Capitalization
Value Capitalization
Value
Rate (%)
Rate (%)
Rate (%)

5,940

5,584

7,110

7,330

3.7

7,020

3.5

3.9

B

1.3

4,450

3,906

5,340

5,360

3.8

5,310

3.5

3.8

A

1.0

A-4

KDX Hatchobori Building

3,680

3,195

3,580

3,640

4.0

3,550

3.8

4.2

B

0.8

A-5

KDX Nakano-Sakaue Building

2,533

2,301

2,510

2,540

4.2

2,490

4.0

4.4

B

0.6

A-6

Harajuku F.F. Building

2,450

2,338

3,880

3,880

4.2

3,880

3.9

4.2

A

0.5

A-7

KDX Minami Aoyama Building

2,270

2,173

2,870

2,870

3.6

2,860

3.3

3.6

A

0.5

A-8

KDX Kanda Kitaguchi Building

1,950

1,728

1,640

1,670

4.0

1,620

3.8

4.2

B

0.4

A-13

KDX Kojimachi Building

5,950

5,398

5,540

5,530

3.3

5,540

3.0

3.3

A

1.3

A-14

KDX Funabashi Building

2,252

2,138

3,150

3,170

4.7

3,130

4.4

4.8

A

0.5

A-16

Toshin 24 Building

5,300

4,764

5,760

5,750

3.9

5,770

3.6

3.9

A

1.2

A-17

KDX Ebisu Building

4,640

4,245

6,270

6,240

3.6

6,300

3.2

3.6

A

1.0

A-19

KDX Hamamatsucho Building

3,460

3,053

3,590

3,710

3.6

3,540

3.4

3.8

B

0.8

A-20

KDX Kayabacho Building

2,780

2,601

3,360

3,370

4.0

3,340

3.6

4.1

A

0.6

A-21

KDX Shinbashi Building

3,728

3,647

5,670

5,670

3.3

5,660

3.0

3.3

A

0.8

A-22

KDX Shin-Yokohama Building

2,520

2,090

2,690

2,690

4.4

2,690

4.1

4.4

A

0.6

A-27

KDX Kajicho Building

2,350

2,237

2,320

2,380

4.0

2,290

3.8

4.2

B

0.5

A-29

KDX Higashi-Shinjuku Building

2,950

2,843

4,190

4,290

4.1

4,140

3.9

4.3

B

0.7

A-30

KDX Nishi-Gotanda Building

4,200

3,560

3,700

3,740

3.9

3,650

3.7

4.0

A

0.9

A-31

KDX Monzen-Nakacho Building

1,400

1,219

1,150

1,190

4.5

1,130

4.3

4.7

B

0.3

A-32

KDX Shiba-Daimon Building

6,090

5,737

6,380

6,370

3.8

6,380

3.5

3.8

A

1.3

A-33

KDX Okachimachi Building

2,000

1,976

2,100

2,150

4.0

2,080

3.8

4.2

B

0.4

A-35

KDX Hachioji Building

1,155

1,123

1,240

1,260

4.9

1,230

4.7

5.1

B

0.3

A-37

KDX Ochanomizu Building

6,400

6,393

8,450

8,450

3.6

8,450

3.3

3.6

A

1.4

A-38

KDX Nishi-Shinjuku Building

1,500

1,511

1,560

1,560

4.0

1,560

3.7

4.0

A

0.3

A-41

KDX Shinjuku 286 Building

2,300

2,336

2,910

2,900

3.6

2,910

3.3

3.6

A

0.5

A-46

Hiei Kudan-Kita Building

7,600

7,347

8,450

8,700

3.6

8,340

3.4

3.8

B

1.7

A-51

KDX Hamacho Nakanohashi Building

2,310

2,151

2,180

2,180

4.1

2,180

3.8

4.1

A

0.5

A-55

Shin-toshin Maruzen Building

2,110

2,014

1,720

1,720

4.0

1,710

3.6

4.1

A

0.5

A-56

KDX Jimbocho Building

2,760

2,773

2,360

2,370

3.9

2,340

3.5

4.0

A

0.6

A-59

KDX Iwamoto-cho Building

1,864

1,529

1,690

1,680

4.0

1,700

3.7

4.0

A

0.4

A-60

KDX Harumi Building

10,250

8,122

8,590

8,600

3.6

8,580

3.3

3.6

A

2.3

A-62

Koishikawa TG Building

3,080

3,011

3,400

3,400

3.9

3,400

3.6

3.9

A

0.7

A-63

KDX Gotanda Building

2,620

2,609

3,620

3,620

4.0

3,620

3.7

4.0

A

0.6

A-64

KDX Nihonbashi 216 Building

2,010

1,742

2,910

2,920

3.5

2,900

3.2

3.5

A

0.4

A-66

KDX Shinjuku Building

6,800

6,872

10,50010,5003.2

10,500

2.9

3.2

A

1.5

A-67

KDX Ginza 1chome Building

4,300

4,073

5,960

6,120

3.4

5,890

3.2

3.6

B

0.9

A-71

KDX Iidabashi Building

4,670

4,715

5,790

5,920

3.9

5,730

3.7

4.1

B

1.0

A-72

KDX Higashi-Shinagawa Building

4,590

4,536

4,860

4,960

4.0

4,810

3.8

4.2

B

1.0

A-73

KDX Hakozaki Building

2,710

2,577

3,610

3,660

4.2

3,590

4.0

4.4

B

0.6

A-78

KDX Tachikawa Ekimae Building

1,267

1,314

1,910

1,910

4.6

1,910

4.3

4.6

A

0.3

A-83

KDX Fuchu Building

6,120

5,788

8,730

8,950

4.5

8,630

4.3

4.7

B

1.4

A-84

KDX Kasuga Building

2,800

2,589

4,280

4,280

3.8

4,280

3.5

3.8

A

0.6

- 37 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

Tokyo
Metropolitan
Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Appraisal Value at the End of Thirty-Sixth Fiscal Period
Amount on
Direct Capitalization
Acquisition
Ratio
Discounted Cash Flow Method
the BalanceAppraiser
Method
Price
(%)
Sheet
(Note 4)OverallTerminal(Note 3)(Note 1)
(Note 5)
Discount(Note 2)
Capitalization
Value Capitalization
Value
Rate (%)
Rate (%)
Rate (%)

A-85

KDX Nakameguro Building

1,880

1,857

3,530

3,580

4.1

3,510

3.9

4.3

B

0.4

A-86

KDX Omiya Building

2,020

2,076

3,210

3,260

4.8

3,190

4.6

5.0

B

0.4

A-87

Nihonbashi Horidomecho First

2,200

2,236

3,180

3,230

4.0

3,160

3.8

4.2

B

0.5

A-88

KDX Shinjuku 6-chome Building

1,900

1,933

3,310

3,390

4.0

3,280

3.8

4.2

B

0.4

A-89

KDX Takanawadai Building

5,250

5,511

7,160

7,160

3.8

7,160

3.5

3.8

A

1.2

A-90

KDX Ikebukuro Building

3,900

3,426

5,240

5,360

3.7

5,190

3.5

3.9

B

0.9

A-91

KDX Mita Building

3,180

3,112

4,270

4,290

3.7

4,240

3.4

3.7

A

0.7

A-92

KDX Akihabara Building

2,600

2,440

3,300

3,300

3.6

3,300

3.3

3.6

A

0.6

A-93

KDX Iidabashi Square

4,350

4,696

6,340

6,470

3.8

6,290

3.6

4.0

B

1.0

A-94

KDX Musashi-Kosugi Building

12,000

10,24819,30019,3003.8

19,200

3.5

3.8

A

2.6

A-95

KDX Toyosu Grand Square

8,666

7,383

9,930

10,100

4.3

9,850

4.1

4.5

B

1.9

A-96

KDX Takadanobaba Building

3,650

3,528

4,750

4,810

4.1

4,720

3.8

4.3

B

0.8

A-99

KDX Ikebukuro West Building

1,934

1,957

2,620

2,680

4.0

2,590

3.8

4.2

B

0.4

A-101

KDX Yokohama Building

7,210

7,206

9,900

10,200

4.2

9,770

4.0

4.4

B

1.6

A-102

KDX Yokohama Nishiguchi Building

2,750

2,585

3,590

3,670

4.2

3,550

4.0

4.4

B

0.6

A-107

KDX Ginza East Building

3,600

3,602

4,170

4,160

3.7

4,170

3.4

3.7

A

0.8

A-108

Pentel Building

3,350

3,579

4,221

4,297

3.7

4,188

3.5

3.9

B

0.7

A-109

KDX Hamamatsucho Center Building

3,950

3,995

4,610

4,750

3.5

4,550

3.3

3.7

B

0.9

A-112

KDX Toranomon 1Chome Building

14,616

14,732

25,10025,0002.9

25,100

2.6

2.9

A

3.2

A-113

KDX Shin-Nihonbashi Ekimae Building

3,829

3,939

4,700

4,690

3.3

4,700

3.0

3.3

A

0.8

A-115

ARK Mori Building

4,169

4,187

5,040

5,240

3.4

4,960

3.2

3.6

B

0.9

A-116

KDX Nishi-Shinbashi Building

8,400

8,460

9,330

9,600

3.3

9,210

3.1

3.5

B

1.9

A-117

BR Gotanda

2,200

2,265

2,590

2,640

3.9

2,540

3.5

4.1

A

0.5

A-119

KDX Shibuya Nanpeidai Building

3,500

3,524

3,830

3,920

3.4

3,790

3.4

3.6

B

0.8

A-120

KDX Yoyogi Building

2,479

2,372

2,420

2,420

4.2

2,420

3.7

4.3

A

0.5

A-121

Ginza 4chome Tower

9,800

9,287

15,60015,6002.9

15,600

2.6

2.9

A

2.2

A-122

Mitsubishijuko Yokohama Building

14,72014,467

14,80015,0003.8

14,700

3.3

4.0

B

3.2

A-123

KDX Yokohama Kannai Building

9,500

9,411

10,40010,7003.9

10,200

3.7

4.1

B

2.1

A-124

KDX Hamamatsucho Place

20,70020,12323,90024,6003.2

23,600

3.0

3.4

B

4.6

A-125

KDX Chofu Building

8,700

8,977

10,30010,300

4.3

10,200

3.9

4.4

A

1.9

A-127

KDX Kanda Ekimae Building

3,300

3,387

3,590

3,610

3.3

3,570

3.0

3.3

A

0.7

A-128

KDX Shinbashi Ekimae Building

16,30016,273

21,10021,1002.7

21,100

2.4

2.7

A

3.6

A-130

KDX Edobashi Building (Note 6)

9,600

9,796

10,30010,3003.2

10,200

2.9

3.2

A

2.1

A-12

Portus Center Building

5,570

3,754

4,950

5,130

5.4

4,870

5.2

5.6

B

1.2

A-42

KDX Karasuma Building

5,400

4,959

6,100

6,270

4.6

6,020

4.4

4.8

B

1.2

A-44

KDX Sendai Building

2,100

1,805

1,910

1,920

5.1

1,900

5.1

5.3

B

0.5

A-53

KDX Hakata-Minami Building

4,900

4,200

5,470

5,510

5.3

5,420

5.0

5.4

A

1.1

A-54

KDX Kitahama Building

2,220

1,973

1,770

1,770

4.7

1,770

4.2

4.8

A

0.5

A-58

KDX Nagoya Sakae Building

7,550

5,984

5,740

5,860

4.2

5,690

4.0

4.4

B

1.7

A-69

KDX Kobayashi-Doshomachi Building

2,870

1,627

2,920

2,950

7.8

2,890

3.9

11.7

A

0.6

A-70

KDX Sapporo Building

2,005

1,905

2,790

2,860

4.6

2,760

4.4

4.8

B

0.4

A-79

KDX Nagoya Ekimae Building

7,327

7,790

10,40010,4003.6

10,400

3.3

3.6

A

1.6

A-82

KDX Higashi Umeda Building

2,770

2,135

4,130

4,210

4.1

4,100

3.9

4.3

B

0.6

A-97

KDX Utsunomiya Building

2,350

2,142

2,690

2,680

5.3

2,690

5.1

5.5

B

0.5

A-98

KDX Hiroshima Building

1,300

1,302

1,980

1,980

4.9

1,980

4.6

4.9

A

0.3

A-100

Senri Life Science Center Building

13,00011,945

13,90014,1004.3

13,800

4.1

4.5

B

2.9

A-104

KDX Minami-Honmachi Building

2,200

1,845

3,290

3,270

3.9

3,300

3.6

3.9

A

0.5

A-106

KDX Sakura-dori Building

5,900

6,594

8,600

8,730

4.4

8,540

4.2

4.6

B

1.3

A-110

KDX Shin-Osaka Building

4,550

4,485

5,560

5,710

4.0

5,500

3.8

4.2

B

1.0

A-111

KDX Nagoya Nichigin-mae Building

3,500

3,273

4,310

4,310

3.7

4,310

3.4

3.7

A

0.8

KDX Sapporo Kitaguchi Building

1,800

2,092

2,460

2,540

4.6

2,420

4.4

4.8

B

0.4

A-118

- 38 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)

Type

Area

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Appraisal Value at the End of Thirty-Sixth Fiscal Period
Amount on
Direct Capitalization
Acquisition
Ratio
Discounted Cash Flow Method
the BalanceAppraiser
Method
Price
(%)
Sheet
(Note 4)OverallTerminal(Note 3)(Note 1)
(Note 5)
Discount(Note 2)
Capitalization
Value Capitalization
Value
Rate (%)
Rate (%)
Rate (%)

A-126

KDX Tosabori Building

5,000

5,057

4,950

4,960

3.8

4,930

3.5

3.8

A

1.1

A-129

KDX Sendai Honcho Building

6,360

6,476

6,500

6,780

4.6

6,380

4.4

4.8

B

1.4

A-131

KDX Kobe Building (Note 6)

3,617

3,620

3,750

4.3

3,560

4.0

4.4

B

0.8

429,430 547,191 553,617-

543,658

-

-

-

99.4

Subtotal of Office Buildings (96 properties)
OthersTokyo
Metropolitan
Area

3,450
450,436
2,880

2,973

3,660

3,690

3.3

3,650

3.2

3.3

B

0.6

Subtotal of Others Properties (1 property)

2,880

2,973

3,660

3,690

-

3,650

-

-

Total of 97 properties

453,316

432,404 550,851 557,307-

547,308

-

-

-

100.0

D-2

Shinjuku 6chome Building (Land)

0.6

Note 1: Acquisition prices are the purchase prices for trust beneficiary interests or properties acquired by the Investment Corporation (excluding acquisition
costs, property tax, city planning tax, consumption tax, etc., 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 the Investment Corporation’s Articles
of Incorporation and regulations 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
figures entered in the subtotal and total columns are those obtained by dividing the subtotal (total) of acquisition prices of properties corresponding toeach subtotal and total column by the total acquisition price of the entire assets (97 properties).
Note 6: The property name has been changed as follows. The same applies below.
Property No.

New Property Name

Former Property Name

Effective Date

A-3

KDX Higashi-Kayabacho
Sanyo Building

Higashi-Kayabacho Yuraku
Building

May 1, 2023

A-130

KDX Edobashi Building

Edobashi Building

February 1, 2023

A-131

KDX Kobe Building

Shionogi Kobe Building

February 1, 2023

- 39 -

KENEDIX OFFICE 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%.

- 40 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(c) Overview of Investment Real Estate Properties and Trust Real Estate
Type

OfficeBuildings

Area

Tokyo
Metropolitan

No.

Property Name

Site Area(m2) (Note 1)

Usage(Note 2)

Total Floor Area(m2) (Note 3)

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

A-5

KDX Nakano-Sakaue Building

1,235.16

A-6

Harajuku F.F. Building

708.35

A-7

KDX Minami Aoyama Building

369.47

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
8,483.17

Offices, Retail Shops
Residence, Garage
Storage
Retail Shops, Offices
Parking
Offices, Retail Shops
Residence

6,399.42
3,812.44
1,926.98

A-16

Toshin 24 Building

1,287.16

Offices, Retail Shops
Parking

A-17

KDX Ebisu Building

724.22

Offices, Retail Shops

4,394.58
3,592.38
3,804.86

A-19

KDX Hamamatsucho Building

504.26

Offices, Retail Shops
Parking

A-20

KDX Kayabacho Building

617.17

Offices, Parking

A-21

KDX Shinbashi Building

536.11A-22

KDX Shin-Yokohama Building

705.00A-27

KDX Kajicho Building

526.43

Offices, Retail Shops

3,147.70
7,885.40

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking

3,960.22
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

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

A-35

KDX Hachioji Building

460.622,821.21

A-37

KDX Ochanomizu Building

1,515.28

A-38

KDX Nishi-Shinjuku Building

626.06

Offices, Parking

2,017.63

A-41

KDX Shinjuku 286 Building

421.70

Offices, Parking

3,432.04

A-46

Hiei Kudan-Kita Building

1,844.83

Offices, Retail Shops
Office Room
Parking, Storage

11,425.31

A-51

KDX Hamacho Nakanohashi Building

462.29

Offices

3,280.41
3,439.37

7,720.08

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

A-66

KDX Shinjuku Building

1,118.12

Offices, Retail Shops
Parking

10,348.02

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
6,444.31
3,455.90

A-84

KDX Kasuga Building

1,319.24

Offices, Retail Shops
Parking

A-85

KDX Nakameguro Building

730.26

Offices- 41 -

Type of Structure(Note 4)Completion Date
(Note 5)PML(%)
(Note 6)

SRC
B2F9
SRC
B1F9
SRC・RC
B1F8April 1974

6.8

January 1987

7.0

June 1993

7.0

SRC
B1F11

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

October 1985

6.9

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
SRC
F7

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

Tokyo
Metropolitan

OfficeBuildings

Other
Regional
Areas

No.

Property Name

Usage
(Note 2)Site Area(m2) (Note 1)

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

Total Floor Area(m2) (Note 3)

Offices, Retail Shops
Parking, Residence
Offices, Residence
Parking
Offices, Retail Shops,
Parking
Offices
Offices, Retail Shops
Parking
Offices, Retail Shops
Garage5,055.50
7,362.25
5,907.00
9,265.03

A-90

KDX Ikebukuro Building

472.94

3,848.18

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

A-99

KDX Ikebukuro West Building

603.21

Offices, Retail Shops,
Parking

3,477.86

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

A-108

Pentel Building

2,502.63

Offices, Bank,
Residence

18,880.89

A-109

KDX Hamamatsucho Center Building

835.83

Offices, Garage

3,981.69
11,212.05

5,007.98

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

688.52Retail Shops, Offices,
Parking

6,787.33

A-121

Ginza 4chome Tower

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

A-128

KDX Shinbashi Ekimae Building

874.36

Offices, Clinic,
Retail Shops

7,327.63

A-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

Offices, Retail Shops
Parking
Offices, Storage
Parking

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

Offices, Retail Shops
Parking
Offices, Retail Shops
Parking

13,238.16
4,652.96

A-82

KDX Higashi Umeda Building

804.50A-97

KDX Utsunomiya Building

1,412.00

A-98

KDX Hiroshima Building

706.78

Offices, Parking Tower

5,718.83

5,911.08

Offices, Retail Shops
Parking

49,260.78

A-100

Senri Life Science Center Building- 42 -

6,805.76
7,742.18

Type of Structure(Note 4)
①S・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
S・SRC
B1F10
SRC
B1F10
SRC・S
B3F21

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

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

February 1999

0.1

January 1990

1.1

June 1992

1.1

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

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

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

19,680.16

732.14

Offices

5,862.22

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. 27.0 yrs.

-

1,355.13

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Avg. 27.0 yrs.

3.1

Other
Regional
Areas

Tokyo
Metropolitan
Area

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

A-118

D-2

Shinjuku 6chome Building (Land)

Subtotal of Others Properties (1 property)
Total of 97 properties

7,694.03

7,987.35

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

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 theactual 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 isshown.
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 numberof floors of the entire building that includes the compartmentalized ownership is shown. The following abbreviations are used to report data relating
to structure 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 theweighted average based on acquisition prices as of April 30, 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 April 30, 2023.
Note 7: KDX Kobayashi Doshomachi Building includes the fixed-term land leasehold with a special agreement to transfer building.

- 43 -

KENEDIX OFFICE 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 Kawasaki-Ekimae Hon-cho
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

A-3
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-48
A-51

OfficeBuildings

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

Total Leasable
Floor Area(m2)
(Note 1)

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)5,732.83

-

-

16

100.0

205,138

279,304

4,379.20

4,379.20

-

-

9

100.0

96,117

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
4,210.70
3,071.15
1,577.01
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
5,691.76
1,792.54
2,159.05
5,861.72
1,593.59
2,445.22
6,908.96

19
-

18
-

4
27
2
7
10
9
23
20
5
9
7
9
23
10
6
12
6
8
2
10
9
10
9
15

100.0
98.2
100.0
87.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
94.9
100.0
100.0
100.0
100.0
100.0
100.0

112,751
96,382
110,547
76,27952,405145,233
118,726
183,432
153,638
102,463
100,090
127,102
93,62063,896
143,150
117,333
48,139175,561
66,15551,513
184,994
51,93456,443244,315

113,595
112,462
144,075
80,30476,040225,852
168,975
281,050
271,232
134,922
147,764
233,484
169,960
99,777
129,753
155,305
48,898
248,760
112,850
54,947319,41283,284
98,615362,991

-

-

-

-

-

-

165,329-2,237.07

2,237.07

-

-

9

100.0

72,798100,572

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
3,833.49
3,106.42
4,037.44
6,970.54
3,110.77
3,331.65
2,288.02
4,571.92
12,978.57
11,797.84
4,596.20
2,532.71
10,877.60

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
3,743.79
3,106.42
4,037.44
6,970.54
2,779.21
3,087.78
2,288.02
4,571.92
11,238.48
11,106.45
4,596.20
2,532.71
10,613.36

3
1
8
-

3
8
-

6
6
8
11
2
10
8
23
4
12
6
8
5
41
11
7
16
13
6
7
6
11
8
9
13
14
11
7
27

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
97.7
100.0
100.0
100.0
89.3
92.7
100.0
100.0
86.6
94.1
100.0
100.0
97.6

55,29374,96850,620247,861
127,035
109,355
68,916
265,651
152,918
181,817
172,216
127,564
60,887277,196
116,215
107,077
127,554
107,958
100,572
205,121
146,139
123,481
51,181
191,825
419,776
321,504
147,870
78,104294,984

76,475
104,865
71,316375,491
155,102
153,786
110,414337,646
193,218
189,096258,535
174,298
111,199
490,538
170,421
184,008
210,534
124,557
101,393284,173
181,495
169,409135,359344,276815,442448,596
171,670
72,815444,923

4,985.72

4,985.72

-

-

14

100.0

123,494

179,886

4,400.92
4,346.66

4,400.92
4,346.66

5

5

12
10

100.0
100.0

116,557
143,279

157,025
206,128

3,052.76

3,052.76

-

-

8

100.0

119,144

179,069

8,179.00

8,179.00

-

-

3

100.0

515,453664,0143,279.09

3,279.09

-

-

10

100.0

113,061

196,0541- (Note 9)

100.0

N/A
(Note 10)

N/A
(Note 10)

A-115 ARK Mori Building

2,442.60

2,442.60

-

A-116
A-117
A-119
A-120
A-121
A-122
A-123
A-124
A-125
A-127
A-128
A-130

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
5,695.70

5,735.58
3,320.24
2,205.33
1,173.55
5,624.23
13,236.08
10,052.67
9,325.18
11,834.73
2,175.29
5,403.25
5,000.70-

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
KDX Edobashi Building- 44 -

-

7
6
1
10
4
21
11
12
7
7
8
6

100.0
100.0
100.0
100.0
100.0
98.1
100.0
100.0
100.0
100.0
100.0
87.8

230,756
111,901
97,29572,178
301,565
420,650
320,110509,714
287,42276,452367,233
178,788

313,015
120,339
176,681
106,034
338,450
664,809434,917
991,560
276,740
87,180715,040
253,224

KENEDIX OFFICE INVESTMENT CORPORATION (8972)
Type

Area

No.

Property Name

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

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 (97 properties)
OthersTokyo
Metropolitan
Area

D-2

Shinjuku 6Chome Building (Land)

Subtotal of Others Properties (1 property)
Total of 98 properties

Total Leasable
Floor Area(m2)
(Note 1)

11,501.01
8,730.26
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)10,014.07
8,429.67
3,831.53
10,112.80
4,007.96
6,923.12--

7,072.26

7,072.26-

3,779.73
7,904.22
4,994.88
5,278.51
4,001.53
17,155.65
5,280.02
12,314.52
5,985.76
4,363.96
3,319.16
5,635.38
8,886.10
5,669.71

3,610.82
7,904.22
4,994.88
5,278.51
3,675.34
17,155.65
5,280.02
12,314.52
5,813.51
4,245.39
3,319.16
5,635.38
8,599.50
5,669.71-

493,472.72

485,565.99

1,355.13
1,355.13
494,827.85

30
41
30
52
14
17

87.1
96.6
97.0
100.0
100.0
100.0

239,928
231,793
96,834
223,416
77,160207,536

285,655
310,023
175,855
308,831
106,464
286,502

-

8

100.0

212,312223,146

-

18
19
4
26
22
63
16
36
19
15
16
12
44
21

95.5
100.0
100.0
100.0
91.8
100.0
100.0
100.0
97.1
97.3
100.0
100.0
96.8
100.0

115,278
338,509
147,030
135,772
78,680685,015
112,703328,216
168,667
124,586
86,971
132,298
204,155
106,023

152,985
534,080
149,964
150,843
100,658
959,733
166,416
531,558
221,965
172,326
112,441
220,597284,339
127,760

36

34

1,283

98.4

16,004,028

23,014,600

1,355.13

-

-

1

100.0

68,86657,385

1,355.13

-

-

1

100.0

68,86657,385

34

1,284

98.4

16,072,895

23,071,985

486,921.12

36(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 morethan one building), excluding land (including land for one-story parking) identified in lease agreements or construction completion plans, etc.
However, the indicated figure of rentable area for Pentel Building includes leasable area for land stated in the lease agreement. The indicated figureof leasable area for 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 figuresentered in 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 floor area 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 thousandyen.
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.

- 45 -

KENEDIX OFFICE INVESTMENT CORPORATION (8972)(2) Capital Expenditures① Planned Capital Expenditures
Major capital expenditure plans for renovation of properties held by the Investment Corporation for the thirty-seventh fiscal period(May 1, 2023, to October 31, 2023) are as follows. Planned capital expenditures may include portions classified into expenses foraccounting purposes as a result.
Property Name
(Location)

PurposeKDX Karasuma Building(Kyoto, Kyoto)

Schedule

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

Renewal of air-conditioning
system, etc.

May 2023 to
October 2023

259

-

-

Upgrade of common area, etc.

As above84--

Upgrade of common area, etc.

As above

77--

Senri Life Science Center Building(Toyonaka, Osaka)

Upgrade of exclusively owned
area, etc.

As above55--

KDX Nakameguro Building(Meguro-ku, Tokyo)

Upgrade of exclusively owned
area, etc.

As above21--

KDX Fuchu Building(Fuchu, Tokyo)
KDX Kasuga Building(Bunkyo-ku, Tokyo)

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

② Capital Expenditures During the Fiscal Period under Review (Fiscal Period Ended April 30, 2023)
The Investment Corporation undertook the following major capital expenditures. In the fiscal period under review (fiscal period
ended April 30, 2023), the Investment Corporation completed works across its entire portfolio totaling 997 million yen. The total
construction cost amounted to 1,348 million yen including 351 million yen for repairs, maintenance and renovation expenses in thefiscal period under review.
Property Name
(Location)

PurposeTerm

Amount of Capital Expenditures(Millions of Yen)

Portus Center Building(Sakai, Osaka)

Renovation of elevator, etc.

November 2022 toApril 2023

123

KDX Edobashi Building(Chuo-ku, Tokyo)

Upgrade of common area, etc.

As above97

KDX Shin-Osaka Building(Osaka, Osaka)

Renovation of external wall, etc.

As above

63

Renewal of transformer equipment,
etc.

As above

61

Upgrade of common area, etc.

As above

58

Upgrade of common area, etc.

As above

33

Renovation of mechanical parking
lot, etc.

As above32

KDX Nagoya Ekimae Building(Nagoya, Aichi)
KDX Fuchu Building(Fuchu, Tokyo)
KDX Kanda Ekimae Building(Chiyoda-ku, Tokyo)
KDX Sapporo Kitaguchi Building(Sapporo, Hokkaido)

Other

526

Portfolio Total

997

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

③ Reserved Amount for Long-Term Repairs, Maintenance and Renovation Plans
Not Applicable- 46 -

KENEDIX OFFICE 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 rental and other operating
revenues for the fiscal period under review (fiscal period ended April 30, 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 April 30, 2023)
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

Name of End Tenant

4,324.10

0.9

Subtotal

31,542.09

6.5

Total Portfolio

486,921.12

100.0Note 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.

- 47 -