Kenedix Retail REIT Corporation
Financial Results
for the 12th Fiscal Period ended March 31, 2021
May 18, 2021

Contents
Section 1

Executive summary

P.3

Section 2

Impact of COVID-19

P.11

Section 3

KRR highlights and updates

P.18

Section 4

Growth strategies focusing on stability

P.25

Appendix 1

Key characteristics of KRR

P.36

Appendix 2

Portfolio and unitholder information

P.44

01

Executive summary

Security Code
Security Code3453

Executive summary

Overcame the pandemic “Crisis Period”, returning to the growth path
 Asset management amid the COVID-19 pandemic (the 12th fiscal period ended March 2021)
・ Continued strong performance of KRR’s core tenants that deal with daily necessities including grocery supermarkets
and home & garden stores, even amid the pandemic
・ Achieved a record high of JPY 7,095 DPU (Note 1), due to the limited impact of the pandemic on rents as well as gains
on sale of a property and cost reduction

 The 5th public offering (Note 2)
・ Raised about JPY 12 billion through public offering and acquired four properties for JPY 22.3 billion with the proceedsfrom the offering, additional borrowings and proceeds from the sale of properties
・ Undertook the public offering after the unit price recovered to the NAV level in February 2021 as the market recognized
the stability of the portfolio focused on shopping centers for daily needs even amid the pandemic

 Management views
・ Reaffirmed the stability of the portfolio centering on shopping centers for daily needs even through three state of
emergency declarations
・ Some tenants, mainly service-oriented tenants (Note 3), are taking time to recover their sales amid the pandemic;
prolonged pandemic may result in additional rent reduction requests or tenant move-outs
・ Gains on sale of Daikanyama Address Dixsept, etc. will contribute to stable distributions over the 13th and 14th fiscal
periods; meanwhile, seek to improve the quality and profitability of portfolio by asset and tenant reshuffling during
these periods and aim for growth through public offering at appropriate timing
Note 1: DPU of the first FP was JPY 7,414, but the asset management period covered 233 days.
Note 2: May be referred to as “this offering” in this material. The series of initiatives including this offering, related third party allocation, borrowings, acquisition and dispositions of assets shall be referred to as “this offering, etc.” Completion day of this offering, etc. isreferred to as “after this offering, etc.”
Note 3: Refer to tenants not engaged in sale of goods, such as restaurants.

4

Executive summary

Summary of the 5th public offering
Overview
Offering format

Offering size

Number of units issued

Unit price and market capitalization
Domestic offering(with extraordinary report filing)
Total amount:
JPY 12,324 million
Public offering:
JPY 11,735 million(Of which sold tooverseas investors) :JPY 3,666 million
Over-allotment:
JPY 589 million
Total 46,000 units(of which 2,200 units issued through third-party
allotment in relation to the secondary offering
through over-allotment)

Total number of units
outstanding(after this offering)

582,177 units

Issue price

JPY 267,930

Net proceeds

JPY 11,920 million

Launch date

April 7, 2021

(JPY)
（円）

Market capitalization(right axis)

KRR’s unit price(left axis)

300,000

April 14, 2021

Subscription period

April 15, 2021

Payment date

April 20, 2021

(JPY
mn)
（百万円）
300,000

Nov. 17, 2020
11th FP earnings
announcement

May 18, 2020
10th FP earnings
announcement

250,000

250,000

Apr. 7, 2021
5th PO launch date

200,000

Pricing date

TSE REIT Index(left axis)

200,000

150,000

150,000

100,000

100,000

50,00050,00002020/2/19
Feb. 19, 2020

2020/5/19
May
19, 2020

Note: Calculated using the TSE REIT Index as of Feb. 19, 2020 when the 2020 highest price was recorded for the TSE REIT Index as the closing price for KRR unit price.

2020/8/19
Aug.
19, 2020

2020/11/19
Nov.
19, 2020

2021/2/19
Feb.
19, 202102021/5/14
May
14, 2021

5

Executive summary

Portfolio summary
Characteristics of KRR portfolio
Total
appraisal value

Appraisal
NOI yield

NOI yield after
depreciation

Occupancy rate

4 majormetropolitan areas

Shopping centers
for daily needs

Grocery anchored
shopping centers

JPY 264.8 bn

5.3%

4.2%

99.7%

81.9%

94.5%

86.1%

Trend in AUM (based on acquisition price)(JPY100mn)

3,000

1st follow-on
offering

2nd follow-on
offering

3rd follow-on
offering

4th follow-on
offering(Oct. 2015)(Apr. 2016)(Apr. 2017)(Oct. 2019)13 properties
JPY 37.9bn

8 properties
JPY 28.6bn

10 properties
JPY 38.1bn

12 properties
JPY 33.9bn(acquisition price)(acquisition price)(acquisition price)(acquisition price)

Diversification of portfolio
after this offering

Properties (tobe) disposed of

Properties
acquired

3 properties
JPY 7.5bn

JPY 24.7bn(acquisition price)

7 properties
Top 5 properties(acquisition price)

2,436

2,500

2,258
2,049

2,061

2,128

2,132

2,264

2,267
Tsunasima 4.7%
HAT Kobe 4.5%
Hamakita 4.4%
Kitera Chofu
4.3%
Top 5
Mito 4.1%

2,009

2,000
1,587
1,500

1,000

1,643

1,316

808

(based on acquisition price)properties

22.1%

918

Others 77.9%

500

Top 10 tenants
0Feb. 2015
At Listing

Numberof
properties

18

Sep. 2015(1st period)

19

Mar. 2016(2nd period)

33

Sep. 2016(3rd period)

40

Mar. 2017(4th period)

42

Sep. 2017(5th period)

51

Mar. 2018(6th period)

52

Sep. 2018(7th period)

53

Mar. 2019(8th period)

53

Sep. 2019
Mar. 2020
Sep. 2020
Mar. 2021(9th period) (10th period) (11th period) (12th period)

55

62

62

64

Tenants

286

321

389

405

409

542

522

520

511

480

496

496

502

DPU(JPY)

-

7,414

6,846

5,974

6,044

6,115

6,255

6,299

6,477

6,486

6,535

6,546

7,095

NAV perunit
(JPY)

-

237,472

238,401

244,905

249,301

250,892

253,803257,913257,915

258,187

261,151

259,008

261,956

Properties(to be)disposed of

The new
acquisiton

3

7

28

42

After thisoffering

65509

Aim for further growth in
DPU and NAV per unit

(based on rent)
A. 4.9%B. 4.0%C. 4.0%D. 3.7%E. 3.2%F. 3.2%G. 3.1%

Top 10tenants

34.9%

H. 3.0%I. 2.9%J. 2.9%Others 65.1%

Note 1: Figures on portfolio are as of Mar. 31, 2021 for the 67 properties acquired by the date of this material. Appraisal values and NOI yields of Apita Terrace Yokohama Tsunashima (49% quasi-co-ownership interests), Kitera Town Chofu, Unicus Urawamisono (Land) and Merado Daikai are based on theappraisal reports dated of Mar. 1, 2021.
Note 2: “Appraisal NOI Yield” is calculated by dividing appraisal NOI from the latest appraisal reports by acquisition price. “NOI yield after depreciation” is based on the forecast for the fiscal period ending Sep. 30, 2021.
Note 3: ”Grocery anchored shopping centers” ratio is calculated by dividing total acquisition price of grocery anchored shopping centers by total acquisition price of retail properties.
Note 4: “Properties (to be) disposed of” include Daikanyama Address Dixsept (40% quasi-co-ownership interest) disposed on Dec. 1, 2020 and Daikanyama Address Dixsept (30% quasi-co-ownership interest) disposed on Apr. 1, 2021, as well as anticipated dispositions. The same applies hereinafter.
Note 5: “Number of tenants” at listing is figure as of Sep. 30, 2014.

6

Executive summary

Selective investments adapting to the changing trends
Acquisitions adapting to the changing trends such as the concentration of population in major metropolitan areas,
demographics in surrounding areas, and the tenant mix focusing on grocery supermarkets
Highlights of the new acquisition
1

List of the new acquisition

Retail trade areas with demographic advantages

Dense population

Growing population⚫ Areas with abundant retail trade areas owing to population concentration⚫ Locations with potential for population growth where large-scale housing development isplanned in the neighborhood

2

Metropolitan areas

Grocery

Strong support from the Kenedix Group and Alliance Companies

SponsorAlliance

Change in the portfolio through this offering

Dense
Acquired in13th FP

10,50011,400

5.2%

Sponsor

Merado Daikai

Dense
Acquired in13th FP

5,440

5,780

5.3%

Proprietary

Apita Terrace Yokohama Tsunashima(49% quasi-co-ownership interest)
Acquired in13th FPThe new
acquisition

3

7

After
this offering

Acquired in13th FP

62

65

Acquired in12th FP

Metropolitan
Grocery
Dense
Growing

5,667

5,930

4.7%

Sponsor

Metropolitan
Grocery

Unicus Urawamisono (Land)

Properties(to be)disposed ofMetropolitan
Grocery

Growing

732

817

4.6%

Alliance

Metropolitan
Grocery

Monenosato Mall (2 New Buildings)

Number of properties

Highlights

Growing

Logistics⚫ Building on Kenedix Group (Sponsor) and Alliance Companies’ pipelines and brokeragecapabilities(Sep. 2020)

Acquisition
route

Kitera Town Chofu

Tenant mix enabling stable management

End of 11th FP

Appraisal
NOI yield

Ordinance-designated⚫ Retail facilities with grocery supermarket tenants are resilient to the impact of COVID-19
and e-commerce⚫ Retail distribution centers that leverage e-commerce demand

4

Appraisal
value(JPY mn)

Shopping centers for daily needs

Located in four major metropolitan areas
and ordinance-designated cities⚫ Locations in 4 major metropolitan areas and ordinance-designated cities with relatively
stable demographics

3

Acquisition
price(JPY mn)

The new acquisition

Growing

343

440

6.7%

Sponsor(brokerage)

Metropolitan
Grocery

Acquisition price

JPY 226.4bn

JPY 7.5bn

JPY 24.7bn

Retail distribution centers

JPY 243.6bn
Chiba-Kita Distribution Center

Total Appraisal value

JPY 242.8bn

JPY 8.4bn

JPY 26.7bn

JPY 261.0bn

Acquired in12th FP

1,250

1,340

4.6%

Alliance

Metropolitan
Logistics

Sapporo Shiroishi Distribution Center

Average appraisal NOI
yield

5.2%

4.5％

5.2％

5.2％

Acquired in12th FP

800

1,020

7.3%

Proprietary

OrdinancedesignatedLogistics

Note 1: “Grocery” is included in highlights for acquisition of Monenosato Mall (2 New Buildings) as a grocery supermarket is in the existing building owned by KRR before acquisition of the 2 new buil dings.
Note 2: For Monenosato Mall (2 New Buildings), following formula was used to calculate appraisal NOI yield: Appraisal NOI Yield = (Appraisal NOI of Monenosato Mall stated in the appraisal report as of Mar. 1, 2021 including the acquisition of 2 new buildings minus
Appraisal NOI of Monenosato Mall (excluding 2 new buildings) stated in the appraisal report as of Sep. 30, 2020)/Acquisition price of 2 new buildings

7

Executive summary

DPU impact and forecast assumptions
DPU

Positive factors

Negative factors
Increase inincome-DPUlinked AM fee
and investment
unit performance
fee

(JPY)
Increase inincome-DPUlinked AM fee
and investment
unit performance
fee

7,500

215

Absence of gain onsale (Daikanyama)(net increase inincome-DPU-linked
AM fee andinvestment unit
performance fee)in 12th FP

225

Absence of gain on sale
(Daikanyama, Ina, Hirakata)(net increase in income-DPUlinked AM fee and investment
unit performance fee)in 13th FP

Increase inincome-DPUlinked AM fee

115
7,000
847

Increase in
NOI (newacquisition)

632

6,500

Absence ofgain on sale
(Shin-Moriyama) Decrease in NOIfrom the sale ofShin-Moriyama,
Daikanyama

235
147

111

Resetting theimpact fromthe pandemic
in 11th FP

6,000

0
5,500

65
Increase in
NOI(Chiba-Kita,
Shiroishi)

depreciation
Increase in interest
Increase
expenses andin repair 156
investment unit
expensesissuance costs
Others(Increasein
88
expenses,
etc.)
70

69
Gain on sale
Others (Daikanyama)(Increasein
expenses,
etc.)

136
7,095

Decrease in
NOI from thesale of
Daikanyama,Ina, Hirakata

991

60
Decrease in
NOI from thesale of
Daikanyama,
Hirakata

7,150

23

70
Resetting theimpact fromthe pandemic
in 13th FP

Gain on sale
(Daikanyama,Ina, Hirakata)

104

235

124

Decrease inrepairexpensesGain on sale
(Daikanyama)

7,000

Increase in
NOI (newacquisition)

560

6,546

Dilution
due toissuanceof new
investment
units

第11期
Sep.
2020
11th FP
ActualOthers(Increasein
expenses,
etc.)

887

160 Increase in

Decrease inrepairexpenses

120

587

1,114

Mar.
2021
第12期
12th FP
ActualAssumed a certain risk of rent reduction in
the 13th FP, taking into account possible risk
of further spread of COVID-19 and anotherstate of emergency declaration

Sep.
2021
第13期
13th FP
Forecast

Mar.
2022
第14期
14th FP
Forecast

8

Executive summary

Summary of statements of income and retained earnings(JPY mn)
Sep. 2020

Mar. 2021

11th FP
actual (A)12th FP
forecast (B) (Note)

Changes

12th FP
actual (C)C-A

Remarks on changes from forecasts

C-B

7,276

7,232

7,336

+59

+104

Acquisition of Chiba-Kita and Shiroishi +36, Fixed rent and common
area expenses +41 (difference of estimated rent reduction, etc.),
sales-linked rent +25 (difference of tenant sales, etc.)

Other lease business revenue

995

922

927

-68

+4

Initial estimate for COVID-19 rent reduction: -41
Actual impact: -3 (rent reduction 2, decrease in sales-linked rent 1)

Gains on sale

126

451

454

+328

+3

Operating revenues

8,398

8,606

8,717

+319

+111

Property related expenses(excl. depreciation)

2,439

2,402

2,309

-129

-93

NOI

5,833

5,752

5,954

+121

+202

Depreciation

1,040

1,059

1,068

+28

+9

NOI after depreciation

4,793

4,692

4,885

+92

+192

Other operating expenses

837

922

961

+123

+38

4,082

4,221

4,379

+296

+157

Non-operating income

3

0

0

-2

+0

Non-operating expenses

579

587

579

+0

-7

Ordinary income

3,505

3,633

3,799

+293

+165

Net income

3,504

3,632

3,798

+293

+165

DPU (JPY)

6,546

6,785

7,095

+549

+310

Rent revenue – real estate

Operating income

Note: The 12th period forecast above is as of Nov. 17, 2020.

Utility charge -70, repair costs -37 (Gyoda, etc.)
Restoration fee +10 (HAT Kobe, etc.)

Asset management fee II (linked to net income and DPU) +42

9Executive summary

Financial forecasts: 13th and 14th fiscal periods(JPY mn)
Key financial information
Operating revenues

Mar. 2021

Sep. 2021

12th FP (actual)

13th FP (forecast)

8,717

Changes

Sep. 2021

Mar. 2022

13th FP (forecast)

14th FP (forecast)

Changes

9,495

+777

9,495

9,129

-365

648

+194

648

344

-304

4,704

+365

4,704

4,423

-280

4,379

4,790

+411

4,790

4,705

-85

579

631

+51

631

634

+2

571

616

+44

616

618

+2

7

15

+7

15

15

-

Ordinary income

3,799

4,158

+359

4,158

4,071

-87

Net income

3,798

4,157

+359

4,157

4,070

-87

DPU

7,095

7,150

+55

7,150

7,000

-150

Gain on sales of real estate
Operating expenses
Operating income

454
4,338

Non-operating expenses
Interest expenses & financing-related
expenses
Amortization of investment unit
issuance costs

Related key indicator
NOI

Possible
impact of thepandemic(rent reduction)-41

Mar. 2021

Sep. 2021

12th FP (actual)

13th FP (forecast)

Changes

Sep. 2021

Mar. 2022

13th FP (forecast)

14th FP (forecast)

Changes

5,954

6,298

+344

6,298

6,478

+180

5.3%

5.1%

---

5.1%

5.3%

---

Depreciation

1,068

1,134

+66

1,134

1,129

-5

NOI after depreciation

4,885

5,163

+277

5,163

5,349

+185

4.3%

4.2%

---

4.2%

4.4%

---

FFO

4,424

4,663

+238

4,663

4,875

+211

CAPEX

543

814

+270

814

905

+91

LTV (%)

44.8%

44.3%

---

44.3%

44.3%

---

NOI yield (%)

NOI yield after depreciation (%)

10

02

Impact of COVID-19

Security Code
Security Code3453

Impact of COVID-19

Operation of facilities under the third state of emergency (Apr. 2021-)
Operation of KRR’s facilities
96.1% of tenants operating; 3.9% closed, 1.2% of which are in the facility entirely closed (as of Apr. 30, 2021, based on leased area) (Note 1)
During the first state of emergency (Apr. - May 2020), 87.1% were operating, 12.9% closed, 6.5% of which in the facility entirely closed (Note 2)
During the second state of emergency (Jan. - Mar. 2021), no closed tenants

Retail properties

Number ofproperties

As of April 30, 2021

Retail facilities
in operation

Other than following

56/59 retailproperties

As stores selling foods and daily necessities are included,
continue to operate and function as a social infrastructure
supporting daily life
Stores requested to suspend operation are closed, and somestores are also voluntarily closed

Retail facilities
entirely closed

Sports Club Renaissance Fujimidai
Prime Square Jiyugaoka
Konami Sports Club Shibuya

3/59 retailproperties

In response to the state of emergency declaration, the entire
building is closed at each tenant’s discretion

Examples of infection prevention measures at facilities in operation••••

Antiseptic solution at the facility entrance
Thorough cleaning of common areas
Disinfection of areas where people touch, such as handrails and doorknobs
Thorough ventilation in core tenant areas, common areas, and employee restareas
• Encouraging tenant employees to wear masks• Shortened operating hours• Entrance restrictions

Note 1: Divided the total floor space of temporarily closed tenants during the state of emergency declaration by the total leased area as of Apr. 30, 2021.
Note 2: Divided the total floor space of temporarily closed tenants during the state of emergency declaration by the total leased area as of Sep. 30, 2020.

Operation of tenants (as of April 30, 2021)
Closed tenants
3.9%

Entire facility closed
1.2%

Operating tenants
96.1%

12

Impact of COVID-19

Response to rent reduction requests amid the COVID-19 pandemic
 Rent reduction/deferral requests
The number of new requests remained limited during the second declaration of emergency
Requests from service-oriented tenants (including restaurants) and apparel tenants tend to continue
Number of requests by month(Feb. 2020 – Mar. 2021)

Policy on response to rent reduction
requests

Number of relief request(Oct. 2020 – Mar. 2021)
Other retailers

104

Health clubs

196(10th FP - 11th FP)

22（12th FP）

1

2

Restaurants
8

•
•
•
•
•
•
•

55

22

5
Service
18

14

1

1

1

2

0

1

5

4

5

6

7

ApparelFeb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

Consider the following when accepting
rent reduction/deferral requests

Performance of tenants
Rate of decrease in tenant sales
Financial conditions of tenants
Lease contract type
Period of the state of emergency
Application for subsidies
Impact on KRR’s operation

 Responding to rent reduction/deferral requests
12th FP ended Mar. 2021

11th FP ended Sep. 2020
Impact on the 11th FP (Sep. 2020)
rent income

Rent reductions✓ 1 case✓ 95 cases(JPY mn)✓ Total amount of rent reductions 10,000
JPY 41 mm

Rent deferral

5,000✓ 2 cases✓ Total amount of rent deferral
JPY 17 mm

8,272✓ Total amount of rent reductions
JPY 1.6 mm% of rent income••

Rent reductions 0.5％
Rent deferral
0.2％
41

17

0
Rent
revenue Rent
reductions
賃貸事業収入賃料減額

Rent deferral
支払猶予

Total amount of rent reductions/deferral decreased significantly

Rent reductions(JPY mn)

50

41

17

Rent deferral✓ 0 case✓ Rent deferral during the 11th
FP have been collectedwithout delay

1.6
0

11th
第11期
FP

12th
第12期
FP

Rent
reductions

0

11th
第11期
FP

12th
第12期
FP

Rent
deferral13

Impact of COVID-19

Asset management amid the COVID-19 pandemic
 Sales-linked rent
Rent type (Oct. 2020 – Mar. 2021) (Note)

Percentage of tenant category of sales-linked rent (based on rent)
4.8%

Fixed rent withsales-linked rent
10.9%

2.7%

1.7%

5.3%
5.9%

Total sales-linked rent
2.4%
Fixed rent
87.3%

51.1%

11.6%
Sales-linked rent
1.7%

16.8%

Sundry goods

51.1％

Other retailers

16.8％

Apparel

11.6％

Drug stores

5.9％

Dollar shops

5.3％

Restaurants

4.8％

Groceries
Servicebusinesses

2.7％
1.7％

•

Non-service-oriented tenants cover
over 90% of sales-linked rent

Total amount of sales-linked rent
JPY 139 mm(12th FP)+ JPY 23 mm(vs. 11th FP)

 Rent delinquency, tenant move-outs, and tenant bankruptcy
Rent delinquency due to the pandemic
1(12th FP)

-30
(vs. 11th FP)

Move-outs
18(12th FP)

Bankruptcy+10(vs. 11th FP)

No tenant bankruptcies
during the 12th FP

11 cases were attributed to thepandemic

The level of rent delinquency
at 12th FP end and moveouts, bankruptcy during 12th
FP did not change
significantly from the prepandemic level Occupancy rate and leasing of vacant spaces
Occupancy rate improved amid the COVID-19 pandemic

99.4％(10th FP end)

Note: The figures of “Rent type” is for the 12th FP.

99.7％(11th FP end)

Leasing at Central Wellness Club Nagatsuta Minamidai•

Attracted a pet shop as a tenant for thevacant space (approx. 230 tsubo) on thefirst floor created by cancellation of movein due to COVID-19•

Opened in March 2021. The occupancy
rate increased from 81.0% to 100%

99.8%
(12th FP end)

14

Impact of COVID-19

Impact of COVID-19 by tenant category
Tenantcategory
Groceries &CostcoRatio(Note 1)

During

After

StatusSOED SOED SOED = The first state of emergency
declaration (Apr. – May 2020)

Tenantcategory

28.4％

Demand for daily necessities remains firm, receiving
tailwind from stay-at-home consumption andincreasing demand for eating at home

Distribution
centers

Master lease
(ML)

11.1％

Stable with grocery supermarkets as core tenants,
and owing to the strength of master lessee

Consumerelectronics

Home &
garden10.7％

Special demand for gardening supplies and DIY
products due to staying at homeServiceoriented

7.0％

Sales for massage and barber salons were recovering
gradually, but turned sluggish again due to the stateof emergency declaration

Other
retailers

6.6％

Furniture, bedding, and cookware sales have beenstrong due to stay-at-home consumption

Amusement

5.9％

Strong performance at the end of 2020 driven by ablockbuster movie turned sluggish again due to thestate of emergency declaration

5.5％

Although business has resumed, sales have been
affected by an increase in membership cancellations
and a decrease in new membership

2.7％

Demand for casual clothing remained strong, andclothing to meet stay-at-home demand is also firm

2.2％

Trend of longer purchase cycle continues due tofewer opportunities to go out. Sales of business wears
are struggling with the widespread of work from home

(Note 2)

(Note 3)

Health clubs

Ratio

During(Note 1)

SOED SOED

After

Status

6.0％

Increase in delivery volume due to stay-at-homeconsumption continues

5.7％

Sales remained strong at consumer electronics storesin residential areas. Strong demand for products suchas PC and TV due to prolonged period of working
from home

3.8％

Fast food restaurants offering take-out food where
customers do not stay long are relatively immune.
Restaurants in urban areas and those serving alcohol
continue to be affected

2.7％

Demand for daily necessities remains firm. Stores
located in residential areas have not been affected bya decrease in inbound sales. Dispensing pharmacies
have been slightly affected

Dollar shops

1.5％

Increasing demand mainly for masks, sanitary
products and daily necessities. Sales of reusablebags are also strong due to the charge for plastic
shopping bags

Offices0.3％

Although there are moves to expand work from home
due to the pandemic, there have been nocancellations for office spaces of KRR

Restaurants

Drug stores

Percentage of tenant category (based on rent) (Note 1)
24.4%

Apparel(casual)(Note 4)

Apparel(other)

Note 1: The figures are as of March 31, 2021, based on the properties acquired by the date of this material. However, assets to be disposed of are excluded,
and figures for Unicus Urawamisono (Land) are as of the acquisition date. Ratio is rounded to the nearest tenth.
Note 2: “Costco” refers to Costco Wholesale.
Note 3: “Amusement” includes movie theaters.
Note 4: “Apparel (casual)” refers to Shimamura, Uniqlo and G.U.

28.4%

Tenants relatively resilient to the
COVID-19 pandemic (Mar. 2021)

75.6%

0.3%
1.5%
2.7%
11.1%

2.7%
5.7%
6.0%
6.6%

10.7%

15

Impact of COVID-19

Changes in tenant sales (Jan. 2020 – Mar. 2021)
 Changes in tenant sales by business category (Monthly comparison vs. 2019)
The second state of emergency was declared at the start of 2021, but portfolio sales remained stable at 102.1% through the FP ended March 2021 vs.
the FP ended March 2019
140%

130%

Portfolio

GroceriesState of emergency

Home & garden

Drug stores

Dollar shops

ApparelConsumer electoronics

Restaurants

12th FP ended Mar. 2021

declaration period（1st）State of emergency
declaration period
（2nd）

120%

2,200

2,000

1,800

110%

1,600

100%

1,400

90%

1,200

80%

1,000

70%

800
Sales at existing
既存飲食店売上高
restaurants(JPY mn)（百万円）

Decrease from the lastminute demand before the2019 consumption tax hike

60%

600

50%

400

40%

200

30%

0
2020/1

2020/2

2020/32020/42020/52020/62020/72020/82020/92020/102020/112020/122021/12021/22021/3

Note: “Changes in tenant sales” is based on the sales figures available to KRR. Sales figures of portfolio do not take into account the effect of difference in days of the weekends in each period while sales figures by business category take into account the effect of the day of
the week. Health clubs and some large amusement facilities are not included in aggregate calculation.

16

Impact of COVID-19

Consumption is shifting to residential areas amid the COVID-19 pandemic
Changes in sales by business category (Monthly comparison vs. 2019) (Note)

Change in the number of people staying in residential areas(Weekly comparison vs. 2019)

While department store sales stay stagnant, sales of shopping centers for dailyneeds remain stable amid the pandemicHome &
ホームセンター
gardenSupermark ets
スーパーマーケット

40%

Home appliance
家電大型専門店
retailers

ドラッグストア
Drug stores

People staying within residential areas has increased amid the pandemic

Department
百貨店
stores40%

In municipalities

Tokyo
東京

Kanagawa
神奈川

Chiba
千葉

Saitama
埼玉

Inter-prefectural

Tokyo
東京

Kanagawa
神奈川

Chiba
千葉

Saitama
埼玉

20%
0%
20%
-20%
-40%
-60%

0%

-80%
Jan. Feb.
2020

Mar.

Apr.

May

Jun.

Jul.

Aug. Sep. Oct .

Nov. Dec.

Jan. Feb.
2021

Mar.

Apr.

Source: V-RESAS (provided by the Office for Promotion of Regional Revitalization, Cabinet office, and Secretariat of Headquarters forTown, People, and Business Development, Cabinet Secretariat)-20%

Sales at supermarket (SM) (YoY)
Steady sales at supermarkets mostly in residential areas
-40%

Tokyo
東京

SM sales20%

Kanagawa
神奈川

Chiba
千葉

Saitama
埼玉

15%
10%
-60%

5%
0%
-5%

-80%

-10%
Jan.
2020

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct .

Nov.

Dec.

Jan.
2021

Feb.

Mar.

Jan.
2020

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct .

Nov.

Dec.

Source: Ministry of Economy, Trade and Industry “the Current Survey of Commerce”
Source: Kanto Bureau of Economy, Trade and Industry “Trends in department store and supermarket sales” (Feb. 2021)
Note: Figures for 2021 are calculated by dividing the 2021 sales figures by the 2019 sales figures in the Ministry of Economy, Trade and Industry's "Current Survey of Commerce" (preliminary report for March 2021).

Jan.
2021

Feb.

17

03

KRR highlights and updates

Security Code
Security Code3453

KRR highlights and updates

Distribution per unit, NAV per unit and unrealized gain
Distribution per unit
(JPY)

7,500
7,095

7,150
7,000

7,000
6,477

6,500

6,000
5,5000

5,974

Sep.
2016
2016/9
3rd period
第3期

6,044

Mar.
2017
2017/34th period
第4期

6,255

6,299

Mar.
2018
2018/36th period
第6期

Sep.
2018
2018/97th period
第7期

6,486

6,535

6,546

6,785
6,635

6,115

Sep.
2017
2017/95th period
第5期

Mar.
2019
2019/38th period
第8期

Sep.
2019
2019/99th period
第9期

Mar.
2020
2020/310th period
第10期

Sep.
2020
2020/911th period
第11期

257,913257,915

258,187

Sep.2018
7th Period

Mar. 2019
8th Period

Sep.2019
9th Period

Mar.
2021
2021/312th period
第12期

NAV per unit

Sep.
2021
2021/913th period
第13期(Forecast)
（予想）

Mar.
2022
2022/314th period
第14期(Forecast)
（予想）

(JPY)

270,000
261,151
260,000

261,956
259,008

253,803249,301

250,000

250,892

244,905
240,000

237,472

238,401

Sep.2015
1st Period

Mar. 2016
2nd Period

230,0000
220,000

Unrealized
gain

Sep.2016
3rd Period

Mar. 2017
4th Period

Sep.2017
5th Period

Mar. 2018
6th Period

Mar. 2020
10th Period

Sep. 2020
11th Period

Mar. 2021
12th Period

JPY 2,130 mn JPY 4,657 mn JPY 6,720 mn JPY 8,493 mn JPY 10,861 mn JPY 12,270 mn JPY 14,213 mn JPY 14,438 mn JPY 14,695 mn JPY 15,572 mn JPY 14,565 mn JPY 15,753 mn

Note 1: The boxes in orange lines indicate the forecasts as of Nov. 17, 2020.
Note 2: NAV per unit at the end of each fiscal period = (net assets + unrealized appraisal gains/losses on the entire portfol io at the end of each fiscal period) / (total number of investment units issued at the end of each fiscal period)

19

KRR highlights and updates

Leasing overview (1)Multi-tenant properties (by acquisition prices)
There are various rent types
even with single tenant
properties. Most are long-termleases, and some have potential
for increase in rent and hedge
against inflation

Remaining lease term (by annual fixed rent)
20 years or
more
11.0%

Others13.3%

less than 2
years
13.2%

15 to less than
20 years
12.8%

Rent revisionunavailable
18.0%

Multi-tenant
properties

53.1%

Interest/CPI
linked6.7%

2 to less than
5 years
19.4%

Averageremaininglease term

Multitenant
properties
53.1%

9.9 yrs

10 to less than
15 years
12.9%

5 to less than
10 years
30.7%

Masterlease
8.9%

Lease contract type (by annual fixed rent)

Percentage of tenant categories (based on rents)
Tenants less affected by e-commerce

N. 4.9%Regularbuilding lease
12.3%

M. 5.7%L. 6.6%K. 0.3%J. 1.5%I. 2.7%

Commercial
fixed-term land
lease
13.2%

H. 3.8%G. 5.5%

Lease contract type thatmakes it rather difficult for
tenants to move out,
providing stability

A. 28.4%

右記A～KにA属するテナント
to K Tenants
%
％

82.8
82.8

B. 11.1%

F. 5.9%Fixed-termbuilding lease
74.5%

E. 6.0%D. 7.0%C. 10.7%

Note 1: The figures are as of March 31, 2021 for the assets owned by KRR as of the date of this material. However, assets to be disposed of are excluded, and figures for Unicus Urawamisono (Land) are as of the acquisition date.
Note 2: Based on the contractual rent determined in the lease contract, including regular building leases.
Note 3: “Master lease” indicates tenants with sub-lease type master lease agreement (excluding tenants over half of whose shop area KRR considers occupied by areas under direct management). “Interest/CPI-linked” indicatestenants whose rent contract renews accordingly to the interest rate or CPI.

A.

Groceries & Costco

28.4%

B.

Master lease

11.1%

C.

Home & garden

10.7%

D.

Service businesses

7.0%

E.

Logistics facilities

6.0%

F.

Amusement

5.9%

G.

Health clubs

5.5%

H.

Restaurants

3.8%

I.

Drug stores

2.7%

J.

Dollar shops

1.5%

K.

Office0.3%

L.

Other retailers

6.6%

M.

Consumer electronics

5.7%

N.

Apparel

4.9%

20KRR highlights and updates

Leasing overview (2)Rent revisions (based on number of revisions) (Note 1)
Downward
revision NoNo
revision
Upwardrevision
revision

43.1%

36.1%

26.8%

44.0%

57.1%
48.0%

39.5%

Lease expiry (by annual fixed rent)

Upward revision
Downward
revision

29.0%

22.6%

35.5%

45.2%

# of tenants and % of lease expiry in each period (Note 2)

2.3%

48.8%

2.5%
1.7%

1.4%

2.2%
1.5%

35.5%

32.3%

Mar. 2020
10th Period

Sep. 2020
11th Period

Mar. 2021
12th Period

Sep. 2021
13th Preiod

Mar. 2022
14th Preiod

Sep. 2022
15th Preiod

Mar. 2023
16th Preiod

Sep. 2023
17th Preiod

Mar. 2024
18th Preiod+57mn yen

-46mn yen

+24mn yen

39
tenants

52
tenants

17
tenants

29
tenants

35
tenants

33
tenants

20.8%

16.1%

8.0%

11.6%

Sep. 2018
7th Period

Mar. 2019
8th Period

Sep. 2019
9th Period-10mn yen

Annual change (Note 2)+7mn yen-1mn yenContract renewals at lease expiry in each period

Tenant move-in and move-out (Note 3)
3.4%

Exit
RenewalExit due to renovation of MONA Shin-Urayasu
西新井における能動的なテナント入替えに伴う退去
Exitwith the active replacement of tenants at Passagio Nishiarai
Exit due to replacing the master lessee by the end tenant at Sunadabashi

3.2%
Move-inMove-out

2.4%

22.3%

2.2%
1.7%

16.9%

1.2%

0.6%

Renovation of
Shin-Urayasu

Replacementof tenantsat Nishiarai

Sep. 2019
9th Period

Mar. 2020
10th Period

60.8%

25.5%
50.9%

86.4%
0.4%

9.8%

17.6%

0.8%
0.2%

Mar. 2019
8th Period

13.6%

1.0%
0.9%

Sep. 2018
7th Period

16.8%

3.5%

90.2%
74.5%

65.5%

45.7%
Sep. 2020
11th Period

Mar. 2021
12th Period
Direct lease at
Sunadabashi

Sep. 2018
7th Period

Mar. 2019
8th Period

Sep. 2019
9th Period

Mar. 2020
10th Period

Sep. 2020
11th Period

Mar. 2021
12th Period

Note 1: Based on the rent including common area charges before revision of the tenants subject to rent revision. Temporal rent reductions/deferrals due to the COVID-19 pandemic are excluded.
Note 2: Based on the contractual rent determined in the lease contract, including regular building leases, for properties owned as of the date of this material. However, assets to be disposed of are excluded, and figures for Unicus Urawamisono (Land) are as of the acquisition date.
Note 3: Based on the rent revenue of the last month of each fiscal period.

21

KRR highlights and updates

Examples of internal growth initiatives
Kasumi Technopark Sakura

BeforeAfter•

Floor space was added to meet the demandof tenants and to improve profitability•

Construction commenced in January 2021
and the store reopened in April 2021
Construction
costHomecenter Kohnan Sunadabashi

Profitenhancement

Investment
returnCost

NOI increase

NOI yield

JPY 92mn

JPY +5.6mn+6.2%

Blumer Maitamon••

Previously, the master lessee subleased
the property to the end tenant. Enteredinto a lease agreement directly with theend tenant upon the expiration of themaster lease agreement•

Introduced commercial robot vacuum cleaner“Whiz i” in April 2021 as an example of realestate tech•

Succeeded in controlling the rise in building
management cost from the surge in labor
costs

Enhanced profitability of KRR while
reducing rent burden for the end tenant

Central Wellness Club Nagatsuta Minamidai

Ashico Town Ashikaga•

Attracted a pet shop as a tenant for thevacant space (approx. 230 tsubo) on thefirst floor created by cancellation of movein due to COVID-19•

Terminated the previous sub-property
management agreement in March 2021, andentered into an agreement with a new subproperty manager in April 2021•

Opened in March 2021. The occupancy
rate increased from 81.0% to 100%•

Achieved annual cost reduction of JPY 6
million by reviewing the terms of property
management and building managementagreements

22

KRR highlights and updates

Borrowings and bonds (as of Apr. 30, 2021)
Maturities of interest-bearing debts(JPY mn) 15,950

Long-term borrowings

Refinance

New borrowings in relation to the offering

Investment corporation bonds

15,00013,20012,00010,70010,7509,000

13,200
7,200

9,590

9,500

1,000

1,000
700

1,000

2,750

7,000

7,000

6,820

9,760

2,000

10,890

3,400

1,400

6,200

3,050

6,700

2,000

2,000

6,000

3,000

10,250

1,000

200

2,490

1,000

5,550

4,200

5,050

1,500

500
500

2,750

800

450

0
21/3

21/9

22/3

22/9

23/3

23/9

24/3

24/9

25/3

25/9

26/3

26/9

Breakdown of debt outstanding by lender and investment corporation bonds(JPY mn)

040,00080,000120,000
120,300

27/3

27/9

28/3

28/9

29/3

29/9

30/3

30/9

31/3

31/9

Commitment credit lines (total of JPY 3,000 mn)
Counterparty

Maximum amountEnd ofcontract term

Sumitomo Mitsui
Banking Corp.

JPY 1,000 mn

Mar. 31, 2022

Mizuho Bank, Ltd.

JPY 1,000 mn

Mar. 31, 2022

MUFG Bank, Ltd.

JPY 1,000 mn

Mar. 31, 2022

Sumitomo Mitsui Banking Corp.

32.9%

MUFG Bank, Ltd.

15.4%

Mizuho Bank, Ltd.

10.1%

Development Bank of Japan Inc.

9.4%

Sumitomo Mitsui Trust Bank, Ltd.

8.1%

Mizuho Trust & Banking Co., Ltd.

4.8%

Resona Bank, Ltd.

4.7%

Aozora Bank, Ltd.

3.7%

4,440

Bond

Amount ofissuance

Rate

Issuance
date

Term

The Musashino Bank, Ltd.

1.2%

1,450

1st Series

JPY 1,000 mn

0.20%

Oct. 2016

5 yrs.

The Bank of Fukuoka, Ltd.

0.8%

1,000

2nd Series

JPY 1,000 mn

0.60%

Oct. 2016

10 yrs.

The Gunma Bank, Ltd.

0.7%

900

3rd Series

JPY 1,000 mn

0.32%

Aug. 2017

5 yrs.

Nippon Life Insurance Co.

0.6%

700

New

0.4%

500

4th Series

JPY 2,000 mn

0.70%

Aug. 2017

10 yrs.

Sumitomo Life Insurance Co. New

0.4%

500

5th Series

JPY 2,000 mn

0.70%

Apr. 2018

10 yrs.

Investment corporation bonds

6.7%

8,000

6th Series

JPY 1,000 mn

0.40%

Apr. 2020

5 yrs.

The 77 Bank, Ltd.

39,57018,56012,17011,290
9,770
5,750

300
500

Investment corporation bonds

5,700

23

KRR highlights and updates

Financial highlights
Financial highlights

Average remaining years to maturity, borrowing terms and interest rate
11th FP

12th FP

After thisoffering

97.6%

100.0%

100.0%

Long-term
debt ratio

Average remaining years
to maturity (left axis)(years)（年）

Average interest rate(incl. up-front fee)(right axis)

Average borrowing terms(left axis)
1.2%

12

1.02%

1.03%

0.99%

0.99%

1.00%

0.98%

10

Fixed interest
debt ratio

91.3%

96.8%

97.7%

LTV

44.8%

44.8%

44.3%

8
6

Credit rating
Rating Outlook improved
from “Stable” to “Positive”(January 2021)

Credit rating (JCR)

A+ （Positive）

1.0%

7.4

7.3
4.9

7.3

4.6

7.7

7.3

4.5

4.0

7.7

4.4

0.8%

4.7

0.6%

4

0.4%

2

0.2%

0

0.0%
Mar. 2019
8th Period

Sep. 2019
9th Period

Mar. 2020
10th Period

Sep. 2020
11th Period

Mar. 2021
12th Period

Apr. 2021

Distribution in excess of retained earnings
分配金総額

3,804

ATAの利益超過分配

5

所得超過税会不一致

5

純資産控除項目0

投信法上の利益

3,798

会計上の利益

3,798

3,100
0

3,300

3,500

3,700

Summary of distributions in excess of retained earnings
As Japanese tax law changes, distributions in excess of retained earnings that are
accounted as allowance for temporary difference adjustment (“ATA”) enables cash
distributions to be treated as profits distribution and deductible for tax purpose
A: Japanese GAAP vs. Japanese tax law
The items in association with certain transaction in relation to the property, Sunny Noma,
cause temporary difference between the treatment in Japanese GAAP and Japanese tax law.
Occurs when taxable income before distribution is larger than net income
B: Net income vs. income in accordance with Investment Trust Act
The item deducted from net asset in association with some of interest swap transaction
causes difference between net income and income defined by Investment Trust Act (“ITA”).
Occurs when net income is larger than income defined by ITA
3,900(JPY mn)24

04

Growth strategies focusing on stability

Security Code
Security Code3453

Growth strategies focusing on stability

Growth strategies
・Unchanged demand for shopping centers for daily needs in residential areas that provide daily necessities, even amid the pandemic
・Unit price recovered NAV per unit as the market recognized the stability of shopping centers for daily needs,

leading to the latest public offering
・Continue focused investments in shopping centers for daily needs, which has been carried out since IPO, andselective investment in retail distribution centers that meet the demand from e-commerce
・Providing daily necessities
・Shift to consumption in residential areas
・Sales increase due to stay-at-home consumption

Shopping centers for daily needs
KRR’s core investment targets
Crisis period(11th period)

Recovery period(12th period-)

After recovery in unit price(13th period-)

Prevention of tenant move-out

Increase in unit price

AUM growth and credit improvement➢ Help sustain tenant business➢ Asset reshuffle using the Sponsor
support and proprietary network➢ Public offering

Given the request for business suspension
amid the pandemic and the state of
emergency declaration, selectively grant rent
reduction/deferral, and aim to sustain
businesses of both tenants and KRR➢ Minimize the impact of COVID-19
Minimize the impact of COVID-19 throughpreventing downtime caused by move-out andbankruptcy of tenants

Improve the portfolio profitability by selling
properties with low NOI yield after depreciation
Invest mainly in supermarkets, NSCs andretail distribution centers to adapt to changing
environment➢ Unit buyback policy
Comprehensively take into account unit price,
NAV per unit, and use of cash on hand

Expand AUM by raising funds through public
offering to enhance unitholder value➢ Credit improvement
Aim for credit rating upgrade by enhancing
earnings stability through AUM growth
Achieve further growth by reducing funding
costs

Improving occupancy rate
• 99.4％ (10th FP end) → 99.7％ (11th FP end)

Response to tenants• 95 rent reductions and 2 rent deferrals in response to
196 requests from tenants during the 11th FP(99 tenant requests agreed with no reduction)

The Sale of Daikanyama Address Dixsept
in three phases
Acquisition of 2 logistics facilities
Improvement in credit rating outlook
A+ (Stable) → A+ (Positive)

5th PO and asset acquisition

Improvement in borrowing
conditions
26

Growth strategies focusing on stability

Providing consumers with retail infrastructure that will grow in importance amid the pandemic
The COVID-19 pandemic is accelerating the environment changes where the functions of retail and logistics facilities are getting similar,
and the importance of shopping centers for daily needs and retail distribution centers increases as a retail infrastructure
Environment recognition
Medium- to long-term changes in the market environment
with the rise of e-commerce
Changes in retail facilities
with the rise of e-commerce•

Partnerships between online and brick-and-mortar
retailers•

Delivery of products from retail facilities•

Pickup of products at retail facilities (click-andcollect)•Integration of retail and logistics facilities

Challenges faced by the logistics sector
with the rise of e-commerce•

Frequent small deliveries•

Shorter lead time•

Managing the last mile issue•

Expanding needs for distribution centers close to
consumption areas

Acceleration of environment changes amid the COVID-19 pandemic
Changes in consumer behavior due to the experience of COVID-19
Changes in consumer behavior amid the COVID-19 pandemic

Change in lifestyles with rising
stay-at-home demandMore demand for e-commerce
Large increase in home deliveries

Increased bulk purchases with lessfrequent shopping outsideMore people working from home
Increased mid-day population inresidential areas

Increasing importance of shopping centers for daily needs
and retail distribution centers as retail infrastructure
Examples of similar functions of retail and logistics facilities
An online store opens aDistribution center for an
online supermarket partnered physical store in retailfacility
with a grocery supermarket(Kitera Town Chofu)(Blumer Maitamon)

Delivery of products
from retail facilities(P-1 Plaza Tenno)

Installation of lockers
to pick up products inretail facilities(P-1 Plaza Tenno)

Integration of retail andlogistics facilities(Yokohama Kamigo
Distribution Center)

Leasing a portion of theland of retail facilities tologistics operators(Kurume-Nishi Shopping Center)27

Growth strategies focusing on stability

Portfolio Composition
 Resilience against COVID-19 and e-commerce
75.6% of the portfolio is COVID-19 resilient and 82.8% is e-commerce resilient
More than half of the portfolio is both COVID-19 and e-commerce resilient

Relatively
strongOther retailers:
Consumer electronics:
Apparel (casual):

6.6%
5.7%
2.7%

15.0%

Groceries & Costco:
Master lease:
Home & garden:
Distribution centers:
Drug stores:
Dollar shops:
Office:

28.4％
11.1％
10.7％
6.0％
2.7％
1.5％
0.3％

60.7%

Service oriented:
Amusement:
Health clubs:
Restaurants:

7.0%
5.9%
5.5%
3.8%

22.2%

COVID-19
resilience

Relatively
weak

2.2%

Apparel (other):

Relatively strong

Relatively weak

E-commerce resilience28

Growth strategies focusing on stability

Flexible portfolio management adapting to changing market environment
Pursuing a portfolio with higher quality and profitability adapting to changing environment by leveraging methods such as asset reshuffling
Reshuffling since 12th period (based on acquisition / disposition price)

Daikanyama Address Dixsept

Properties acquired

Properties (to be) disposed of

Number ofproperties

7

3

Total price(acquisition/
disposition)

JPY 24.7bn

JPY 9.1bn

Total appraisalvalue

JPY 26.7bn

JPY 8.4bn

Average NOI
yield

Average appraisal NOI yield
5.2％

Average NOI yield

3 properties acquired, JPY 2.3bn

3.9％ (based on Disposition price)

Location

Shibuya-ku, Tokyo

Date of disposition

Dec. 1, 2020

Apr. 1, 2021

Oct. 1, 2021

Disposition price

JPY 2,657mn(40%)

JPY 1,993mn(30%)

JPY 1,993mn(30％)

Total JPY 6,644mn
Book value (Sep. 2020)

JPY 5,363mn

NOI yield

3.6%(Note 1)

1 property disposed of, JPY 6.6bn(based on disposition price) (Note 1)

Hankyu Oasis Hirakatadeguchi

12th FPMar. 2021

Chiba-Kita Distribution
Center

Sapporo Shiroishi
Distribution Center*Anticipated gradual disposal
between 12th FP and 14th FP

Monenosato Mall
(2 New Buildings)
4 properties acquired, JPY 22.3bn

Location

Hirakata, Osaka

Date of disposition

Aug. 10, 2021

Disposition price

JPY 1,500mn

Book value (Mar. 2021)

JPY 1,289mn

NOI yield

5.0%

Daikanyama Address Dixsept

2 properties to be disposed of, JPY 2.5bn(based on disposition price) (Note 1)

Unicus Ina (20% quasi-co-ownership interest)

13th FP
Sep. 2021

Apita Terrace Yokohama
Tsunashima

Kitera Town
Chofu

Hankyu Oasis
Hirakatadeguchi(49% quasi-co-ownershipinterest)

Unicus Ina
Unicus Urawamisono(Land)

Merado Daikai(20% quasi-co-ownershipinterest)

Location

Ina-machi, Kita Adachi-gun, Saitama

Date of disposition

Apr. 9, 2021

Disposition price

JPY 1,048mn

Book value (Mar. 2021)

JPY 874mn (Note 2)

NOI yield

4.4%(based on disposition price) (Note 1)

Note 1: Calculated by dividing the actual NOI (for the 10th and 11th FP for Daikanyama Address Dixsept and for the 11th and 12th FP for Hankyu Oasis Hirakatadeguchi and Unicus Ina. As for Unicus Ina the figure is calculated based on 20% quasi-co-ownership interest.
Note 2: Calculated by multiplying 20% to the book value of the entire property as of Mar. 31, 2021.

29

Growth strategies focusing on stability

New acquisitions (1)NSC Neighborhood
Shopping Center

NSC Neighborhood
Shopping Center

Kitera Town Chofu

An NSC with Life, a grocery supermarket, as the core tenant and a retail trade area of over
40,000 people within a 1km radius

AnticipatedAcquisition price

JPY 10,500mn

Location

Chofu, Tokyo

Land area

2

Appraisal NOI yield

2

Main tenant

10,527.17m

Appraisal value

JPY 11,400mn

Appraisal NOI

JPY 550mn

23,588.18m

Gross floor area

Anticipated acquisition price

JPY 5,667mn◼

Yokohama, Kanagawa

Appraisal NOI

5.2％

18,300.01m2

Appraisal NOI yield

4.7％

Life Corporation

Gross floor area

38,442.49m2

Main tenant

UNY Co., Ltd.

◼
◼

Population (left)
人口(左軸）

235

Households (right)
世帯数（右軸）120.3(k, households)
125
121.3

118.8
117.1

120

115.2
230
111.3

113.0

224.2

226.4

115
110

220
229.9

232.5

235.2

237.1

237.8

0
215

◼ As train lines around Chofu Station havebeen moved underground (Chofu, Fuda, andKokuryo Stations have been moved
underground), redevelopment projects are
expected to be promoted, integrating thenorth-south and east-west arteries◼ Chofu City’s urban plan aims for “Developing
a city which has commercial and residential
districts”, etc. and its population andhouseholds are currently on the rise

A population growing area in Yokohama, with large-scale neighboring residential andinfrastructure development plan
Trends in population and households for Kohoku-ku, Yokohama◼
This property is located in a next-generation smart town
Population (left)

Households (right)◼

◼

1F
Specialty store
area

Parking lot

Service tenants area

Life

Restaurant area

00

Tenants including the core grocery supermarket and a group of major speciality stores , home electronics
Tenants
stores, restaurants, and service tenants
The first floor houses a drug store and restaurants, and the wide hallways allowing customers to enjoy exploration
The second floor houses a major electronics retail store, as well as diverse specialty stores

B1(k, households)(k, people)

0
105
2014
2017
2021
2015
2016
2018
2019
2020
2014年
2015年
2016年
2017年
2018年
2019年
2020年
2021年
Source: Trends in population and households based on basic resident registration, released annually on January 1 by Chofu City◼
◼

An NSC designed for frequent customer visits in an area of high population growth and on going large-scale residential andinfrastructure development in the surrounding area
Tenant mix includes a grocery supermarket, various specialty stores, a post office, a bank, and a clinic mall. This property
provides all the goods and services needed for daily life in a single location, and also provides services to help customers
enjoy their stay, such as a bookstore and cafe, meeting diverse needs of a wide range of generations

Location

Trends in population and households in Chofu City

223.7

JPY 266mn

Location

Located in Chofu City developing as a city having commercial and residential districts(k, people)
240

110.6

JPY 5,930mn

Highlights

Location

225

Appraisal value

Land area

An NSC designed for frequent customer visits in the Chofu area, a location experiencing high population growth and largescale residential and infrastructure development
Convenient car access due to its location along the Koshu-Kaido Road and accessible to nearby residents on foot, locatedwithin 5 minutes’ walk from Shibasaki Station on the Keio Line
Life, a grocery supermarket, has partnered with an online company, for an online supermarket business, and ships products
from this facility◼

(49% quasi-co-ownership interest)

An NSC that meets diverse needs of a growing next-generation smart city with a concentrated population

Highlights◼

Apita Terrace Yokohama Tsunashima

Electronics
retail store

Amusement
area

Tsunashima Sustainable Smart Town. Tsunashima Sustainable
Smart Town pursues comfort and future lifestyles from various
perspectives, including those who live, work and visit, andintroduces designs that consider the global environment likeinstalling solar panels
This property is located in between Tsunashima and Hiyoshi
Stations on the Tokyu Toyoko Line. The population of this retailtrade area is expected to be increasing, as development of a large
about 1,300-unit condominium complex is underway nearby
The Sotetsu Tokyu Link Line is scheduled to start operation in thesecond half of 2022, with a new station, Shin-Tsunashima. ShinYokohama Station will be the next station on the line, improving
access, leading to development of the area

Source: “Long-term time-series data (population/households)” by Yokohama (as of the end of September of each year)

Tenants◼

◼

Meets diverse needs with diverse tenants from providers of daily necessities to services

In addition to the core tenant of a grocery supermarket, othertenants include major specialty stores, a food court, a clinic mall,a post office, and a bank, bringing together all the daily
necessities
In addition to the above, there are tenants such as a bookstore
and cafe to help customers enjoy their stay, meeting diverse
needs of a wide range of generations

Specialty store
area

Business partnership to ship products
ordered on the online company at any time

Note: The land area and gross floor area indicated for Apita Terrace Yokohama Tsunashima (49% quasi-co-ownership interest) are areas of the entire property.

Grocery supermarket

Bookstore & cafe30

Growth strategies focusing on stability

New acquisitions (2)NSC Neighborhood
Shopping Center

NSC Neighborhood
Shopping Center

Merado Daikai

An NSC with Kansai Super Market, a grocery supermarket, as the core tenant and a retail trade area ofover 50,000 people within a 1km radius

Anticipatedacquisition price

JPY 5,440mn

Appraisal value

JPY 5,780mn

Location

Kobe, Hyogo

Appraisal NOI

JPY 291mn

Land area

7,256.34m2

Appraisal NOI yield

5.3%

Gross floor area

14,521.91m2

Main tenantKansai Super
Market Ltd.

Anticipatedacquisition price

JPY 732mn

Appraisal value

JPY 817mn

Location

Saitama, Saitama

Appraisal NOI

JPY 33mn

Land area

3,533.59m2

Appraisal NOI yield

4.6％

Gross floor area-

Main tenant

P&D Consulting
Co., Ltd.

Highlights

Highlights◼
◼

This property is located in an area with high population density in Hyogo-ku, Kobe and convenient within walking distance of 3
stations on 3 lines, including the nearest, Daikai Station on the Hanshin Kobe Express LineThe core tenant is Kansai Super Market, a supermarket with strong dominance in Osaka and Hyogo. Merado Daikai also
houses home & garden and a dollar shop, providing full lineup of daily necessities entirely◼
◼
◼

Location◼
◼

A convenient location within walking distance of 3 stations on 3 lines

This property has excellent visibility, located along Prefectural Route 21, the west-east artery of Hyogo, in an area with high population density in Hyogoku, Kobe
It is adjacent to Daikai Station on the Hanshin Kobe Express Line and within walking distance of Hyogo Station on the JR Kobe Line and Kamisawa
Station on the Kobe City Subway Seishin-Yamate Line(k, people)

Unicus Urawamisono (Land)

The underlying land for a community-based NSC developed in “Misono Wing City” in Saitama, a new
town with growing population

Trends in population and households of Hyogo-ku, Kobe
Population (left)(k, households)

Location◼

This property

Trends in population and households of Iwatsuki-ku, Saitama(k, people)

Daikai Sta.

112

47.1

47.7

111.2

111.2

48.5

世帯数（右軸）Household(right)50.0
49.2(k, households)

50.6

◼

109
Source: Processed an aerial photographof the Geospatial Information Authority of Japan by KFM◼

The core tenant is Kansai Super Market, a supermarket with strong dominance in Osaka and Hyogo

This property houses Kansai
Super Market in the first
basement as its core tenant. The
supermarket provides fresh foodand has strong dominance inOsaka and Hyogo
The tenant mix also holds home
& garden and a dollar shop,
providing full lineup of daily
necessities

Overview of Kansai Super Market Ltd.

111.7

111.9

112.2

111.9

No. of Stores
No. of
Employees
Operating
IncomeListedSupermarket operation64(as of the end of March 2020)
3,981(as of the end of March 2020)
JPY 126,184mn (for the ficalperiod ended March 31,
2020)
1st Section of the Tokyo
Stock Exchange

2015
2016
2017
2018
2019
2020
2015年
2016年
2017年
2018年
2019年
2020年
Source: Statistics on Iwatsuki-ku, released by Saitama City annually, on January 1

Historical Operating Income(JPY mn)

Business

130,000
120,673

122,713

123,649

Tenants

126,184◼

120,000◼

110,000
100,000
0

52
49

0
106

Tenants

51.8

46

0

Source: “Monthly population estimates” by Kobe (January 1 of each year)

人口(左軸）
Population(left)

115

Hyogo Sta.

0

Located in a new town “Misono Wing City” in Saitama around Urawa-Misono Station

Urawa-Misono Station, the starting station on the Saitama Rapid Railway Line, is located in the middle of this area, and it has through running onto theTokyo Metro Namboku Line. In recent years, the convenient access is leading to an increase in population, mainly among families with children.
A university hospital and public elementary and junior high schools are planned to be built, and the area, which includes Saitama Stadium 2002, isexpected to be developed as a new urban center in eastern part of Saitama City◼

Kamisawa
Sta.

Households (right)

An Underlying land for an NSC located in a new town close to Urawa-Misono station, the starting station on the Saitama Rapid
Railway Line, which provides comfortable commuting by its being directly connected to Tokyo Metro Namboku LineA property is developed by P&D Consulting Co., Ltd., KRR’s alliance company, in 2017. The area around the property is a partof “Misono Wing City”, an area undergoing development, with a land readjustment project underway dedicated by the Saitama
City and Urban Renaissance Agency “Misono Wing City”
The number of end tenants is over 20, including Yaoko grocery supermarket as well as a drug store and a dollar shop. The
NSC also houses a satellite store selling official merchandise of the Urawa Red Diamonds, J1 professional soccer team whose
home stadium is Saitama Stadium 2002 in Urawa-Misono

2016年度Mar.
20172017年度Mar. 20182018年度Mar.
20192019年度Mar. 2020

Source: “61st annual report” by Kansai Super Market Ltd.

Note: The trust property of Unicus Urawamisono (Land) is a portion of the land underlying the Unicus Urawamisono building.

43

112.9

2021
2021年

40
0

Leased to the developer P&D Consulting which is KRR’s Alliance Company

Based on a scheme of leasing land based on a long-term
fixed-term land-lease right agreement, alliance company
P&D Consulting owns the building and leases it to end
tenants
In addition to the end tenant supermarket Yaoko,
restaurants, service tenants as well as cultural tenants thatenrich daily life

KRR’s properties developed by P&D Consulting Co., Ltd.
（incl. the cases that KRR has only underlying lands）

Unicus Ina

Unicus Yoshikawa

Unicus Kamisato(Land)

Unicus Konosu(Land)

31

Growth strategies focusing on stability

Leveraging strong support from the Sponsor and Alliance Companies
KRR achieves sustainable growth acquiring properties by utilizing the pipelines of its Sponsor and Alliance Companies
KRR aims to further expand AUM by leveraging strong support from the Kenedix Group and Alliance Companies
External growth by utilizing Sponsor and Alliance Companies pipelines
Breakdown of acquisitions after this offering(Based on acquisition price)
Other
23.3%

Sample pipelines
Pipeline from the Sponsor

Kitera Town Fukuoka Nagahama

Percentage ofacquisitions fromthe Sponsor /Alliance
Companies(Percentage ofacquisitions from
SMFL Group)

Benefits anticipated by Kenedix (Matters related to KRR are highlighted)

Pipeline from SMFL Group

76.7%

21.4%

◼ Kenedix and SMFL entered into the capital and business allianceagreement on November 20, 2020
◼ Following a tender offer, the SMFL Group became the parent company of
Kenedix, which was delisted on March 17, 2021

Sponsor
49.9%

Alliance
Companies
26.8%

Change in ownership of the Sponsor

YorkMart Higashimichinobe

Strong support from the Kenedix Group and Alliance Companies

1

Support for growth toward AUM of 4 trillion yen (in 2025) as set forth in long-term vision“Kenedix Vision 2025”2

Improvement of creditworthiness and fund-raising ability

3

Support for implementation of new business4

Acceleration of overseas business development and expansion of overseas client investors

5

Strengthening of SDGs management

Asset management

Kenedix Retail REIT Corporation

Property management

Kenedix Real Estate
Fund Management, Inc.

Pipeline support

Examples of support from SMFL Group

Warehousing
Financing functions
for bridge funds

Leasing◼ Providing bridge function to acquire and temporarily hold properties that
KRR desires to acquire in future

Leasing

Property
Management

Property
Management

Environmental
technology/ knowhow

Evaluation/
Advisory on operations

Personnel support

Personnel support

Acquisition
Third party

SMFL MIRAI
Partners

Sale in line with KRR financing
timingKRR (buyer)

Right to use
trademarks
Sponsor / support-line company

Kenedix, Inc

Kenedix Investment
Partners, Inc.

Parents of asset manager / Alliance Company

Sumitomo Mitsui Financeand Leasing Co., Ltd.

Other Alliance Companies

Nippon Commercial
Development Co., Ltd.

P&D Consulting Co., Ltd.

Warehousing for KRR
KRR acquired Across Plaza Urayasu
Higashino (Land) and Valor
Nakashidami (Land) from SMFLMIRAI Partners, by using its bridgefunction

Across Plaza
Urayasu Higashino(Land)

Valor Nakashidami(Land)

SMFL MIRAI Partners Co., Ltd.

：KFM’s parent companies
Note:

KRR has no plans to acquire the properties shown as “Sample pipelines", and there is no guarantee that KRR can acquire the properties in the future as of the publication date of this document.

32

Growth strategies focusing on stability

ESG initiatives (Certifications)
Earned “Four Star GRESB Rating” in the 2020 assessment•

KRR earned its second consecutive “Four Star GRESB Rating” in the 2020
GRESB Real Estate Assessment•

KRR has participated in the GRESB Real Estate Assessment consecutively since its
first participation in 2016. KRR has been awarded a “Green Star” designation forfive consecutive years, by achieving high performance both in “Management
Component” that evaluates policies and organizational structure for ESG promotion,and “Performance Component” that assesses environmental performance andtenant engagement of properties owned

The number of certified properties and certified floor area (as of Mar. 31, 2021)
The number of properties

Certified floor area

Ratio

18 properties

434,481.78 ｍ2

59.4 ％DBJ Green Building Certification

Certification for CASBEE for Real Estate

Evaluate and certify with environmental andsocial considerations, based on comprehensive
evaluation which taking into account measurestaken for various stakeholders★★★★
Blumer Maitamon

The system rates the overall environmental
performance of buildings from two
perspectives; the evaluation of theenvironmental quality and performanceof buildings themselves and the external
environmental load buildings apply★★★

S rank ★★★★★
Passaggio Nishiarai

Unicus Ina

Blumer HAT Kobe

Kawamachi Yahagi Mall

Unicus Yoshikawa

Carino Esaka

Roseo Mito

Ashico Town Ashikaga

Sun Street Hamakita

Apita Terrace Yokohama Tsunashima
Homecenter Kohnan Sunadabashi
Resora Obu Shopping Terrace★★★★★

Certified properties(5 properties)

Certified property(1 property)★★

A rank ★★★★

Yumemachi Narashinodai MallMusashi Ranzan Distribution Center
Costco Wholesale Sapporo Warehouse

Resora Obu Shopping Terrace
Note:

A third-party certification system that
grades housing and buildings
In accordance with an obligation to makean effort to indicate energy saving
performance stipulated in the Act on the
Improvement of Energy Consumption
Performance of Buildings

Daikanyama Address Dixsept

MONA Shin-Urayasu

Certified properties(14 properties)

Certification for Building-Housing Energyefficiency Labeling System (BELS)

Apita Terrace Yokohama
Tsunashima

Apita Terrace Yokohama Tsunashima has acquired both certification for CASBEE for Real Estate and Certification for Building-Housing Energy-efficiency Labeling System (BELS), and Resora Obu Shopping Terrace has acquired both DBJ Green Building
Certification and Certification for CASBEE for Real Estate, but both are treated as one property when counting the number of certified properties.

33

Growth strategies focusing on stability

ESG initiatives (Environment and Society)Preparation for issuing green bonds

Environment initiatives

Acquired Green 1 (F) of JCR Green Finance Framework Evaluation

Overall evaluation

Solar panel installation
We installed solar panels at Unicus Ina and Kawamachi Yahagi Mall tocontribute to decrease CO₂ emissions by self-consumption of power
generated by themGreen 1 (F)Greenness evaluation(Use of proceeds)

g1 (F)(Top of a 5-point scale)Management, operation, andtransparency evaluation

m1 (F)(Top of a 5-point scale)Green bond eligibility criteria

Unicus Ina

Kawamachi Yahagi Mall

Power generation capacity: 334.53kW

Power generation capacity: 302.40kW

Power generation results: 337,735kWh

Power generation results: 130,495kWh

Green bonds that meet the following eligibility criteria can be issued

Social initiatives
Eligibility criteria 1(Funds to acquire green building, funds torepay debt and redeem investment corporation
bonds)DBJ Green
Building
Certification“three stars”
or higher

Certification
for CASBEE
for Real Estate“B+ ranking”
or moreBELS
Assessment“★★★” orhigherEligibility criteria 2(Construction and facilities repair workthat contribute to energy conservationand environmental improvement)

Reduction inenergyconsumption by
10% or more

Reduction in
water
consumption by
10% or more

Collaboration withlocal communities

Supporting UNICEF

Local events at our properties (Note 2)

KRR entered into agreementswith Yoshikawa City, Ina Town
and Konosu City that allow theproperty to be used as atemporary shelter at times of
emergency

KRR supports the activity of
UNICEF (United Nations
Children's Fund) by providing
common areas of its properties
for their fund-raising campaign

KRR is making efforts to enliven local
communities by holding communityparticipating events at our properties

Unicus Ina

Blumer Maitamon

Unicus Ina

Reduction in otherconsumption by
10% or more(thosecontributing toenvironmental
improvement)

Eligibility criteria 1: It is estimated 16 properties with total (anticipated) acquisition
price of JPY109.8bn in the portfolio after this offering

Note 1: The power generation capacities described in “Solar panel installation” of Unicus Ina and Kawamachi Yahagi Mall are total of actual results of electric power generation from April 2020 through March 2021, and October 2020 through March 2021, respectively.
Note 2: Some events are restrained or restricted due to the COVID-19 pandemic.

34

Growth strategies focusing on stability

ESG initiatives (Governance)
The Kenedix Group’s strong commitment to J-REITs (Note 1)

Unitholder value-linked management fee structure

Because of the importance of the J-REIT business to the Kenedix
Group, KRR’s sound growth is in line with Kenedix’s interests

Introduction of fee structure to provide incentives to enhance unitholder value

J-REIT
50.5%

Properietary investments
4.7%

Investment in KRR by Kenedix, Inc.
Number of units owned
16,950 units

Confirmation of
proposal

Ownership
2.9％

Compliance Officer

Ⅰ

Total assets

0.27％(annual rate)Ⅱ

Net income × DPU

0.0013％

Investment unit performancefee

KRR’s excess return ×Market capitalization

0.1％

Acquisition fee (Note 3)

Acquisition price1.0％

Disposition fee

Disposition price

0.5％

Merger fee

Appraisal value of
assets to be succeeded

1.0％(maximum)

Asset management fee

Investment unit performance fee calculation for 12th FP
Compliance Committee

Deliberation
and resolution

Asset Management Committeeof Retail REIT Department

Reporting

Rates

Asset Investment Divisionof Retail REIT Department

Deliberation
and resolution

Deliberation
and resolution

Subject of calculation(as of April 30, 2021)

Decision-making process for acquisition and sale of properties (Note 2)
Preparation of
proposal

Method for calculation

Private REIT /Private funds /Foreign REIT
44.9%

KRR Board of Directors

Asset Manager’s Board of Directors(1) KRR’s excess return against TSE REIT Total Return Index(Sep. 30, 2020 to Mar. 31, 2021)
KRR’s total return: 30.64%
TSE REIT Total Return Index: 18.93%⇒ KRR’s excess return: 11.71%(2) KRR’s market capitalization at Sep. 30, 2020
JPY211,100 × 536,177 units ≒ JPY113,186 mn(3) Expected investment unit performance fee expensed during 13th FP
11.71% × JPY113,186 mn × 0.1% ≒ JPY13 mn(1)(2)

Note 1: The Kenedix Group’s total AUM as of Sep. 30, 2020 included Premier Investment Corporation’s AUM of JPY 246.7 billion, but this was excluded from the Kenedix Group’s total AUM after Oct. 2020.
Note 2: Transactions within the scope of insignificance criteria are excluded from the decision-making process above.
Note 3: Including acquisition of buildings through expansion or reconstruction.

35

05

Key characteristics of KRR

Security Code
Security Code3453

Growth strategies focusing on stability

Investments focusing on shopping centers for daily needs“Daily / Neighborhood” type

“Weekend / Destination” type

KRR’s focus: Neighborhood, community andother shopping centers for daily needs

The majority of portfolio properties of preceding
listed retail-focused J-REITs

Small

Trade area

Large

High

Frequency of customer visits

Low

Characteristics

Trade
area

NSC

Neighborhood
shopping
centers

Shopping centers with a supermarket as
an anchor or core tenant

3-5km

SM

Supermarkets

Stand-alone stores that primarily
provide groceries

3km

CSC

Community
shopping
centers

Larger Shopping centers than NSC,
with a supermarket as an anchor orcore tenant

5-10kmUrban Station-Front

Shopping centers in the immediate
vicinity of an urban public
transportation station

3-10kmSS

Specialty stores such as drug stores,
convenience stores, health clubs orelectronic appliance stores

1-10kmProperty types

Specialty stores

Large-scale suburban retail properties
RSC (Regional shopping centers)
GMS (General merchandise stores)
Stand-alone GMS is excluded from our investment criteria

Outlet malls

Urban retail properties featuring
High-end brand shops

37

Adapting to changing environment for sustainable growth

Primary characteristics of shopping centers for daily needs
Location Located within residential areas of a metropolitan
commuter district◼ Retail trade area population (Note)・1km radius: 10,000 people
・3km radius: 62,000 people
・5km radius: 247,000 people

Residential district
Specialty stores(small retail spaces)

Tenants

Providing primarily daily necessities◼ Housing Yaoko, a grocery supermarket, as the anchor tenant
and a group of specialty stores

Grocery supermarket(anchor tenant)Flat parking lot

Facilities
Restaurant building
expansion site

Capacity to accommodate frequent customer
visits and provide revenue upside potential◼ Flat parking lot to accommodate approximately 480 vehicles

Residential
district◼ Constructed a restaurant building on underutilized space

Shopping centers and distribution centers in the supply chain

KRR investments

Target portfolio distribution

Visit
Manufacturing
Delivery
Shopping centers for
Deliverydaily needs

Large logistics facilities

Distribution
centers
Other retailfacilities

Shopping
centers for daily
needs

20% or less

80% or more

Delivery

ImportRetail distribution centers

Efficiency by consolidation

Diversification for frequent
small-lot deliveries

Note: Populations in each radius are calculated based on the 2015 national census.

Increasing homedeliveries

38Key characteristics of KRR

Retail market trends: GMS vs. Specialty stores

Buying goods at GMS
2007
Type of store

Buying goods at specialty stores
2020(JPY bn)

Sales

Type of store(JPY bn)

Sales

Change1Supermarket

12,961.0

1Supermarket

16,338.7+26.1%

2

GMS

8,602.1

2

Convenience store

11,168.5+50.6%

3

Department store

8,283.1

3

Drug store

9,213.5+149.5%

4

Convenience store

7,413.9

4

Other retailers

7,486.7+30.3%

5

Other retailers

5,743.7

5GMS

7,175.5-16.6%

6

Consumer electronics

5,719.1

6

Apparel

6,084.0+91.5%

7

Drug store

3,692.2

7

Consumer electronics

5,678.8-0.7%

8Apparel

3,177.7

8Department store

5,635.1-32.0%

9Home and garden

2,835.6

9Home and garden

3,457.0+21.9%

10 Consumers’ co-operative

2,487.0

10 Consumers’ co-operative

2,455.7-1.3%

Source: Data regarding Japanese retailer earning results are based on magazine “Diamond Chain Store” dated Sep. 15, 2016 and Sep. 15, 2020.

39

Key characteristics of KRR

Advantages of shopping centers for daily needs over GMS
Typical shopping center for daily needs
Flat parking lot

Grocery supermarket

Typical stand-alone GMS

Specialty stores(small retail spaces)

Parking lot
Furniture/
Home electronics
Household goods
ApparelGroceries

Facilities of shopping center for daily needs

VS

Facilities of stand-alone GMS

Small to medium

Retail trade area

Medium to large

High (low-rise building)Ease of getting around

Low (high-rise building)

Large flat parking lot

Parking lot

Multilevel parking lot

Grocery supermarket + Specialty stores

Tenants

GMS stand-alone

Real estate value of shopping center for daily needs

VS

Real estate value of stand-alone GMS

Upside potential

Limited frequency of upward rent revisions

Relatively easy

Tenant replacement

Relatively difficult

Expanding market share

Potential for investment

A number of stand-alone GMSs
owned by real-estate funds exited the market

Potential rental upside upon tenant replacement or contract renewal

Property expansion leveraging underutilized space40Key characteristics of KRR

Portfolio strategies
Investment criteria

Primary geographic target areas

Focus on the following four elements in making investment decisions:• Four major metropolitan areas,
which have relatively stable populations

Attractiveness

Location• Ability to serve particular day-to-day
needs of local area customers• Demographic composition, number ofhouseholds, competing facilities inlocal retail trade area

• Selective investments in ordinance-designated cities,
core cities and other areas for diversification

The Tokyo metropolitan area

The Greater Osaka area

Profitability

Tenant mix• Occupancy, leasing status, rent level
and lease term

• Optimal tenant mix for the property
considering tenant credit profiles andretail space usage

Target portfolio distribution (based on acquisition price)
Distribution centers
Other retail facilities

20% or less80%
or moreShopping centers
for daily needs

The Fukuoka area

Focus onthe four major
metropolitan
areas
The Greater Nagoya area

Investment in land - Seeking additional growth opportunities
We also seek investment opportunities in the underlying land of retail properties anddistribution centers• Strong demand from retail tenants (the majority of buildings on land-only properties
held by J-REITs are retail facilities)• Maintain maximum value upon termination of lease term, as the land is expected tobe returned in its original state• Investment in lands would be limited to 20% of the portfolio (based on acquisition
price) as our general policy
Beneficial relationship for both Asset Manager and tenants
Advantages to Asset Manager

Advantages to tenants• Generation of long-term stable rents due to a decreaseof vacancy risks because tenants will own buildings
pursuant to fixed-term land lease agreements• Stabilization of rent revenue as tenants will pay
maintenance costs related to the buildings on such land
• Improvement of payout ratio as depreciation costs ofbuildings are borne by tenants• Limited downside risk related to their asset valuecaused by external factors, such as fires• Tenants that are both the lessee and property ownerbear a smaller financial burden when opening a store• Increased capital efficiency through treatment of land as
off-balance sheet• Simplified procedures for interior renovation of buildings

Note: Target areas for distribution centers include locations near expressways or major public highways and easy access to a major metropolitan area or an ordinance-designated city and core city.

41

Key characteristics of KRR

Retail property trends and macroeconomic conditions
Demographic shift in Japan(million people)
140

Population share in Japan by area

Projections

（%）
40

（%）

30

60

Projections

70

120

Shrinking retailtrade area
due to aging andconcentrating
population in Japan

100
80

20

60

40

40

10
30

20
0

50

1990

1995 2000
14 and under

2005

2010
15-64

2015

2020 2025
65 and over

2030

0

2035 2040
aging rate (Note)

Source: Ministry of Internal Affairs and Communications, National Institute of Population and Social
Security Research (as of 2017)

Retail market trends in Japan120(FY2002=100)

20
1990 1995 2000 2005 2010
Four major metropolitan areas

Retail property opening applications by property size
3.8

110

90

11.4

100

80

Changing retail80

facilities

70

15.3

2.7
10.4

2.5
9.6

13.8

18.8

73.0

69.0

1.2
3.5

0.8
4.4

18.6

21.4

76.7

73.4

1.0
2.6

0.7
4.3

1.1
4.3

1.3
3.1

1.2
2.5

13.4

14.6

15.3

14.5

14.5

0.9
2.4
11.9

83.1

80.4

79.3

81.0

81.8

84.9

1.2
3.8

15.6

1.1
1.8
11.1

0.5
3.8
12.2

0.7
3.7
7.4

83.6

88.3

0.9
2.8
21.4

70
0
60
50

60

69.5

79.5

86.1

74.9

40

50

0
30

40
0
2002

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2004
2006
2008
2010
Groceries
GMS
Source: Ministry of Economy, Trade and Industry

2012
2014
2016
Department store

2018
2020
All retails

5,000㎡ or less0%

5,000㎡-10,000㎡

20%

40%

O f f i ce su p p l i e s, st a t i o n a r y

60%

80%

Over30,000㎡

Low e-commerce penetration in the purchase of fresh foods
100%

Others6.4%

41.8%

Ho me a p p l i a n ce s, AV e q u i p me n t ,PCs a n d p e r i p h e r a l s, e t c.
Bo o ks, vi d e o / mu si c so f t wa r e

10,000㎡-30,000㎡

Source: Ministry of Economy, Trade and Industry

Foods, etc. with relatively low e-commerce penetration

Shopping
centers for dailyneeds are highly
resistant to
e-commerce

2045
Other areas

Source: Ministry of Internal Affairs and Communications, National Institute of Population and Social
Security Research

100

90

2015 2020 2025 2030 2035 2040
Ordinance-designated cities and core cities

34.2%

E-commerce

0.3%

32.8%

Furniture, interior

23.3%

Clothing and accessories, etc.

GMS
29.8%

13.9%

Co sme t i cs a n d p h a r ma ce u t i ca l s

6.0%

Foods, beverages, alcohol

2.9%

Ca r s, mo t o r cycl e s, p a r t s, e t c.

2.9%

Others0.9%Grocery supermarket
63.5%

e - co mme r ce r a t i o

Source: FY2019 E-Commerce Market Survey by the Ministry of Economy, Trade and Industry

Source: 2021 Supermarket White Paper by the National Supermarket Association of Japan

42

Key characteristics of KRR

Overview of the Kenedix GroupThe Kenedix Group’s total AUM

The Kenedix Group’s strong commitment to J-REITs

J-REIT

Total AUM: JPY 2,383.8 bn (as of Mar. 30, 2021)(JPY bn)
Proprietary investments

Private funds / Private REIT / Foreign REIT

J-REIT: JPY 1,372.5
1,203.3 bn
2,392
62

2,340
86

Kenedix Office Investment
Corporation

Kenedix Residential Next
Investment Corporation

Kenedix Retail REIT
Corporation

2,383
110

2,098

2,003

81

92

922
1,703
Japan Logistics Fund Inc.

1,644

1,058

1,069

1,195

1,203

602

72

KDX 10% ownership in AM

658

83

1,480
132

Private REIT / Private funds / Foreign REIT : JPY 1,069.5 bn

428
431

1,206
1,097
Private funds

1,111

Foreign REIT

Kenedix Private Investment
Corporation

939

161

152

1,117

96

438

92

496

162
542
548

Breakdown of AUM as of Mar. 31, 2021

531

1,308
1,140

432
Properietaryinvestments
4.7%

0.0%

20.0%

40.0%

60.0%

80.0%

1,407

909

Private REIT /Private funds /Foreign REIT
44.9%

J-REIT
50.5%

1,190

1,358

613
344

100.0%

387

427

482

as of
as of
as of
as of
as of
as of
as of
as of
as of
as of
as of
as of
as of
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Mar. 31,
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021

Note 1: The Kenedix Group’s total AUM includes proprietary investments of JPY 110.9 bn.
Note 2: The Kenedix Group’s total AUM as of Sep. 30, 2020 included Premier Investment Corporation’s AUM of JPY 246.7 billion, but this was excluded from the Kenedix Group’s total AUM after Oct. 2020.

43

06

Portfolio and unitholder information

Security Code
Security Code3453

Portfolio and unitholder information

Portfolio map (as of Apr. 30, 2021)
NSC
T-11

SM

R-4

R-1
T-12

Urban Station-Front SC
L-3

SS

Sapporo Shiroishi
Distribution Center

L-8

Distribution Centers

UnicusUrawamisono(land)
T-23

R-11

Population growth rate
(KRR portfolio)

T-32

T-9
R-9
T-3

T-8
R-2

Kitera Town
Chofu

R-3

F-1

R-6

T-5

T-4

+6.9％

F-2

T-7

L-5

T-17

T-31

T-22

T-19
T-27

T-28

L-6

T-20

T-2
T-15

T-16
F-3

L-1
T-26
R-5
T-10

T-6

L-7

T-24
T-13

T-21

L-4

T-30

Monenosato Mall

Chiba-Kita
Distribution Center

T-29

T-25

T-18
L-2

Apita Terrace
Yokohama
Tsunashima

Population growth rate
(KRR portfolio)+2.3％

Population growth rate
(KRR portfolio)

N-2

+0.4％

Population growth rate
(Trade area of KRR portfolio) (Note)
O-4

O-10

MeradoDaikai

-0.8％

O-7
O-5

O-1

Population growth rateof Japan (Note)

N-7

O-3

+2.0％

O-12

O-9

Population growth rate
(KRR portfolio)

N-1

+2.1％

N-4
N-6

O-2
O-11

R-10

R-8

O-6

Note: Population growth rates are based on 2010 and 2015 census. “Population growth rate (Trade area of portfolio)” is calcul ated as the growth rate of the population within a 3km radius of KRR’s retail properties (1km or 2km radius for some of the properties).

45

Portfolio and unitholder information

Portfolio overview (as of Apr. 30, 2021)
No.

Name of property

Location(city/ward, prefecture)

Acquisition
price(JPY mn)

T-2
T-3
T-4
T-5
T-6
T-7
T-8
T-9
T-10
T-11
T-12
T-13
T-15
T-16
T-17
T-18
T-19
T-20
T-21
T-22
T-23
T-24

MONA Shin-Urayasu
Passaggio Nishiarai
Daikanyama Address Dixsept (30% quasi-co-ownership)
Unicus Ina (80% quasi-co-ownership)
Yorktown Kita-Kaname
Unicus Yoshikawa
Sports Club Renaissance Fujimidai
Super Viva Home Iwatsuki (Land)
K’s Denki Shonan-Fujisawa (Land)
Unicus Kamisato (Land)
Unicus Konosu (Land)
Inageya Yokohama Minamihonjuku (Land)
Nakamachidai Tokyu Store
Central Wellness Club Nagatsuta MinamidaiLife Kameido
Totsuka-Fukaya Shopping Center (Land)
Yumemachi Narashinodai Mall
Kawamachi Yahagi Mall
Prime Square Jiyugaoka
Round1 Ichikawa-Onitaka
Ozeki Tokiwadai
Konami Sports Club Shibuya
Apita Terrace Yokohama Tsunashima ①(51% quasi-co-ownership)②(49% quasi-co-ownership)
Kalsa Hiratsuka
Monenosato Mall
KDX Chofu Building (Retail wing)
Across Plaza Urayasu Higashino (Land)
Comfort Market Nishi-Magome
Kitera Town Chofu
Unicus Urawamisono (Land)
Blumer Maitamon
Life Takadono (Land)DCM Kahma MEGA Don Quijote UNY Omihachiman
Blumer HAT Kobe

Urayasu, Chiba
Adachi ward, Tokyo
Shibuya ward, Tokyo
Kitaadachi-gun, Saitama
Hiratsuka, Kanagawa
Yoshikawa, Saitama
Nerima ward, Tokyo
Saitama, Saitama
Fujisawa, Kanagawa
Kodama-gun, Saitama
Konosu, Saitama
Yokohama, Kanagawa
Yokohama, Kanagawa
Yokohama, Kanagawa
Koto ward, Tokyo
Yokohama, Kanagawa
Funabashi, Chiba
Chiba, Chiba
Meguro ward, Tokyo
Ichikawa, Chiba
Itabashi ward, Tokyo
Shibuya ward, Tokyo

8,063
5,850
5,390
4,470
4,000
3,600
2,586
4,815
3,169
3,000
1,700
1,442
3,360
1,724
1,450
4,170
3,416
3,097
2,820
1,880
1,263
3,400
①5,899②5,667
5,980
2,410
2,300
2,248
1,920
10,500
732
8,389
2,685
2,140
11,000

T-25
T-26
T-27
T-28
T-29
T-30
T-31
T-32
O-1
O-2
O-3
O-4

Yokohama, Kanagawa
Hiratsuka, Kanagawa
Yotsukaido, Chiba
Chofu, Tokyo
Urayasu, Chiba
Ota ward, Tokyo
Chofu, Tokyo
Saitama, Saitama
Kobe, Hyogo
Osaka, Osaka
Omihachiman, Shiga
Kobe, Hyogo

Appraisal
Appraisal NOI Occupancy rate
value
yield
(%)
(JPY mn)
(%)
9,980
6.6
94.6
6,530
5.0
100.0
1,875
4.1
97.2
4,216
5.6
100.0
4,340
5.4
100.0
3,860
5.2
99.6
2,750
5.0
100.0
5,530
4.1
100.0
3,450
5.0
100.0
3,050
4.6
100.0
1,780
4.6
100.0
1,380
4.5
100.0
3,740
5.4
100.0
1,780
5.3
100.0
1,480
4.4
100.0
4,330
4.6
100.0
3,500
5.1
100.0
3,240
5.2
100.0
2,810
4.1
100.0
1,960
5.2
100.0
1,340
4.6
100.0
3,380
4.0
100.0
①6,1204.7
100.0②5,930
6,010
4.7
100.0
2,970
5.4
100.0
2,470
5.5
100.0
2,310
4.0
100.0
1,990
4.4
100.0
11,400
5.2
96.7
817
4.6
100.0
11,400
5.2
96.7
817
4.6
100.0
9,580
6.1
99.8
3,140
4.8
100.0

Note 1: The figures are as of March 31, 2021. “Appraisal value” and “Appraisal NOI yield” are as of March 1, 2021 for Apita Terrace Yokohama Tsunashima (49% quasi-co-ownership), Kitera Town Chofu, Unicus Urawamisono (Land) and Merado Daikai.
Note 2: The acquisition price and appraisal value of Unicus Ina and Daikanyama Address Dixsept are the figures as March 31, 2021 multiplied by the ownership share as of April 30, 2021.
Note 3: In case of a master lessee with pass-through type master lease agreements, the number of end tenants is in parentheses after the number of master lessee. In the case of a master lessee with a sub-lease type master lease agreement,
the number of the master lessee is shown.

Number oftenants
1(53)
1(41)
1(26)
1
1
1(9)
1
1
1
1
1
1
1
2
1
2
1(14)
1(12)
2
1
1
1
1
3
1(11)
3
1
1
1(26)
1
50
1
2
1(40)

46

Portfolio and unitholder information

Portfolio overview (as of Apr. 30, 2021)
No.
O-5
O-6
O-7
O-9
O-10
O-11
O-12
N-1
N-2
N-4
N-6
N-7
F-1
F-2
F-3
R-1
R-2
R-3
R-4
R-5
R-6
R-8
R-9
R-10
R-11
L-1
L-2
L-3
L-4
L-5
L-6
L-7
L-8

Name of property

Location
Acquisition price(city/ward, prefecture)(JPY mn)

Carino Esaka
COMBOX Komyoike
Hankyu Oasis Hirakatadeguchi
Life Nishi-Tengachaya
Million Town Tsukaguchi (Land)
Habikigaoka Shopping Center
Merado Daikai
DCM Kahma Nakagawa Tomita (Land)
Valor Ichinomiya-Nishi
Homecenter Kohnan Sunadabashi
Resora Obu Shopping Terrace
Valor Nakashidami (Land)
Sunny Noma
Round1 Stadium Hakata-Hanmichibashi
Kurume-Nishi Shopping Center
Roseo Mito
K's Denki Aomori Honten
Super Sports Xebio Aomori-Chuo
Ashico Town Ashikaga
Yorktown Shinden-Higashi
Kasumi Technopark Sakura
P-1 Plaza Tenno
Seiyu Rakuichi Moriya (Land)Sun Street Hamakita
Costco Wholesale Sapporo Warehouse

Suita, Osaka
Izumi, Osaka
Hirakata, Osaka
Osaka, Osaka
Amagasaki, Hyogo
Habikino, Osaka
Kobe, Hyogo
Nagoya, Aichi
Ichinomiya, Aichi
Nagoya, Aichi
Obu, Aichi
Nagoya, Aichi
Fukuoka, Fukuoka
Fukuoka, Fukuoka
Kurume, Fukuoka
Mito, Ibaraki
Aomori, Aomori
Aomori, Aomori
Ashikaga, Tochigi
Sendai, Miyagi
Tsukuba, Ibaraki
Hamamatsu, Shizuoka
Moriya, Ibaraki
Hamamatsu, Shizuoka
Sapporo, Hokkaido

Zama Distribution Center
Oppama Distribution Center
Musashi Ranzan Distribution Center
Yokohama Kamigo Distribution Center
Gyoda Distribution Center
Shinjuku Nishiochiai Distribution Center
Chiba-kita Distribution Center
Sapporo Shiroishi Distribution Center
Total / Average

Zama, Kanagawa
Yokosuka, Kanagawa
Hiki-gun, Saitama
Yokohama, Kanagawa
Gyoda, Osaka
Shinjuku ward, Tokyo
Chiba, Chiba
Sapporo, Hokkaido

6,555
6,450
1,280
1,505
3,723
2,000
5,440
2,311
2,174
7,140
7,911
2,551
1,497
5,020
1,515
10,046
1,469
898
4,180
3,252
830
4,010
4,111
10,746
4,210
1,400
1,300
3,879
918
3,160
810
1,250
800
246,554

Appraisal
value(JPY mn)
7,260
6,460
1,300
1,690
3,990
2,020
5,780
2,680
2,360
7,540
7,040
2,550
1,650
5,780
1,840
12,000
1,520
911
4,900
2,600
888
4,350
4,280
11,160
4,410
1,740
1,630
4,170
1,020
3,510
821
1,340
1,020
264,838

Appraisal NOI
yield
(%)

Occupancy rate
(%)

5.2
6.0
5.9
5.3
4.2
5.3
5.3
5.0
6.0
5.5
4.6
4.7
5.3
5.7
6.1
5.9
6.2
6.3
6.2
4.8
6.2
5.8
4.1
5.9
4.8
6.0
6.6
5.7
5.1
5.7
4.3
4.6
7.3
5.3

98.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
98.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.1
100.0
100.0
100.0
100.0
99.4
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.7

Note 1: The figures are as of March 31, 2021. “Appraisal value” and “Appraisal NOI yield” are as of March 1, 2021 for Apita Terrace Yokohama Tsunashima (49% quasi-co-ownership), Kitera Town Chofu, Unicus Urawamisono (Land) and Merado Daikai.
Note 2: The acquisition price and appraisal value of Unicus Ina and Daikanyama Address Dixsept are the figures as March 31, 2021 multiplied by the ownership share as of April 30, 2021.
Note 3: In case of a master lessee with pass-through type master lease agreements, the number of end tenants is in parentheses after the number of master lessee. In the case of a master lessee with a sub-lease type master lease agreement,
the number of the master lessee is shown.

Number oftenants
1(29)
1
1
1
1
2
7
1
1
1
1(42)
1
1
1
4
1(23)
1
1
1(29)
2
1
7
1
1(53)
1
1
1
1
2
1
1
1
1
536

47

Portfolio and unitholder information

Appraisal value (properties as of Mar. 31, 2021) (1)
Income capitalization approach value
No.

Property nameAppraisal date

Appraisal value(JPY mn)

Direct capitalization method

DCF method

Direct cap rate (%)
Previous

LatestChanges

Previous

LatestDiscount rate (%)

Changes

Previous

LatestTerminal cap rate (%)

Changes

Previous

LatestChanges

T-2
T-3
T-4
T-5
T-6
T-7
T-8
T-9
T-10
T-11
T-12
T-13
T-15
T-16
T-17
T-18
T-19
T-20
T-21
T-22
T-23
T-24
T-25
T-26
T-27
T-28
T-29
T-30
O-1

MONA Shin-Urayasu
Passaggio Nishiarai
Daikanyama Address Dixsept
Unicus Ina
Yorktown Kita-Kaname
Unicus Yoshikawa
Sports Club Renaissance Fujimidai
Super Viva Home Iwatsuki (Land)
K’s Denki Shonan-Fujisawa (Land)
Unicus Kamisato (Land)
Unicus Konosu (Land)
Inageya Yokohama Minamihonjuku (Land)
Nakamachidai Tokyu Store
Central Wellness Club Nagatsuta MinamidaiLife Kameido
Totsuka-Fukaya Shopping Center (Land)
Yumemachi Narashinodai Mall
Kawamachi Yahagi Mall
Prime Square Jiyugaoka
Round1 Ichikawa-Onitaka
Ozeki Tokiwadai
Konami Sports Club Shibuya
Apita Terrace Yokohama Tsunashima
Kalsa Hiratsuka
Monenosato Mall
KDX Chofu Building (Retail wing)
Across Plaza Urayasu Higashino (Land)
Comfort Market Nishi-Magome
Blumer Maitamon

Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021

10,000
6,620
6,120
5,240
4,350
3,860
2,750
5,470
3,470
3,050
1,780
1,390
3,750
1,780
1,490
4,320
3,520
3,240
2,820
1,970
1,340
3,390
6,170
6,020
2,530
2,480
2,310
2,000
9,610

9,980
6,530
3,750
5,270
4,340
3,860
2,750
5,530
3,450
3,050
1,780
1,380
3,740
1,780
1,480
4,330
3,500
3,240
2,810
1,960
1,340
3,380
6,120
6,010
2,970
2,470
2,310
1,990
9,580

-20
-90
78
30
-10
0
0
60
-20
0
0
-10
-10
0
-10
10
-20
0
-10
-10
0
-10
-50
-10
440
-10
0
-10
-30

4.6
4.3
3.3
4.5
4.9
4.7
4.6
4.6
5.0
4.2
4.7
4.9
4.8
3.6
4.8
4.2
3.8
4.3
4.4
4.9
4.6
4.2
4.2
5.2

4.6
4.3
3.3
4.5
4.9
4.7
4.6
4.6
5.0
4.2
4.7
4.9
4.8
3.6
4.8
4.2
3.8
4.3
4.4
4.9
4.6
4.2
4.2
5.2

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

4.3
4.1
3.1
4.2
4.7
4.5
4.4
4.6
4.3
4.6
4.5
4.0
4.4
4.8
3.9
4.6
4.7
4.6
3.4
4.6
4.0
3.9
4.1
4.1
4.8
4.2
4.1
4.2
5.3

4.3
4.1
3.1
4.2
4.7
4.5
4.4
4.6
4.3
4.6
4.5
4.0
4.4
4.8
3.9
4.6
4.7
4.6
3.4
4.6
4.0
3.9
4.1
4.1
4.7
4.2
4.1
4.2
5.3

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0
0.0

4.8
4.5
3.5
4.7
5.1
4.9
4.8
4.8
5.2
4.4
5.1
5.0
3.8
5.0
4.4
4.0
4.5
4.6
5.3
4.8
4.4
5.4

4.8
4.5
3.5
4.7
5.1
4.9
4.8
4.8
5.2
4.4
5.1
5.0
3.8
5.0
4.4
4.0
4.5
4.6
5.2
4.8
4.4
5.4

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
0.0

O-2

Central Square Takadono (Land)DCM Kahma MEGA Don Quijote UNY
Omihachiman
Blumer HAT Kobe

Mar. 31, 2021

3,140

3,140

0

-

-

-

3.9

3.9

0.0

-

-

-

Mar. 31, 2021

2,590

2,590

0

5.8

5.8

0.0

5.5

5.5

0.0

6.0

6.0

0.0

Mar. 31, 2021

11,00011,000

0

4.9

4.9

0.0

4.7

4.7

0.0

5.1

5.1

0.0

O-3
O-4

Note 1: “Previous” refers to appraisal value at the previous appraisal dated Sep. 30, 2020 for properties acquired by 10th period, dated Dec. 1, 2020 for Chiba-kita Distribution Centar and Sapporo Shiroishi Distribution Center. “Latest” refers to the latest appraisal date.
Discount rate for DCF method shows the discount rate for the nearest period.
Note 2: “Direct cap rate”, “Discount rate” and “Terminal cap rate” for Ashikaga show the rates for the building. “Direct cap rate”, “Discount rate” and “Terminal cap rate” for Kamigo show the rates for the distribution center and its site.

48

Portfolio and unitholder information

Appraisal value (properties as of Mar. 31, 2021) (2)Income capitalization approach value
No.

Property nameAppraisal date

Appraisal value(JPY mn)

Direct capitalization method
Direct cap rate (%)

O-5
O-6
O-7
O-9
O-10
O-11
N-1
N-2
N-4
N-6
N-7
F-1
F-2
F-3
R-1
R-2
R-3
R-4
R-5
R-6
R-8
R-9
R-10
R-11
L-1
L-2
L-3
L-4
L-5
L-6
L-7
L-8

Carino Esaka
COMBOX Komyoike
Hankyu Oasis Hirakatadeguchi
Life Nishi-Tengachaya
Million Town Tsukaguchi (Land)
Habikigaoka Shopping Center
DCM Kahma Nakagawa Tomita (Land)
Valor Ichinomiya-Nishi
Homecenter Kohnan Sunadabashi
Resora Obu Shopping Terrace
Valor Nakashidami (Land)
Sunny Noma
Round1 Stadium Hakata-Hanmichibashi
Kurume-Nishi Shopping Center
Roseo Mito
K’s Denki Aomori Honten
Super Sports Xebio Aomori-Chuo
Ashico Town Ashikaga
Yorktown Shinden-Higashi
Kasumi Technopark Sakura
P-1 Plaza Tenno
Seiyu Rakuichi Moriya (Land)Sun Street Hamakita
Costco Wholesale Sapporo Warehouse
Zama Distribution Center
Oppama Distribution Center
Musashi Ranzan Distribution Center
Yokohama Kamigo Distribution Center
Gyoda Distribution Center
Shinjuku Nishiochiai Distribution Center
Chiba-kita Distribution Center
Sapporo Shiroishi Distribution Center
Total

Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021
Mar. 31, 2021

Previous

Latest

7,190
6,490
1,330
1,690
3,980
2,020
2,690
2,360
7,280
7,050
2,560
1,640
5,760
1,840
12,000
1,520
912
4,660
2,610
879
4,350
4,260
11,160
4,420
1,690
1,600
4,090
970
3,440
821
1,340
1,020
242,744

7,260
6,460
1,300
1,690
3,990
2,020
2,680
2,360
7,540
7,040
2,550
1,650
5,780
1,840
12,000
1,520
911
4,900
2,600
888
4,350
4,280
11,160
4,410
1,740
1,630
4,170
1,020
3,510
821
1,340
1,020
243,840

Changes

70
-30
-30
0
10
0
-10
0
260
-10
-10
10
20
0
0
0
-1
240
-10
9
0
20
0
-10
50
30
80
50
70
0
0
0
1,096

Previous

4.3
5.3
5.5
4.6
5.1
5.1
4.8
4.9
4.4
4.9
4.8
4.8
5.5
5.5
5.3
5.5
5.1
5.1
4.3
5.4
4.5
4.7
4.8
5.2
4.5
5.0
4.0
4.1
5.4
-

Latest

4.3
5.3
5.6
4.6
5.1
5.1
4.9
4.9
4.4
4.9
4.8
4.8
5.5
5.5
5.3
5.5
5.1
5.1
4.3
5.4
4.5
4.6
4.7
5.1
4.4
4.9
4.0
4.1
5.4
-

DCF method
Discount rate (%)

Changes

0.0
0.0
0.1
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
0.0
0.0
-

Previous

4.0
4.9
5.3
4.7
4.0
5.1
4.3
4.8
4.6
5.0
4.1
4.2
4.6
4.5
4.5
5.2
5.2
5.1
5.3
4.9
4.8
4.2
5.1
4.2
4.7
4.9
5.2
4.5
4.9
3.6
3.9
5.2
-

Latest

4.0
4.9
5.4
4.7
4.0
5.1
4.3
4.8
4.7
5.0
4.1
4.2
4.6
4.5
4.5
5.2
5.2
5.1
5.3
4.9
4.8
4.2
5.1
4.2
4.6
4.8
5.1
4.5
4.8
3.6
3.9
5.2
-

Terminal cap rate (%)

Changes

0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
0.0
-0.1
0.0
0.0
0.0
-

Previous

4.5
5.4
5.7
4.8
5.3
5.3
5.0
5.1
4.8
5.1
5.0
5.0
5.7
5.7
5.5
5.7
5.3
5.3
5.7
4.7
4.9
5.0
5.4
4.7
5.2
4.1
4.3
5.6
-

Latest

4.5
5.4
5.8
4.8
5.3
5.3
5.1
5.1
4.8
5.1
5.0
5.0
5.7
5.7
5.5
5.7
5.3
5.3
5.7
4.7
4.8
4.9
5.3
4.6
5.1
4.1
4.3
5.6
-

Note 1: “Previous” refers to appraisal value at the previous appraisal dated Sep. 30, 2020 for properties acquired by 11th period, dated Dec. 1, 2020 for Chiba-kita Distribution Center and Sapporo Shiroishi Distribution Center. “Latest” refers to the latest appraisal date.
Discount rate for DCF method shows the discount rate for the nearest period.
Note 2: “Direct cap rate”, “Discount rate” and “Terminal cap rate” for Ashikaga show the rates for the building.

Changes

0.0
0.0
0.1
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
0.0
0.0
-

49

Portfolio and unitholder information

Income and expenses of assets(JPY mn)

Revenues and expenses of nine assets with sales-linked rent
PeriodShin-Urayasu
11th
12th

Nishiarai
11th
12th

Daikanyama
11th
12th

Maitamon11th
12th

HAT Kobe
11th
12th

Esaka
11th
12th

Obu
11th

Ashikaga
11th
12th

12th

Hamakita
11th
12th

Rent (fixed)

315

308

207

218

171

131

351

358

357

358

145

150

208

207

175

193

429

437

Rent (sales-linked)

30

34

7

9

4

3

9

10

8

9

31

38

14

16

5

8

4

9

Utility charge reimbursement

38

35

37

34

29

16

95

76

72

59

26

25

48

38

62

49

56

50

Penalty restoring reimbursement

12

4

-

-

-

1

-

6

3

10

-

-

-

9

-

-

-

10

Other revenues

101

104

26

30

45

33

29

30

36

35

76

76

15

15

11

9

23

30

Revenues

498

486

279

292

250

186

485

481

477

473

280

292

285

287

255

260

513

537

PM fees

78

77

47

48

53

38

62

64

68

68

42

39

37

38

39

42

68

70

Utilities

54

39

29

24

33

18

63

53

56

46

33

25

42

35

56

44

40

35

Taxes

23

23

35

35

12

11

41

41

47

47

25

25

26

26

24

25

25

25

Repairs and maintenance

27

41

18

2

3

4

6

3

2

16

5

4

22

9

28

2

13

13

Others

39

53

8

13

34

31

20

23

14

19

3

3

10

15

6

15

61

67

Expenses

222

235

139

124

137

104

194

186

190

198

109

98

140

125

155

130

209

212

NOI

276

250

139

168

112

81

290

295

287

274

171

193

145

162

100

130

303

324

Revenues and expenses of assets without sales-linked rent
Existing properties
Multi-tenant properties
PeriodRent (fixed)
Rent (sales-linked)
Utility charge reimbursement

11thSingle-tenant properties

12th

1,674

Properties acquired since 10th period

11th

1,695

Multi-tenant properties

12th

3,027

11th

Disposed properties

Single-tenant properties

12th

11th

Multi-tenant properties

12th

11th

Single-tenant properties

12th

11th

12th

3,027

18

24

44

84

-

-

33

-

-

-

-

-

-

-

-

-

-

-

-

-

95

79

14

10

-

-

-

-

-

-

-

-

Penalty restoring reimbursement

1

-

-

-

-

-

-

-

-

-

-

-

Other revenues

32

34

2

6

-

-

-

-

-

-

-

-

Revenues

1,804

1,811

3,044

3,044

18

24

44

84

-

-

33

-

PM fees

110

114

71

71

2

1

1

2

-

-

1

-

Utilities

93

74

14

10

-

-

-

-

-

-

-

-

Taxes

173

173

296

296

2

2

-

-

-

-

3

-

Repairs and maintenance

53

47

57

38

-

-

-

-

-

-

-

-

Others

31

32

24

25

-

-

-

1

-

-

-

-

Expenses
NOI

462

442

464

442

5

4

2

3

-

-

4

-

1,341

1,369

2,579

2,602

13

20

42

80

-

-

28

-

Note: “Existing properties” refer to properties acquired by the end of 10th FP, excluding disposed properties.

50

Portfolio and unitholder information

Portfolio highlights (Tokyo metropolitan area) (1)
Name

T-2

MONA
Shin-Urayasu

T-3

Passaggio Nishiarai

T-4

Daikanyama
Address Dixsept

T-5

Unicus Ina

T-6

Yorktown
Kita-Kaname

Photo

Location
Acquisition price (JPY)

Highlights

Name

Urayasu, Chiba

Adachi ward, Tokyo

Shibuya ward, Tokyo

Kitaadachi-gun, Saitama

Hiratsuka, Kanagawa

8,063 mn
5,850 mn
5,390 mn
3,576 mn
4,000 mn
⚫ Located in front of Shin⚫ The surrounding area has a ⚫ Scheduled to be disposed of ⚫ Highly competitive by⚫ Population increase with
Urayasu Sta. (17 min fromsignificant inflow of families
on December 1, 2020, April
housing supermarket Yaoko
residential developments
Tokyo Sta. by train)
due to large developments
1, 2021 and October 1, 2021 among other tenants⚫ Plays an important role in the⚫ Approx. 60 tenants, including ⚫ Houses an apparel store,⚫ The population in thelocal community by housing
supermarkets and apparelrestaurants, etc.
surrounding area istenants including astoresincreasing by continued
supermarket, a drug store⚫ Conducted renovations inresidential developments
and a restaurant2017 and 2018
⚫ Constructed a restaurant
building in 2017
Super Viva Home
Unicus Kamisato
Sports Club
K’s DenkiT-7 Unicus Yoshikawa
T-8 Renaissance Fujimidai
T-9
T-10 Shonan-Fujisawa (Land) T-11
Iwatsuki (Land)(Land)

Photo

Location

Yoshikawa, Saitama

Nerima ward, Tokyo

Saitama, Saitama

Fujisawa, Kanagawa

Kodama-gun, Saitama

Acquisition price (JPY)3,600 mn

2,586 mn

4,815 mn

3,169 mn

3,000 mn

Highlights

NSC

SM

CSC

⚫ Conveniently located along a ⚫ A well-equipped⚫ Comprises a large home and ⚫ Faces major routes, which ⚫ Underlying land of the largest
heavily traveled road in amembership-based healthgarden store, a supermarket give the property a wide
NSC in Kamisato developed
population increasing areaclub with a gym, two studios
and a food court
retail trade area
by P&D⚫ Houses a supermarket, Life,and a swimming pool
⚫ A number of major routes⚫ More than ten years remain ⚫ Competitive due to its
and a home and garden⚫ Large housing developments near the property potentiallyon a fixed-term land lease
concentration of highly
store, Kohnan, as anchor
surrounding Fujimidai Sta.
enlarge trade areas including with K’s Holdings
recognizable tenants
tenants(15min from Ikebukuro Sta.
adjacent cities
including a supermarket andby train)
a cinema complex
Urban Station-Front SC

SS

Distribution Centers

51

Portfolio and unitholder information

Portfolio highlights (Tokyo metropolitan area) (2)
Name

T-12

Unicus Konosu(Land)

T-13 Minamihonjuku (Land)

Nakamachidai
Tokyu Store

T-16 Nagatsuta Minamidai

Konosu, Saitama

Yokohama, Kanagawa

Yokohama, Kanagawa

Yokohama, Kanagawa

Koto ward, Tokyo

1,700 mn

1,442 mn

3,360 mn

1,724 mn

1,450 mn

Inageya Yokohama

T-15

Central Wellness Club

T-17 Life Kameido

Photo

Location
Acquisition price (JPY)

Highlights

Name⚫ Underlying land of the largest ⚫ Underlying land of Inageya ⚫ A station-front NSC in an⚫ Located in an area with high ⚫ A supermarket located in
NSC in Konosu developed
grocery supermarket opened area with high population
population growth, housing a one of the most densely
by P&Din Mar. 2015
growth and easy access tohealth club as its core tenant populated retail trade areas⚫ Easy access and high⚫ Comprises a trade area that
central Tokyo⚫ Convenient car access duein Tokyovisibility by car given its
cater daily needs together⚫ Houses a supermarket andto its roadside location, with ⚫ A large-scale condominium
location facing the largest
with a restaurant and a drug other retailers that cater daily good visibility
consisting of approx. 700
trunk road within the relevant store nearby
needs
residential units in the
trade area
neighborhood
Totsuka Fukaya

T-18 Shopping Center (Land)

T-19

Yumemachi
Narashinodai Mall

T-20

Kawamachi
Yahagi Mall

T-21

Prime Square
Jiyugaoka

T-22

Round1
Ichikawa-Onitaka

Photo

Location
Acquisition price (JPY)

Highlights

Meguro ward, Tokyo
Ichikawa, Chiba
Yokohama, Kanagawa
Funabashi, Chiba
Chiba, Chiba
2,820 mn
1,880 mn
4,170 mn
3,416 mn
3,097 mn
⚫ Underlying land of an NSC ⚫ Located in an area with high ⚫ A new NSC housing tenants ⚫ Located in the neighborhood ⚫ A road-side amusement
opened in Mar. 2015
population growth, housing a with a high level of customer of Jiyugaoka along the Tokyu facility located in an area
⚫ NSC houses a grocerycompetitive supermarket as
attraction
Toyoko Line
with easy access and highsupermarket and a home
the anchor tenant⚫ Located in an area with
⚫ Leased to Central Sports Co., population growthand garden store⚫ The tenants, including thesignificant population growth Ltd., a leading fitness club
⚫ Attractive occupancy cost
⚫ Located in an area withcore grocery supermarket,
potential, near a national
operatorand no other Round One
population growth, with newcater to diverse daily needs
road and a highway JCT
stores near the retail trade
residential development inof consumers⚫ Flat parking lot for up to 320
areasurrounding areas
vehicles52Portfolio and unitholder information

Portfolio highlights (Tokyo metropolitan area) (3)Name

T-23 Ozeki Tokiwadai

T-24

Konami Sports Club
Shibuya

T-25

Apita Terrace
Yokoham Tsunashima

T-26 Kalsa Hiratsuka

T-27 Monenosato Mall

Photo

Location

Itabashi ward, Tokyo

Shibuya ward, Tokyo

Yokohama, Kanagawa

Hiratsuka, Kanagawa

Yotsukaido, Chiba

Acquisition price (JPY)

1,263 mn

3,400 mn

11,567 mn

5,980 mn

2,753 mn

Highlights

Name⚫ New supermarket opened in ⚫ A sports club located in an⚫ NSC that meets diverse⚫ NSC with the retail trade⚫ NSC opened in March 2019
Sep. 2017, located in one ofupper class residential area,
customer needs andarea covering Hiratsuka and in “Monenosato,” a new town
the most densely populated
approx. 12 minutes from JR
constitutes a next-generation
Chigasaki, the core of theundergoing residential
retail trade areas in Tokyo
Shibuya Sta.
uraban smart city in an area
Shonan area
development⚫ Leased to Ozeki Co., Ltd.,⚫ Konami Sports Club is thewith a dense and growing⚫ Tenants include a grocery ⚫ Tenants include a grocery
which runs many stores inlargest sports club operator
population
supermarket, a home &supermarket Yorkmart, adensely populated areasin Japan, with Shibuya ward ⚫ Opened in March 2018,
garden store, and a generaldrugstore, an apparel store
near train stations in Tokyo
as its strategic focus area
located between Tsunashima
sporting goods shop
and a dollar shop
metropolitan areaand Hiyoshi Stations
T-28

KDX Chofu Building(Retail wing)

T-29

Across Plaza Urayasu
Higashino (Land)

T-30

Comfort Market
Nishi-Magome

T-31 Kitera Town Chofu

Ota ward, Tokyo

Chofu, Tokyo

T-32

UnicusUrawamisono (Land)

Photo

Location
Acquisition price (JPY)

Highlights

Chofu, Tokyo

Urayasu, Chiba

Saitama, Saitama

10,500 mn
732 mn2,300 mn
2,248 mn
1,920 mn
⚫ NSC located in the⚫ Underlying land for an NSC ⚫ A new-brand grocery⚫ NSC designed for frequent ⚫ NSC located in a new towncommercial and residential
opened in December 2017supermarket adjacent tocustomer visits in the Chofu
close to Urawa-Misono
district within walking⚫ The population of the area
Nishi-magome station,area, a location experiencing station, the starting station
distance of Chofu Station
has been consistently
convenient for commuting tohigh population growth andon the Saitama Rapid⚫ Tenants include grocery
growing by good accessibility central Tokyo
large-scale residential and
Railway Linesupermarket, a dollar shop, a to Tokyo CBD from the⚫ The first and second floors are infrastructure development ⚫ There are over 20 end
drug store, beauty salon, and nearest Maihama Station
used as the store space, while ⚫ Convenient car access due
tenants, including Yaoko
a health club
the third and fourth floors are
to its location along thesupermarket as well as aused as a nursery school
Koshu-Kaido Road
drug store and a dollar shop

53

Portfolio and unitholder information

Portfolio highlights (Greater Osaka area)
Name

O-1

Blumer Maitamon

O-2 LifeTakadono (Land)

O-3

DCM Kahma
MEGA Don Quijote UNY
OmihachimanO-4 Blumer HAT Kobe

O-5 Carino Esaka

Photo

Location
Acquisition price (JPY)

Highlights

Name

Kobe, Hyogo
Osaka, Osaka
8,389 mn
2,685 mn
⚫ Located within a newly⚫ A supermarket which Life
developed residential area
Corporation opened on the⚫ Consists of approx. 50
land in 2015
tenants, including a⚫ Located in a densely
supermarket, an electronic
populated area bordering
appliance store and a major
central Osakaclothing store as core⚫ Highly accessible by car as
tenants
well
Hankyu Oasis
O-6 COMBOX Komyoike
O-7
Hirakatadeguchi

Kobe, Hyogo
Suita, Osaka
Omihachiman, Shiga
11,000 mn
6,555 mn
2,140 mn
⚫ NSC consisted of two⚫ Landmark NSC in “HAT
⚫ Attractively located nearbuildings, MEGA Don Quijote Kobe District”, a revival
Esaka Sta., only 10min from
UNY and DCM Kahma
symbol project from the Kobe Umeda Sta.
(home and garden store)
earthquake⚫ The retail trade area is⚫ The trade area surrounding ⚫ Houses a cinema complex, a popular among young
Omihachiman Sta. is a
grocery store, clothing stores families
residential area with young
and restaurants⚫ Core tenant is Tokyu Hands
families
Life
Million Town
Habikigaoka
O-9
O-10
O-11
Nishi-Tengachaya
Tsukaguchi (Land)
Shopping Center

Photo

Location
Acquisition price (JPY)

Highlights

Izumi, Osaka
Hirakata, Osaka
Osaka, Osaka
Amagasaki, Hyogo
Habikino, Osaka
6,450 mn
1,280 mn
1,505 mn
3,723 mn
2,000 mn
⚫ The largest retail property in ⚫ Scheduled to be disposed of ⚫ A supermarket located in a ⚫ A newly opened NSC located ⚫ NSC located in New Town
the central area of Komyoike on August 10, 2021
densely populated retail area in an area as a part of thewith housing developments⚫ Located in the area
⚫ The tenant, Life Corporation, large-scale redevelopmentin the southeastern part ofaccessible to Namba Sta. inhas dominant strategy inproject in front of Tsukaguchi Osaka Prefecture
30 min by train
Osaka and continues store
Sta.
⚫ Consists of Sunplaza, a
opening⚫ Opened with grocery
grocery supermarket, andsupermarket Mandai as a
Joshin, a consumer
core tenant, as well as aelectronics store, as coredrug store and clinics
tenants

54

Portfolio and unitholder information

Portfolio highlights (Greater Osaka area / Nagoya / Fukuoka )Name

O-12 Merado Daikai

N-1

DCM Kahma Nakagawa
Tomita (Land)

N-2

Valor
Ichinomiya-Nishi

N-4

Homecenter Kohnan
Sunadabashi

N-6

Resora Obu
Shopping Terrace

Photo

Location
Acquisition price (JPY)

Highlights

Name

Kobe, Hyogo

Nagoya, Aichi

Ichinomiya, Aichi

Nagoya, Aichi

Obu, Aichi

5,440 mn

2,311 mn

2,174 mn

7,140 mn

7,911 mn

⚫ Located in an area with high ⚫ Located near a number of⚫ Located in a commuter town ⚫ Houses a large home and⚫ The largest NSC in Obu,
garden store and a large
population density in Hyogo- major routes
for Nagoya (10 min from
Aichi, opened in Apr. 2008
sporting goods store
ku, Kobe and convenient⚫ Comprises an integrated
Nagoya Sta. by train)
as a part of the development
within walking distance of 3
retail zone in the surrounding ⚫ NSC composed of Valor, a ⚫ A large residential property
project including a medical
was developed in thestations on 3 linesarea, together with asuccessful supermarket
mall and a condominium
neighborhood. A⚫ Kansai Supermarket, asupermarket and a sporting
chain in the Chubu Region,⚫ Yamanaka, a grocery
grocery supermarket ingoods store on the adjacent
as its core tenant, in addition supermarket also opened,supermarket as its main
generating synergies with the tenant and over 40 tenants
Osaka and Hyogo region, islot
to an electronic appliancehome and garden store
the core tenant
store and a health club
Kurume-Nishi
Valor Nakashidami
Round1 Stadium
N-7
F-1 Sunny Noma
F-2 Hakata-Hanmichibashi
F-3
Shopping Center(Land)

Photo

Location

Nagoya, Aichi

Fukuoka, Fukuoka

Fukuoka, Fukuoka

Kurume, Fukuoka

Acquisition price (JPY)

2,551 mn

1,497 mn

5,020 mn

1,515 mn

Highlights⚫ Rebuilt in 2007 after enjoying ⚫ A large-scale flagship store ⚫ An NSC located in a
⚫ Underlying land for astrong support from the local for Round One that offers astandalone grocery
residential district nearcommunity for 35 years
supermarket in the Valorvariety of amusement anddowntown Kurume City
⚫ The strongest performing
chain
sporting facilities⚫ Tenants include a grocery⚫ Valor is a supermarket chain supermarket among other⚫ Located in Fukuoka withsupermarket, a baby goods
Sunny supermarkets in thewith strong strategic
population growth
store and a drug store
surrounding area
dominance in the Tokai⚫ The store ranks high in sales ⚫ Facing a national route,regionamong all Round One stores providing good visibility

55

Portfolio and unitholder information

Portfolio highlights (Ordinance-designed cities, core cities and other areas)
Name

R-1

Roseo Mito

R-2

K’s Denki
Aomori Honten

R-3

Super Sports Xebio
Aomori-Chuo

R-4

Ashico Town
Ashikaga

R-5

Yorktown
Shinden-Higashi

Photo

Location

Mito, Ibaraki

Aomori, Aomori

Aomori, Aomori

Ashikaga, Tochigi

Sendai, Miyagi

Acquisition price (JPY)10,046 mn

1,469 mn

898 mn4,180 mn

3,252 mn

Highlights

Name⚫ Located in a population⚫ Opened in 2005 in Hamada ⚫ Located in Hamada district in ⚫ A large-scale multi-tenant⚫ Located in eastern Sendai
growing area with many
District in Aomori, which has
Aomori
NSC with supermarket as aconveniently commutable toyoung families
the highest concentration of ⚫ Some major routes bringcore tenant
Sendai Sta.
⚫ Houses a supermarket and a retailers in Aomori
customers from broad retail ⚫ Easily accessibility by car⚫ Houses a supermarket and ahome and garden store as
trade area
due to its location along ahome and garden store ascore tenants
major local route
core tenants⚫ Constructed a secondhand⚫ Cinema reopened in Mar.
shop building in 2015
2016
Kasumi Technopark
Seiyu Rakuichi
Costco Wholesale
R-6
R-8 P-1 Plaza Tenno
R-9
R-10 Sun Street Hamakita R-11
SakuraMoriya (Land)
Sapporo Warehouse

Photo

Location
Acquisition price (JPY)

Highlights

Tsukuba, Ibaraki
Hamamatsu, Shizuoka
Moriya, Ibaraki
Hamamatsu, Shizuoka
Sapporo, Hokkaido
830 mn4,010 mn
4,111 mn
10,746 mn
4,210 mn
⚫ 24-hour Kasumi supermarket ⚫ Located in a large-scale⚫ Underlying land of an NSC⚫ Located in an area with high ⚫ Costco is a “membership⚫ The retail trade area includes retail area in northeast
with a grocery supermarket as population growthwarehouse club” with overthe college town of Tsukuba
Hamamatsu where road-side the anchor tenant⚫ Synergies among the tenants 740 warehouse stores
University
retail facilities concentrate⚫ Located in a populationthat offer services andworldwide⚫ Kasumi is headquartered in ⚫ Houses tenants including a
growing area with the 2005
experiences, with grocery⚫ Sapporo Warehouse is the
Tsukuba, and has alocal supermarket, a drug
opening of Tsukuba Express Seiyu as the core tenant
only Costco warehouse indominant presence in thestore and a relaxation spa⚫ Land acquired at a price⚫ Seiyu focuses on groceries
Hokkaido and covers
area
lower than the official landin the trend of “shift from
Sapporo metropolitan area
price
GMS to specialty stores”
as its trade area

56

Portfolio and unitholder information

Portfolio highlights (Distribution centers)
Name

L-1

Zama Distribution
CenterL-2

Oppama Distribution
CenterL-3

Musashi Ranzan
Distribution Center

L-4

Yokohama Kamigo
Distribution Center

L-5

Gyoda
Distribution Center

Photo

Location
Acquisition price (JPY)

Highlights

Name

Zama, Kanagawa

Yokosuka, Kanagawa

Hiki-gun, Saitama

Yokohama, Kanagawa

Gyoda, Saitama

1,400 mn
3,160 mn
1,300 mn
3,879 mn
918 mn⚫ Distribution center for a⚫ Core distribution center of a ⚫ Distribution center in an area ⚫ Distribution center of a home ⚫ A highly versatile storagemajor convenience store
major convenience store
with a concentration ofdelivery service firm within atype distribution center for
chain that delivers to its
chain that delivers to its
logistics facilities, near aresidential district
regional and wider area
storesstores and features a
Kan-Etsu Expressway⚫ Spaces for distributiondelivery in the metropolitan⚫ Located within Zama area in process center function
interchange
centers are limited in the
area
Kanagawa Prefecture, with a ⚫ Located within Tokyo⚫ The location allows thearea⚫ Nippon Express Co., Ltd., aconcentration of logistics
metropolitan bay area
tenant to make daily⚫ Currently leased to a major
major logistics company, isfacilities⚫ Location with high potential
deliveries to Tokyo
home delivery service firmusing the distribution center⚫ The tenant is a major
for local deliveries as well as
Metropolitan area and 24⚫ Newly constructed afor shippers of food-related
convenience store chain
wide area distribution
hour operation
restaurant building
and home appliances
Shinjuku Nishiochiai
Chiba-kita
Sapporo Shiroishi
L-6
L-7
L-8
Distribution Center
Distribution Center
Distribution Center

Photo

Location

Shinjuku ward, Tokyo

Chiba, Chiba

Sapporo, Hokkaido

Acquisition price (JPY)

810 mn1,250 mn

800 mnHighlights⚫ This facility is highly scarce ⚫ The property is located⚫ The property is located inand has optimal facility
adjacent to an interchange
Sapporo, within the Ryutsu
specifications as a last-mileon an expressway andCenter District, one of the
distribution center
National Route 16
districts with the highest⚫ A major delivery company, ⚫ There is strong demand forpotential for logistics facilities
Yamato Transport Co., Ltd.,
logistics facilities in the areain the Sapporo areais the tenant of the facility
because of an easy access ⚫ The facility is expected to be
to the Tokyo metropolitan
able to meet the needs of aareawide range of tenants

57

Portfolio and unitholder information

Unitholder information (as of Mar. 31, 2021)
Ownership ratio by investor type
Individuals and others
Other domestic corporations
Brokerage firms
Mar. 2020
10th
PeriodSep. 2020
11th
PeriodMar. 2021
12th
Period15.2%

Major unitholders

Financial institutions
Foreign investors

48.0%

15.6%

13.8%

3.8%

49.8%

29.1%

3.9%

54.1%

3.9%

27.7%

3.8%

3.1%

26.5%

Mar. 2020
10th FP

Sep. 2020
11th FPMar. 2021
12th FP

12,887

13,252

13,17713

11

11

Regional banks
Financial Shinkin banks
institutions and others
Life/ Nonlife

14

15

20

69

67

64

5

5

5

Total

101

98

100

Other domestic corporations

306

310

297

Foreign investors

239

252

252

Brokerage firms

25

29

26

Total

13,558

13,941

13,852

City/ Trust banks

Ratio
(%)

THE MASTER TRUST BANK OF JAPAN, LTD.
(Trust Acct.)

118,50222.10%CUSTODY BANK OF JAPAN, LTD.
(Trust Acct.)

51,928

9.68%

THE NOMURA TRUST AND BANKING CO., LTD.
(Investment Trust Acct.)

26,003

4.84%

CUSTODY BANK OF JAPAN, LTD.
(Securities Investment Trust Account)

17,564

3.27%

AOZORA BANK, LTD.

11,9582.23%

SSBTC CLIENT OMNIBUS ACCOUNT

11,626

2.16%

KENEDIX, INC.

10,0501.87%

STATE STREET BANK WEST CLIENT-TREATY
505234

8,928

1.66%

HOKKOKU BANK, LTD.

7,940

1.48%

STATE STREET BANK AND TRUST COMPANY
505103

6,816

1.27%

1.8%

Number of unitholders by investor type

Individuals and others# ofunits held

Name

Note: “Ratio” is based on number of units issued and outstanding, rounded down to the second decimal place.

58

Disclaimer

The contents in this document are provided solely for informational purposes and not intended for the purpose of soliciting investment in, or as arecommendation to purchase or sell, any specific products.
This document contains charts/diagrams/tables/data and others Kenedix Real Estate Fund Management (“KFM”) created based on data, indices, etc.
published by third parties, in addition to the information related to Kenedix Retail REIT Corporation (“KRR”). This document also contains the current
analyses/judgments/other opinions of KFM.
KFM is a financial instruments business operator under the Financial Instruments and Exchange Act.
The information provided herein is unaudited and hence no assurance or warranties are given with respect to the accuracy or completeness thereof.
Also, please be aware that the analyses/judgments/other opinions provided by KFM may change or cease to exist without prior notice of any kind as they
are based on current assumptions and beliefs of KFM.
Neither KRR nor KFM shall be liable for any errors/inaccuracies of the data/indices/other information published by third parties (including the data basedon the appraisal report).
This document also contains forward-looking statements and anticipation of future results for KRR. However, no guarantees are given with respect to theaccuracy of these statements/anticipation.
Revised editions of this document will be posted on our website (https://www.krr-reit.com/en) should there be major corrections going forward.

Abbreviations of property names
Property name

Abbreviation

Property name

Abbreviation

Property name

Abbreviation

MONA Shin-Urayasu
Passaggio Nishiarai
Daikanyama Address Dixsept
Unicus Ina
Yorktown Kita-Kaname
Unicus Yoshikawa
Sports Club Renaissance Fujimidai
Super Viva Home Iwatsuki (Land)
K’s Denki Shonan-Fujisawa (Land)
Unicus Kamisato (Land)
Unicus Konosu (Land)
Inageya Yokohama Minamihonjuku (Land)
Nakamachidai Tokyu Store
Central Wellness Club Nagatsuta MinamidaiLife Kameido
Totsuka-Fukaya Shopping Center (Land)
Yumemachi Narashinodai Mall

Shin-Urayasu
Nishiarai
Daikanyama
Ina
Kita-Kaname
Yoshikawa
Fujimidai
IwatsukiFujisawa
Kamisato
KonosuMinamihonjuku
Nakamachidai
Nagatsuta
KameidoTotsukaNarashinodai

Kalsa Hiratsuka
Monenosato Mall
KDX Chofu Building (Retail wing)
Across Plaza Urayasu Higashino (Land)
Comfort Market Nishi-Magome
Kitera Town Chofu
Unicus Urawamisono (Land)
Blumer Maitamon
Life Takadono (Land)DCM Kahma MEGA Don Quijote UNY Omihachiman
Blumer HAT Kobe
Carino Esaka
COMBOX Komyoike
Hankyu Oasis Hirakatadeguchi
Life Nishi-Tengachaya
Million Town Tsukaguchi (Land)
Habikigaoka Shopping Center

Hiratsuka
Monenosato
Chofu
Urayasu Higashino
Nishi-Magome
Kitera Chofu
Urawamisono
MaitamonTakadonoOmihachiman
HAT Kobe
Esaka
Komyoike
Hirakata
Tengachaya
Tsukaguchi
Habikigaoka

Valor Nakashidami (Land)
Sunny Noma
Round1 Stadium Hakata-Hanmichibashi
Kurume-Nishi Shopping Center
Roseo Mito
K's Denki Aomori Honten
Super Sports Xebio Aomori-Chuo
Ashico Town Ashikaga
Yorktown Shinden-Higashi
Kasumi Technopark Sakura
P-1 Plaza Tenno
Seiyu Rakuichi Moriya (Land)Sun Street Hamakita
Costco Wholesale Sapporo Warehouse
Zama Distribution Center
Oppama Distribution Center
Musashi Ranzan Distribution Center

Nakashidami
Noma
HakataKurumeMito
K's Aomori
Xebio Aomori
Ashikaga
Shinden-Higashi
Kasumi Sakura
P-1
MoriyaHamakita
Costco Sapporo
Zama
OppamaRanzanKawamachi Yahagi Mall

Yahagi

Merado Daikai

Daikai

Yokohama Kamigo Distribution Center

KamigoPrime Square Jiyugaoka

Jiyugaoka

DCM Kahma Nakagawa Tomita (Land)

Kahma Nakagawa

Gyoda Distribution Center

Gyoda

Round1 Ichikawa-Onitaka

Ichikawa

Valor Ichinomiya-Nishi

Ichinomiya

Shinjuku Nishiochiai Distribution Center

Nishiochiai

Ozeki Tokiwadai

Tokiwadai

Homecenter Kohnan Sunadabashi

Sunadabashi

Chiba-Kita Distribution Center

Chiba-Kita

Konami Sports Club Shibuya

Shibuya

K's Denki Shin-Moriyama (Land)

Shin-Moriyama

Sapporo Shiroishi Distribution Center

Sapporo Shiroishi

Apita Terrace Yokohama Tsunashima

Tsunashima

Resora Obu Shopping Terrace

Obu