KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)

Translation of Japanese Original
FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED JULY 31, 2022(REIT)( February 1, 2022 to July 31, 2022)
September 13, 2022
Kenedix Residential Next Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number
3278.
(URL https://www.kdr-reit.com/en/)
Representative:
Tetsu Kawashima , Executive Director
Asset Management Company: Kenedix Real Estate Fund Management, Inc.
Representative:
Masahiko Tajima, President and CEO
Inquiries:
Shin Yamamoto, Head of Planning , Residential REIT Department
TEL+81-3-5157-6011
Planned submission of semiannual securities report: October 25, 2022
Planned start of distribution payments:
October 17, 2022
Preparing presentation material:
Yes
Hold a financial brief meeting:
No (Cancelled due to preventing the spread of coronavirus infection.
Scheduled financial results presentation webcast (Japaneseversion) . )(Amounts are rounded down to the nearest ¥million)

1. PERFORMANCE FOR THE FISCAL PERIOD ENDED July 31, 2022 (21st FISCAL PERIOD)(1) Business Results(Percentages show period-on-period changes)
Operating Revenues(Millions of Yen)

Operating Income(Millions of Yen)

Ordinary Income(Millions of Yen)

Net Income(Millions of Yen)

The 21st fiscal period ended July 31, 2022

9,447

(3.3%)

4,850（0.2%)

4,122(0.1%)

4,122(0.1%)The 20th fiscal period ended January 31, 2022

9,143(-0.6%)

4,840（0.4%)

4,119(-0.7%)

4,119(-0.7%)Net Income per Unit
(Yen)

Return on
Unitholders’ Equity

Ordinary Income
to Total Assets

Ordinary Income toOperating Revenues

The 21st fiscal period ended July 31, 2022

3,966

2.9%

1.3%

43.6%

The 20th fiscal period ended January 31, 2022

4,136

3.0%

1.4%

45.1%

(2) Distribution
Distribution per
Unit (Excluding
Excess ofEarnings )(Yen)

Total Distributions(Excluding Excessof Earnings)(Millions of Yen)Distribution in
Excess of Earnings
per Unit (Yen)

Total Distributions
in Excess of
Earnings(Millions of Yen)

Payout Ratio

Distribution Ratio
to Unitholders’EquityThe 21st fiscal period ended
4,101
4,288
104.0%
3.0%
July 31, 2022
The 20th fiscal period ended
4,101
4,084
99.1%
3.0%
January 31, 2022
(Note 1) Total Distributions for the 21st fiscal period is not the same amount as Net Income because of adding reversal of reserve for temporary difference
adjustments and a part of Retained earnings brought forward.
(Note 2) Total Distributions for the 20th fiscal period is not the same amount as Net Income because of excluding a part of gain on sale of real estate property andother adjustments from Net Income, and adding reversal of reserve for temporary difference adjustments(Note 3) Due to issuance of new investment units in the 21st period, Payout Ratio for each fiscal period is calculated as follows.
Payout Ratio = Total Distributions (Excluding Excess of Earnings) /Net income × 100

This is an English-language translation of the key financials in the original Japanese announcement on our Web site released on September 13, 2022. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in the caseof discrepancies between this translation and the Japanese original.

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(3) Financial Position
Total Assets(Millions of Yen)

Unitholders’ Equity(Millions of Yen)

Unitholders’ Equity to Total
AssetsUnitholders’ Equity per Shareof Common Stock (Yen)

As of July 31, 2022

315,886

145,258

46.0%

138,902

As of January 31, 2022

302,410

135,79044.9%

136,352(4) Cash Flow Position
Cash Flow from Operating
Activities(Millions of Yen)
The 21st fiscal period ended
July 31, 2022
The 20th fiscal period ended
January 31, 2022

Cash Flow from Investing
Activities(Millions of Yen)

Cash Flow from Financing
Activities(Millions of Yen)

Cash and Cash Equivalents atthe End of the Period(Millions of Yen)

6,084

-14,488

8,926

25,504

6,135-13,488

4,799

24,982

2. FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING JANUARY 31, 2023 (August 1, 2022 to January 31,2023) AND JULY 31, 2022 (February 1, 2023 to July 31, 2023)(Percentages show period-on-period changes)
Operating Revenues(Millions of Yen)

Operating Income(Millions of Yen))

Ordinary Income(Millions of Yen)

Net Income(Millions of Yen)Distribution per
Unit Excluding
Excess of Earning

Distribution in
Excess of Earnings
per Unit

The 22nd fiscal period
9,558
4,936
4,233
4,232
4,120
ending January 31, 2023
(1.8%)(2.7%)(2.7%)(1.2%)The 23rd fiscal period
9,661
4,948
4,240
4,240
4,120
ending July 31, 2023
(1.1%)(0.3%)(0.2%)(0.2%)(Reference) Estimated net income per unit (Estimated Net Income / Estimated weighted average number of units)
The 22nd fiscal period ending January 31, 2023 ¥4,047 The 23rd fiscal period ending July 31, 2023 ¥4,054
Distributions per Unit Excluding Excess of Earning are not the same amount as estimated net income per unit for the 22nd and 23rd fiscal periods. Total
distributions for the 22nd and 23rd fiscal periods are calculated with the assumption adding reversal of reserve for temporary difference adjustments andamount including a part of retained earnings brought forward that were internally reserved through the previous fiscal period to the net income.
(Note) Distribution per unit is calculated based on the number of investment units issued and outstanding totaled 1,045,758 as of today.

3. OTHER(1) Changes in Accounting Policies/Changes in Accounting Estimate/Retrospective Restatement(a) Changes concerning accounting policy accompanying amendments to accounting standards: No(b) Changes other than (a): No(c) Changes in accounting estimate: No(d) Retrospective restatement: No(2) Number of Investment Unit Issued and Outstanding (including treasury units)(a) Number of investment units issued and outstanding at the end of the period (including treasury units)
As of January 31, 2022: 995,883 units As of July 31, 2022: 1,045,758 units(b) Number of treasury units at the end of the period
As of January 31, 2022: 0 units As of July 31, 2022: 0 units[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between thistranslation and the Japanese original, the latter shall prevail.

This is an English-language translation of the key financials in the original Japanese announcement on our Web site released on September 13, 2022. However, noassurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in the caseof discrepancies between this translation and the Japanese original.

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
1. Financial Statements(1) Balance Sheets(in thousands of yen)
20th Fiscal Period

21st Fiscal Period(As of January 31, 2022)(As of July 31, 2022)

AssetsCurrent assets
Cash and deposits

13,828,613

14,043,415

Cash and deposits in trust

11,153,990

11,460,934

Operating accounts receivable236,109

57,058Prepaid expenses

10,31016,867

Consumption taxes receivable
Other
Total current assets

-

9,475

5,272

8,062

25,234,296

25,595,814

173,018

173,018

Noncurrent assets
Property, plant and equipment
Land
Buildings in trust

115,859,756

122,148,745

Accumulated depreciation-17,273,700-18,830,347

Buildings in trust, net

98,586,055

103,318,397

1,335,781

1,465,983-354,077-392,101

Structures in trust
Accumulated depreciation

981,703

1,073,882

Machinery and equipment in trust

Structures in trust, net

1,545,362

1,574,807

Accumulated depreciation-486,797-521,625

Machinery and equipment in trust, net

1,058,565

1,053,181

1,054,703

1,239,572

Tools, furniture and fixtures in trust
Accumulated depreciation-176,789-211,213

Tools, furniture and fixtures in trust, net

877,913

1,028,358

172,904,875

180,334,732

274,582,133

286,981,571

1,113,305

1,851,176

1,681

905

1,114,987

1,852,082

Land in trust
Total property, plant and equipment, net
Intangible assets
Leasehold right in trust
Other
Total intangible assets
Investments and other assets
Investment securities

109,688-

Lease and guarantee deposits

89,381

89,348Long-term prepaid expenses

1,016,936

940,044

166,099

324,482

1,382,104

1,353,875

277,079,225

290,187,529

Investment corporation bond issuance costs

48,06944,100Investment unit issuance costs

48,75059,235

Other
Total investments and other assets
Total noncurrent assets
Deferred assets

Total deferred assets
Total assets

96,819103,335

302,410,342

315,886,678

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(in thousands of yen)
20th Fiscal Period

21st Fiscal Period(As of January 31, 2022)(As of July 31, 2022)

Liabilities
Current liabilities
Operating accounts payable

655,849

786,274

Short-term loans payable

2,500,000

4,400,000

Current portion of long-term loans payable

19,750,000

14,050,000

Accounts payable-other409,744386,351

Accrued expenses

54,80059,408

Income taxes payable

605

605

Accrued consumption taxes

31,944

16,126

Advances received

1,263,949

1,387,348

Deposits received

71,60384,024

Other

6,636

100

24,745,132

21,170,239

7,700,000

7,700,000

Total current liabilities
Noncurrent liabilities
Investment corporation bonds
Long-term loans payable

125,870,000

133,470,000

Tenant leasehold and security deposits in trust

3,464,769

3,731,982

Tenant lump sum deposits in trust

4,671,456

4,414,784

68,26468,451

Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities

100,01273,051

141,874,503

149,458,269

166,619,636

170,628,508

116,322,630

125,564,617

13,187,100

13,187,100

Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Voluntary retained earnings
Reserve for temporary difference adjustments*2

Total voluntary retained earnings

1,880,000*2

1,880,000

1,860,000
1,860,000

Unappropriated retained earnings (undisposed loss)

4,335,589

4,393,566

Total surplus

19,402,689

19,440,666

135,725,319

145,005,284

65,386

252,885

Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

65,386*1

135,790,706
302,410,342

252,885*1

145,258,169
315,886,678

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(2) Statements of Income and Retained Earnings(in thousands of yen）
20th Fiscal Period

21st Fiscal Period

August 1, 2021 to

February 1, 2022 toJanuary 31, 2022

July 31, 2022

Operating revenues
Rent revenue-real estate*18,434,013*1

8,790,331

Other lease business revenue*1

528,925*1

651,165

Gain on sale of real estate property*2

180,124

⁻

⁻

6,207

9,143,063

9,447,705

Dividends income
Total operating revenues
Operating expenses
Expenses related to rent business*1

3,257,431*1

3,549,451

Asset management fees

684,755

675,353

Asset custody fees

15,46015,846

Administrative service fees

51,082

52,332

Directors' compensation

5,400

4,500

Other operating expenses

288,082299,578

Total operating expenses

4,302,212

4,597,062

4,840,850

4,850,642

Operating income
Non-operating income
Interest income

42

46

Gain on forfeiture of unclaimed dividends

141

151

Total non-operating income

184

197

533,039

523,531

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

26,994

26,386

Borrowing expenses

134,043

153,526

Amortization of investment corporation bond issuance costs

3,968

3,968

Amortization of investment unit issuance costs

23,027

20,728721,074

728,141

Ordinary income

Total non-operating expenses

4,119,960

4,122,698

Income before income taxes

4,119,960

4,122,698

605

605

Income taxes
Current
Total income taxes

605

605

Net income

4,119,355

4,122,093

Retained earnings brought forward

216,234

271,473

4,335,589

4,393,566

Unappropriated retained earnings (undisposed loss)

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(3) Statements of Changes in Net Assets
20th Fiscal Period（in thousands of yen）

August 1, 2021 to January 31, 2022

Unitholders'
capitalBalance at the beginning of current period
Changes of items during the period
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance at the end of current period

116,322,630

Capital surplus

13,187,100

Unitholders' equity
Surplus
Voluntary reserve
UnappropriatedReserve forretained earnings
temporary
Total voluntary(undisposed loss)
difference
reserveadjustments
1,900,000
1,900,000
4,296,284-20,000* 1 116,322,630

13,187,100-20,000
1,880,000

Valuation and translation
adjustments

Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance at the end of current period

Deferred gains
and losses onhedgesTotal valuationand translation
adjustments-487,588-487,588

Total net
assets135,218,427-4,100,050
4,119,355

552,974

552,974

552,974

552,974
65,386552,974
65,386572,279
135,790,706-20,000-20,000
1,880,000

Total
unitholders'equityTotal
surplus19,383,384

135,706,015

20,000---4,100,050
4,119,355-4,100,050
4,119,355-4,100,050
4,119,355

39,304
4,335,589

19,304
19,402,689

19,304
135,725,319

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
21st Fiscal Period（in thousands of yen）

February 1, 2022 to July 31, 2022

Unitholders'
capitalBalance at the beginning of current period
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance at the end of current period

116,322,630

Capital surplus

13,187,100

Unitholders' equity
Surplus
Voluntary reserve
UnappropriatedReserve forretained earnings
temporary
Total voluntary(undisposed loss)
difference
reserveadjustments
1,880,000
1,880,000
4,335,589

19,402,689

9,241,987-20,000

9,241,987* 1 125,564,617

135,725,319
9,241,987

13,187,100-20,000
1,860,000

Valuation and translation
adjustments

Balance at the beginning of current period
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance at the end of current period

Totalunitholders'equityTotal
surplusDeferred gains
and losses onhedgesTotal valuationand translation
adjustments

65,386

65,386

Total net
assets135,790,706
9,241,987-4,084,116
4,122,093

187,499

187,499

187,499

187,499
252,885

187,499
252,885

9,467,463
145,258,169-20,000-20,000
1,860,000

20,000---4,084,116
4,122,093-4,084,116
4,122,093-4,084,116
4,122,093

57,977
4,393,566

37,977
19,440,666

9,279,964
145,005,284

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(4) Distributions
20th Fiscal Period(From August 1, 2021 to January 31, 2022)

21st Fiscal Period(From February 1, 2022 to July 31, 2022)

I. Retained earnings at the end of period¥4,335,589,580¥4,393,566,974

II. Reversal of voluntary retained earnings
Reversal of reserve for temporary
difference adjustments *1¥20,000,000¥20,000,000¥4,084,116,183¥4,101¥4,288,653,558¥4,101¥271,473,397¥124,913,416

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed theamount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting profits
as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall distribute¥4,084,116,183, which is the amount deducted a part ofgain on sale of real estate property and other adjustmentsfrom net income and added reversal of reserve fortemporary difference adjustments, as the distribution of
earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the20th fiscal period, the Investment Corporation has decided
not to distribute cash in excess of distributable profit.

In accordance with the policy described in Article 38-1
of its Articles of Incorporation, the Investment
Corporation determines that the amount of distribution
shall exceed the amount equivalent to 90% of its
distributable profit as stipulated in Article 67-15 of theSpecial Taxation Measures Law, and shall not exceed its
accounting profits as the maximum amount. Following
this policy, the Investment Corporation has decided thatit shall distribute ¥4,288,653,558, which is the amount of¥4,122,093,577 in net income and ¥146,559,981 fromretained earnings brought forward and reversal ofreserve for temporary difference adjustments, as the
distribution of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In
the 21st fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

III. Total distributions
Distributions per unit
Ⅳ. Retained earnings brought forward to
the next period
Method of calculating distribution amountKENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(5) Statements of Cash Flows(in thousands of yen)
20th Fiscal Period

21st Fiscal Period

August 1, 2021 to

February 1, 2022 toJanuary 31, 2022

July 31, 2022

Net cash provided by (used in) operating activities
Income before income taxes

4,119,960

4,122,698

Depreciation and amortization

1,590,604

1,666,611

Amortization of investment corporation bond issuance expenses

3,968

3,968

Amortization of investment unit issuance costs

23,027

20,728Interest income

-42

-46

Interest expenses

560,034

549,917

Decrease (increase) in operating accounts receivable-68,012179,050--9,475Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses

5,512-6,556

Increase (decrease) in operating accounts payable

73,023-66,422

Increase (decrease) in accounts payable-other-13,861-22,584

Increase (decrease) in accrued consumption taxes-34,076-15,817

Increase (decrease) in advances received

60,395

123,398

Decrease (increase) in long-term prepaid expenses-18,277

76,891

Decrease in net property, plant and equipment held in trust due to sale379,169-

Other, net

15,38915,539Subtotal

6,696,814

6,637,902

42

46-560,700-551,245-604-2,422

6,135,552

6,084,281

Interest income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Purchase of investment securities

-351

-

-13,548,175-13,866,514--739,596-109,688-

Proceeds from investment securities-

107,000

Payments of lease and guarantee deposits

-

-120

Proceeds from lease and guarantee deposits-

153

Repayments of tenant leasehold and security deposits in trust-126,302-146,972

Proceeds from tenant leasehold and security deposits in trust

194,966

414,185

Repayments of tenant lump sum deposits in trust-129,873-299,494

Proceeds from tenant lump sum deposits in trust

230,795

42,822-13,488,628-14,488,536

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

2,500,000

5,900,000

Repayments of short-term loans payable--4,000,000

Proceeds from long-term loans payable

15,850,000

15,400,000

Repayments of long-term loans payable-8,450,000-13,500,000

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

9,210,774

Dividends paid

-4,100,193-4,084,773

Net cash provided by (used in) financing activities

4,799,806

8,926,001

Proceeds from issuance of investment units

Net increase (decrease) in cash and cash equivalents-2,553,270

521,746

Cash and cash equivalents at the beginning of period

27,535,874

24,982,604

Cash and cash equivalents at the end of period*1

24,982,604*1

25,504,350

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(6) Notes to the Going Concern
Not applicable(7) Important Accounting Standards
1. Evaluation standards andevaluation method of assets

Securities
Other securitiesThose with no fair value
Cost method through moving-average method
Concerning anonymous association equity interests, the method of incorporating the amount equivalent toequity interests corresponding to net amount of gain or loss from anonymous association is adopted.

2. Depreciation of fixed assets(1) Property, plant and equipment (includes trust assets)
The straight-line method is applied.
Useful lives of the assets ranging are as follows:
Buildings: 2 to 69 years
Structures: 3 to 65 years
Machinery and equipment: 3 to 40 years
Tools, furniture and fixtures: 2 to 30 years(2) Intangible assets(includes trust assets)
The straight-line method is applied.
Land leasehold: Fixed term land leaseholds is amortized over a contractual period under the straight-line method.
(3) Long-term prepaid expenses
The straight-line method is applied.

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

4. Accounting standards forrevenues and expenses

Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on
properties on a calendar year basis. These taxes are generally charged to operating expenses for the period, for the portionof such taxes corresponding to said period. Under Japanese tax regulations, the seller of the property is liable for these taxes
on the property from the date of disposal to the end of the calendar year in which the property is disposed. The seller,
however, is reimbursed by the purchaser for these accrued property-related tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes
related to the period following the purchase date of each property through the end of the calendar year. The amounts of
those allocated portions of the property-related taxes are capitalized as part of the acquisition costs of the related
properties. Capitalized property-related taxes amounted to ¥7,873 thousand and ¥35,972 thousand as of January 31, 2022
and July 31, 2022, respectively.

5. Accounting for hedges(1) Hedge accounting method
The deferred hedge method is applied. However, the special treatment is applied for the interest-rate swap agreementsthat meet the criteria.
(2) Hedging instruments and risks hedged
Hedge instruments
The Investment Corporation enters into interest-rate swap transactions.
Risks hedged
Interest rates on debt.
(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its risk management policies with theobjective of hedging risks in accordance with its Articles of Incorporation.
(4) Method of evaluating the effectiveness of hedging
As for the method of assessment of the effectiveness of the hedge in the period from the inception of the hedge to thetime of judgment of its effectiveness, the cumulative changes in cash flow of the hedged items and hedging instruments
are compared and a judgment is made based on changed amount, etc. However, an assessment of the effectiveness ofhedging activities is omitted in the case of interest rate swaps that meet the requirements for special treatment.

6. The scope of cash and cash
equivalents on statements ofcash flows

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

7. Other significant accounting
policies utilized in the
preparation of financial
statements(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities as well as revenues and expenses of financial assets held in the form of trust beneficiaryinterests in real estate and other assets are recorded in full in the Investment Corporation’s balance sheets andstatements of income.
Important line items included in accounting for financial assets and liabilities in the Investment Corporation’s balance
sheet are as follows:
1. Cash and deposits in trust
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust, landin trust, leasehold right in trust
3. Tenant leasehold and security deposits in trust, tenant lump sum deposits in trust(2) Accounting method for consumption tax
Consumption taxes are separately recorded. Non-deductible consumption taxes applicable to the acquisition of assets
are included in the cost of acquisition for each asset.

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(8) Notes to the Financial Statements(Notes to the Balance Sheets)* 1. Minimum unitholders’ equity pursuant to Article 67-4 of the Law Concerning Investment Trusts and Investment Corporations Law(in thousands of yen)
As of January 31, 2022

As of July 31, 2022
50,00050,000*2. Reserve for temporary difference adjustments

20th Fiscal Period (As of January 31, 2022)
The following summarizes reserve for temporary difference adjustments.
Balance at
Initial amountthe beginningof the period
Gain on negative good will*

2,000,000(in thousands of yen)
Reserveduring theperiod

1,900,000

Reversalduring theperiod-Balance atthe end of
the period
20,0001,880,000

Reason for reserve andreversalAppropriate for
distribution* The Investment Corporation has reserved a part of gain on negative goodwill in the 13th fiscal period as reserve for temporary difference adjustments. At least 1% of
the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period starting from the next fiscal period after the period, inwhich the initial amount was reserved.

21st Fiscal Period (As of July 31, 2022)
The following summarizes reserve for temporary difference adjustments.
Balance at
Initial amountthe beginningof the period
Gain on negative good will*

2,000,000(in thousands of yen)
Reserveduring theperiod

1,880,000

Reversalduring theperiod-Balance atthe end of
the period
20,0001,860,000

Reason for reserve andreversalAppropriate for
distribution* The Investment Corporation has reserved a part of gain on negative goodwill in the 13th fiscal period as reserve for temporary difference adjustments. At least 1% of
the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period starting from the next fiscal period after the period, inwhich the initial amount was reserved.

3. Commitment line contracts
KDR has commitment line contracts with the banks with which it does business.
As of January 31, 2022
Total amount of commitment line contracts

As of July 31, 2022
4,500,000

Balance of loans payable outstanding
Remaining amount

4,500,000--

4,500,000

4,500,000(Notes to the Statements of Income and Retained Earnings)* 1. Breakdown of real estate rental business profit and loss
(in thousands of yen)
From August 1, 2021
to January 31, 2022

From February 1, 2022
to July 31, 2022

A. Rental and other operating revenues:
Rental revenues

8,059,188

8,402,006

374,825

388,325

8,434,013

8,790,331

Parking space rental revenues

211,358

216,894

Miscellaneous

317,566434,271

Subtotal

528,925

651,165

8,962,938

9,441,497

Common area charges
Subtotal
Others:Total rental and other operating revenues

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)

B. Property-related expenses:
Property management fees and facility management fees

461,343

Utilities

105,032

117,105

Taxes

532,192

573,379

Repairs and maintenance316,759

398,804

Insurance

15,60315,003502,201

Trust fees

59,827

66,844

Depreciation

1,589,828

1,665,834

OthersTotal property-related expenses
C. Net operating income (A-B)

176,844

210,278

3,257,431

3,549,451

5,705,506

5,892,045*2. Gain and Loss on sale of real estate property

20th Fiscal Period (August 1, 2021 to January 31, 2022)(in thousands of yen)
KDX Residence Tobu Nerima
Revenue from sale of the investment property
Costs of the investment property
Other sales expenses
Gain on sale of real estate property

580,000
379,169
20,705
180,124

21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable(Notes to the Statements of Changes in Net Assets)* 1. Total number of authorized investment units and total number of investment units issued and outstanding are as follows:
From August 1, 2021
to January 31, 2022
Total number of authorized investment units
Total number of investment units issued and outstanding

From February 1, 2022
to July 31, 2022

10,000,000 units

10,000,000 units

995,883 units

1,045,758 units(Notes to Distributions)
20th Fiscal Period (August 1, 2021 to January 31, 2022)*1. Reserve for temporary difference adjustments
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in the 13th fiscal period.
At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period applied to distribution starting from the14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied to distribution in the 20th fiscal period distribution.

21st Fiscal Period (February 1, 2022 to July 31, 2022)*1. Reserve for temporary difference adjustments
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in the 13th fiscal period.
At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period applied to distribution starting from the14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied to distribution in the 21st fiscal period distribution.

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(Notes to the Statements of Cash Flow)* 1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flows statements(in thousands of yen)
As of January 31, 2022
Cash and deposits

13,828,613

As of July 31, 2022
14,043,415

Cash and deposits in trust

11,153,990

11,460,934

Cash and cash equivalents

24,982,604

25,504,350(Notes to the Lease Transactions)Operating lease transactions (Lessee)
Unearned lease payments(in thousands of yen)
As of January 31, 2022

As of July 31, 2022

Due in 1 year

12,00012,000Due after 1 year

521,000

515,000

Total

533,000

527,000

Operating lease transactions (Lessor)
Unearned lease payments(in thousands of yen)
As of January 31, 2022

As of July 31, 2022

Due in 1 year

5,941,594

4,152,082

Due after 1 year

14,709,787

18,725,548

Total

20,651,381

22,877,631

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(Notes to the Financial Instruments)(A). Overview(1) Policy for financial instruments
The Investment Corporation procures funds for asset acquisitions, repairs, payment of distributions, repayment of loans, etc. through loans from financial institutions,issuance of investment corporation bonds, issuance of investment units and other means. With regard to the procurement of interest-bearing debts, the Investment
Corporation ensures that it can effectively combine stable long-term funds with flexible short-term funds. Management of surplus funds is undertaken through variousbank deposits focusing on safety, liquidity and effectiveness. The Investment Corporation uses derivatives for the purpose of hedging its exposure to changes in interest
rates and other risks and does not enter into derivative transactions for speculative or trading purposes.

(2) Types of financial instruments and related risk
Bank deposits are for managing the Investment Corporation’s surplus funds and are exposed to credit risk such as the bankruptcy of financial institutions at which funds
are deposited. Investment securities represent equity investments in an anonymous association and are exposed to credit risk of the issuer and interest rate fluctuation risk.
Borrowings and investment corporation bonds are made primarily for the purpose of procuring funds for the acquisition of real estate and trust beneficiary interests in realestate and have a repayment date of a maximum of 9 years and 4 months for borrowings and also have a redemption date of a maximum of 8 years and 10 months forinvestment corporation bonds as of July 31, 2022, the end of the 21st fiscal period, are exposed to liquidity risk where alternative funds may not be procured by therepayment date. Also, borrowings with floating interest rates are exposed to interest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate
fluctuation risk for a certain portion of the borrowings.

(3) Risk management for financial instrumentsa.

Credit risk

While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored by deposits in noninterest bearing ordinary savings accounts or with financial institutions with credit ratings above a certain level. Investment securities represent equity investments in ananonymous association and are exposed to credit risk of the issuer and interest rate fluctuation risk. To manage this credit risk, the Investment Corporation regularly
evaluates the results of operations and the financial condition of the issuer, etc. In utilizing derivatives, the Investment Corporation aims to mitigate counterparty risk suchas by transacting with financial institutions with favorable ratings.

b.

Market risk

While borrowings with floating rates are exposed to interest rate volatility risk, such risk is monitored by adjusting the rate of the balance of borrowings with floating rates
against the total borrowings according to the financial environment, interest rate forecasts by continuous monitoring, etc. and by using derivatives, etc. A risk management
policy is established with regard to the execution and management of derivatives and such transactions are conducted based on this policy. The Investment Corporation
periodically reviews the value of the property and financial condition of the issuer with regard to investment securities.

c.

Liquidity risk

Though borrowings are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by diversifying financial institutions.
Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.

(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fair value is reasonably estimated.
Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fair value.

(B). Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet as of January 31, 2022 and estimated fair value are shown in the following table. Moreover, because “Cashand deposits,” “Cash and deposits in trust” and “Short-term loans payable” are settled with cash in the short term, the fair value can be considered as equivalent to the bookvalue. Therefore, the notes for these accounts have been omitted.
As of January 31, 2022

(1) Current portion of long-term loans payable(2) Investment corporation bonds(3) Long-term loans payable
Total
Derivative transactions

Carrying amount
19,750,000
7,700,000
125,870,000
153,320,000
65,386

Estimated fair value
19,745,024
7,658,870
126,071,920
153,475,815
65,386(in thousands of yen)
Difference-4,975-41,130
201,920
155,815-KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.
As of July 31, 2022

(1) Current portion of long-term loans payable(2) Investment corporation bonds(3) Long-term loans payable
Total
Derivative transactions

Carrying amount
14,050,000
7,700,000
133,470,000
155,220,000
252,885(in thousands of yen)
Difference-5,448-32,550-6,931-44,930-

Estimated fair value
14,044,551
7,667,450
133,463,068
155,175,069
252,885* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions
Liabilities(1) Current portion of long-term loans payable and (3) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount of principal and interest
discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same type. As for the fair value of loans
payable with floating interest rates, it is based on the carrying amount since market interest rates are reflected in the short term and the fair value is believed to approximate
the carrying amount as the credit standing of the Investment Corporation has not changed significantly since the loans were made. (However, the fair value of long-termloans payable subject to the special treatment for interest-rate swaps is based on the present value of the total of principal and interest, accounted for together with theapplicable interest-rate swaps, discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same
type.)(2) Investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
Derivative transactions
Please refer to “Notes to the Derivative Transactions”.

Note2: Equity interests in silent partnership
20th Fiscal Period (As of January 31, 2022)
Notes as stipulated in Paragraph 4 (1) of “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19, revised on March
31, 2020) are not disclosed by applying the treatment stipulated in paragraph 27 of “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, revised on July 4, 2019). The balance sheet amounts of investment in partnerships to which the above treatment is applied is 109,688 thousand
yen as of January 31, 2022.
21st Fiscal Period (As of July 31, 2022): Not applicable

Note 3: Redemption schedule for loans payable and investment corporation bonds
As of January 31, 2022

Investment corporation bonds
Long-term loans payable
Total

Due in 1 year or
less
19,750,000
19,750,000

Due after 1 year
through 2 years
1,000,000
15,900,000
16,900,000

Due after 2 years
through 3 years
16,900,000
16,900,000

Due after 3 years
through 4 years
16,700,000
16,700,000(in thousands of yen)
Due after 4 years
Due after 5 years
through 5 years
1,000,000
5,700,000
21,300,000
55,070,000
22,300,000
60,770,000

Due in 1 year or
less
14,050,000
14,050,000

Due after 1 year
through 2 years
1,000,000
18,850,000
19,850,000

Due after 2 years
through 3 years
21,350,000
21,350,000

Due after 3 years
through 4 years
23,300,000
23,300,000(in thousands of yen)
Due after 4 years
Due after 5 years
through 5 years
1,000,000
5,700,000
21,500,000
48,470,000
22,500,000
54,170,000

As of July 31, 2022

Investment corporation bonds
Long-term loans payable
Total

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(Notes to the Investment securities)
20th Fiscal Period (As of January 31, 2022):
Based on Article 8-6-2, paragraph 3 of the Regulations on Financial Statements, note disclosures defined in item 2 of the said paragraph for equity interests in silent
partnerships (Book value: 109,688 thousand yen) are omitted.
21st Fiscal Period (As of July 31, 2022): Not applicable(Notes on Revenue Recognition)
1. Information on the Breakdown of Revenue from Contracts with Customers
20th Fiscal Period (August 1, 2021 to January 31, 2022)
Revenue from contracts with customers *1
Revenue from sale of real estate, etc.

580,000

Utility charge reimbursement(in thousands of yen)
Net sales to external customers*2

180,124

43,26243,262Other⁻

8,919,676

Total

623,262

9,143,063*1 The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the sale ofreal estate, etc. subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Using Special
Purpose Companies” (Accounting System Committee Report No. 15 of the Japanese Institute of Certified Public Accountants)
are not included in the above amount as they are not applied to the Revenue Recognition Accounting Standard. Moreover, themain revenue from contracts with customers are revenue from sale of real estate, etc. and utility charge reimbursement.
*2 As proceeds from sale of real estate property are recorded as gain on sale of real estate property in the statements of income andretained earnings, the amount calculated by deducting the cost of real estate property sales and other sales expenses from roceedsfrom sale of real estate property is indicated.
21st Fiscal Period ((February 1, 2022 to July 31, 2022)
Revenue from contracts with customers *(in thousands of yen)
Net sales to external customers

⁻⁻

49,184⁻
49,18449,184
9,398,520
9,447,705

Revenue from sale of real estate, etc.
Utility charge reimbursement
Other
Total

* The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the sale ofreal estate, etc. subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Using Special
Purpose Companies” (Accounting System Committee Report No. 15 of the Japanese Institute of Certified Public Accountants)
are not included in the above amount as they are not applied to the Revenue Recognition Accounting Standard. Moreover, themain revenue from contracts with customers are revenue from sale of real estate, etc. and utility charge reimbursement.
2. Information Utilized as the Base for Understanding Revenue from Contracts with Customers
The information is as described in the notes on important accounting standards.
3. Information on Relationship of Fulfillment of Performance Obligations Based on Contracts with Customers with Cashflow Generated from Said Contracts andAmount and Period of Revenue Expected to Be Recognized in the Next Calculation Period or Thereafter from Contracts with Customers Existing at the Endof the Current Calculation Period(1) Balance of contract assets and contract liabilities, etc.

20th Fiscal Period(August 1, 2021 to January 31, 2022)(in thousands of yen)
21st Fiscal Period(February 1, 2022 to July 31, 2022)

3,830

2,969

2,969

4,864

-

-

-

-

Contract liabilities (balance at beginning of fiscal year)--

Contract liabilities (balance at end of fiscal year)--

Claims generated from contracts with customers(balance at beginning of fiscal year)
Claims generated from contracts with customers(balance at end of fiscal year)
Contract assets (balance at beginning of fiscal year)
Contract assets (balance at end of fiscal year)

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(2) 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 an amount directly corresponding
to the value for the lessees, or customers, of sections for which performance is complete by the end of the fiscal period, the amount it has the right toclaim is recognized as revenue in accordance with Paragraph 19 of the Implementation Guidance on Accounting Standard for Revenue Recognition.
Accordingly, such is not included in the note on transaction value allocated to remaining performance obligations through application of the provisionsof Paragraph 80-22 (2) of the Accounting Standard for Revenue Recognition.
(Notes to the Derivative Transactions)(1) Transactions not subject to hedge accounting
As of January 31, 2022:, and as of July 31, 2022: Not applicable(2) Transactions subject to hedge accounting

As of January 31, 2022
Hedge accounting
methodType of derivative transactions

Hedged items

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

Accounting method,in principle

Interest rate swap transaction:
Receive/floating and pay/fixedLong-term loans
payable91,320,000

84,920,000

Special treatment ofinterest-rate swaps

Interest rate swap transaction:
Receive/floating and pay/fixedLong-term loans
payableTotal

24,200,000

13,950,000

115,520,000

98,870,000

Fair value(in thousands ofyen)
65,386*

Calculation method
for applicable fair value
Based on the amountprovided by counterparty
financial institutions-

65,386*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value is included in the fairvalue of the hedged long-term loans payable.

As of July 31, 2022
Hedge accounting
methodType of derivative transactions

Hedged items

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

Accounting method,in principle

Interest rate swap transaction:
Receive/floating and pay/fixedLong-term loans
payable98,020,000

Special treatment ofinterest-rate swaps

Interest rate swap transaction:
Receive/floating and pay/fixedLong-term loans
payableTotal

Fair value(in thousands ofyen)

90,520,000

16,700,000

12,450,000

114,720,000

102,970,000

252,885*

Calculation method
for applicable fair value
Based on the amountprovided by counterparty
financial institutions-

252,885*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value is included in the fairvalue of the hedged long-term loans payable.

(Notes to the Related-Party Transactions)
1．Parent Company, major corporate unitholders and other20th Fiscal Period (August 1, 2021 to January 31, 2022) and 21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable

2．Affiliated companies and other20th Fiscal Period (August 1, 2021 to January 31, 2022) and 21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable

3．Fellow subsidiary companies and other20th Fiscal Period (August 1, 2021 to January 31, 2022) and 21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable

4．Directors, major individual unitholders and other20th Fiscal Period (August 1, 2021 to January 31, 2022) and 21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicableKENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(Notes to the Tax-Effect Accounting)
The significant components of deferred tax assets and liabilities:(in thousands of yen)
As of January 31, 2022

As of July 31, 2022

Deferred tax assets:
Valuation difference on other assets acquired by merger

628,384

611,183

Deferred gains or losses on hedges

31,68423,013

Asset retirement obligations

21,476

21,534

Amortization of leasehold right in trust

2,894

3,436

20

20

Subtotal deferred tax assets

684,459

659,189

Valuation allowance

Other-684,459-659,189

Total deferred tax assets--

Net deferred tax assets--

The significant differences between the statutory tax rate and the effective tax rate:
From August 1, 2021
to January 31, 2022

From February 1, 2022
to July 31, 2022

Statutory tax rate

31.46%

31.46%

Deductible cash distributions-31.10%-31.08%Others-0.35%-0.37%

Effective tax rate

0.01%

0.01%

(Notes to Asset Retirement Obligations)
Asset retirement obligations reported on balance sheets
1. Summary of the asset retirement obligations
KDR has recognized the original state restoration obligations assumed under the general fixed-term land leasehold agreement as the asset retirement obligations inconnection with Arute Ishiyagawa on June 3, 2019.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated based on a discount rate of 0.54711% after the useful life has been estimated to be 47 years and one month based on the time
period from the date of acquisition to the expiration of the agreement.
3. Changes in the amount of applicable asset retirement obligations consisted of the following(in thousands of yen)

Balance at the beginning of period
Accretion adjustment
Balance at the end of period

From August 1, 2021
to January 31, 2022
68,078186
68,264

From February 1, 2022
to July 31, 2022
68,264
186
68,451KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(Notes to the Investment and Rental Properties)
The Investment Corporation owns real estate for rental purposes in the Tokyo Metropolitan Area and other regional areas for the purpose of generating rental revenues.
The book value and fair value concerning the above real estate for rental purposes are as follows.
(in thousands of yen)
From August 1, 2021
to January 31, 2022

From February 1, 2022
to July 31, 2022

Book value
Balance at the beginning of period

264,204,787

275,695,438

Changes during the period

11,490,651

13,137,309

Balance at the end of period

275,695,438

288,832,748

344,484,000

365,903,000

Fair value at the end of period
Note 1: Book value excludes accumulated depreciation from acquisition costs.

Note 2: Among changes in the amount of real estate for rental purposes that occurred during the 20th fiscal period, the principal increase was the acquisition of real estate
trust beneficiary interests in 5 properties totaling ¥12,816,688 thousand, and the principal decrease was the sales of real estate trust beneficiary interests in 1
property totaling ¥379,169 thousand and depreciation of ¥1,589,641 thousand and during the 21st fiscal period, the principal increase was the acquisition of realestate trust beneficiary interests in 8 properties totaling ¥13,990,070 thousand, and the principal decrease was depreciation of ¥1,665,648 thousand.
Note 3: The fair value at the end of the period is the appraisal value determined by outside appraisers.

Income and loss for real estate rental business in the fiscal periods ended January 31, 2022 and July 31, 2022 for real estate for rental purposes is listed in “Notes to theStatements of Income and Retained Earnings”.

(Notes to the Segment Information)
Segment information for the periods from August 1, 2021 to January 31, 2022 and from February 1, 2022 to July 31, 2022 , is as follows:(A) Segment information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment 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 the operating revenue 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 revenue on the statement of 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 of property, plant and equipment on thebalance 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 revenue on the statement of income and retained earnings.

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)(Notes to Per Unit Information)
From August 1, 2021
to January 31, 2022

From February 1, 2022
to July 31, 2022

Net asset value per unit

¥136,352¥138,902

Net income per unit

¥4,136¥3,966Note 1: Net income per unit is calculated by dividing net income by the day-weighted average number of investment units outstanding during the period. Net income perunit after adjusting for residual units is not included because there were no residual investment units.
Note 2: The basis for calculating net income per unit is as follows:
From August 1, 2021
to January 31, 2022
Net income (in thousands of yen)

From February 1, 2022
to July 31, 2022

4,119,355

4,122,093--

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

4,119,355

4,122,093

Weighted average number of units during the period (units)995,883

1,039,237

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

(Notes to Important Subsequent Events)
Not applicable