Table of contents

Section 1

32nd fiscal period (2021/4) management highlights
and future initiatives

P. 2

Section 2

32nd fiscal period (2021/4) results,
33rd fiscal period (2021/10) earning forecasts and34th fiscal period (2022/4) earning forecasts

P. 6

Section 3

Portfolio overview

P. 10

Section 4External growthP. 13

Section 5

Internal growthP. 18

Section 6

Financial strategy

P. 29

Appendix

Supplemental material / data

P. 32

1

Section 1
32nd fiscal period (2021/4) management highlights
and future initiatives

2

32nd fiscal period (2021/4) management highlights
and future initiatives
32nd fiscal period (2021/4)
DPU(actual)

AUM

440.1

bn
yen

Sold KDX Hon-Atsugi Building that theoccupancy had been weakNet gain onsale of 2
properties

929

mn
yen

Providing the remainder to reserve for
reduction entry after distributing a portionof the net gain on sale⚫
⚫

Future initiatives⚫
⚫

15,384+ 0.0% period over period
yen +1.3% from initial forecast

Net increasein monthly rent＋
upon tenant turnover

6.8 mnyen

Increase in unit rent at 76.3% of tenant turnover

Net increasein monthly rent
upon rent revision

9.9 mnyen＋

Accumulating successful results in rent revision
under the COVID-19 pandemic

Commitment line＋yen
3.0 bnFurther reducing refinancing risk throughthe additional setting

Credit rating
(JCR)

AA-

（Positive）

Changed outlook due to evaluation ofoperation results etc.

Aim for sustainable growth through asset reshuffle and exploring quality property acquisition
opportunities while keeping eyes on the real estate trading market
Flexible leasing and management in response to diversifying demand while keeping an eye on trends
in the office leasing market
Focus on further reducing interest costs and diversification maturities while maintaining good
relationships with financial institutions
Aim for compatibility between sustainable growth and social responsibility through continuous
initiatives for improving sustainability
3

DPU history
Increase due to gain on sale of property（yen）

15,384

15,180792
1,179

15,384

1,179

Considering the reversal of the amount equivalent
to the provision of reserve for reduction entry in
32nd FP in order to maintain the distribution level in
33rd and 34th FP, in response to the prolonged
restrictions on economic activities due to delays invaccination
Aiming to raise actual level of distribution by external
growth, internal growth, reduction in financial costs,
etc. from 35th FP onward

Impacts of COVID-19• 26 tenants requested for rent reduction or exemption in 6 months (of which
for the second time was 11), and the number was reduced to 2 duringongoing negotiations

14,000

Reversal ofreserve for
reduction 13,650
entry• Rent reductions are generally limited to a certain period of time, and theimpact on earnings is limited
Requests for rent reduction or exemption from store visit
type industries account for the majority
OfficeDiningResponse Status

35%

38%
The number of tenants
requested for rent
reduction or exemption
after November 2020
第31期
31st
fiscal（20/10期）
period
実績(2020/10)

第32期
第32期
32nd fiscal（21/4期）period（21/4期）
当初予想（6/16）
実績(2021/4)

Forecastincrease/

Reserve for decrease
Reduction
Total
entry
amountActual+0.71 bnyen

+0.42 bnyen

3.49 bnyen

3.91 bn
yen

第33期
33rd
fiscal（21/10期）
period
今回予想(2021/10)

第34期
34th
fiscal（22/4期）period
今回予想(2022/4)

Current
forecast

Forecast

26*
Gym

School4%

19%

Apology,cancellation, etc.

Ongoing
negotiations

16

2

Rent Reduction

Rent Reduction(Store visit type industry)(office)

62Retail store

4%-0.42 bnyen

* From November 20, 2020, until June 9, 2021

3.49 bnyen

Principal factors for changes in DPU in and after 31st （2020/10） period（yen）Factor for increase

Net Gain on
Review andsale ofreduce repair
property
Property /maintenanceacquiredcost
792 in 31st FP

278

14,59231st
fiscal第31期
period（20/10期）(2020/10)

198

AM
Fee

152

Existing
properties

531

Property
soldin 31st FP

135

Factor for decrease

Net Gain onsale ofproperty
Property
soldin 32nd FP

191

Others

1,179

AM
Fee

288

158

Exceeded forecast due to further reduction of repair / maintenancecosts and reduction of revenue decline from existing properties

Currently anticipated, and the amount of reversal
for reduction entry may increase or decrease

14,20532nd
fiscal第32期
period（21/4期）(2021/4)

Existing
properties

572

Increase
Property
repairsold/maintenancein 32nd FP
cost

78

182

Others221

Continued high levels of cancellation and declines in
occupancy due to delay in the resolution of the COVID-19
and the recovery will be later than expected

Reversal ofreserve for Review andreduction reduce repair/maintenance
entry

560

13,440

cost

78

AM
Fee

Existing
properties

16

1

Others

Reversal ofreserve for
reduction
entry

313

430

Implement thorough cost control and wait
for widespread vaccination andestablishment of recovery trend

33rd
fiscal第33期
period（21/10期）(2021/10)

13,22034th
fiscal第34期
period
（22/4期）(2022/4)

Note ：Figures per unit are calculated based on the number of investment units issued and outstanding as of the end of each fiscal period. The same applies hereinafter

Reserve for reduction entry is calculated by either adding provision of reserve for reduction entry or subtracting reversal of reserve for reduction entry stated on Basis for Calculating Cash Distribution
for the relevant fiscal periods to/from the balance of reserve for reduction entry on the balance sheet as of the end of the relevant fiscal periods

4Portfolio appraisal profit and NAV per unit
Changes in portfolio appraisal profit amount and ratio (Note 1)

Changes in NAV per unit (Note 2)• Both appraisal profit amount and ratio reached a record high since listingat the end of 32nd fiscal period (2021/4)（bn yen）

（%）

1,100
110.0

25.0

含み益額（左軸）
Appraisal profit amount (left axis)
含み益率（右軸）
Appraisal profit ratio (right axis)

20.7

21.1

21.5

（yen）
750,000

21.9

738,000

740,000

第31期
31stfiscalperiod（20/10期）

第32期
32nd
fiscalperiod（21/4期）727,000
719,000

1,000
100.0

20.0
17.6

700,000
687,000

900
90.0
15.0
800
80.0

650,000

10.0
700
70.0
600,000
5.0

600
60.0

500
50.0

71.0
710

85.0
850

88.2
882

92.1
921

93.0
930

第28期
28th
fiscalperiod（19/4期）(2019/4)

第29期
29th
fiscalperiod（19/10期）(2019/10)

第30期
30th
fiscalperiod（20/4期）(2020/4)

第31期
31stfiscalperiod（20/10期）(2020/10)

第32期
32nd
fiscalperiod（21/4期）(2021/4)0.0

550,000

第28期
28th
fiscalperiod（19/4期）(2019/4)

第29期
29th
fiscalperiod（19/10期）(2019/10)

第30期
30th
fiscalperiod（20/4期）(2020/4)(2020/10)(2021/4)

Note 1:Appraisal profit amount is calculated by subtracting book values from appraisal values for all properties owned as of the end of relevant fiscal periods
In addition, appraisal profit ratio is calculated by dividing appraisal profit amount by book value as of the end of relevant fiscal periods (rounded to the first decimal place)
Note 2: NAV per unit is truncated to the nearest thousand yen after subtracting the amount of DPU

5

Section 2
32nd fiscal period (2021/4) results,
33rd fiscal period (2021/10) earning forecasts and34th fiscal period (2022/4) earning forecasts

6

Outline of 32nd fiscal period (2021/4) financial results
32nd fiscal period (2021/4) actual
31st fiscal
period(2020/10)
Actual（mn yen）

32nd fiscal
period(2021/4)
Forecast

32nd fiscal 32nd (actual) 32nd (actual)
periodvsvs(2021/4)
31st (actual) 32nd(forecast)
ActualDifference
Difference(announced on
Dec. 14, 2020)

A

B

C

Operating revenue

16,714

16,333

16,301

1

-413

1

-32

Operating expense

8,380

8,227

8,310

2

-69

2

+83

Operating income

Ordinary income

8,334

7,311

8,106

7,129

C-A

7,990

C-B

-343

7,017

-115

-293

-111

Comparison against 31st fiscal period (2020/10) actual
1 Decrease in operating revenue
Revenue contribution of the property acquired in 31st
fiscal period
Decrease in revenue from the properties sold in andafter 31st fiscal period
Decrease in revenue from existing properties
Decrease in revenue from utility expense due toseasonal and other factors

2 Decrease in operating expense
Decrease in utility expense due toseasonal and other factors
Decrease in repair/maintenance expense

7,310

7,128

7,016

-293

-111

DPU (yen)

15,384

15,18015,384-+204+119 mn yen-139 mn yen-227 mn yen-190 mn yen-69 mn yen-152 mn yen-85 mn yen

3 Gain / loss on sale of real estate-128 mn yen

Increase in gain on sale of the property+70 mn yen-198 mn yen

Booking of loss on sale of the property
Net income-413 mn yen

Comparison against 32nd fiscal period (2021/4) forecast
Provision (+)/reversal (-) ofreserve for reduction entry

1 Decrease in operating revenue
+718

+622

+423

-

-

Gain/loss on sale ofreal estate

1,057

1,128

929

Rental NOI

11,01910,74010,787

-231

+47

964

939

934

-30

-4

Interest expense, etc.

(announced on Dec. 14, 2020)

3

-128

3

-198

Increase in revenue from existing properties
Decrease in revenue from utility expense due toseasonal and other factors-32 mn yen+16 mn yen-40 mn yen

2 Increase in operating expense
Increase in utility expense due toseasonal and other factors
Decrease in repair/maintenance expense+83 mn yen

3 Booking of loss on sale of real estate-198 mn yen+32 mn yen-51 mn yen（Reference）
The property acquired in 31st fiscal period：KDX Shinbashi Ekimae Building
The property sold in 31st fiscal period：KDX Nihonbashi Honcho Building, KDX Nihonbashi Edo-dori Building
The property sold in 32nd fiscal period：KDX Shin-Nihonbashi Building, KDX Hon-Atsugi Building

7

33rd (2021/10) and 34th (2022/4) fiscal periods earnings
forecasts
Comparison between 32nd fiscal period (2021/4) actualand 33rd fiscal period (2021/10) forecast

33rd (2021/10) and 34th (2022/4) fiscal periods forecasts(mn yen)
32nd fiscal
period(2021/4)
Actual33rd fiscal
period(2021/10)
Forecast

A

B

C

Operating revenue

16,301

15,035

14,914

Operating expense

8,310

8,316

8,304

Operating income

7,990

6,719

6,609

-1,271-110

Ordinary income

7,017

5,760

5,666

-1,256-94

Net income

7,016

5,759

5,665

-1,256-94

DPU (yen)

15,38414,00013,650-1,384

-350

+423

-239

-184

-

-

Provision (+)/reversal (-) ofreserve for reduction entry
Gain/loss on sale ofreal estate
Rental NOIInterest expense, etc.

929

-

1

34th fiscal 33rd (forecast) 34th (forecast)periodvsvs(2022/4)
32nd (actual) 33rd (forecast)
Forecast
Difference
Differenc

B-A

-

1

1

-121

2

+5

2

-11

3

Disappearance of gain on sale of the property
Decrease in revenue from the properties sold in
32nd fiscal period
Decrease in revenue from existing properties
Increase in revenue from utility expense due toseasonal and other factors

C-B-1,265-929-

10,787

10,353

10,274

-434

-78

934

950

934

+16

-15

Decrease in operating revenue

2

Increase in operating expense
Disappearance of loss on sale of the property
Increase in utility expense due to seasonal andother factors
Increase in taxes
Increase in repair/maintenance expense
Decrease in Asset management fee

3 Gain/loss on sale of real estate-1,265 mn yen-1,128 mn yen-33 mn yen-245 mn yen+160 mn yen+5 mn yen
-198 mn yen+121 mn yen+48 mn yen+78 mn yen-123 mn yen-929 mn yen

Comparison between 33rd fiscal period (2021/10) forecastand 34th fiscal period (2022/4) forecast
1

Decrease in operating revenue
Decrease in revenue from utility expense due toseasonal and other factors

Decrease in operating expense
Decrease in utility expense due to seasonal andother factors
Decrease in repair/maintenance expense
Increase in brokerage fee
Increase in taxes
Decrease in Asset management fee-121 mn yen-87 mn yen-11 mn yen-29 mn yen-33 mn yen+17 mn yen+22 mn yen-6 mn yen
8

Memo

9

Section 3
Portfolio overview

10Portfolio growth and changes in the number of properties• Aim for sustainable growth through asset reshuffle and exploring quality property acquisition opportunities as a basic
policy continuously
Portfolio growth (based on total acquisition price) and the number of properties (Note 1) (Note 2)（(# of properties）（bn yen）

Office (left axis)
オフィスビル（左軸）Central urban retail (left axis)
都市型商業施設（左軸）
物件数（右軸）# of properties (right axis)

6,000
600.0

住宅（左軸）
Residential(left axis)98

その他（左軸）Other(left axis)

96

100

PO Fiscal period with public offering (PO)

90
5,000
500.0

4,401
4,437

PO

70

PO

4,000
400.0

80

PO

60

PO

3,000
300.0

50
PO
PO

40
2,000
200.0

PO

31

30

PO

20
1,000
100.0 691

69.1

10
00

1st
第1期
fiscalperiod（05/10）

3rd
第3期
fiscalperiod（06/10）5th
第5期
fiscalperiod（07/10）7th
第7期
fiscalperiod（08/10）9th
第9期
fiscalperiod（09/10）11th
第11期
fiscalperiod（10/10）13th
第13期
fiscalperiod（11/10）15th
第15期
fiscalperiod（12/10）17th
第17期
fiscalperiod（13/10）19th
第19期
fiscalperiod（14/10）21st
第21期
fiscalperiod（15/10）23rd
第23期
fiscalperiod（16/10）25th
第25期
fiscalperiod（17/10）27th
第27期
fiscalperiod（18/10）(2005/10)(2006/10)(2007/10)(2008/10)(2009/10)(2010/10)(2011/10)(2012/10)(2013/10)(2014/10)(2015/10)(2016/10)(2017/10)(2018/10)

29th
第29期
fiscalperiod（19/10）(2019/10)

31st
32nd
第31期
第32期
fiscalfiscalperiodperiod（20/10）（21/4）(2020/10)

0(2021/4)

Note 1: The amount and the number of properties are shown as of the end of each fiscal period. Figures are truncated to the nearest 0.1 billion yen. Figures in this material are truncated to the nearest unit unless otherwise stated
Note 2: Classification by use of owned properties has been changed from 26th fiscal period (2018/4) due to changes in the management guideline on December 1, 2017. The same applies hereinafter

11

Portfolio diversification
Breakdown by asset type (Note 1)

Breakdown by region (Note 2)• Portfolio mainly consisted of mid-sized office buildings withadvanced tenant diversification• Plan to maintain approx. 80% investment ratio in the Tokyo
metropolitan area

Other
その他
0.6%
（1 (1物件)
property）

Office Bldg.
オフィスビル(Other)
(その他）
15.4%
(8物件)
（8 properties）
End of 32nd
fiscal period(2021/4)
96 properties

Other地方経済圏
regional areas
18.6%

オフィスビル
Office Bldg.
(mid-sized)
(中規模）
83.9%
（87(87物件)
properties）

End of 32nd
fiscal period(2021/4)
その他
Other
Tokyo
東京経済圏
metropolitan
area
28.6%

Office Bldg.

99.3%（95 properties）

Tokyo central
都心5区
5 wards
52.6%

Tokyo
Metropolitan area

81.3%

Breakdown of the number of tenants by leased floor area (Note 3)300300坪以上
tsubo or More

7.6%
200坪以上200- less than
300 tsubo
300坪未満6.1%

100坪以上100- less than
200 tsubo
200坪未満21.0%

100坪未満Lessthan 100 tsubo
65.2%

End of 32nd
fiscal period(2021/4)# of tenants:
1,156
Less than 200 tsubo

86.2%

Note 1: Portfolio breakdown by asset type based on acquisition price (truncated to the first decimal place)
Note 2: Portfolio breakdown by region based on acquisition price (truncated to the first decimal place)
Note 3: Based on the number of tenants in each office building. Tenants leasing more than one property are counted as 1 tenant for each building without aggregating by name-base12Section 4External growth13

Properties sold in 32nd fiscal period (2021/4)
KDX Shin-Nihonbashi Building

KDX Hon-Atsugi Building• The Property is an office building, approximately 3 minutes on foot from Mitsukoshimae
Station on the Tokyo Metro Ginza Line and the Hanzomon Line and approximately 6
minutes on foot from Shin-Nihombashi Station on the JR Sobu Main Line• The Property is an office building, approximately 5 minutes on foot from Hon-Atsugi
Station on Odakyu Odawara Line• Acquired KDX Shinbashi Ekimae Building, which is relatively new with excellent traffic
convenience by asset reshuffle through mutual transaction with a developer• Decided the sell of the property while keeping an eye on a stagnant occupancy rate
and further decline risks in profitability is due to an increase in operating expenses(e.g., repairs)• By implementing the acquisition first and then implementing the sale later, rental
revenue could be maximized and the gain on sale leveled.

• Aimed to avoid the impact on distributions for the fiscal period ended April 30,2021
through the total of gain on sale of KDX Shin-Nihonbashi Building

Location

Chuo-ku, Tokyo

Difference between sale priceand book value:(Sale price –book value) / book value

1,229 mn yen

Location

Completion dateNovember 2002

Appraisal value(As of October 31, 2020)

3,140 mn yen

Total floor area

3,712.25㎡

Mitsui Fudosan Co.,
Ltd.

Buyer

Sale price3,200 mn yen

Date of acquisition

Book value (Note)

1,971 mn yen

Date of sale

July 22, 2011
November 2, 2020

Atsugi, Kanagawa

Difference between sale priceand book value:(Sale price –book value) / book value(180 mn yen)Completion date

May 1995

Appraisal value(As of October 31, 2020)

1,190 mn yen

Total floor area

3,603.63㎡

Buyer

Sale price935 mn yen

Date of acquisition

March 1, 2007

Date of sale

April 30, 2021

Book value (Note)

1,115 mn yen

Tosei Corporation

Note : The figures indicate the book values as of date of sale (rounded down to the million)

14

Outline of the asset reshuffle in and after 31st fiscal period(2020/10)
Mutual transaction with the developer•

Asset reshuffle contributes to improving the quality ofthe portfolio by rejuvenating the building age andimproving the location, etc.

•

Increase distributions and accumulate reserve for
reduction entry by booking gains on sales for 2
consecutive fiscal years•

Consider using part of the reserve for reduction entry
to raise distributions for the 33rd fiscal
period(2021/10) onward

Sold in 31st fiscal period
KDX Nihonbashi
Honcho Building

KDX Nihonbashi
Edo-dori Building

Acquired in 31st fiscal period

KDX Shinbashi Ekimae Building

Gain onsale ofproperty（Note 1）

Asset
reshuffle
Sold in 32nd fiscal period

Sold in 32nd fiscal period

KDX Shin-Nihonbashi
Building

KDX Hon-Atsugi
Building

31st fiscal period(2020/10)

32nd fiscal period(2021/4)

1.05 bnyen

0.92 bnyen

31st fiscal period(2020/10)

32nd fiscal period(2021/4)

DPU+

Provision ofreserve for
reduction entry（Note 2）792yen +1,179yen

31st fiscal period(2020/10)+

0.71 bnyen

32nd fiscal period(2021/4)

0.42 bnyen+

Note 1： Gain on sale of property is estimated based on the book value and selling expenses, etc. The gain for 32nd fiscal period (2021/4) is calculated by deducting the loss on sale of KDX Hon-Atsugi Building from the gain onsale of the KDX Shin-Nihonbashi Building
Note 2： The amount is provision of reserve for reduction entry stated on Basis for Calculating Cash Distribution for the relevant fiscal periods

15Track record of asset reshuffle in and after 21stfiscal period (2015/10)• Steadily establish a track record of strategic asset reshuffle after comprehensively evaluating building age, profitability,
appraisal profit/loss, etc.
21st Fiscal
Period(2015/10)

22nd Fiscal
Period(2016/4)

23rd Fiscal
Period(2016/10)

24th Fiscal
Period(2017/4)

25th Fiscal
Period(2017/10)

KDX Hamamatsucho
Center Bldg.

KDX Nagoya
Nichigin-mae
Bldg.

KDX Shin-Nihonbashi
Ekimae Bldg.

BR Gotanda(Compartmentalized
ownership ･Partial land leasehold)

KDX Sapporo
Kitaguchi Bldg.

26th Fiscal
Period(2018/4)

27th Fiscal
Period(2018/10)

28th Fiscal
Period(2019/4)

29th Fiscal
Period(2019/10)

30th Fiscal
Period(2020/4)

KDX Chofu Bldg.
(Compartmentalized
KDX Tosabori Bldg.
ownership)

Mitsubishijuko
Yokohama Bldg.
KDX Hamamatsucho(Quasi-co-ownership interest)
Place

31st Fiscal
Period(2020/10)

32nd Fiscal
Period(2021/4)

Total
acquisition
price

KDX Shinbashi
Ekimae Bldg.

Acquisition

18
KDX Shin-Osaka Bldg.

KDX
Toranomon
1chome Bldg.

KDX Nihonbashi
Edo-dori Bldg.

ARK Mori Bldg.
(Compartmentalize
d ownership)

Properties
KDX NishiShinbashi Bldg.

KDX Shibuya
Nanpeidai Bldg.

KDX Yokohama
Kannai Bldg.

KDX Kanda Ekimae
Bldg.

131.0
bn yenNagoya Nikko
Shoken Bldg.

Mutualtransaction

Mutualtransaction

Mutualtransaction

KDX Toranomon
Bldg.

BUREX
Toranomon

KDX Nihonbashi
Kabutocho Bldg.

Mutualtransaction

KDX Shin
KDX Ikejiri-Yokohama 381 Bldg. Oohashi Bldg.

KDX ShinYokohama
214 Bldg.

Mutualtransaction

Frame Jinnan-zaka(Quasi-co-ownershipinterest: 49%)

Frame Jinnan-zaka(Quasi-co-ownershipinterest: 51%)

RetailRetailKDX Nihonbashi
Honcho Bldg.

KDX
Hon-Atsugi Bldg.

Disposition

19
Properties
KDX Nogizaka Bldg.

Toranomon
Toyo Bldg.

KDX Roppongi KDX Gobancho KDX Kanda
228 Bldg.
Bldg.
Misaki-cho Bldg.

Residence Charmante
Tsukishima
Residential

KDX Hamamatsucho
Dai-2 Bldg.

KDX Nihonbashi
Edo-dori Bldg.

KDX
Shin-Nihonbashi Bldg.

75.9
bn yen16

Outline of our sponsor
Strengthen support by sponsors

Hotel &
Residential
area
17%

70% ownedFirst Section of
the Tokyo Stock
Exchange Listing

Going private on
March 17, 2021

26%

Establishment of a strategic
partnership structure throughcapital and business alliance

Strengthening REIT and Private
Placement Fund Businesses

Expansion of New Business Domains

Supplementation of Creditworthiness andEnhancement of Fund Raising Capacity

Sharing Know-how on SDGs
Management

Shareholders
Sumitomo Mitsui
Financial Group, Inc.

50%

Sumitomo Corporation

50%

SMFL MIRAI Partners

Kenedix Real Estate Fund Management, Inc.
100% owned by
Kenedix, Inc

Strengthening Competitiveness by
Sharing Experience, Knowledge, andKnow-how throughMutual Exchange of Human
Resources

Residential &healthcare
properties &
accommodation

Retail properties& retail
distribution
centers

Large-sized officebuildings &accommodation

442.5 bn yen

262.3 bn yen

226.7 bn yen

122.4 bn yen（Note 1）5%Company,Limited （Note）
Approximately

Logistics
15%
property

1,050
bn yenas of the end of March
2021

Retail

36% property（Note）SMFL MIRAI Partners Company,Limited is a wholly-owned subsidiary of Sumitomo Mitsui Finance and Leasing Company,Limited

Private fund
Kenedix
Investment
Partners, Inc.
Kenedix, Inc.

Mid-sized officebuildings, etc.

Factory

Balance of real estate assets held

Fund management by Kenedix Group (as of the end of March 2021)
REIT (main sponsor) 1,054.1 bn yen 私募REIT

OfficeBuilding

Diversifying the Kenedix/Group’sBusiness Domains
REIT(sub sponsor)
Premier
Investment
Corporation
Japan Logistics
Fund, Inc.
Overseas REIT

From July 1,2021, Property management business, etc.

Variousasset types
1,027.1 bn yen

Variousasset types
302.5 bn yen(Note 2)

Kenedix Office
Investment
Corporation

Kenedix Residential
Next Investment
Corporation

Kenedix Retail
REIT Corporation

Listed in Jul. 2005

Listed in Apr. 2012

Listed in Feb. 2015

Note 1: Include silent partnership equity interest of 1.1 bn yen
Note 2: Include consolidated real estate of 110.9 bn yen

Kenedix
PrivateInvestment
Corporation

Variousprivatefunds

Japan Logistics
Fund, Inc.
Overseas REIT

Operation of an investment-type Issuance of digital securities
using blockchain
crowdfunding platform for real estate(in preparation)

17

Section 5Internal growth18Changes in occupancy and turnover ratio for office buildings• Continued high levels of cancellation and declines in occupancy due to delay in the resolution of the COVID-19
and gradual recovery expected as vaccination spreads
Occupancy rate performance (Note 1) and turnover ratio (annualized) of office buildings
Vaccination to begin in Feb 2021
（ Expected to be completed by Feb 2022（MHLW））

Occupancy rate(contracted area based)（%）

3rd State of emergency（TOKYO）（Apr.25 – Jun.20（scheduled））

1st State of emergency（TOKYO）（Apr.7 – May.25）

Actual occupancy rate
(excl. free rent area)

稼働率（契約面積ベース）

実質稼働率（FR面積控除後）

100.0

99.1

99.0

99.5

99.2

99.1

99.5

2nd State of emergency（TOKYO）（Jan.8 – Mar.21）

98.1

97.8
96.8

Occupancy rateduring fiscal period (estimate)

33rd
fiscal34th fiscal
期中平均稼働率（想定）periodperiod

96.6%
98.6

96.8

96.7

98.0
97.3

97.3%
97.0

97.3
97.5
96.7

96.5

95.0

3.9%
94.8

94.7
94.6

93.1

93.4
92.5

31st fiscal
period averageoccupancy rate

90.5

32nd fiscal
period averageoccupancy rate

第21期…
Turnoverratio(annualized)（Note 2） （Note 3）

7.9％

23rd fiscal
第23期
period（16/10期）(2016/10)

第22期…

8.0％

24th fiscal
第24期
period
（17/4期）(2017/4)

第23期…

5.7％

25th
fiscal第25期
period（17/10期）(2017/10)

第24期…

3.6％

26th
fiscal第26期
period
（18/4期）(2018/4)

第25期…

3.2％

27th
fiscal第27期
period（18/10期）(2018/10)

第26期…

4.4％

28th
fiscal第28期
period（19/4期）(2019/4)

第27期…

6.7％

33rd期中平均稼働定）
fiscal34th fiscal
periodperiod

98.5%

97.0%

93.9%

29th
fiscal第29期
period（19/10期）(2019/10)

30thfiscal第30期
period（20/4期）(2020/4)

31st
fiscal第31期
period（20/10期）(2020/10)

32nd
fiscal第32期
period（21/4期）(2021/4)

33rd
fiscal第33期
period（21/10期）(2021/10)
想定
Estimate

6.3％

3.3％

7.0％

9.2％

9.0％

90.0
22nd fiscal
第22期
period
（16/4期）(2016/4)

Actual occupancy rateduring fiscal period (estimate)

第28期…

第29期…

第30期…

第31期…

第32期…

93.6%

第33期…

Note 1: Occupancy rate (contracted area based) is calculated by dividing contract based leased area by leasable area, and actual occupancy rate (excl. free rent area) is calculated by subtracting free rent area from leased area
then dividing that area by leasable area. The figures are rounded to the first decimal place. Average occupancy rate of office buildings during each fiscal period is a simple average of month-end occupancy rates of owned
office buildings during each period. The estimated average (actual) occupancy rate for 33rd fiscal period (2021/10) and 34th fiscal period (2022/4) is the figure that is used as part of the assumptions for the earnings
forecasts
Note 2: Turnover ratio is calculated and annualized as follows: (Total leased area of the end-tenants who cancelled their lease agreements during the six-months period from the beginning to the end of each period) / (Averageleasable area of all office buildings owned by KDO as of each month-end during the relevant period) x 2. Figures are rounded to the first decimal place
Note 3: Estimate for 33rd fiscal period (2021/10) is based on the cancellation notice, etc. received by May 31, 2021

19

Trends in move-ins/outs and rent changes upon tenant
turnover for office buildings• Moves ahead of cancellation will continue, but occupancy demand is also firmly confirmed. Opportunities to increase
revenues by raising unit rents continued to be firm
Reasons for move-ins/outs(Note 3)

Changes in main indicators of tenant move-ins/outs
Tenant move-in and move-out areas and the number of tenants( ) Number of move-in
Floor
expansion 縮小移転
Floor reduction
Other/unknown
拡張移転
その他/不明(Note 1)

■Space leased(tsubo) ■Space vacated(tsubo)
入居面積
退去面積( ) Number of move-in/out

INs

（49）
（45）

（65）

5,795

3,962

（35）

2,020

2,365

5,217

OUTs

（36）

-2,428-4,751-4,555

（44）

（47）

（35）

-5,160（57）-6,700（73）

28th fiscal
第28期
period（19/4期）(2019/4)

29th fiscal
第29期
period（19/10期）(2019/10)

30th fiscal
第30期
period（20/4期）(2020/4)

31st fiscal
第31期
period（20/10期）(2020/10)

32nd fiscal
第32期
period（21/4期）(2021/4)

31st fiscal
第31期
period（20/10期）(2020/10)

85.2%
（23）

32nd fiscal
第32期
period（21/04期）(2021/4)

14.8%
（4）

69.4%
（34）

31st fiscal
第31期
period（20/10期）(2020/10)

9.1%
（4）

32nd
fiscal第32期
period（21/04期）(2021/4)

9.4%
（6）

22.4%
（11）

77.3%
（34）

8.2%
（4）

13.6%
（6）

85.9%
（55）

4.7%
（3）

Changes in monthly rent and unit rent upon tenant turnover(Note 4)(Note 5)

16,613New unit rent

Previous unit rent

17,192（yen/tsubo）

16,292

15,875
15,136
13,486

Free rent period (# of month) (Note 2)
Tokyo
Central 5 wards
Tokyo
Metropolitan area
(excluding Tokyo central 5
wards)

Other
regional areas

1.9
2.7
0.9

2.9
2.2
1.7

1.4
1.9
1.0

1.8
1.5
1.3

2.7
2.7
1.3

Total rent
increase

3.7

6.3

8.2

Total rent
decrease

-0.8

-0.1

-1.4

30th第30期
fiscal period(2020/4)（20/4期）

第31期
31stfiscal period(2020/10)（20/10期）

32nd第32期
fiscal period(2021/4)（21/4期）

72.7%

93.3%

76.3%

% of the numberof rent increase
contracts upon tenant
turnover（mn yen）

Note 1: The number of tenants and leased area are calculated based on floor. In case that an end-tenant move-out from/move-in to multiple floors, the number is counted by floor
Note 2: Free rent period refers to a period from the start date of contract until the start date of contracted full rent. Figures are expressed as a simple average in terms of month by dividing by 30 days (rounded to the firstdecimal place). The analysis is based on office floors on the 2nd floor or above and excludes buildings that were newly acquired during the relevant fiscal periods
Note 3：The above data is based on the survey compiled by the Asset Management Company with regard to reasons for office relocation of relevant tenants. We classify responses of the survey into three categories; "Floor expansion","Floor reduction" and "Other/unknown“ and calculate the ratio of respective categories to the all cases. For move-in, the figures are based on the number of tenants on office floors on the second floor or above. For move-out, thefigures are based on the number of tenants on all floors except for residential floors
Note 4: Total amount of increases/decreases in monthly rent before and after tenant turnover for each fiscal period is respectively aggregated for the spaces where the rents paid by new tenants and by previous tenants can be compared
Note 5: New unit rent is an average unit rent calculated based on aggregated unit rents and areas for the spaces where rents paid by new tenants and by previous tenants can be compared for each fiscal period of “Tenant move-in andmove-out areas and the number of tenants”. Previous unit rent is an average unit rent calculated based on aggregated previous unit rents and areas for the spaces where new unit rents are calculated
20

Status of rent revisions with existing tenants• Tenacious negotiations with tenants have been successful, and we have steadily accumulated results of increase in rent
Changes in rent upon rent revisions (based on monthly rent) (Note 1) Status of rent revisions (based on leased floor area) (Note 2)（thousand yen）
Increase in rent
増賃額

Increase in rent
増賃額（剥落見込）

Decrease in rent
減賃額

(Expected to disappear)

14,0179,051

KDX Harumi Bldgs
KDX Toyoru GS
Move-outs after
agreement toincrease in rent

9,885

Exception for negotiation
交渉対象外(Higherthan（マーケット賃料以上）
market rent)
（56件）
(56)
18.9%
18.9%

11,225
No change(Lower thanmarket
rent
現状維持
(161)
（マーケット賃料未満）
62.1%（161件）

1,666
9,559

7,045

Exception for negotiation
賃料増額(Higher than
交渉対象外
Rent increase（38件）
market rent)（マーケット賃料以上）
18.9% (38)
(58)
18.9%
（58件）
17.2%
17.2%

31st
fiscal period(2020/10)(255)

No change(Lower thanmarket rent
現状維持
(170)
（マーケット賃料未満）
56.4%（170件）
56.4%

62.1%

賃料減額
Rent decrease
（3件）
(3)
0.8%
0.8%
賃料増額
Rent（36件）
increase
(36)
25.6%
25.6%

32nd
fiscal period（2021/4）(267)

Negotiation
TargetChanges in the number of rent increase contracts and rent increase rateTokyo
central 5 wards
都心5区

730
94

-111

-402

-1,233

-335

83
42

Other areas
都心5区以外103

52

28th fiscal
period(2019/4)

29th fiscal
period(2019/10)

30th fiscal
period(2020/4)

31st fiscal
period(2020/10)

32nd fiscal
period(2021/4)

33rd fiscal
period(2021/10)
Onward

第28期（19/4期）

第29期（19/10期）

第30期（20/4期）

第31期（20/10期）

第32期（21/4期）

第33期
Confirmed
as of（21/10期）
May.以降14, 2021

41

Rent increase rate
(incremental average)

64

51
30

28th
fiscal第28期
period（19/4期）(2019/4)

29th
fiscal第29期
period（19/10期）

5.7%

6.7%

(2019/10)

38

36

28

24

10

12

30th
fiscal第30期
period（20/4期）

31stfiscal第31期
period（20/10期）(2020/10)

32nd
fiscal第32期
period（21/4期）(2021/4)

7.7%

10.4%

9.4%

(2020/4)(Note 3)Note 1: Difference in monthly rent before and after rent revision in each fiscal period is calculated by aggregating the change amount per contract in each fiscal period (rounded to the nearest thousand yen). The changes in rent uponrent revisions do not include the amount in response to requests for rent reduction or exemption, etc. due to temporary revenue decline resulting from the spread of COVID-19 (temporary rent decrease and temporary rent
increase to recover such decrease)
Note 2: “Market rent” in this graph is a new contracted rent (standard floor) for each property estimated by CBRE as of the end of each fiscal period
Note 3: Rent increase rate is calculated by dividing the sum of increase in monthly rent by the sum of monthly rent before revision (rounded to the first decimal place)21

Rent gap of KDO office buildings• The rent gap continues to shrink due to the overlap of the effects of lower market rents with the accumulation of resultsof increase in rent upon tenant turnover and rent revision
Breakdown of rent gaps by rent revision schedule

Breakdown of rent gaps (based on monthly rent) (Note 1)(as of the end of 32nd fiscal period (2021/4), based on monthly rent) (Note 1) (Note 2)

110 mn yen

Over 10%132 mn yen

129 mn yen

376 mn yen

Between
0% and 10%

347 mn yen

Higher thanmarket rent level（mn yen）

531 mn yen

676 mn yen

33
67

573 mn yen
72.1%

763 mn yen

第30期
End
of 30th（20/4期）末fiscalperiod(2020/4)

Lower than
-10%634mn yen

565 mn yen

第31期
End
of 31st（20/10期）末fiscal period(2020/10)

第32期
Endof 32nd（20/4期）末fiscal period(2021/4)■ Change in market rent of owned properties
Number of Tokyo 5 Central Wards, Tokyo Metropolitan Area (excluding 5 Central Wards), andOther Regional Areas properties in the following table, from left to left

30th fiscal
period(2020/4)
Rise

25 / 9 /1properties

31st fiscal
period(2020/10)-/- / - properties

32nd fiscal
period(2021/4)-/- / - properties

23 / 21 / 17properties

37 / 26 / 18properties

33 / 23 / 19 properties

Decline- /10 / 4 / 1 properties

14 / 6 / 0 properties- properties

59.7%

第34期
34th fiscal（22/4期）period
到来分(2022/4)

67

97

122

第35期
35th fiscal（22/10期）
period
到来分(2022/10)

第36期
36th fiscal（23/4期）period
到来分(2023/4)

40.1%

49
第37期
37th fiscal（23/10期）
period以降到来分(2023/10)
onward（%）
30.0

19.5 21.0
14.4

20.0
10.0
0.0

10.3
4.7
-2.2

-4.3

7.1

4.2
-0.6

-2.1

-4.2

-6.6

-7.3

-8.9

-9.3

-8.7

-6.9

-10.0
-20.0

-/

165
69.4%

Historical average rent gaps (Note 3)

-10.7

Flat

第33期
33rd fiscal（21/10期）
period
到来分(2021/10)

100

177

119

第32期
32nd fiscal（21/4期）period(2021/4)

8

108
77.7%

61.9%

148

92

23

160

105
Lower thanmarket rent level
63.3%

Over
+10%
+10%超

32

140

149

75.9%

Lower thanmarket rent level

29
61

35
103

Between-10% and 0%681mn yen

0%~+10%+10%以内-10%~0%Over -10% -10%以内-10%超

End of
End ofEndof
End of
End
of
第1期
第3期
第5期
第7期
第9期
第11期
第13期
第15期
第17期
第19期
第21期
第23期
第25期
第27期
第28期
第29期
第30期
第31期
第32期
End
of
End
of
End
of
End
of
End
of
End
of
End of
End of
End of
End of
End of
End of
End of
End of21st fiscal （16/10期）
29th fiscal （20/4期）
fiscal 5th
23rd fiscal （17/10期）
1st
fiscal 3rd
fiscal （09/10期）
fiscal 7th
9th fiscal 11th
fiscal 13th
fiscal 15th
fiscal （13/10期）（05/10期）（06/10期）（07/10期）（08/10期）（10/10期）（11/10期）（12/10期）
17th fiscal （14/10期）
19th fiscal （15/10期）
28th fiscal （19/10期）
30th fiscal （20/10期）
27th fiscal （19/4期）
25th fiscal （18/10期）
31st fiscal （21/4期）
32nd fiscal
periodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiod(2005/10) (2006/10) (2007/10) (2008/10) (2009/10) (2010/10) (2011/10) (2012/10) (2013/10) (2014/10) (2015/10) (2016/10) (2017/10) (2018/10) (2019/4) (2019/10) (2020/4) (2020/10) (2021/4)

Note 1: A new contracted rent (standard floor) for each property estimated by CBRE as of the end of each fiscal period is deemed the market rent; the gap between the contracted rent for each tenant as of the end of the fiscal
period and the market rent is recognized as a rent gap. No gap is classified into “Between 0% and +10%”
Note 2: Regarding the office buildings owned by KDO as of the end of 32nd fiscal period (2021/4), distribution of the rent gaps between the contracted rent for each tenant and the market rent estimated by CBRE as of the end of
32nd fiscal period (2021/4) by the timing of rent revisions for each tenant. The rents equal to market rents are classified into “Between 0% and +10%”
Note 3: Calculated as the weighted average, based on leasable floor area, of the gap rate between the average contracted rent of the standard floor for the office buildings owned by KDO as of the end of each fiscal period andthe market rent for each property estimated by CBRE at the time of appraisal

22Construction expense (actual/budget)
Changes in depreciation and construction expense (actual/budget)
Repair
修繕費/maintenance

減価償却費
Depreciation

資本的支出
Capex

Repair/renovation work budget for 33rd fiscal period (2021/10) (Note)
Items（mn yen）

2,500

2,470

2,419

2,369

1,835

161

10.8

Replacement works

Air-conditioning facilities

91

6.1

Other major facilities

328

22.1

Eco-friendly works(Installation of LED lightings. , etc)

108

7.3

Outer wall repair

265

17.8

Maintenance/repair works

534

35.9

1,634

474

1,692

409

356

1,487

441

403

33rd fiscal
period (2021/10)
total

1,793

1,776

479

Percentage of total
expense (%)

tenant and common
areas

1,960

2,000

1,500

2,599

2,576

2,548

Estimatedamount(mn yen)Value-upgrading works

3,000

2,523

Description of works

Note: Figures are approximate estimates as of the date in which
repair plan was prepared

Percentage todepreciation
expense (%)

1,487

57.7

Properties to undergo major repair/renovation in 33rd
fiscal period (2021/10)

434
1,000

• TurnKey Office Project:
1,426

KDX Iidabashi Building

1,485
1,251

1,231

1,420

1,313
1,052

500

• Value-upgrading works:
KDX Chofu Building , KDX Hamacho Nakanohashi Building• Replacement works of air-conditioning facilities:
KDX Chofu Building , KDX Sapporo Building , Toshin 24 Building

0
28th fiscal
第28期
period（19/4期）(2019/4)
actual実績

29th fiscal
第29期
period（19/10期）(2019/10)
actual実績

30th fiscal
第30期
period（20/4期）(2020/4)
actual実績

31st fiscal 32nd fiscal
第31期
第32期
periodperiod（20/10期）（21/4期）(2020/10)(2021/4)
実績
actualactual実績
実績• Outer wall repair:
33rd
fiscal第33期
period（21/10期）(2021/10)
予算
予算
budget34th
fiscal第34期
period
（22/4期）(2022/4)
予算
budgetKDX Shinjuku Building , KDX Sakura-dori Building KDX Kanda Ekimae Building , HigashiKayabacho Yuraku Building , KDX Mita Building ,KDX Hamacho Nakanohashi Building , KDX Nishi-Gotanda Building23

Changes in occupancy for properties focused on leasing
32nd fiscal period (2021/4)

KDX Harumi Building

33rd fiscal period (2021/10) Forecast

32nd fiscal period (2021/4)

KDX Hamamatsucho Place

100%

100%
90%

80%

80%

72.2%

Nov.
Oct.
11月 Dec.
12月 Jan.
1月 Feb.
2月 Mar.
3月 Apr.
4月 May5月 June
6月 July
7月 Aug.Sept.
8月 9月 10月

• The number of cancellations increased due to deterioration inbusiness results, and the occupancy rate at the end of 32nd
fiscal period was expected to decline to less than 70% as ofthe end of 31st fiscal period, but recovered to the 80% level• Sequential conclusion of multiple contracts due to factors suchas capturing needs to expand the floor space in the building,and full occupancy is expected to be generally at the end of
33rd fiscal period• Received a succession of cancellation notices from tenantson 5 floors. Occupancy rate was expected to temporarily
decline to the 50% level in the future, but 2 floors are to beoccupied with no vacancy period.
• Applications have already been received for the remaining
3 floors, and they are expected to be fully occupied by theend of 33rd fiscal period
33rd fiscal period (2021/10) Forecast

KDX Yokohama Kannai Building 100%

32nd fiscal period (2021/4)

KDX Iidabashi Square
85.4%

90%

33rd fiscal period (2021/10) Forecast

100%

86.2%

90%

81.8%

79.7%

80%

79.6%

80%

70%

KDX Kayabacho Building

82.3%

70%

11月
1月 Feb.
2月 Mar.
3月 Apr.
4月 5月
6月 July
7月 Aug.Sept.
8月 9月 10月
Nov. 12月
Dec. Jan.
May JuneOct.

32nd fiscal period (2021/4)

96.6%

92.7%

90%

70%

33rd fiscal period (2021/10) Forecast

70%
11月
1月 Feb.
2月 Mar.
3月 Apr.
4月 5月
6月 July
7月 Aug.Sept.
8月 9月 10月
Nov. 12月
Dec. Jan.
May June
Oct.

Nov. 12月
Dec. Jan.
May June
July Aug.Sept.
Oct.
11月
1月 Feb.
2月 Mar.
3月 Apr.
4月 5月
6月 7月
8月 9月 10月

• Although the city of Yokohama, which had leased about 4.5
floors, vacated at the end of October 2020, 2 floors weresuccessfully reclaimed without vacancy period. Subsequently,
new tenants moved into 0.5 floor from February 2021
• Conducting flexible leasing for the remaining 2 floors whileconsidering floor splits to meet a wide range of tenant needs• Received cancellation notices from multiple tenants in 2020.
• Although occupancy rate is expected to temporarily decline to
the 60% level in the future, contracts have been concluded
with multiple tenants due to aggressive leasing activities• Received new cancellation notices in 2021, aiming for early
recapture through flexible leasing

32nd fiscal period (2021/4)

33rd fiscal period (2021/10) Forecast

100%

KDX Shin-Nihonbashi Ekimae Bldg.

86.7%

90%

32nd fiscal period (2021/4)
100%

33rd fiscal period (2021/10) Forecast

89.1%

90%

78.0%
80%

80%
70%
70%

67.1%

72.2%
Nov.12月
Dec. 1月
Jan. 2月
Feb. 3月
Mar. 4月
Apr. 5月
May 6月June7月July 8月
Aug.Sept.
Oct.
11月
9月 10月• Received notices of cancellation from 3 floors due to reduced
relocation through introduction of remote work, etc.
• Proposed relocation to this property to a tenant of another
owned property that had indicated cancellation, occupancy rateis to be recovered due to leasing utilizing tenant relationships• Aiming for full occupancy at the end of 33rd fiscal period
Note : Occupancy rate for 33rd fiscal period of each properties includes anticipated move-in based on application forms

60%
Nov. 12月
Dec. Jan.
May June
July Aug.Sept.
Oct.
11月
1月 Feb.
2月 Mar.
3月 Apr.
4月 5月
6月 7月
8月 9月 10月

• 3 floors cancelled due to cost revisions, etc. Occupancy rate
declined to just under 70%.
• Flexible leasing through campaigns, etc. is successful, and fulloccupancy is expected at the end of 33rd fiscal period

24Initiatives for diversifying office needs• Planning "TurnKey Office" with interior and furniture incorporating ABW concept in KDX Iidabashi Building• Accumulating know-how through this initiative and considering adopting in other owned properties with needs
Overview of KDX Iidabashi Building project
Completion date:
Location:

March,1990 (conducted a large-scale renovation on entrance, air-conditioning facilities and common areas)
3 minutes on foot from Iidabashi Station on the JR Chuo Main Line, the Tokyo Metro Tozai Line,the Yurakucho Line, the Nanboku Line and the Toei Subway Oedo Line

• Focusing on the potential competitiveness of this property, which has
decided to cancel up to the 4th - 6th floors in succession and has hightraffic convenience that allows the use of multiple routes, we will seeka new method of operation in response to changes in office needs

KDX Iidabashi Building• Decided to create a space (TurnKey Office) that incorporates the ideaof ABW(Activity Based Working) and allows for setting up and leasing
office fixtures and business to be started promptly after the contract isconcluded• The construction completed in May 2021. While limiting a wide rangeof leasing activities because of the COVID-19, KDO aim to raiseawareness by promoting the concept through limited hands-on eventsand close contracts as soon as possible

Features of TurnKey Office and promotion measures
Ordinary leaseTuｒn-Key OfficeInterior finishing / furnitureand fixtures

Conducted and borne bytenants

Conducted and borne bylessors

Efforts and expenses
required for relocation

Large

Small

Period required forrelocation

Long

Short

TurnKey Office PV is now showing

Notice period fortermination

Long

Short

（ Click on the image or Scan the QR code toaccess ）Restoration

Required

Not required in principle• Promoting low cost of relocation and flexibility of contract type

• Conducting hands-on events and created promotional videos
to make an image of the new work styles at “TurnKey Office”

25Layout Concept of TurnKey Office
6F Library, Residential, Session
Library, Residential, and Session.
Those office layouts designed withdifferent images for each of thethree rooms.

３

４

Residential

5F Library
The layout with large shelves andlots of space for concentration
creates a calm, library-likeatmosphere.

Library

4F Session
By opening and closing thepartitions and curtains, the spacecan be made into close or open,
enabling a variety of work styles.

２
1

Session- ABW The work stylethat you can freely
choose when andwhere to work.

1

Concentration

２

Session３

Communication

４

Amenity26

End-tenants of KDO office buildings• The largest tenant occupies 2.4% of total leased floor area and each of tenants other than the top 4 occupies less than 1.0%
List of top end-tenants for office buildings

Average rent for office buildings by area (Note 2)(as of the end of 32nd fiscal period (2021/4))

Tenant name1

Mitsubishi Heavy Industries,
Ltd.

2 WeWork Japan G.K.

(tsubo)share ofleased floorarea (%) (Note1)

3,408.4

2.4

Mitsubishijuko Yokohama Bldg.

1,920.0

1.4

KDX Toranomon 1chome Bldg.

Leasedarea

28th fiscal period 30h fiscal period 32nd fiscal period(2019/4)(2020/4)(2021/4)

Name of property

Tenant A
3(wholesale, retail and dining)

1,550.8

1.1

KDX Kawasaki-Emimae
Hon-cho Bldg.

4 Japan Pension Service

1,424.9

1.0

KDX Chofu Bldg.

17,100yenTokyo
metropolitan area

16,300yen

16,600yenJapan

15,300yen

15,500yen（+200 yenperiod over period）

15,900yen（+100 yenperiod over period）

Tenant diversification by type of business5 JASTEC Co., Ltd.

1,304.6

0.9

KDX Takanawadai Bldg.

6

Customer relation
telemarketing, CO,LTD

1,279.6

0.9

KDX Higashi Umeda Bldg.

7

Tenant B(Manufacturing)

1,168.0

0.8

KDX Kobayashi-Doshomachi Bldg.

8

Tenant C(service provider)

1,080.1

0.8

KDX Musashi-Kosugi Bldg.

9 Medical Corporation DOYUKAI 1,079.6

0.8

Koishikawa TG Bldg.

0.6

Harajuku F.F. Bldg.

10

Tenant D(wholesale, retail and dining)

912.2

Total

15,128.2

10.7(based on # of tenants) (Note 3)
運輸・通信業Transportation,
38件 3.5%
Communication
38,建設業
3.5%
Construction
43件 3.9%
43, 3.9%
不動産業
Real
Estate
47件
4.3%
47,
4.3%
Finance,Insurance
金融・保険業17, 4.3%
47件 4.3%

Publicsector (other)
公務(その他)
4, 0.4%
4件 0.4%
Infrastructure
電気・ガス・水道・熱供給
3, 0.3%
3件 0.3%Mining
鉱業
1,
1件0.1%
0.1%# of tenants
1,115
サービス業
475件 43.6%
Service provider
475, 43.6%

個人
Individual
51件
4.7%
51, 4.7%
Manufacturing
製造業
145, 13.3%
145件 13.3%

Wholesale,
卸売業・小売業、飲食店
Retail,236件 21.7%Dining
236, 21.7%

Note 1: Leased area of each end-tenant against total leased floor area of KDO portfolio as of the end of 32nd fiscal period (2021/4) (rounded to the first decimal place)
Note 2: Average rent is calculated by dividing total amount of contracted rents of office buildings for each area as of the end of each fiscal period by the total leased floor area (rounded down to the nearest hundred yen)
Note 3:The chart shows the breakdown of tenants by type of business based on the total number of tenants in office portfolio (aggregated by name-base) as of the end of 32nd fiscal period (2021/4) (rounded to the first decimal place)27

Sustainability Initiatives
BELS Certification

Energy reduction through LED lighting rental areas• Newly acquired BELS Certification for 2 properties in
32nd fiscal period (2021/4)• LED lighting in common areas has been roughly completed,
while LED lighting in rental areas is being systematically★★★：KDX Hamamatsucho Place

upgraded to 28.9% of the properties owned (based on★★ ： KDX Shinbashi Ekimae Building

leasable area)• In 2014, KDX Musashi-Kosugi Bldg. was awarded a BELS Certification(three stars) for the first time in history as a J-REIT owned property• A total of 4 properties in our portfolio were awarded the Certification

Acquisition including other environmental certifications (Note 1)• As KDO has been actively and continuously promoting
green buildings, the properties that acquired DBJ Green
Building Certification, Certification for CASBEE for Real

Estate and BELS Certification exceed a majority of theportfolio in terms of ratio of floor area to total floor area
GRESB Real Estate
Assessment

DBJ Green Building
Certification

End of 32nd fiscal period (21/4)
Acquisition of environmental
certification (Note1)
Properties Total floor area ratio

42

57.1%

• In 32nd fiscal period, 13 properties switched to LED lighting
in rental areas, reducing annual power consumption by67%• In 33rd fiscal period, we are planning to switch to LED
lighting in the rental areas of 12 properties to further reduce
power consumption
Annual energy consumption (kWh)消費電力(kWh/年）

更新前
Before
更新後
After

895,981294,848▲601,133kWｈ

67% reduction

Equivalent to about 148 households in Japan (Note 2)

CASBEE for Real Estate

Certified as “Class S (Excellent Operator)” under“Assessment System Through Classification of Business Operators”• Assessment system under which operators are classified by METI such as
S(excellent operators) and A (operators expected to make further efforts) basedon the contents of periodic reports based on Act on the Rational Use of Energy• Acquired "Green Star" rating
for 9 consecutive years andthe 2nd-highest-rated “4Stars” in GRESB Rating as aresult of our efforts for
improving sustainability• A total of 25 properties inour portfolio were awarded
the Certification, including
KDX Toranomon 1chome
Bldg., which earned thehighest-rated “five stars”• 10 property was ranked S, thehighest rating, and 11 properties
were ranked A by CASBEE.
• A total of 21 properties in our
portfolio were awarded theCertification• For three consecutive years, KDO has achieved the target of “reducing the fiveyear average of energy intensity by 1% or more annually” and was evaluated as"S Class (Excellent operators). The results are announced on the website of METIFY2018FY2019FY2020☆

☆

☆

Note 1: The number of properties is counted without duplication in case a property has multiple certification or evaluation.The total floor area ratio is calculated by dividing by the total floor area of the entire portfolio.
Note 2: Calculated by the Asset Management Company based on the "Annual Energy Consumption, Amount Paid, and CO2 Emissions per Househ old (Nationwide)" obtained from the "FY2019 Statistical Survey on CO2Emissions in the Household Sector (Provisional Figures).

28Section 6
Financial strategy

29

Status of debt financing
1.8

Average interest rate and remaining period to maturity (Note 1)

1.6

6

Refinance record for 32nd fiscal period (2021/4)(Total amount of 19.7 bn yen) (Note 2)

5

Weighted average interest rate (incl. up-front fee)
平均金利（融資実行手数料を含む）

Conditions before
refinancing

Conditions afterrefinancing

Average interest rate

0.77%

0.65%

Average borrowing
period3.8 years

6.2 years

4
1.4
1.19%

1.2

1.16%

3
1.10%

1.07%

1.06%

1.04%

1.02%

1.0
0.8

2
0.97%

0.94%

0.94%

End of 23rd
第23期
fiscal period（16/10期）末(2016/10)

End of 24th
第24期
fiscal period（17/4期）末(2017/4)

End of 25th
第25期
fiscal period（17/10期）末(2017/10)

End of 26th
第26期
fiscal period（18/4期）末(2018/4)

Endof 27th
第27期
fiscal period（18/10期）末(2018/10)

End of 28th
第28期
fiscal period（19/4期）末(2019/4)

End of 29th
第29期
fiscal period（19/10期）末(2019/10)

End of 30th
第30期
fiscal period（20/4期）末(2020/4)

End of 31st
第31期
fiscal period（20/10期）末(2020/10)

End of 32nd
第32期
fiscal period（21/4期）末(2021/4)

4.9

4.7

5.0

5.2

5.2

5.0

4.8

4.5

4.5

4.7

Averageremaining
period tomaturity (year)

1
0

Interest-bearing debt by maturity(excl. short-term borrowings)

Balanceof debt
maturing

Balance of interest-bearing debt by maturity（bn yen）

Short-Term Borrowings
短期借入金
68億円 6.8

Long-Term
180.9
長期借入金Borrowings
1,809億円

Averagefinancial cost

33rd
fiscal period(2021/10)

34th
fiscal period(2022/4)

35th
fiscal period(2022/10)

36thfiscal period(2023/4)

11.8
bn yen9.9
bn yen9.15
bn yen3.8
bn yen

1.07%

1.01%

0.91%

1.50%

Investment
Bonds 11.0
投資法人債Corporation
110億円

Outline of the commitment line agreement
200160• As of April 30, 2021, we have concluded new commitment line
12.8 157.0
15.7

156.0
15.6

14.2
142.0
128.0
12.8

120

16.6
162.0
16.2 166.0

1.0
10.0

12.5
12.6 125.0
123.0
12.3 126.0

58.0
5.8

110.5
11.05
91.5
9.15

90.0
9.0
75.0
7.5

1.0

80

33rd
第33期
fiscal(21/10期)
period(2021/10)

35th
第35期
fiscal(22/10期)
period(2022/10)

68.5
6.85

2.0

63.0
6.3
50.0
5.0
1.0

37tg
第37期
fiscal(23/10期)
period(2023/10)

39th
第39期
fiscal(24/10期)
period(2024/10)

New agreements

Counterparty

Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited
Mizuho Trust & Banking Co., Ltd.

Maximum
Amount

6.0 bn yen

3.0 bn yen

Contract Type

Syndication-type

Bilateral-type

2.0

77.0
7.7

38.0
3.8
3.8

40

Existing agreement

2.0

2.0

0

agreements with the maximum amount of 3.0 bn yen.

1.0

41st
第41期
fiscal(25/10期)
period(2025/10)

43rd
第43期
fiscal(26/10期)
period(2026/10)

45th
第45期
fiscal(27/10期)
period(2027/10)

47th
第47期
fiscal(28/10期)
period(2028/10)

50th
第50期
fiscal(30/4期)period(2030/4)

39.0
3.9

52nd
第52期
fiscal(31/4期)period(2031/4)

Valid Period

May 1, 2021 to April 30, 2022

Use ofproceeds

Acquisition of assets,
Repayment of the existing borrowings and redemption of
investment corporation bonds

Note 1: Average interest rate and borrowing period are the weighted average based on the balance of debt outstanding as of the end of each fiscal period (with the average interest rate rounded to the second decimal place
and the average borrowing period rounded to the first decimal place)
Note 2: Average interest rate and borrowing period are the weighted average of the interest rate of borrowings (incl. up-front fee) and borrowing period based on the balance of borrowings, respectively (with the averageinterest rate rounded to the second decimal place and the average borrowing period rounded to the first decimal place).

30

Historical changes in LTV and status of interest-bearing debt
financing• Maintain stable financial base through conservative management with a 45% of LTV in mind
Historical LTV (interest-bearing debt ratio) level (Note 1)（%）

Borrowing capacity for acquisition (Note 2)
as of the end of 32nd
fiscal period (2021/4)

LTV（有利子負債比率）
LTV (interest-bearing debt ratio)
45.3

46.2

45.8

47.5

(in the case of LTV 45% limit)

48.4

47.2

Approx. 13.0 bn yen
42.8

42.8

43.1

42.8

42.6

43.9

43.3

41.9

40.3

41.7

43.9

42.9

42.1

43.4

Appraisal-value 36.1
based LTV

End of 13th

第13期
fiscal period（11/10期）末(2011/10)

End of 14th
第14期
fiscal period（12/4期）末(2012/4)

End of 15th
第15期
fiscal period（12/10期）末(2012/10)

End of 16th
第16期
fiscal period（13/4期）末(2013/4)

End of 17th
第17期
fiscal period（13/10期）末(2013/10)

End of 18th
第18期
fiscal period（14/4期）末(2014/4)

End of 19th
第19期
fiscal period（14/10期）末(2014/10)

End of 20th
第20期
fiscal period（15/4期）末(2015/4)

End of 21st
第21期
fiscal period（15/10期）末(2015/10)

End of 22nd
第22期
fiscal period（16/4期）末(2016/4)

End of 23rd

第23期
fiscal period（16/10期）末(2016/10)

Outstanding borrowings by financial institutions as of the end of
32nd fiscal period (2021/4)

16 lending financial institutions

2.8%
5.6%
6.0%
9.5%

Total
borrowings
from financial
institutions
187.7 bn yen

10.6%
15.7%

End of 26th
第26期
fiscal period（18/4期）末(2018/4)

End of 27th
第27期
fiscal period（18/10期）末(2018/10)

End of 30th
第30期
fiscal period（20/4期）末(2020/4)

End of 31st
第31期
fiscal period（20/10期）末(2020/10)

End of 32nd
第32期
fiscal period（21/4期）末(2021/4)

Status of credit rating

96.6%

AA-（Positive）■ MUFG Bank

36,800mn yen

19.6%■ Development Bank of

29,550mn yen

15.7%■ Sumitomo Mitsui Trust

19,900mn yen

10.6%■ Mizuho Bank

17,900mn yen

9.5%■ Resona Bank

11,250mn yen

6.0%■ Aozora Bank

10,550mn yen

5.6%■ Mizuho Trust & Banking

5,300mn yen

2.8%

Corporate bonds■ The Bank of Fukuoka

2,500mn yen

1.3%■ The Nishi-Nippon City

1,700mn yen

0.9%■ The Hiroshima Bank

1,000mn yen

0.5%■ The 77 Bank

1,000mn yen

0.5%■ Sumitomo Life Insurance

1,000mn yen

0.5%Company

End of 29th
第29期
fiscal period（19/10期）末(2019/10)

Ratio offixed interest rate (Note 3)

25.1%

Bank

End of 28th
第28期
fiscal period（19/4期）末(2019/4)

Major indicators related to financial stability

47,200mn yen

Bank

19.6%

End of 25th
第25期
fiscal period（17/10期）末(2017/10)■ Sumitomo Mitsui Banking

Japan

25.1%

End of 24th
第24期
fiscal period（17/4期）末(2017/4)(JCR)

Issue status of investment corporation bonds as ofthe end of 32nd fiscal period (2021/4) (total of 11.0 bn yen)
6th bonds

Issuedperiod2014/7

2.0 bn yen

Interest
rate
1.18%

7th bonds

2016/410 years

1.0 bn yen

0.90%

8th bonds

12 years

2017/7

1.0 bn yen

0.26%

5 years

9th bonds

2017/7

2.0 bn yen

0.64%

10 years

10th bonds (green bonds)

2019/22.0 bn yen

0.39%

5 years

IssuedamountTerm■ Higashi-Nippon Bank

800mn yen

0.4%

■ The Norinchukin Bank

800mn yen

0.4%

11th bonds (private placement bonds)

2020/1

2.0 bn yen

0.25%

5 years■ San ju San Bank （the former

500mn yen

0.3%

12th bonds (green bonds)

2020/10

1.0 bn yen

0.61%

10 years

The Mie Bank）

Note 1: LTV is calculated by dividing the balance of interest-bearing debt by the amount of total assets as of the end of each fiscal period. Appraisal-value based LTV is calculated by dividing the balance of interest-bearing
debt by the sum of the amount of total assets and appraisal profit/loss of owned properties as of the end of each fiscal period (rounded to the first decimal place)
Note 2: Estimated borrowing amount of debt which can be additionally procured from financial institutions or new issuance of investment corporation bonds for property acquisition by new debt financing, assuming that theLTV can be increased to a certain value
Note 3: Includes the borrowings with floating interest rate fixed by interest rate swap (rounded to the first decimal place)31

Disclaimer

The contents of this document, including summary notes, quotes, data and other information, are provided solely for
informational purposes and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell,
any specific products.
Please be aware that matters described herein may change or cease to exist without prior notice of any kind. This document
contains forward-looking statements and anticipations of future results, based on current assumptions and beliefs in light ofcurrently available information and resources. Risks and uncertainties, both known and unknown, including those relating to the
future performance of the real estate market in Japan, interest rate fluctuations, competitive scenarios, and changing
regulations or taxation, may cause Kenedix Office Investment Corporation (KDO)'s actual results, performance, achievements
and financial performance to be materially different from those explicitly or implicitly expressed in this document.
With respect to any and all terms herein, including without limitation, this document, the information provided is intended to bethorough. However, no assurance or warranties are given with respect to the accuracy or completeness thereof.
Neither KDO nor Kenedix Real Estate Fund Management, Inc. (KFM) shall be liable for any errors, inaccuracies, loss ordamage, or for any actions taken in reliance thereon, or undertake any obligation to publicly update the information contained inthis document after the date of this document.
Revised editions of this document will be posted on our website (https://www.kdo-reit.com/en/) if there should be majorcorrections going forward.

32

Memo

33

34