Semiannual Report October 2023 Fiscal Period
May 1, 2023‒October 31, 2023

2-1-6 Uchisaiwaicho, Chiyoda-ku, Tokyo
https://www.kdx-reit.com/eng/

Security code: 8972

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To Our Unitholders
We would like to take this opportunity to express our sincere gratitude to our unitholders for your continued support.
On November 1, 2023, we merged with Kenedix Residential NEXT Investment Corporation and Kenedix Retail
REIT Corporation, and have changed our name to KDX Realty Investment Corporation.
For the fiscal period ended October 31, 2023, which was the final fiscal period in which we operated as Kenedix Office Investment Corporation, net income was 6.5 billion yen primarily attributable to high occupancy rate
against the backdrop of solid demand towards mid-sized office buildings, improvement of utilities balance, andgain on the partial sale of the TK interest. Consequently, distributions per unit was 7,745 yen, which exceeded theforecast by 145 yen.
Since listing in July 2005, we have long built a solid track record over the years based on its basic policy of striving
to maximize unitholder value by generating stable earnings and sustainable AUM growth. Following the merger,
we seek to achieve sustainable growth as the most diversified portfolio among all J-REIT consisted of 350 properties with AUM of approximately 1,150 billion yen, which makes us the third largest J-REIT. Furthermore, we will
expand growth opportunities through investing in hotels and logistics facilities, which have not been our main investment universe, as well as continue
investment in mid-sized office buildings,
residential properties and shopping
centers for daily needs. We will thus
aim to continue sustainable growth byadapting to environmental to increase
unitholder value. We sincerely appreciate your continued support and lookforward to reporting our further process
in the months and years ahead.
Satoru Yamanaka
Supervisory Director

Akiko Tokuma

Hiroaki Momoi

Akiko Yamakawa

Osamu Utsunomiya

Supervisory Director Executive Director Supervisory Director Supervisory Director

Executive Director, Kenedix Realty Investment Corporation
Director and COO, Head of Listed REIT Department,
Kenedix Real Estate Fund Management, Inc.

Hiroaki Momoi

Outcome of Merger
1. Improvement in Market Presence and Stability
Included to MSCI Global Standard Indexes, against which institutional investors benchmark their global portfolios,
improving liquidity of investment unit

2. Sustainable Growth Driven by Expansion of Investment Universe
Acquisition of logistics facility and hotel for which continuous demand is expected, as well as residential property expected tobring upside revenue

3. Stable Distribution Management with Strengthened Balance Sheet
Negative goodwill of 17.2 billion yen retained through the merger, and LTV lowered to 42.5%

4. Further Commitment to Sustainability
Governance strengthened by four supervisory directors, the most among all J-REITs, and diversity enhanced by increasing theratio of female board of directors to 40%
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Financial Summary
Historical Operating Trends
For the 33rd-37th Fiscal Periods
PeriodUnit

33rd Period(Oct. 2021)

34th period(Apr. 2022)

35th Period(Oct. 2022)

36th Period(Apr. 2023)

37th Period(Oct. 2023)

Operating revenues

millions of yen

15,02815,891

16,266

17,29016,655(Rental revenues)

millions of yen

14,981

15,07815,96016,072

16,060Operating expenses

millions of yen

8,170

8,463

8,886

9,132

9,161

(Property-related expenses)

millions of yen

7,054

7,309

7,707

7,793

7,878

Operating income

millions of yen

6,857

7,427

7,379

8,157

7,494

Ordinary income

millions of yen

5,911

6,497

6,452

7,208

6,572

Net income (a)millions of yen

5,909

6,496

6,451

7,205

6,571

Total assets (b)(Period over period)
Interest-bearing debt (c)(Period over period)
Net assets (d)(Period over period)
Unitholders’ capital(Period over period)

millions of yen%
millions of yen%
millions of yen%
millions of yen%

456,327(–0.3)
198,750(0.0)
230,544(–0.2)
220,970(0.0)

464,802(+1.9)
205,150(+3.2)
231,763(+0.5)
220,970(0.0)

473,013(+1.8)
214,950(+4.8)
229,562(–0.9)
217,970(–1.4)

474,274(+0.3)
214,950(0.0)
230,482(+0.4)
217,970(0.0)

475,367(+0.2)
214,950(0.0)
231,523(+0.5)
217,970(0.0)

Number of investment units issued and outstanding (e)unit

428,510428,510424,215

848,430

848,430

Net assets per unit *1 (d)/(e)yen

538,015

540,859

270,573271,657

136,442

millions of yen

5,999

5,999

6,146

6,487

6,571

Distributions per unit (f )/(e)yen

14,00014,00014,488

7,647

7,745

(Profit distributions per unit)

yen

14,00014,00014,488

7,647

7,745

(Distributions in excess of earnings per unit)

yen

ー

ー

ー

ー

ー

Ordinary income to total assets (annualized) *2, 3%

1.3(2.6)

1.4(2.8)

1.4(2.7)

1.5(3.1)

1.4(2.7)

Return on unitholders’ equity (annualized) *3, 4%

2.6(5.1)

2.8(5.7)

2.8(5.5)

3.1(6.3)

2.8(5.6)

50.5(+0.0)
43.6(+0.1)

49.9(–0.7)
44.1(+0.6)

48.5(–1.3)
45.4(+1.3)

48.6(+0.1)
45.3(–0.1)

48.7(+0.1)
45.2(–0.1)

%

101.5

92.3

95.2

90.0

99.9

Number of properties

properties

96

97

98

97

97

Total leasable ﬂoor aream2

482,247.31

491,113.35

500,015.61

494,827.85

494,758.19

Occupancy rate at end of period

%

97.6

98.3

97.8

98.4

98.2

Depreciation for the period

millions of yen

2,567

2,588

2,631

2,617

2,574

Capital expenditures for the period

millions of yen

988

1,289

866

997

1,168

Leasing NOI (Net Operating Income)*6

millions of yen

10,495

10,356

10,884

10,896

10,756

FFO (Funds from Operation)*7

millions of yen

8,477

8,314

8,841

8,654

8,597

yen

19,782

19,403

10,421

10,201

5,066

Total distributions (f )Net assets to total assets at end of period (d)/(b)(Period-on-period change)
Interest-bearing debt ratio at end of period (c)/(b)(Period-on-period change)
Payout ratio*5 (f )/(a)%%Other references

FFO per unit*1, 8*1 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 the effective date. Net assets per unit and FFO
per unit are calculated based on the assumption that the split of the investment units was implemented at the beginning of the 35th Fiscal Period. In addition, the Investment Corporation implemented a two-forone split of investment units with October 31, 2023, as the record date of the split and November 1, 2023, as the effective date. Net assets per unit and FFO per unit are calculated based on the assumption that the
split of the investment units was implemented at the beginning of the 37th Fiscal Period.
*2 Ordinary income to total assets = Ordinary income / {(Total assets at beginning of period + Total assets at end of period) / 2} × 100*3 Annualized values for the 33rd Fiscal Period are calculated based on a period of 184 days, 181 days for the 34th Fiscal Period, 184 days for 35th Fiscal Period, 181 days for 36th Fiscal Period and 184days for 37th
Fiscal Period.
*4 Return on unitholders’ equity = Net income / {(Total net assets at beginning of period + Total net assets at end of period) / 2} × 100*5 Payout ratio is rounded down to the ﬁrst decimal place.
*6 Leasing NOI = Rental revenues – Property-related expenses + Depreciation for the period*7 FFO = Net income + Depreciation for the period – Gain on sale of real estate + Loss on sale of real estate - Profit and loss on buying and selling of securities and other*8 FFO per unit = FFO / Number of investment units issued and outstanding (figures below 1 yen rounded down.)

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Financial Statementsof
KDX Realty Investment Corporation
Thirty-seventh Fiscal Period: For the period from May 1, 2023 to October 31, 2023
With Independent Auditor’s Report

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KDX Realty Investment Corporation

Balance Sheet
As of October 31, 2023
As of October 31, 2023
AssetsCurrent assets
Cash and deposits (Notes 3)
Cash and deposits in trust (Notes 3)
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment (Notes 4 and 18)
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust (Note 7)
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment, net
Intangible assets (Note 4 and 18)
Leasehold rightLeasehold right in trust
Other
Total intangible assets
Investments and other assets
Investment securities (Note 15)
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Other (Notes 10,15 and 16)
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

As of April 30, 2023

In thousands of yen¥¥

28,936,646
11,732,485
377,718
111,450
9,891
41,168,191¥

26,871,012
11,636,598
352,851
74,513
9,398
38,944,374

17,389,133(7,409,909)
9,979,223
44,486(24,076)
20,409466,277(361,477)
104,799
102,389(87,502)
14,887
27,918,010
132,515,045(46,869,269)
85,645,775
464,113(260,040)
204,072
2,284,739(1,171,285)
1,113,453
779,059(510,908)
268,150305,091,543
430,360,327

17,314,188(7,122,069)
10,192,119
39,836(23,007)
16,828463,508(348,262)
115,245
102,389(84,747)
17,642
27,918,010
131,523,808(44,709,397)
86,814,411
435,544(248,540)
187,004
2,245,231(1,105,353)
1,139,878
766,142(484,568)
281,574
305,091,543
431,774,258

285,257
343,78021
629,059285,257
344,55439
629,852

571,371
10,000122,889
836,4631,631,344
3,172,069
434,161,456

1,136,228
10,000122,889932,240
678,437
2,879,795
435,283,905

38,03538,035475,367,684

45,75445,754474,274,035¥

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As of October 31, 2023

As of April 30, 2023

In thousands of yen
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable (Notes 6)
Current portion of investment corporation bonds(Notes 6 and 15)
Current portion of long-term loans payable (Notes 6,15 and 16)
Accounts payable–otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds (Notes 6 and 15)
Long-term loans payable (Notes 6, 15 and 16)
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Other (Notes 15 and 16)
Total non-current liabilities
Total liabilities
Net Assets(Note 11)
Unitholders' equity
Unitholders' capital
Deduction from unitholders' capital
Unitholders' capital, net
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges (Notes 15 and 16)
Total valuation and translation adjustments
Total net assets (Note 11)
Total liabilities and net assets¥¥

2,091,636
2,000,000
4,000,000
25,600,000
650,552
102,677782
294,586
2,722,980
75,893610
37,539,719¥

1,527,774
300,000
2,000,000
19,700,000
801,842
106,022
1,509
437,5972,874,538
16,180566
27,766,031

9,000,000
174,350,000
2,225,381
20,729,239－
206,304,621
243,844,341

11,000,000
181,950,000
2,196,875
20,875,109
3,548
216,025,533
243,791,565

220,970,508(2,999,551)
217,970,957

220,970,508(2,999,551)
217,970,957

5,348,917
5,348,917
6,571,336
11,920,254
229,891,211

4,630,856
4,630,856
7,206,005
11,836,861
229,807,819

1,632,131
1,632,131
231,523,343
475,367,684

674,650
674,650
230,482,469
474,274,035¥

See accompanying notes to the financial statements.

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KDX Realty Investment Corporation

Statement of Income and Retained Earnings
For the period from May 1, 2023 to October 31, 2023
From May 1, 2023

From November 1, 2022

to October 31, 2023

to April 30, 2023

In thousands of yen
Operating revenues
Rent revenue – real estate (Note 13)¥

Other lease business revenue (Note 13)
Gain on sale of real estate properties (Note 13)
Profit and loss on buying and selling of securities
Dividends income
Total operating revenues

13,942,073¥

13,896,892

2,118,858

2,176,002－

1,168,433

548,130－

46,541

49,385

16,655,603

17,290,713

7,878,787

7,793,647

993,342

1,117,455

Operating expenses
Expenses related to rent business (Note 13)
Asset management fees
Directors' compensation

6,300

6,300

Asset custody fees

24,106

24,075Administrative service fees

60,77861,419Audit fees

13,20013,200Merger-related expenses

96,891－87,820116,749

Total operating expenses

9,161,227

9,132,847

Operating income

7,494,376

8,157,866

Other operating expenses

Non-operating income
Interest income

45

45Gain on forfeiture of unclaimed dividends

264

271

2

2

311

319

Interest expenses

735,897725,038

Interest expenses on investment corporation bonds

36,20935,691

Financing-related expenses

132,661

131,494

7,718

7,592

Interest on refund
Total non-operating income
Non-operating expenses

Amortization of investment corporation bond issuance costs

9,514

49,566922,000

949,384

Ordinary income

6,572,687

7,208,802

Income before income taxes

6,572,687

7,208,802

1,201

3,154

Other non-operating expenses
Total non-operating expenses

Income taxes (Note 10)
Current
Deferred

148

(140)

Total income taxes

1,350

3,014

6,571,336

7,205,788

Net income
Retained earnings brought forward－

Unappropriated retained earnings

6,571,336

¥

217
¥

7,206,005

See accompanying notes to the financial statements.

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KDX Realty Investment Corporation

Statement of Changes in Net Assets
For the period from May 1, 2023 to October 31, 2023
Unitholders' equity (Note 5)

Unitholders' capital

Surplus
Voluntary
retainedearnings

Deduction from

UnappropriatedUnitholders'unitholders'

Unitholders'

Reserve forretained earnings

Total

capitalcapital(Note11)

capital, net

reduction entry(Note 21)

surplusIn thousands of yen
Balance as of
October 31, 2022¥

220,970,508¥(2,999,551)¥

217,970,957¥

4,326,003¥

6,451,096¥

10,777,100

Changes during the fiscal period
Provision of reserve for

–

–

–

304,852(304,852)–

Dividends of surplus

–

–

–

–

(6,146,026)(6,146,026)

Net income

–

–

–

–

7,205,788

7,205,788

–

–

–

–

–

–

–

–

–

304,852

754,908

1,059,761

reduction entry

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
Balance as ofApril 30, 2023¥

220,970,508¥(2,999,551)¥

217,970,957¥

4,630,856¥

7,206,005¥

11,836,861

Changes during the fiscal period
Provision of reserve for

–

–

–

718,061(718,061)–

Dividends of surplus

–

–

–

–

(6,487,944)(6,487,944)

Net income

–

–

–

–

6,571,336

6,571,336

–

–

–

–

–

–

–

–

–

718,061(634,668)

83,392

reduction entry

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
Balance as of
October 31, 2023¥

220,970,508¥(2,999,551)¥

217,970,957¥

5,348,917¥

6,571,336¥

11,920,254

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Valuation andUnitholders'translation

equity (Note 5)

adjustments

Total unitholders'

Deferred gains orequitylosses on hedges

Total net assets

In thousands of yen
Balance as of
October 31, 2022¥

228,748,057¥

814,256¥

229,562,314

Changes during the fiscal period
Provision of reserve for

–

–

–

Dividends of surplus(6,146,026)–(6,146,026)

Net income

7,205,788–

7,205,788–(139,605)(139,605)

1,059,761(139,605)

920,155

reduction entry

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
Balance as ofApril 30, 2023¥

229,807,819¥

674,650¥

230,482,469

Changes during the fiscal period
Provision of reserve for

–

–

–

Dividends of surplus(6,487,944)–(6,487,944)

Net income

6,571,336–

6,571,336–

957,481

957,481

83,392

957,4811,040,873

reduction entry

Net changes of items otherthan unitholders’ equity
Total changes during
the fiscal period
Balance as of
October 31, 2023¥

229,891,211¥

1,632,131¥

231,523,343

See accompanying notes to the financial statements.

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KDX Realty Investment Corporation
Statement of Cash Flows

For the period from May 1, 2023 to October 31, 2023
From May 1, 2023
to October 31, 2023

From November 1, 2022
to April 30, 2023

In thousands of yen

Cash flows from operating activities
Income before income taxes¥

Depreciation
Amortization of long-term prepaid expenses

6,572,687¥

7,208,802

2,574,098

2,617,548

121,863

119,860

Interest income

(45)

(45)

Interest expenses

772,106

760,730

7,718

7,592

Amortization of investment corporation bond issuance costs
Profit and loss on buying and selling of securities(548,130)－

Decrease (increase) in operating accounts receivable(24,866)

43,391

Decrease (increase) in prepaid expenses(36,936)

38,136

Increase (decrease) in operating accounts payable

237,165(209,465)

Increase (decrease) in accounts payable–other(212,628)

242,170

Increase (decrease) in accrued consumption taxes(143,010)

128,821

Increase (decrease) in advances received(151,558)

100,510

Increase (decrease) in deposits received

59,847

11,192－

3,189,768

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

Other, net(6,084)(19,499)

9,196,139

14,222,057

Decrease in property, plant and equipment due to sale

SubtotalInterest income received

45

45(775,452)(756,547)(1,516)(837)

8,419,216

13,464,718(49,501)(74,720)

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

Proceeds from sale of investment securities

1,175,037－

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

Proceeds from tenant leasehold and security deposits

97,150

121,410

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

Proceeds from tenant leasehold and security deposits in trust

504,046

656,121

Payments of restricted deposits in trust(2,588)(2,513)－32,441

Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property, plant and equipment

Proceeds from restricted deposits in trust

227,223(903,109)

Cash flows from financing activities
Proceeds from short-term loans payable

Net cash provided by (used in) investing activities

2,000,000－

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

Proceeds from long-term loans payable

7,800,000

4,800,000

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

Dividends paid

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

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

Net increase (decrease) in cash and cash equivalents

2,158,931

6,415,972

Cash and cash equivalents at the beginning of period

37,333,966

30,917,994

Cash and cash equivalents at the end of period (Note 3)¥

39,492,898¥

37,333,966

See accompanying notes to the financial statements.

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KDX Realty Investment Corporation

Notes to the Financial Statements
For the period from May 1, 2023 to October 31, 2023

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
KDX Realty Investment Corporation (“KDXR” former trade name: Kenedix Office Investment Corporation) has conducted anabsorption type merger (“the Merger”), whereby KDXR as the surviving corporation, and Kenedix Residential Next Investment
Corporation (“KDR”) and Kenedix Retail REIT Investment Corporation (“KRR”) as the absorbed corporations on November 1, 2023,
and changed its name to KDX Realty Investment Corporation. For the details, please refer to Note 20 “SIGNIFICANT SUBSEQUENTEVENTS (1) The Merger by and among KDXR, KDR and KRR”.
KDXR was established on May 6, 2005, in accordance with the Act on Investment Trusts and Investment Corporations (Act No.
198 of the year 1951, including amendments thereafter) (“Investment Trust Act”). On July 21, 2005, KDXR was listed on the Real
Estate Investment Trust Market of the Tokyo Stock Exchange, Inc. (“the Tokyo Stock Exchange”) with a total of 75,400 investment
units issued and outstanding (Securities Code: 8972). Subsequentially, KDXR raised funds through public offerings and acquired own
investment units, and as a result, as of the end of the fiscal period under review (October 31, 2023), the number of investment units
issued and outstanding totaled 848,430 units.
KDXR entrusts Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”) with its asset management andstrives to maximize unitholder profits by securing stable earnings and sustainable growth of investment assets. To this end, KDXR
adopts the basic policy of conducting flexible and dynamic investment that seeks to respond to the environment and market trends,
endeavors to ensure a timely response to opportunities, and form a portfolio.
During the period ended April 30, 2023, 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 period ended October 31, 2023, the Investment Corporation did not acquire or sell any new assets.
At the end of the thirty-sixth and thirty-seventh fiscal periods (fiscal periods ended April 30, 2023 and October 31, 2023), theInvestment Corporation had total unitholders’ capital of ¥217,970 million with 848,430 investment units outstanding, respectively.
The Investment Corporation owned a portfolio of 97 properties (consisting of 96 office buildings and one other property) with totalacquisition prices of ¥453,316 million at the end of the thirty-sixth and thirty-seventh fiscal periods, respectively. The occupancy ratios
were approximately 98.4% and 98.2% at the end of the thirty-sixth and thirty-seventh fiscal periods, respectively.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trust Act ofJapan, the Financial Instruments and Exchange Law of Japan and related regulations, and in conformity with accounting principles
and practices generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to the application anddisclosure requirements of the International Financial Reporting Standards or accounting principles generally accepted in the UnitedStates of America.
The accompanying financial statements are basically a translation of the audited financial statements that were prepared for Japanese
domestic purposes from the accounts and records maintained by the Investment Corporation and filed with the Kanto Local Finance
Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. In preparing the accompanying
financial statements, relevant notes have been added and certain reclassifications have been made to the financial statements issued
domestically in order to present them in a form that is more familiar to readers outside Japan. The Investment Corporation’s fiscal
period is a six-month period that ends at the end of April and the end of October each year. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) Securities
Non-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving
average method. Concerning silent partnership (tokumei kumiai, “TK”) interests, the method of incorporating the amount ofequity equivalent to the portion that corresponds to the net gain or loss of the TK is adopted.
(B) Property, Plant and Equipment (including trust assets)
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is calculated on a straight-line
basis over the estimated useful lives of the assets ranging as stated below:
From May 1, 2023
to October 31, 2023
Buildings
2–49 years

From November 1, 2022
to April 30, 2023
2–49 years

Structures

2–45 years

2–45 years

Machinery and equipment

3–17 years

3–17 years

Tools, furniture and fixtures

3–20 years

3–20 years(C) Intangible Assets (including trust assets)
Intangible assets are amortized by the straight-line method.
Leasehold right: Fixed-term land leasehold is amortized over a contractual period of 48 years and 9 months under the straightline method.
(D) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized by the straight-line method.
(E) Investment Unit Issuance Costs
Investment unit issuance costs are amortized over a period of three years under the straight-line method.
(F) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized over a maturity period under the straight-line method.
(G) Accounting Treatment of Trust Beneficiary Interests in Real Estate
For trust beneficiary interests in real estate, which are commonly utilized in the ownership of commercial properties in Japan, allassets and liabilities in trust are recorded in the relevant balance sheets and statements of income and retained earnings.
(H) Revenue Recognition
Operating revenues consist of rental revenues including base rents, common area charges and other operating revenues, which
include utility charge reimbursement, parking space rental revenues and other miscellaneous revenues. Rental revenues are
generally recognized on an accrual basis over the life of each lease. Utility charge reimbursements are recognized when earned
and their amounts can be reasonably estimated. Reimbursements from tenants including utility charge reimbursements arerecorded on a gross basis and such amounts are recorded both as revenues and expenses during the fiscal period.

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(I)Taxes on Property, Plant and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on acalendar year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes
corresponding to the said period. Under Japanese tax rules, the seller of property at the time of disposal is liable for these taxes on
the property from the date of disposal to the end of the calendar year in which the property is disposed. The seller, however, isgenerally reimbursed by the purchaser for these accrued property-related tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related tothe period following the purchase date of each property through the end of the calendar year. The amounts of those allocatedportions of the property-related taxes are capitalized as part of the acquisition costs of the related properties. There were no
capitalized property-related taxes as of April 30, 2023 and October 31, 2023, respectively. In subsequent calendar years, suchproperty-related taxes are charged as operating expenses in the fiscal period to which the installments of such taxes correspond.

(J) Accounting for revenues
The main content of the performance obligation regarding the revenue from contracts with the 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 property
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 handover stipulated in the contract for real estate sales.
2. Utility charge reimbursements
For utility charge reimbursement, revenue is recorded in accordance with the supply of electricity, tap water, etc. tothe lessee who is a customer based on the lease agreement of real estate, etc. and the content of agreement incidental
to it.
Of the utility charge reimbursement, for those that are determined to fall under the category of an agent by theInvestment Corporation, the net amount obtained by deducting the amount paid to other related parties supplying
electricity, gas, etc. from the amount received as the fee of electricity, gas, etc. is recognized as revenue.
(K) Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases ofassets and liabilities using the statutory tax rates.
(L) Non-deductible consumption taxes
Non-deductible consumption taxes applicable to the acquisition of assets are included in the cost of acquisition for each asset .
(M) Derivative Financial Instruments
The Investment Corporation utilizes interest-rate swap contracts as derivative financial instruments only for the purpose ofhedging its exposure to changes in interest rates. The Investment Corporation deferred recognition of gains or losses resulting
from changes in fair value of interest-rate swap contracts because these contracts met the criteria for deferral hedging accounting.
However, the Investment Corporation adopted special treatment for interest-rate swap contracts if they met the criteria for hedging
accounting under this treatment. The hedge effectiveness for the interest-rate swap contracts is assessed each fiscal period except
for those that meet the criteria of special treatment.
(N) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid,readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less fromthe date of purchase.

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(O) Presentation of Amounts
Amounts of less than one thousand yen have been truncated in the Japanese financial statements prepared in accordance withJapanese GAAP and filed with regulatory authorities in Japan. Unless otherwise noted, amounts are rounded down and ratios arerounded off in the accompanying financial statements.
Totals shown in the accompanying financial statements do not necessarily agree with the sums of the individual amounts.

3. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of October 31, 2023, and April 30, 2023.
As of October 31, 2023

As of April 30, 2023

In thousands of yen
Cash and deposits¥

28,936,646

Cash and deposits in trust¥

26,871,012

11,732,485

Restricted deposits in trust (Note)

11,636,598(1,176,232)

Cash and cash equivalents in trust¥(1,173,644)

39,492,898¥

37,333,966

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

4. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Property, plant and equipment and intangible assets consist of the following as of October 31, 2023.
Type of asset

Balance atthe beginningof period

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodDepreciation
Accumulated
depreciation

Depreciation
for theperiodNetbalance atthe end of
periodRemarks(in thousands of yen)
Buildings

Property,plant andequipment

Structures
Machinery andequipment
Tools, furnitureand fixtures
Land
Subtotal
Buildings in
trust
Structures intrust
Machinery andequipment in
trust
Tools, furnitureand fixtures intrust¥ 17,314,188¥

74,945¥–¥ 17,389,133¥ 7,409,909¥

287,840¥ 9,979,223

39,836

4,649–

44,486

24,076

1,068

20,409463,508

2,769–

466,277

361,477

13,214

104,799

102,389––

102,389

87,5022,754

14,887

27,918,010––

27,918,010––

27,918,010

45,837,933

82,364–45,920,297

7,882,966

304,879

38,037,331

11,723¥ 132,515,045¥ 46,869,269¥ 2,163,652¥ 85,645,775¥ 131,523,808¥

1,002,959¥

435,544

30,631

2,063

464,113260,040

12,502204,072

2,245,231

39,507–2,284,739

1,171,285

65,932

1,113,453

766,142

12,916–

779,059

510,908

26,340268,150

Land in trust

305,091,543––

305,091,543––

305,091,543

Subtotal

440,062,272

1,086,015

13,786441,134,500

48,811,504

2,268,427

392,322,996

Total property, plant andequipment

485,900,205

1,168,379

13,786

487,054,798

56,694,470

2,573,306

430,360,327¥¥

Intangible
assetsLeasehold right¥ 290,050

Leasehold rightin trust

363,784––

363,784

20,003774

343,780

6,306

–

–

6,306

6,285

18

21

660,141––

660,141

31,081

792

629,059

13,786¥ 487,714,939¥ 56,725,552¥2,574,098¥ 430,989,387

Other
Total intangible assets
Total¥ 486,560,346

¥

¥

–

1,168,379¥¥–

290,050

4,792

¥

–

¥

285,257

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Property, plant and equipment and intangible assets consist of the following as of April 30, 2023.
Type of asset

Balance atthe beginningof period

Increaseduring theperiodDecreaseduring theperiodDepreciation

Balance atthe end of
periodAccumulated
depreciation

Depreciation
for theperiodNetbalance atthe end of
periodRemarks

Note 1(in thousands of yen)
Buildings¥ 19,208,618¥ 40,122¥ 1,934,552¥ 17,314,188¥ 7,122,069¥ 319,201¥ 10,192,119

44,224–

4,387

39,83623,007

1,175

16,828464,676

1,848

3,017

463,508348,262

13,230115,245

Structures
Machinery andequipment
Tools, furnitureand fixturesLand

106,355

400

4,366

102,389

84,747

3,248

17,64230,128,905

2,230

2,213,125

27,918,010––

27,918,010

Subtotal

49,952,781

44,601

4,159,449

45,837,933

7,578,087

336,855

38,259,846¥ 130,699,106¥ 824,702–¥ 131,523,808¥ 44,709,397¥ 2,174,342¥ 86,814,411

429,675

5,869–

435,544248,540

12,979187,004

2,123,432

121,799–2,245,231

1,105,353

66,5901,139,878

748,177

17,964–

766,142484,568

25,988281,574

Land in trust

305,091,543––

305,091,543––

305,091,543

Subtotal

439,091,935

970,336–

440,062,272

46,547,860

2,279,900

393,514,412

Total property, plant andequipment

489,044,717

1,014,937

4,159,449

485,900,205

54,125,947

2,616,756

431,774,258–¥ 290,050¥ 4,792–¥ 285,257

Property,plant andequipment

Intangible
assetsBuildings in
trust
Structures intrust
Machinery andequipment in
trust
Tools, furnitureand fixtures in
trust

¥

Leasehold right¥ 290,050

Leasehold rightin trust

363,784––

363,784

19,229774

344,554

6,306

–

–

6,306

6,267

18

39

660,141––

660,141

30,289792

629,852¥ 489,704,858¥ 1,014,937¥ 4,159,449¥ 486,560,346¥ 54,156,236¥2,617,548¥ 432,404,110

Other
Total intangible assets
Total

¥

–

¥

¥

Note 1

Note 1: The amount of decrease during the period is primarily attributable to the sales of real estate of 1 property.

5. UNITHOLDERS’ EQUITY
Total number of authorized investment units and total number of investment units issued and outstanding are as follows:

Total number of authorized investment units
Total number of investment units issued and outstanding

From May 1, 2023
to October 31, 2023
4,000,000

From November 1, 2022
to April 30, 2023
4,000,000

848,430

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6. SHORT-TERM LOANS PAYABLE, LONG-TERM LOANS PAYABLE AND INVESTMENTCORPORATION BONDS
The following summarizes short-term loans payable, long-term loans payable and investment corporation bonds outstanding as of
October 31, 2023:
Classification
Short-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 31, 2023

November 1, 2023

0.231%

October 31, 2023

October 31, 2024

0.181%¥

1,000,000

Subtotal
Current portion of long-term loans payable

2,000,000
January 29, 2021

January 31, 2024

0.287%¥

1,000,000

February 18, 2015

February 29, 2024

1.157%

September 21, 2021

February 29, 2024

0.300%

1,700,000
1,000,000

September 21, 2017

March 31, 2024

0.555%

1,000,000

April 28, 2016

April 30, 2024

0.654%

2,000,000

April 28, 2022

April 30, 2024

0.272%

1,000,000

April 28, 2022

April 30, 2024

0.230%

2,500,000

June 30, 2022

June 30, 2024

0.274%

2,000,000

June 30, 2022

June 30, 2024

0.274%

1,000,000

August 31, 2022

August 31, 2024

0.350%

1,600,000

September 30, 2015

September 30, 2024

1.065%

2,000,000

October 31, 2014

October 31, 2024

1.257%

2,000,000

October 31, 2014

October 31, 2024

1.259%

1,000,000

October 30, 2015

October 31, 2024

0.989%

1,000,000

October 31, 2016

October 31, 2024

0.668%

1,000,000

November 30, 2021

October 31, 2024

0.289%

500,000

November 30, 2021

October 31, 2024

0.289%

500,000

November 30, 2021

October 31, 2024

0.289%

300,000

November 30, 2021

October 31, 2024

0.250%

2,500,000

SubtotalLong-term loans payable

1,000,000

25,600,000
January 30, 2015

January 31, 2025

1.161%

February 18, 2015

February 28, 2025

1.314%¥

1,500,000

February 27, 2015

February 28, 2025

1.153%

2,100,000

March 12, 2015

February 28, 2025

1.218%

1,000,000

1,250,000

March 31, 2015

March 31, 2025

1.266%

2,500,000

October 30, 2015

October 30, 2025

1.114%

1,500,000

October 30, 2015

October 30, 2025

1.114%

2,000,000

October 30, 2015

October 30, 2025

1.114%

2,500,000

October 30, 2015

October 30, 2025

1.121%

2,500,000

November 12, 2015

November 30, 2025

1.173%

1,000,000

January 29, 2016

January 29, 2026

1.074%

2,000,000

January 29, 2016

January 29, 2026

1.024%

1,800,000

February 18, 2016

February 18, 2026

0.998%

1,000,000

February 18, 2016

February 18, 2026

0.998%

500,000

March 31, 2016

March 31, 2026

0.898%

1,000,000

April 28, 2016

April 30, 2026

0.835%

2,000,000

April 28, 2016

April 30, 2026

0.865%

1,000,000

July 29, 2016

July 31, 2026

0.613%

1,500,000

August 2, 2016

July 31, 2026

0.544%

1,000,000

October 31, 2016

October 31, 2026

0.876%

2,500,000

October 31, 2016

October 31, 2026

0.760%

1,000,000

October 31, 2016

October 31, 2026

0.734%

4,000,000

October 31, 2016

October 31, 2026

0.826%

1,500,000

16

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Classification
Long-term loans payable

Weighted-average

Balanceinterest rate

(In thousands of yen)

Drawdown date

Last repayment date

December 12, 2016

November 30, 2026

0.982%

December 28, 2016

December 28, 2026

0.950%

1,500,000

January 16, 2017

January 31, 2027

0.860%

500,000

January 31, 2017

January 31, 2027

0.853%

700,000

March 28, 2017

March 31, 2027

0.850%

500,000¥

500,000

June 30, 2017

June 30, 2027

0.849%

1,500,000

August 10, 2017

July 28, 2027

0.800%

3,500,000

September 21, 2017

September 30, 2025

0.680%

1,500,000

September 21, 2017

March 31, 2027

0.732%

1,000,000

September 21, 2017

September 21, 2027

0.873%

1,000,000

September 21, 2017

September 30, 2027

0.851%

2,500,000

October 31, 2017

October 31, 2027

0.810%

2,500,000

November 13, 2017

November 13, 2027

0.931%

3,000,000

December 7, 2017

November 30, 2027

0.899%

1,400,000

December 7, 2017

November 30, 2027

0.820%

1,200,000

December 7, 2017

November 30, 2027

0.969%

1,000,000

December 7, 2017

November 30, 2027

0.939%

1,000,000

December 7, 2017

November 30, 2027

0.869%

1,000,000

December 7, 2017

November 30, 2027

0.899%

800,000

December 7, 2017

November 30, 2027

0.869%

600,000

December 28, 2017

December 28, 2025

0.744%

500,000

December 28, 2017

December 28, 2026

0.878%

500,000

December 28, 2017

December 28, 2027

0.864%

500,000

March 12, 2018

March 31, 2028

0.914%

1,500,000

March 26, 2018

March 31, 2027

0.808%

1,000,000

March 26, 2018

March 31, 2028

0.902%

1,000,000

July 31, 2018

July 31, 2028

0.988%

500,000

August 20, 2018

August 31, 2025

0.696%

500,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

500,000

August 20, 2018

August 31, 2028

0.966%

500,000

August 31, 2018

August 31, 2025

0.700%

500,000

August 31, 2018

August 31, 2025

0.723%

300,000

August 31, 2018

August 31, 2028

1.012%

700,000

October 31, 2018

October 31, 2028

1.013%

1,500,000

October 31, 2018

October 31, 2028

0.910%

1,000,000

October 31, 2018

October 31, 2028

1.013%

500,000

March 28, 2019

March 31, 2029

0.838%

1,400,000

March 29, 2019

March 31, 2029

0.839%

2,950,000

June 14, 2019

December 28, 2026

0.517%

500,000

June 14, 2019

April 30, 2027

0.605%

1,000,000

June 14, 2019

March 31, 2029

0.725%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

September 30, 2019

September 30, 2026

0.489%

1,000,000

September 30, 2019

March 31, 2027

0.531%

900,000

September 30, 2019

March 31, 2027

0.425%

800,000

January 31, 2020

January 31, 2025

0.406%

700,000

January 31, 2020

January 31, 2027

0.526%

1,500,000

January 31, 2020

January 31, 2029

0.675%

1,500,000

March 12, 2020

February 28, 2026

0.361%

1,800,000

March 31, 2020

March 31, 2028

0.642%

1,000,000
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Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

June 30, 2020

June 30, 2028

0.646%¥

2,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

700,000

June 30, 2020

June 30, 2028

0.510%

2,000,000

July 31, 2020

July 31, 2028

0.636%

2,700,000

August 31, 2020

August 31, 2030

0.705%

1,500,000

September 30, 2020

September 30, 2025

0.396%

1,000,000

September 30, 2020

September 30, 2027

0.511%

1,000,000

September 30, 2020

September 30, 2030

0.738%

700,000

October 30, 2020

April 30, 2027

0.542%

1,400,000

October 30, 2020

October 31, 2030

0.803%

1,500,000

October 30, 2020

October 31, 2030

0.803%

300,000

November 12, 2020

April 30, 2027

0.552%

1,300,000

November 12, 2020

November 12, 2030

0.808%

700,000

November 12, 2020

November 12, 2030

0.808%

500,000

November 30, 2020

May 31, 2027

0.516%

200,000

November 30, 2020

November 30, 2030

0.763%

900,000

November 30, 2020

November 30, 2030

0.763%

800,000

November 30, 2020

November 30, 2030

0.763%

200,000

January 29, 2021

January 31, 2028

0.527%

1,200,000

January 29, 2021

January 31, 2030

0.678%

2,300,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

November 30, 2030

0.755%

800,000

July 12, 2021

June 30, 2028

0.484%

500,000

July 30, 2021

July 31, 2026

0.350%

1,000,000

November 30, 2021

April 30, 2026

0.300%

500,000

November 30, 2021

April 30, 2026

0.300%

500,000

November 30, 2021

April 30, 2026

0.300%

500,000

November 30, 2021

November 30, 2026

0.412%

500,000

November 30, 2021

November 30, 2026

0.412%

500,000

November 30, 2021

November 30, 2026

0.350%

500,000

November 30, 2021

November 30, 2026

0.384%

1,000,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.325%

1,000,000

November 30, 2021

November 30, 2026

0.350%

1,000,000

November 30, 2021

November 30, 2028

0.511%

1,000,000

November 30, 2021

November 30, 2029

0.450%

500,000

April 28, 2022

April 30, 2025

0.302%

1,000,000

April 28, 2022

May 31, 2027

0.350%

1,000,000

June 30, 2022

June 30, 2025

0.200%

2,000,000

June 30, 2022

June 30, 2025

0.200%

1,000,000

June 30, 2022

June 30, 2025

0.200%

500,000

August 31, 2022

February 28, 2025

0.374%

1,600,000

August 31, 2022

August 31, 2025

0.395%

500,000

August 31, 2022

August 31, 2025

0.395%

1,000,000

August 31, 2022

August 31, 2025

0.395%

500,000

August 31, 2022

August 31, 2026

0.430%

2,700,000

August 31, 2022

August 31, 2027

0.501%

2,400,000

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Classification
Long-term loans payable

Subtotal
Current portion of investment corporation
bonds

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 31, 2022

August 31, 2027

0.420%¥

1,000,000

August 31, 2022

August 31, 2027

0.350%

300,000

August 31, 2022

August 31, 2029

0.685%

1,950,000

August 31, 2022

August 31, 2029

0.685%

1,000,000

August 31, 2022

August 31, 2029

0.685%

500,000

August 31, 2022

August 31, 2029

0.685%

500,000

August 31, 2022

August 31, 2029

0.685%

500,000

August 31, 2022

August 31, 2029

0.685%

200,000

August 31, 2022

August 31, 2029

0.525%

1,000,000

August 31, 2022

August 31, 2029

0.525%

500,000

August 31, 2022

August 31, 2029

0.525%

1,000,000

August 31, 2022

August 31, 2029

0.525%

500,000

October 31, 2022

October 31, 2025

0.481%

500,000

October 31, 2022

April 30, 2026

0.373%

500,000

February 28, 2023

February 29, 2028

0.793%

1,000,000

March 13, 2023

March 31, 2030

1.050%

2,000,000

March 13, 2023

March 31, 2031

1.186%

1,800,000

June 30, 2023

June 30, 2026

0.248%

500,000

July 31, 2023

July 31, 2025

0.177%

1,000,000

July 31, 2023

July 31, 2029

0.645%

500,000

August 31, 2023

August 31, 2026

0.499%

2,000,000

August 31, 2023

August 31, 2026

0.231%

300,000

October 31, 2023

October 31, 2028

0.889%

1,000,000

October 31, 2023

October 31, 2028

0.839%

1,000,000

October 31, 2023

March 31, 2030

1.115%

1,500,000
174,350,000

February 15, 2019

February 15, 2024

0.390%

July 25, 2014

July 25, 2024

1.180%¥

2,000,000
2,000,000

Subtotal

4,000,000

Investment corporation bonds

April 28, 2016

April 28, 2028

0.900%

July 19, 2017

July 16, 2027

0.640%¥

2,000,000

1,000,000

January 30, 2020

January 30, 2025

0.250%

2,000,000

October 20, 2020

October 18, 2030

0.610%

1,000,000

July 28, 2021

July 31, 2026

0.180%

2,000,000

July 11, 2022

July 9, 2027

0.400%

1,000,000

Subtotal

9,000,000

Total

¥

214,950,000

The following summarizes short-term loans payable, long-term loans payable and investment corporation bonds outstanding as ofApril 30, 2023:
Classification
Short-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 31, 2022

August 31, 2023

0.233%¥

300,000

June 14, 2019

June 30, 2023

0.246%¥

500,000

July 10, 2019

July 31, 2023

0.230%

500,000

July 31, 2019

July 31, 2023

0.295%

1,000,000

Subtotal
Current portion of long-term loans payable

300,000

August 31, 2017

August 31, 2023

0.544%

1,000,000

September 21, 2021

August 31, 2023

0.300%

2,000,000

October 31, 2014

October 31, 2023

1.071%

2,000,000

October 31, 2014

October 31, 2023

1.126%

1,500,000

October 31, 2014

October 31, 2023

1.071%

1,000,000
19

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Classification
Current portion of long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

January 29, 2021

January 31, 2024

0.287%

February 18, 2015

February 29, 2024

1.157%¥

September 21, 2021

February 29, 2024

0.300%

1,000,000

September 21, 2017

March 31, 2024

0.555%

1,000,000

April 28, 2016

April 30, 2024

0.654%

2,000,000

April 28, 2022

April 30, 2024

0.264%

1,000,000

April 28, 2022

April 30, 2024

0.230%

2,500,000

SubtotalLong-term loans payable

1,000,000
1,700,000

19,700,000
October 31, 2014

October 31, 2024

1.257%

October 31, 2014

October 31, 2024

1.259%¥

1,000,000

2,000,000

January 30, 2015

January 31, 2025

1.161%

1,500,000

February 18, 2015

February 28, 2025

1.314%

1,250,000

February 27, 2015

February 28, 2025

1.153%

2,100,000

March 12, 2015

February 28, 2025

1.218%

1,000,000

March 31, 2015

March 31, 2025

1.266%

2,500,000

September 30, 2015

September 30, 2024

1.065%

2,000,000

October 30, 2015

October 31, 2024

0.989%

1,000,000

October 30, 2015

October 30, 2025

1.114%

1,500,000

October 30, 2015

October 30, 2025

1.114%

2,000,000

October 30, 2015

October 30, 2025

1.114%

2,500,000

October 30, 2015

October 30, 2025

1.121%

2,500,000

November 12, 2015

November 30, 2025

1.173%

1,000,000

January 29, 2016

January 29, 2026

1.074%

2,000,000

January 29, 2016

January 29, 2026

1.024%

1,800,000

February 18, 2016

February 18, 2026

0.998%

1,000,000

February 18, 2016

February 18, 2026

0.998%

500,000

March 31, 2016

March 31, 2026

0.898%

1,000,000

April 28, 2016

April 30, 2026

0.835%

2,000,000

April 28, 2016

April 30, 2026

0.865%

1,000,000

July 29, 2016

July 31, 2026

0.613%

1,500,000

August 2, 2016

July 31, 2026

0.544%

1,000,000

October 31, 2016

October 31, 2024

0.668%

1,000,000

October 31, 2016

October 31, 2026

0.876%

2,500,000

October 31, 2016

October 31, 2026

0.760%

1,000,000

October 31, 2016

October 31, 2026

0.734%

4,000,000

October 31, 2016

October 31, 2026

0.826%

1,500,000

December 12, 2016

November 30, 2026

0.982%

500,000

December 28, 2016

December 28, 2026

0.950%

1,500,000

January 16, 2017

January 31, 2027

0.860%

500,000

January 31, 2017

January 31, 2027

0.853%

700,000

March 28, 2017

March 31, 2027

0.850%

500,000

June 30, 2017

June 30, 2027

0.849%

1,500,000

August 10, 2017

July 28, 2027

0.800%

3,500,000

September 21, 2017

September 30, 2025

0.680%

1,500,000

September 21, 2017

March 31, 2027

0.732%

1,000,000

September 21, 2017

September 21, 2027

0.873%

1,000,000

September 21, 2017

September 30, 2027

0.851%

2,500,000

October 31, 2017

October 31, 2027

0.810%

2,500,000

November 13, 2017

November 13, 2027

0.931%

3,000,000

December 7, 2017

November 30, 2027

0.899%

1,400,000

December 7, 2017

November 30, 2027

0.820%

1,200,000

20

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Classification
Long-term loans payable

Weighted-average

Balanceinterest rate

(In thousands of yen)

Drawdown date

Last repayment date

December 7, 2017

November 30, 2027

0.969%

December 7, 2017

November 30, 2027

0.939%

1,000,000

December 7, 2017

November 30, 2027

0.869%

1,000,000

December 7, 2017

November 30, 2027

0.899%

800,000

December 7, 2017

November 30, 2027

0.869%

600,000

December 28, 2017

December 28, 2025

0.744%

500,000

December 28, 2017

December 28, 2026

0.878%

500,000

December 28, 2017

December 28, 2027

0.864%

500,000

March 12, 2018

March 31, 2028

0.914%

1,500,000

March 26, 2018

March 31, 2027

0.808%

1,000,000

March 26, 2018

March 31, 2028

0.902%

1,000,000
500,000¥

1,000,000

July 31, 2018

July 31, 2028

0.988%

August 20, 2018

August 31, 2025

0.696%

500,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

1,000,000

August 20, 2018

August 31, 2028

1.003%

500,000

August 20, 2018

August 31, 2028

0.966%

500,000

August 31, 2018

August 31, 2025

0.700%

500,000

August 31, 2018

August 31, 2025

0.723%

300,000

August 31, 2018

August 31, 2028

1.012%

700,000

October 31, 2018

October 31, 2028

1.013%

1,500,000

October 31, 2018

October 31, 2028

0.910%

1,000,000

October 31, 2018

October 31, 2028

1.013%

500,000

March 28, 2019

March 31, 2029

0.838%

1,400,000

March 29, 2019

March 31, 2029

0.839%

2,950,000

June 14, 2019

December 28, 2026

0.517%

500,000

June 14, 2019

April 30, 2027

0.605%

1,000,000

June 14, 2019

March 31, 2029

0.725%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

July 31, 2019

April 30, 2027

0.554%

1,000,000

September 30, 2019

September 30, 2026

0.489%

1,000,000

September 30, 2019

March 31, 2027

0.531%

900,000

September 30, 2019

March 31, 2027

0.425%

800,000

January 31, 2020

January 31, 2025

0.406%

700,000

January 31, 2020

January 31, 2027

0.526%

1,500,000

January 31, 2020

January 31, 2029

0.675%

1,500,000

March 12, 2020

February 28, 2026

0.361%

1,800,000

March 31, 2020

March 31, 2028

0.642%

1,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

2,000,000

June 30, 2020

June 30, 2028

0.646%

700,000

June 30, 2020

June 30, 2028

0.510%

2,000,000

July 31, 2020

July 31, 2028

0.636%

2,700,000

August 31, 2020

August 31, 2030

0.705%

1,500,000

September 30, 2020

September 30, 2025

0.396%

1,000,000

September 30, 2020

September 30, 2027

0.511%

1,000,000

September 30, 2020

September 30, 2030

0.738%

700,000

October 30, 2020

April 30, 2027

0.542%

1,400,000

October 30, 2020

October 31, 2030

0.803%

1,500,000

October 30, 2020

October 31, 2030

0.803%

300,000

November 12, 2020

April 30, 2027

0.552%

1,300,000

November 12, 2020

November 12, 2030

0.808%

700,000

November 12, 2020

November 12, 2030

0.808%

500,00021

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Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)

November 30, 2020

May 31, 2027

0.516%

November 30, 2020

November 30, 2030

0.763%¥

900,000

200,000

November 30, 2020

November 30, 2030

0.763%

800,000

November 30, 2020

November 30, 2030

0.763%

200,000

January 29, 2021

January 31, 2028

0.527%

1,200,000

January 29, 2021

January 31, 2030

0.678%

2,300,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

January 31, 2030

0.678%

2,000,000

January 29, 2021

November 30, 2030

0.755%

800,000

July 12, 2021

June 30, 2028

0.484%

500,000

July 30, 2021

July 31, 2026

0.350%

1,000,000

November 30, 2021

October 31, 2024

0.289%

500,000

November 30, 2021

October 31, 2024

0.289%

500,000

November 30, 2021

October 31, 2024

0.289%

300,000

November 30, 2021

October 31, 2024

0.250%

2,500,000

November 30, 2021

April 30, 2026

0.300%

500,000

November 30, 2021

April 30, 2026

0.300%

500,000

November 30, 2021

April 30, 2026

0.300%

500,000

November 30, 2021

November 30, 2026

0.412%

500,000

November 30, 2021

November 30, 2026

0.412%

500,000

November 30, 2021

November 30, 2026

0.350%

500,000

November 30, 2021

November 30, 2026

0.384%

1,000,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.384%

500,000

November 30, 2021

November 30, 2026

0.325%

1,000,000

November 30, 2021

November 30, 2026

0.350%

1,000,000

November 30, 2021

November 30, 2028

0.511%

1,000,000

November 30, 2021

November 30, 2029

0.450%

500,000

April 28, 2022

April 30, 2025

0.294%

1,000,000

April 28, 2022

May 31, 2027

0.350%

1,000,000

June 30, 2022

June 30, 2024

0.266%

2,000,000

June 30, 2022

June 30, 2024

0.266%

1,000,000

June 30, 2022

June 30, 2025

0.200%

2,000,000

June 30, 2022

June 30, 2025

0.200%

1,000,000

June 30, 2022

June 30, 2025

0.200%

500,000

August 31, 2022

August 31, 2024

0.350%

1,600,000

August 31, 2022

February 28, 2025

0.374%

1,600,000

August 31, 2022

August 31, 2025

0.395%

500,000

August 31, 2022

August 31, 2025

0.395%

1,000,000

August 31, 2022

August 31, 2025

0.395%

500,000

August 31, 2022

August 31, 2026

0.430%

2,700,000

August 31, 2022

August 31, 2027

0.501%

2,400,000

August 31, 2022

August 31, 2027

0.420%

1,000,000

August 31, 2022

August 31, 2027

0.350%

300,000

August 31, 2022

August 31, 2029

0.685%

1,950,000

August 31, 2022

August 31, 2029

0.685%

1,000,000

August 31, 2022

August 31, 2029

0.685%

500,000

August 31, 2022

August 31, 2029

0.685%

500,000

August 31, 2022

August 31, 2029

0.685%

500,000

August 31, 2022

August 31, 2029

0.685%

200,00022010_9771124552401.indd

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Classification
Long-term loans payable

Drawdown date

Last repayment date

Weighted-average

Balanceinterest rate

(In thousands of yen)August 31, 2022

August 31, 2029

0.525%¥

1,000,000

August 31, 2022

August 31, 2029

0.525%

500,000

August 31, 2022

August 31, 2029

0.525%

1,000,000

August 31, 2022

August 31, 2029

0.525%

500,000

October 31, 2022

October 31, 2025

0.481%

500,000

October 31, 2022

April 30, 2026

0.373%

500,000

February 28, 2023

February 29, 2028

0.793%

1,000,000

March 13, 2023

March 31, 2030

1.050%

2,000,000

March 13, 2023

March 31, 2031

1.186%

1,800,000

Subtotal
Current portion of investment corporation
bonds

181,950,000
February 15, 2019

February 15, 2024

0.390%¥

2,000,000

Subtotal
Investment corporation bonds

2,000,000
July 25, 2014

July 25, 2024

1.180%

April 28, 2016

April 28, 2028

0.900%¥

2,000,000
1,000,000

July 19, 2017

July 16, 2027

0.640%

2,000,000

January 30, 2020

January 30, 2025

0.250%

2,000,000

October 20, 2020

October 18, 2030

0.610%

1,000,000

July 28, 2021

July 31, 2026

0.180%

2,000,000

July 11, 2022

July 9, 2027

0.400%

1,000,000

Subtotal

11,000,000

Total

¥

214,950,000

7. REDUCTION ENTRY
The amount of reduction entry of property, plant and equipment acquired by government subsidy is as follows:
As of October 31, 2023
As of April 30, 2023
In thousands of yen
Buildings in trust¥

26,230¥26,2308. COMMITMENT LINE AGREEMENTThe Investment Corporation has concluded a commitment line agreement with bank of account, etc.
As of October 31, 2023

As of April 30, 2023

In thousands of yen
Maximum amount¥

9,000,000¥

9,000,000

Drawn credit facility¥

9,000,000¥

9,000,000–

Balance–

9. PER UNIT INFORMATION
From May 1, 2023
to October 31, 2023

From November 1, 2022
to April 30, 2023
Yen

Net asset value per unit¥

136,442¥

135,828

Net income per unit

¥

3,872

¥

4,246

Weighted-average number of units (units)

1,696,860

1,696,860*1: Net income per unit is calculated by dividing net income by the weighted average (based on number of days) number ofunits. Net income per unit after adjusting for diluted investment units is not included because there were no dilutive
investment units.
*2: The Investment Corporation implemented a two-for-one split of the investment units with October 31, 2023, as the record date of
the split and November 1, 2023, as the effective date. Net assets per unit and net income per unit are calculated based on theassumption that the split was implemented at the beginning of the prior fiscal period.
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10. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 31%. However, theInvestment Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements are
met under the Special Taxation Measures Law of Japan. Under this law, the Investment Corporation must meet a number of tax
requirements, including a requirement that it currently distribute in excess of 90% of its net income for the fiscal period in order tobe able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of
the Investment Corporation will be subject to regular corporate income taxes. The Investment Corporation distributed in excess of
90% of its distributable income in the form of cash distributions totaling ¥6,571 million and ¥6,487 million for the periods ended
October 31, 2023, and April 30, 2023, respectively. Therefore, such distributions were treated as deductible distributions forpurposes of corporate income taxes. The effective tax rate on the Investment Corporation’s income was 0.02% and 0.04% for the
fiscal periods ended October 31, 2023, and April 30, 2023, respectively. The following table summarizes the significant differences
between the statutory tax rate and the effective tax rate.
From November 1, 2022
to April 30, 2023

From May 1, 2023
to October 31, 2023
Statutory tax rate

31.46%

31.46%

Deductible cash distributions(31.45)(28.31)－(3.13)

Provision of reserve for reduction entry
Others0.01

0.03

Effective tax rate

0.02%

0.04%

The significant components of deferred tax assets and liabilities as of October 31, 2023, and April 30, 2023, are as follows:
As of October 31, 2023

As of April 30, 2023

In thousands of yen
Deferred tax assets
Enterprise tax payable¥

Amortization of leasehold right
Deferred gains or losses on hedges

Total deferred tax assets

¥

177
6,049

192

1,294

6,514

7,521

(6,485)(7,344)¥¥

Subtotal
Valuation allowance

28
6,293

28

177

11. NET ASSETSThe Investment Corporation issues only non-par value units in accordance with the Investment Trust Act. The entire amount of theissue price of new units is designated as stated capital. The Investment Corporation is required to maintain net assets of at least ¥50
million as required by the Investment Trust Act.

Information on the cancellation of treasury investment units during the six-month period ended October 31, 2023, and April 30, 2023,
is as follows:
As of October 31, 2023
Total number of units cancelled (Number of units)
Total amount of cancellation (Thousands of yen)

As of April 30, 2023

4,295
¥

2,999,551

4,295¥

2,999,551

12. RELATED-PARTY TRANSACTIONS(1) Parent Company, Major Corporate Unitholders and Other
Thirty-seventh fiscal period (From May 1, 2023 to October 31, 2023) and Thirty-sixth fiscal period (From November 1, 2022 toApril 30, 2023): Not applicable

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(2) Affiliated Companies and Other
Thirty-seventh fiscal period (From May 1, 2023 to October 31, 2023) and Thirty-sixth fiscal period (From November 1, 2022 toApril 30, 2023): Not applicable(3) Fellow Subsidiary Companies and Other
Thirty-seventh fiscal period (From May 1, 2023 to October 31, 2023) and Thirty-sixth fiscal period (From November 1, 2022 toApril 30, 2023): Not applicable(4) Directors, Major Individual Unitholders and Other
Thirty-seventh fiscal period (From May 1, 2023 to October 31, 2023) and Thirty-sixth fiscal period (From November 1, 2022 toApril 30, 2023): Not applicable

13. BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATEDEXPENSES, AND GAIN AND LOSS ON SALE OF REAL ESTATE PROPERTY
Rent revenue – real estate, expenses related to rent business, and gain and loss on sale of real estate property for the fiscal
periods from May 1, 2023 to October 31, 2023 and from November 1, 2022 to April 30, 2023 consist of the following:
From May 1, 2023

From November 1, 2022

to October 31, 2023

to April 30, 2023

In thousands of yen
Rental and other operating revenues
Rent revenue – real estate
Rental revenues
Common area charges¥ 12,526,016¥ 12,439,185

1,416,057

1,457,707

13,942,073

13,896,892

Parking space rental revenues

522,316

516,938

Utility charge reimbursement

Subtotal
Others:1,315,987

1,286,335

Miscellaneous

280,554372,728

Subtotal

2,118,858

2,176,002¥ 16,060,932¥ 16,072,895

Total rental and other operating revenues
Property-related expenses
Expenses related to rent business
Property management fees and facility management fees

¥ 1,494,166¥ 1,509,353

Utilities

1,454,250

1,552,159

Taxes

1,478,415

1,392,970

491,706

351,470

Insurance

21,057

20,500Trust fees

30,12730,127

Repairs and maintenance

OthersDepreciation
Total expenses related to rent business

334,964

319,516

2,574,098

2,617,548¥ 7,878,787¥ 7,793,647

Gain and loss on sale of real estate properties

KDX Kawasaki-Ekimae Hon-cho Building
Revenue from sale of investment properties¥

Cost of investment properties
Other sales expenses
Gain on sale of real estate properties¥－¥ 4,508,100－

3,189,768－

149,898－¥ 1,168,433

25

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14. LEASESThe Investment Corporation, as lessor, has entered into leases whose fixed monthly rents are due in advance with lease terms ofgenerally two years for office buildings. The future minimum rental revenues under existing non-cancelable operating leases as of
October 31, 2023, and April 30, 2023, are as follows:
As of October 31, 2023

As of April 30, 2023

In thousands of yen
Due within one year

¥ 3,246,442¥

3,522,908

Due after one year

5,936,156

7,066,262

Total¥ 9,182,599¥ 10,589,171

15. FINANCIAL INSTRUMENTS
Thirty-seventh fiscal period (From May 1, 2023 to October 31, 2023)(A) Overview(1) Policy for financial instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily
through bank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation uses
derivatives for the purpose of hedging its exposure to changes in interest rates and does not enter into derivatives for speculative or
trading purposes. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety,
liquidity, interest-rate conditions and cash flows.
(2) Types of financial instruments and related risk
Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer
and risk of fluctuation of value of its property.
Loans payable and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties
and have a redemption date of a maximum of approximately 7 years and 5 months following the accounting date. Although a certain
portion of said liabilities are subject to interest-rate fluctuation risk, the Investment Corporation utilizes derivatives (interest-rate
swap transactions) in order to reduce such risk.
Interest-rate swap transactions are used as derivative financial instruments. Utilizing interest-rate swap transactions, the Investment
Corporation fixes its interest expense for long-term loans payable bearing interest at a variable rate. With regard to hedge accounting
methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please
see Note 2 (M) “Derivative Financial Instruments.”(3) Risk management for financial instruments(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risk arising from fluctuations in interest rates
on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer
with regard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled
due dates) associated with procurement of funds
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk 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) Supplementary explanation of the estimated 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 “(B) Estimated Fair Valueof Financial Instruments” do not indicate the market risk of derivative transactions.
(B) Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of October 31, 2023 and estimated fair value are shown in thefollowing table. Moreover, because “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are settled withcash in the short term, the fair value can be considered as equivalent to the book value. Therefore, the notes for these accounts havebeen omitted.

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Carrying value

Estimated fair value

Difference

In thousands of yen(1) Current portion of investment corporation bonds

4,000,000

4,010,000(2) Current portion of long-term loans payable

25,600,000

25,628,808

28,808(3) Investment corporation bonds

9,000,000

8,853,200(146,800)(4) Long-term loans payable
Subtotal

10,000174,350,000

171,630,090(2,719,909)¥ 212,950,000¥ 210,122,098¥ (2,827,901)

1,632,131

1,632,131–

Derivative transactions(*)(*)The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing
the net liability position.
*1 Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivativetransactions
Liabilities(1) Current portion of investment corporation bonds and (3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices. The fair value of those for which no market priceis 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 loans payable is based on the present value of the total of principal and interest discounted by the interest
rate to be applied if similar new loans were entered into. The fair value of long-term loans payable bearing interest at a variable rate,
which is subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps, is based on thepresent value of the total of principal and interest, which is handled together with the applicable interest-rate swaps, discounted by
the interest rate to be applied if similar loans were entered into.
Derivative Transactions
Please refer to Note 16 “DERIVATIVE TRANSACTIONS.”*2 Redemption schedule for loans payable and investment corporation bonds
Due within
1 year or lessDue after

Due after

1 year through2 years through2 years

3 years

Due after

Due after

Due after

3 years through 4 years through4 years

5 years

5 years

In thousands of yen
Investment corporationbonds
Long-term loans payable
Total

¥

4,000,000

2,000,000

2,000,000

3,000,000

1,000,000

1,000,000

25,600,000

30,950,000

33,600,000

38,500,000

35,300,000

36,000,000

35,600,000¥ 41,500,000

29,600,000¥

32,950,000¥¥

36,300,000¥

37,000,000

Thirty-sixth fiscal period (From November 1, 2022 to April 30, 2023)(A) Overview(1) Policy for financial instruments
The Investment Corporation procures essential funds for acquiring properties and undertaking the repayment of loans primarily
through bank loans and the issuance of investment corporation bonds and new investment units. The Investment Corporation uses
derivatives for the purpose of hedging its exposure to changes in interest rates and does not enter into derivatives for speculative or
trading purposes. Management of surplus funds is undertaken in a prudent manner that considers fully such factors as safety,
liquidity, interest-rate conditions and cash flows.
(2) Types of financial instruments and related risk
Investment securities, which are Japanese silent partnership (tokumei kumiai, “TK”) interests, are exposed to credit risk of the issuer
and risk of fluctuation of value of its property.
Loans payable and investment corporation bonds are used primarily for procuring funds necessary for the acquisition of properties
and have a redemption date of a maximum of approximately 7 years and 11 months following the accounting date. Although acertain portion of said liabilities are subject to interest-rate fluctuation risk, the Investment Corporation utilizes derivatives (interestrate swap transactions) in order to reduce such risk.
Interest-rate swap transactions are used as derivative financial instruments. Utilizing interest-rate swap transactions, the Investment
Corporation fixes its interest expense for long-term loans payable bearing interest at a variable rate. With regard to hedge accounting
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methods, hedging instruments and hedged items, hedge policy, and the assessment of the effectiveness of hedging activities, please
see Note 2 (M) “Derivative Financial Instruments.”(3) Risk management for financial instruments(a) Monitoring of market risk (the risks arising from fluctuations in interest rates and others)
The Investment Corporation uses interest-rate swap transactions in order to minimize risk arising from fluctuations in interest rates
on funds procured. The Investment Corporation periodically reviews the value of the property and financial condition of the issuer
with regard to investment securities.
(b) Monitoring of liquidity risk (the risk that the Investment Corporation may not be able to meet its obligations on scheduled
due dates) associated with procurement of funds
Although loans and other liabilities are subject to liquidity risk, the Investment Corporation reduces such risk 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) Supplementary explanation of the estimated 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 “(B) Estimated Fair Valueof Financial Instruments” do not indicate the market risk of derivative transactions.
(B) Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of April 30, 2023 and estimated fair value are shown in thefollowing table. Moreover, because “Cash and deposits,” “Cash and deposits in trust” and “Short-term loans payable” are settled withcash in the short term, the fair value can be considered as equivalent to the book value. Therefore, the notes for these accounts havebeen omitted.
Carrying value
Estimated fair value
Difference
In thousands of yen(1) Current portion of investment corporation bonds

2,000,000

1,999,400(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
Subtotal(600)

181,950,000

181,467,672(482,327)¥ 214,650,000¥ 214,133,225¥ (516,774)

674,650

674,650–

Derivative transactions(*)(*)The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing
the net liability position.
*1 Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivativetransactions
Liabilities(1) Current portion of investment corporation bonds and (3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices. The fair value of those for which no market priceis 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 loans payable is based on the present value of the total of principal and interest discounted by the interest
rate to be applied if similar new loans were entered into. The fair value of long-term loans payable bearing interest at a variable rate,
which is subject to fixed interest rates resulting from interest-rate swaps and special treatment applied to said swaps, is based on thepresent value of the total of principal and interest, which is handled together with the applicable interest-rate swaps, discounted by
the interest rate to be applied if similar loans were entered into.
Derivative Transactions
Please refer to Note 16 “DERIVATIVE TRANSACTIONS.”*2 Redemption schedule for loans payable and investment corporation bonds

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Due within
1 year or lessDue after

Due after

Due after

1 year through2 years through2 years

3 years

Due after

Due after

3 years through 4 years through4 years

5 years

5 years

In thousands of yen
Investment corporation

2,000,000

4,000,000–

2,000,000

4,000,000

1,000,000

19,700,000

27,050,000

32,900,000

37,800,000

33,100,000

51,100,000

32,900,000¥ 39,800,000

bonds
Long-term loans payable
Total

¥

21,700,000¥

31,050,000¥¥

37,100,000¥

52,100,000

16. DERIVATIVE TRANSACTIONS
The following summarizes the contracted amount and the fair value of interest-rate swap contracts as of October 31, 2023:(1) Hedge accounting not applied
Not applicable(2) Hedge accounting applied
Hedge

Type ofaccounting

derivative

methodtransactions

Principle method Interest-rate

Contracted amount
Hedgeditems(In thousands of yen)
Maturing
after 1 year

Fair value(In thousandsof yen)Calculation
method for
applicable fair value

Long-term

Based on theswaps:

loans

amount provided byReceive/floating

payable¥79,950,000¥

75,050,000¥ 1,632,131

and pay/fixedcounterparty
financial institutions

Special treatment Interest-rateLong-termof interest-rate

swaps:

loans

swaps

Receive/floating

payable27,100,000

20,400,000*¥ 107,050,000¥ 95,450,000¥ 1,632,131

and pay/fixed
Total(*)Interest-rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As aresult, their fair value is included in the fair value of the hedged long-term loans payable.
The following summarizes the contracted amount and the fair value of interest-rate swap contracts as of April 30, 2023:(1) Hedge accounting not applied
Not applicable(2) Hedge accounting applied
Hedge

Type ofaccounting

derivative

methodtransactions

Principle method Interest-rate

Contracted amount
Hedgeditems(In thousands of yen)
Maturing
after 1 year

Fair value(In thousandsof yen)Long-termswaps:

loans

Receive/floating

payableCalculation
method for
applicable fair value
Based on the¥82,450,000¥

77,950,000¥

674,650and pay/fixedamount provided bycounterparty
financial institutions

Special treatment Interest-rateLong-termof interest-rate

swaps:

loans

swaps

Receive/floating

payable30,100,000

25,400,000¥ 112,550,000¥ 103,350,000*

and pay/fixed
Total

¥

674,650(*)Interest-rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As aresult, their fair value is included in the fair value of the hedged long-term loans payable.

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17. REVENUE RECOGNITION
Thirty-seventh fiscal period (From May 1, 2023 to October 31, 2023)(1)

I nformation on the Breakdown of Revenue from Contracts with Customers
Thirty-seventh Fiscal Period (From May 1, 2023 to October 31, 2023)
Revenues generated from contracts

Sales to external customers

with customers*(in thousands of yen)
Revenue from sale of real¥estate property

–

¥

–

1,315,987

1,315,987

Other

–

15,339,616

Total¥1,315,987¥16,655,603

Utility charge reimbursements(*)Rental revenues, etc. which are subject to Accounting Standard for Lease Transactions (ASBJ Statement No. 13) and the transfer
of real estate properties which is subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real
Estate Using Special Purpose Companies” (Accounting System Committee Report No.15 of the Japanese Institute of Certified
Public Accountants) are not included in the above amounts as they are excluded from revenue recognition accounting standards.
Furthermore, revenue generated from contracts with major customers include of revenue from sale of real estate properties andutility charge reimbursements.
(2)

Information Utilized as the Base for Understanding Revenue from Contracts with Customers
Thirty-seventh Fiscal Period (From May 1, 2023 to October 31, 2023)
The information is as described in the notes on Summary of Significant Accounting Policies.

(3)

Information on relationship of Fulfillment of performance Obligations based 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 existing at the end of the current calculation period.

(a) Balance of contract assets and contract liabilities, etc.
From May 1, 2023
to October 31, 2023
(in thousands of yen)
Receivables generated from contracts with customers(balance at beginning of fiscal period)
Receivables generated from contracts with customers(balance at end of fiscal period)¥309,606
329,871

Contract assets (balance at beginning of fiscal period)–

Contract assets (balance at end of fiscal period)–

Contract liabilities (balance at beginning of fiscal period)–

Contract liabilities (balance at end of fiscal period)–(b)Transaction value allocated to remaining performance obligations
As of October 31, 2023, the total transaction price allocated to remaining performance obligations for the sale of real estateis 9,930,000 thousand yen for the real estate for which a sale agreement was executed on June 13, 2023. KDXR expects torecognize revenue on the remaining performance obligation upon the sale on November 1, 2023.
With regard to utility charge reimbursements, as the Investment Corporation has the right to receive from customers anamount 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 thenote on transaction value allocated to remaining performance obligations through application of the provisions of Paragraph30

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80-22 (2) of the Accounting Standard for Revenue Recognition.
Thirty-sixth fiscal period (From November 1, 2022 to April 30, 2023)(1)

I nformation on the Breakdown of Revenue from Contracts with Customers
Thirty-sixth Fiscal Period (From November 1, 2022 to April 30, 2023)
Revenues generated from contracts

Sales to external customers

with customers*1(in thousands of yen)
Revenue from sale of real

¥4,508,100

estate property*2¥ 1,168,433

1,286,335

1,286,335

Other

–

14,835,944

Total¥5,794,435¥17,290,713

Utility charge reimbursements(*1)Rental revenues, etc. which are subject to Accounting Standard for Lease Transactions (ASBJ Statement No. 13) and the transfer
of real estate properties which is subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real
Estate Using Special Purpose Companies” (Accounting System Committee Report No.15 of the Japanese Institute of Certified
Public Accountants) are not included in the above amounts as they are excluded from revenue recognition accounting standards.
Furthermore, revenue generated from contracts with major customers include of revenue from sale of real estate properties andutility charge reimbursements.
(*2) Revenue from sale of real estate, etc. is recorded as gain and loss on sale of real estate, etc. in the statement of income. Therefore,
the amount calculated by deducting the cost of real estate, etc. sold and other sales expenses from the revenue from sale of realestate, etc. is indicated.
(2)

Information Utilized as the Base for Understanding Revenue from Contracts with Customers
Thirty-sixth Fiscal Period (From November 1, 2022 to April 30, 2023)
The information is as described in the notes on Summary of Significant Accounting Policies.

(3)

Information on relationship of Fulfillment of performance Obligations based 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 existing at the end of the current calculation period.

(a) Balance of contract assets and contract liabilities, etc.
From November 1, 2022
to April 30, 2023
(in thousands of yen)
Receivables generated from contracts with customers(balance at beginning of fiscal period)
Receivables generated from contracts with customers(balance at end of fiscal period)¥324,473
309,606

Contract assets (balance at beginning of fiscal period)–

Contract assets (balance at end of fiscal period)–

Contract liabilities (balance at beginning of fiscal period)–

Contract liabilities (balance at end of fiscal period)–(b)Transaction value allocated to remaining performance obligations
Not applicable.
With regard to utility charge reimbursements, as the Investment Corporation has the right to receive from customers anamount 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 thenote on transaction value allocated to remaining performance obligations through application of the provisions of Paragraph80-22 (2) of the Accounting Standard for Revenue Recognition.
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18. INVESTMENT AND RENTAL PROPERTIES
Thirty-seventh fiscal period (From May 1, 2023 to October 31, 2023)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo metropolitan area for the purpose of generating
rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)
As of April 30, 2023

Net change

As of October 31, 2023

Fair value

As of October 31, 2023
(In thousands of yen)
¥ 551,696,000¥ 432,404,110¥(1,414,723)¥ 430,989,387*1: The carrying value represents the acquisition cost less accumulated depreciation.
*2: Fair value at the end of the fiscal period is the appraisal value determined by outside appraisers. Fair value at the end of the fiscal
periods under review of Harajuku F.F. Building and KDX Nagoya Sakae Building that were sold on November 1, 2023
respectively are calculated based on the sale price (Harajuku F.F. Building: 3,880 million yen; KDX Nagoya Sakae Building:
6,050 million yen) in the transaction agreements on June 13, 2023.
*3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal
increase/decrease factor was the depreciation amounting to ¥2,574,098 thousand.
Income and loss in the fiscal period ended October 31, 2023, for real estate for rental purposes is listed in Note 13 “BREAKDOWNOF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, AND GAIN AND LOSS ON SALE
OF REAL ESTATE PROPERTY.”
Thirty-sixth fiscal period (From November 1, 2022 to April 30, 2023)
The Investment Corporation owns real estate for rental purposes mainly in the Tokyo metropolitan area for the purpose of generating
rental revenues.
The carrying value in the balance sheets and corresponding fair value of those properties are as follows:
Carrying value (In thousands of yen)
As of October 31, 2022

Net change

As of April 30, 2023

Fair value
As of April 30, 2023
(In thousands of yen)
¥ 551,161,000¥ 437,196,489¥(4,792,379)¥ 432,404,110*1: The carrying value represents the acquisition cost less accumulated depreciation.
*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.
*3: Among changes in the amount of real estate for rental purposes that occurred during the fiscal period under review, principal
increase/decrease factors were the sale of 1 real estate property totaling 3,189,768 thousand and depreciation amounting to2,617,548 thousand.
Income and loss in the fiscal period ended April 30, 2023, for real estate for rental purposes is listed in Note 13 “BREAKDOWN OFRENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES, AND GAIN AND LOSS ON SALE OF
REAL ESTATE PROPERTY.”

19. SEGMENT AND RELATED INFORMATION
Thirty-seventh fiscal period (From May 1, 2023 to October 31, 2023)(A) Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportablesegment subject to disclosure.
(B) Related Information(1)

Information about each product and service

Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of theoperating revenues on the statement of income and retained earnings.

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(2)Information about each geographic area(a)

Net sales

Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statementof income and retained earnings.
(b)

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 thestatement of income and retained earnings.
Thirty-sixth fiscal period (From November 1, 2022 to April 30, 2023)(A) Segment Information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportablesegment subject to disclosure.
(B) Related Information(1)

Information about each product and service

Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of theoperating revenues on the statement of income and retained earnings.
(2)

Information about each geographic area(a)

Net sales

Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on the statementof income and retained earnings.
(b)

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 thestatement of income and retained earnings.

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20. SIGNIFICANT SUBSEQUENT EVENTS(1) The Merger by and among KDXR, KDR and KRRKDXR has conducted the Merger on November 1, 2023 as the effective date, whereby KDXR was the surviving Corporation
and KDR and KRR were the dissolving corporations, and has changed its name to KDX Realty Investment Corporation on thesame day.
i. Purpose of the Merger
In order to respond flexibly to environmental changes and attain continued growth, Each REIT has conducted the Merger as it
found that it will contribute to maximize unitholders’ value by leading to the continued growth by expanding investment target
sectors, improving their presence and stability in the market by increasing the sizes of their assets, and enabling more commitment
for sustainability.
ii. Form of the Merger
KDXR was the surviving corporation under an absorption-type merger and KDR and KRR were dissolved in the Merger.
iii. Allocation ratio
KDXR split the investment units at a ratio of two investment units per one investment unit (“the Split of Investment Units”) on
November 1, 2023 as the effective date, for the purpose of providing at least one Investment Corporation’s investment unit to all
unitholders of KDR and KRR as of October 31, 2023 as the record date. As a result of the Split of Investment Units, KDR
unitholders were allotted 1.34 Investment Corporation’s investment units after the Split of Investment Units against each KDR
investment unit, and KRR unitholders were allotted 1.68 Investment Corporation’s investment units after the Split of Investment
Units against each KRR investment unit.
iv Delivery of Payment upon the Merger
In addition to the above mentioned investment units, KDXR intends to pay unitholders of KDR and KRR (the unitholders statedor 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 ofthe 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 thequotient 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 than the Unitholders Subject to Allocation. The Payment upon the Merger will be paid in mid-January2024.
ⅴ. Total amount of Unitholders' Capital
The amount of unitholders' capital and unitholders' surplus increased as a result of the Merger are as follows.
Unitholders' capital : 0 yen
Unitholders' surplus: The amount obtained by subtracting the above unitholders' capital from the amount of changes inunitholders' capital as provided in Article 22, Paragraph 1 of the "Regulations Concerning Calculationof Investment Corporation” (Cabinet Office Ordinance No. 47 of 2006, including subsequent
amendments).

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

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21. DISTRIBUTIONS
Thirty-seventh fiscal period(From May 1, 2023 to October 31, 2023)

Thirty-sixth fiscal period(From November 1, 2022 to April 30, 2023)

(Yen)

(Yen)

I. Retained earnings at the end of period¥ 6,571,336,746¥ 7,206,005,509

II. Total distributions¥ 6,571,090,350¥ 6,487,944,210

Distributions per unit

¥ 7,745¥ 7,647¥-¥ 718,061,299¥ 246,396¥-

In accordance with the policy stipulated in Article
35 (1) of its Articles of Incorporation, theInvestment Corporation determines that theamount of distribution shall exceed the amountequivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation, and shall be up to
the amount of its profits as the ceiling. Following
this policy, the Investment Corporation has
decided to distribute ¥6,571,090,350 the
maximum integral multiple amount of investment
units issued and outstanding of 848,430 units, up
to the amount of unappropriated retained earnings
for the fiscal period under review.
In addition, the Investment Corporation decided
not to distribute cash in excess of distributableprofit, stipulated in Article 35 (2) of its Articles ofIncorporation.

In accordance with the policy stipulated in Article
35 (1) of its Articles of Incorporation, theInvestment Corporation determines that theamount of distribution shall exceed the amountequivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation, and shall be up to
the amount of its profits as the ceiling. Following
this policy, the Investment Corporation has
decided that, of the amount remaining after theprovision of reserve for reduction entry as
stipulated in Article 65-7 of the Act on Special
Measures Concerning Taxation is deducted fromunappropriated retained earnings, it shall
distribute the outstanding ¥6,487,944,210 as
profit distribution.
In addition, the Investment Corporation decided
not to distribute cash in excess of distributableprofit, stipulated in Article 35 (2) of its Articles ofIncorporation.

III. Voluntary reserve (provision)
Provision of reserve for reduction entry
Ⅳ. Retained earnings brought forward
to the next period

Method of calculating distribution
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Independent Auditor’s Report

The Board of Directors
KDX Realty Investment Corporation
OpinionWe have audited the accompanying financial statements of KDX Realty Investment Corporation(formerly, Kenedix Office Investment Corporation; the Company), which comprise the balance
sheet as at October 31, 2023, and the statements of income, and retained earnings, changes in net
assets, cash distribution, and cash flows for the six-month period then ended, and notes to thefinancial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the Company as at October 31, 2023, and its financial performance and its
cash flows for the six-month period then ended in accordance with accounting principles generally
accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company inaccordance with the ethical requirements that are relevant to our audit of the financial statements inJapan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Emphasis of Matter
We draw attention to Note 20. SIGNIFICANT SUBSEQUENT EVENTS to the financial
statements, which describes that the Company, conducted an absorption-type merger, effective
November 1, 2023, with the Company as the surviving corporation and Kenedix Residential Next
Investment Corporation and Kenedix Retail REIT Corporation as the dissolving corporation in themerger. Our opinion is not modified in respect of this matter.
Other Information
The other information comprises the information included in the Semi-annual Report that contains
audited financial statements but does not include the financial statements and our auditor’s report
thereon. Management is responsible for preparation and disclosure of the other information. The
Supervisory Director is responsible for overseeing the Company’s reporting process of the otherinformation.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

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If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management, and Supervisory Director for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Supervisory Director is responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:・ Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of thefinancial statements is not expressing an opinion on the effectiveness of the Company’s internal
control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company’s ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
・ Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation in accordance with accounting principles
generally accepted in Japan.
We communicate with the Executive Director regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

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We also provide the Executive Director with a statement that we have complied with the ethicalrequirements regarding independence that are relevant to our audit of the financial statements inJapan, and to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, measures taken to eliminate inhibiting
factors or apply safeguards to reduce them to an acceptable level.
Fee-related Information
The fees paid or payable to us and other EY Member Firms for the audits of the financial
statements of the Company and other non-audit fees charged in the audit period to the Company are
13 million yen and 17 million yen, respectively.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.
Ernst & Young ShinNihon LLC
Tokyo, Japan
January 31, 2024

/s/ Hitoshi Sakurai
Hitoshi Sakurai
Designated Engagement Partner
Certified Public Accountant/s/ Masahiro Yawata
Masahiro Yawata
Designated Engagement Partner
Certified Public Accountant

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IR schedule
Fiscal period ended October
May

Jun.

Jul.

Aug.

Sep.

Oct.

Fiscal period end
Financial results
announcement
Start of distribution payments
Asset management report publication

Fiscal period ended April
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Fiscal period end

Financial results
announcement

Start of distribution payments
Asset management report publication

Unitholder memorandum
Fiscal period end

April 30 and October 31 of each year

General Meeting ofUnitholders

Convened at least once every two years, in principle

Date of record forestablishment of unitholder
voting rights

Prescribed in Article 16 of the Articles of Incorporation

Record dates for distribution
payments

April 30 and October 31 (within three months from payment record dates)

Listing

Tokyo Stock Exchange (Securities code: 8972)

Newspaper for publicannouncements

Nihon Keizai Shimbun (Nikkei)

Unitholder registry andspecial account administrator

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Postal address and telephoneinquiries

Stock Transfer Agency Department Sumitomo Mitsui Trust Bank, Limited 8-4 Izumi
2-chome, Suginami-ku, Tokyo Toll-free tel: 0120 782 031

Receipt of Distributions
During receipt period

Take your distribution receipt to the head or branch offices of Japan Post Bank Co.,
Ltd. or post offices (bank agents).

After receipt period

Specify the receipt method on the back of the distribution receipt and mail it to the
Stock Transfer Agency Division of Sumitomo Mitsui Trust Bank, Limited, or receive
distributions at a branch of the bank.

Receiving future distributions

Distributions can be paid by remittances to bank or ordinary postal savings accounts.
If transfer designations or other procedures are preferred, you should contact
the brokerage with which you have an account, in principle. If you do not have a
brokerage account and have a special account, contact Sumitomo Mitsui Trust Bank,
Limited, the institution for managing special accounts.

Exclusion

Under the Articles of Incorporation of Kenedix Realty Investment Corporation, you cannot
receive distributions after three years have elapsed from the commencement of distribution
payments, so please receive them as soon as possible.

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