Translation of Japanese OriginalDecember 14, 2023
To All Concerned Parties:

REIT Issuer:
KDX Realty Investment Corporation
Representative: Hiroaki Momoi, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Representative: Hikaru Teramoto, President & CEO
Contact:
Michiru Nagamata, Head of Strategic Planning,
Listed REIT Department
TEL:+81-3-5157-6010

Notice Concerning Determination of Operating Results and Payment Upon the Merger
for the Fiscal Period Ended October 31, 2023 (Final Fiscal Period) ofKenedix Residential Next Investment Corporation and Kenedix Retail REIT Corporation
KDX Realty Investment Corporation (“KDXR” former trade name: Kenedix Office Investment Corporation) hereby
announces the determination of operating results and Payment Upon the Merger for the fiscal periods ended October
31, 2023 (final fiscal periods) of Kenedix Residential Next Investment Corporation (“KDR”) and Kenedix Retail
REIT Corporation (“KRR”), the dissolving corporations in the absorption-type merger (the “Merger”) of KDXR,
KDR and KRR effective on November 1, 2023. Details are as follows.
1.

Operating Results and Payment Upon the Merger for the Fiscal Period Ended October 31, 2023
(from August 1, 2023 to October 31, 2023) of KDR
Payment Upon
OperatingOperatingOrdinaryNetthe MergerRevenue
IncomeIncome
Incomeper Unit
(yen)
(Millions of Yen) (Millions of Yen) (Millions of Yen) (Millions of Yen)
(Note1) (Note2)

Fiscal Period EndedOctober 31, 2023
(3 months) (Note 3)

4,999

2,446

2,086

2,086

2,070

(Note 1) Number of investment units issued and outstanding at end of the fiscal period: 1,070,433 investment units
Net income per unit: 1,948 yen(Note 2) Instead of cash distributions for KDR’s final fiscal period, KDXR will make a Payment Upon the Merger to theunitholders listed or recorded on the final unitholders register of KDR as of the day immediately prior to the effective
date of the Merger (October 31, 2023), in an amount equivalent to the Payment Upon the Merger for the final fiscal
period based on KDR’s distributable profit (the payment on merger will be the amount of distributable profit of KDR asof the day immediately prior to the date of the Merger (October 31, 2023) divided by the number of investment units
issued and outstanding of KDR, as of the day immediately prior to the date of the Merger (amounts less than one yen
are rounded down)).
(Note 3) The financial result for KDR is for the three-month period from August 1, 2023 to October 31, 2023.
(Note 4) Total Payment Upon the Merger for the fiscal period ended October 31, 2023 (2,215 million yen) differs from the net
income since, in the fiscal period ended October 31, 2023, it is assumed that net income plus the reversal amount of thereserve for temporary difference adjustment and a part of the retained earnings brought forward from the previous period
will be distributed.
(Note 5) Figures less than one unit are rounded down.

12.

Operating Results and Payment Upon the Merger for the Fiscal Period Ended October 31, 2023
(from April 1, 2023 to October 31, 2023) of KRR
Payment Upon
OperatingOperatingOrdinaryNetthe Merger
Revenue
IncomeIncomeIncomeper Unit
(Millions of Yen) (Millions of Yen) (Millions of Yen) (Millions of Yen)
(yen)
(Note1) (Note2)

Fiscal Period EndedOctober 31, 2023
(7 months) (Note 3)

11,912

5,388

4,650

4,646

7,716(Note 1) Number of investment units issued and outstanding at end of fiscal period: 602,177 investment units
Net income per unit: 7,716 yen(Note 2) Instead of cash distributions for KRR’s final fiscal period, KDXR will make a Payment Upon the Merger to theunitholders listed or recorded on the final unitholders register of KRR as of the day immediately prior to the effective
date of the Merger (October 31, 2023), in an amount equivalent to the Payment upon the Merger for the final fiscal
period based on KRR’s distributable profit (the payment on Merger will be the amount of distributable profit of KRR asof the day immediately prior to the date of the Merger (October 31, 2023) divided by the number of investment units
issued and outstanding of KRR, as of the day immediately prior to the date of the Merger (amounts less than one yen arerounded down)).
(Note 3) The financial result for KRR is for the seven-month period from April 1, 2023 to October 31, 2023.
(Note 4) Figures less than one unit are rounded down.

3.

Scheduled Date of Commencement of the Payment Upon the Merger
January 22, 2024

<Attachment>
Reference Material “Reference Information of the grounds of KDR’s Payment Upon the Merger”
Reference Material “Reference Information of the grounds of KRR’s Payment Upon the Merger”
KDXR’s website: https://www.kdx-reit.com/eng/[Provisional Translation Only]
This document is an English translation of the original Japanese document and is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

2

ATTACHMENT
Reference Information of the Grounds of KDR’s Payment Upon the Merger(1) Balance Sheet(Thousands of Yen)
Fiscal Period Ended October 31, 2023
(As of October 31, 2023)
AssetsCurrent assets
Cash and deposits

10,624,170

Cash and deposits in trust

11,365,909

Operating accounts receivable

43,367

Prepaid expenses

52,254

Consumption taxes receivable

28,477

Other

6,273

Total current assets

22,120,452

Noncurrent assets
Property, plant and equipment
Buildings

1,324,918

Accumulated depreciation(31,198)

Buildings, net

1,293,719

Structures

31,606

Accumulated depreciation(1,379)Structures, net

30,226

Tools, furniture and fixtures

45,865

Accumulated depreciation(2,407)

Tools, furniture and fixtures, net

43,457

Land

4,397,829

Buildings in trust

127,915,782

Accumulated depreciation(22,794,334)

Buildings in trust, net

105,121,447

Structures in trust

1,574,202

Accumulated depreciation(489,758)

Structures in trust, net

1,084,443

Machinery and equipment in trust

1,672,715

Accumulated depreciation(607,433)

Machinery and equipment in trust, net

1,065,281

Tools, furniture and fixtures in trust

1,499,150

Accumulated depreciation(315,335)

Tools, furniture and fixtures in trust, net

1,183,815

Land in trust

185,749,321

Total property, plant and equipment, net

299,969,541

Intangible assets
Leasehold right in trust

1,846,864

Total intangible assets

1,846,864

Investments and other assets
Lease and guarantee deposits

89,228Long-term prepaid expenses

758,659

Other

1,458,405

Total investments and other assets

2,306,293

Total noncurrent assets

304,122,699

3

(Thousands of Yen)
Fiscal Period Ended October 31, 2023
(As of October 31, 2023)
Deferred assets
Investment corporation bond issuance costs

34,177

Investment unit issuance costs

41,614

Total deferred assets

75,792

Total assets

326,318,944

Liabilities
Current liabilities
Operating accounts payable

915,367

Short-term loans payable

1,000,000

Current portion of investment corporation bonds

1,000,000

Current portion of long-term loans payable

19,900,000

Accounts payable-other

199,982

Accrued expenses

78,613

Income taxes payable

302

Accrued consumption taxes

37,733

Advances received

1,476,161

Deposits received

76,553

Other

207

Total current liabilities

24,684,923

Noncurrent liabilities
Investment corporation bonds

6,700,000

Long-term loans payable

137,320,000

Tenant leasehold and security deposits

277,440

Tenant leasehold and security deposits in trust

3,816,155

Tenant lump sum deposits in trust

4,357,503

Asset retirement obligations

68,920

Other389

Total noncurrent liabilities

152,540,408

Total liabilities

177,225,331

Net assets
Unitholders' equity
Unitholders' capital

130,379,080

SurplusCapital surplus

13,187,100

Voluntary retained earnings
Reserve for temporary difference adjustments

1,800,000

Total voluntary retained earnings

1,800,000

Unappropriated retained earnings (undisposed loss)

2,267,292

Total surplus

17,254,392

Total unitholders' equity

147,633,472

Valuation and translation adjustments
Deferred gains or losses on hedges

1,460,139

Total valuation and translation adjustments

1,460,139

Total net assets

149,093,612

Total liabilities and net assets

326,318,944

4

(2) Statement of Income and Retained Earnings(Thousands of Yen)
Fiscal Period Ended October 31, 2023
(August 1, 2023 toOctober 31, 2023)
Operating revenues
Rent revenue-real estate

4,707,354

Other lease business revenue

292,070Total operating revenues

4,999,425

Operating expenses
Expenses related to rent business

1,876,962

Asset management fees

385,011

Asset custody fees

8,256

Administrative service fees

28,324

Directors' compensation

2,250

Merger-related expenses

45,861Other operating expenses

205,945

Total operating expenses

2,552,612

Operating income

2,446,812

Non-operating income
Interest income

44

Gain on forfeiture of unclaimed dividends

219

Total non-operating income

263

Non-operating expenses
Interest expenses

266,083

Interest expenses on investment corporation bonds

13,388Borrowing expenses

70,140

Amortization of investment corporation bond issuance costs

1,984

Amortization of investment unit issuance costs

9,077

Total non-operating expenses

360,674

Ordinary income

2,086,402

Income before income taxes

2,086,402

Income taxes
Current

302

Total income taxes

302

Net income

2,086,099

Retained earnings brought forward

181,193

Unappropriated retained earnings (undisposed loss)

2,267,292

5

(3) Statement of Changes in Net Assets
Fiscal Period Ended October 31, 2023

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

August 1, 2023 to October 31, 2023

Unitholders'
capitalCapitalsurplus130,379,080

13,187,100(Thousands of Yen)

Unitholders' equity
Surplus
Voluntary reserve
UnappropriatedReserve for
Total
retained earnings
temporaryvoluntary(undisposed loss)
difference
reserveadjustments
1,820,000 1,820,000
4,682,702(20,000)

130,379,080

13,187,100(20,000)
1,800,000(20,000)(20,000)
1,800,000

Valuation and translation
adjustments

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

Deferred gains
and losses onhedgesTotal valuationand translation
adjustments

Total net assets

779,904

779,904

150,848,786(4,521,508)
2,086,099

680,234

680,234

680,234

680,2341,460,139

680,234
1,460,139(1,755,174)
149,093,612

6

Total
unitholders'equityTotal
surplus19,689,802

150,068,882

20,000--(4,521,508)
2,086,099(4,521,508)
2,086,099(4,521,508)
2,086,099(2,415,409)
2,267,292(2,435,409)
17,254,392(2,435,409)
147,633,472

(4) Statement of Cash Distributions
Fiscal Period Ended October 31, 2023
(August 1, 2023 - October 31, 2023)

Item
Ⅰ. Unappropriated retained earnings
Ⅱ. Reversal of voluntary reserve
Reversal amount of the reserve fortemporary difference adjustment
Ⅲ. Distributions (Note 1)(Distributions per unit) (Note 1)
Ⅳ. Retained earnings carried forward

Method for calculating
cash distributions (Note 1)

2,267,292,832 yen
10,000,000 yen
2,215,796,310 yen（2,070 yen）
61,496,522 yen
In accordance with the policy described in Article 38-1 of its
Articles of Incorporation, the Investment Corporation determinesthat the amount of distribution shall exceed the amount equivalent
to 90% of its distributable profit as stipulated in Article 67-15 of
the Special Taxation Measures Law, and shall not exceed its
accounting profits as the maximum amount. Following this policy,
the Investment Corporation has decided that it shall distribute
2,215,796,310 yen, which is the amount of 2,086,099,786 yen in
net income and 119,696,524 yen from retained earnings brought
forward and 10,000,000 yen from reversal of reserve for temporary
difference adjustments, as the distribution of earnings.

(Note 1) The cash distributions is read as the Payment Upon the Merger.
(Note 2) The Investment Corporation refers to Kenedix Residential Next Investment Corporation.

7

Reference Information of the Grounds of KRR’s Payment Upon the Merger(1) Balance Sheet(Thousands of Yen)
Fiscal Period Ended October 31, 2023
(As of October 31, 2023)
AssetsCurrent assets
Cash and deposits

10,310,910

Cash and deposits in trust

7,142,267

Operating accounts receivable

251,444

Prepaid expenses

128,712

Other

5,286

Total current assets

17,838,621

Non-current assets
Property, plant and equipment
Buildings

788,457

Accumulated depreciation(146,422)

Buildings, net

642,035

Structures

46,777

Accumulated depreciation(11,278)

Structures, net

35,499Land

2,956,465

Buildings in trust

81,294,910

Accumulated depreciation(14,122,539)

Buildings in trust, net

67,172,370

Structures in trust

4,022,874

Accumulated depreciation(931,404)

Structures in trust, net

3,091,470

Machinery and equipment in trust

367,914

Accumulated depreciation(93,622)

Machinery and equipment in trust, net

274,292

Tools, furniture and fixtures in trust

217,092

Accumulated depreciation(131,322)

Tools, furniture and fixtures in trust, net

85,770Land in trust

194,842,421

Total property, plant and equipment, net

269,100,324

Intangible assets
Leasehold right in trust

4,705,323

Other

2,791

Total intangible assets

4,708,114

Investments and other assets
Lease and guarantee deposits

10,000

Lease and guarantee deposits in trust

62,927Long-term prepaid expenses

728,896

Long-term deposits

140,010

Other

1,109,484

Total investments and other assets

2,051,317

Total non-current assets

275,859,757

Deferred assets
Investment corporation bond issuance costs

40,422

Investment unit issuance costs

31,877

Total deferred assets

72,299Total assets

293,770,678

8

(Thousands of Yen)
Fiscal Period Ended October 31, 2023
(As of October 31, 2023)
Liabilities
Current liabilities
Operating accounts payable

587,313

Short-term loans payable

6,750,000

Current portion of long-term loans payable

16,010,000

Accounts payable-other563,952

Accrued expenses

35,299

Income taxes payable

4,349

Accrued consumption taxes

563,857

Advances received

1,549,233

Deposits received

89,166

Total current liabilities

26,153,172

Non-current liabilities
Investment corporation bonds

10,000,000

Long-term loans payable

101,140,000

Tenant leasehold and security deposits

148,083Tenant leasehold and security deposits in trust

12,506,130

Asset retirement obligations

25,341

Other

21,163
123,840,718

Total non-current liabilities
Total liabilities

149,993,890

Net assets
Unitholders' equity
Unitholders' capital

138,058,250

Deduction from unitholders' capital
Allowance for temporary difference adjustments(40,522)

Total deduction from unitholders' capital(40,522)

Unitholders' capital, net

138,017,728

Surplus
Unappropriated retained earnings

4,646,544

Total surplus

4,646,544

Total unitholders' equity

142,664,272

Valuation and translation adjustmentsDeferred gains or losses on hedges

1,112,515
1,112,515

Total valuation and translation adjustments
Total net assets

143,776,788

Total liabilities and net assets

293,770,678

9

(2) Statement of Income and Retained Earnings(Thousands of Yen)
Fiscal Period Ended October 31, 2023
(From April 1, 2023
to October 31, 2023)
Operating revenues
Rent revenue-real estate

10,139,357

Other lease business revenue

1,773,281

Total operating revenues

11,912,638

Operating expenses
Expenses related to rent business

5,324,701

Asset management fees

945,979

Asset custody fees

13,236

Administrative service fees

45,232

Directors' compensation

3,500

Other operating expenses

84,529Merger-related expenses

107,104

Total operating expenses

6,524,283

Operating income

5,388,354

Non-operating income
Interest income

38

Gain on forfeiture of unclaimed dividends

376Interest on refund

1,081

Total non-operating income

1,496

Non-operating expenses
Interest expenses

556,559

Interest expenses on investment corporation bonds

33,414

Financing-related expenses

126,868

Amortization of investment corporation bond issuance costs

5,520

Amortization of investment unit issuance costs

16,710Total non-operating expenses

739,072

Ordinary income

4,650,777

Income before income taxes

4,650,777

Income taxes
Current

4,355

Total income taxes

4,355

Net income

4,646,422

Retained earnings brought forward

121

Unappropriated retained earnings

4,646,54410

(3) Statement of Changes in Net Assets

Fiscal Period Ended October 31, 2023

April 1, 2023 to October 31, 2023

(Thousands of Yen)
Unitholders' equity

Unitholders' capital
Deduction from unitholders'
capitalAllowance for Total deduction
temporaryfrom
difference
unitholders'adjustments
capitalSurplusTotal
surplusTotal
unitholders'equity3,922,702

3,922,702

141,940,430

Dividends from surplus(3,922,580)(3,922,580)(3,922,580)

Net income

4,646,422

4,646,422

4,646,422

Unitholders'
capitalBalance at the beginning of
the period
Changes of items during theperiod

Net changes of items otherthan unitholder’s equity
Total changes of items during
the period
Balance at the end of theperiod

138,058,250(40,522)138,017,728---

723,841

723,841

723,841

138,058,250(40,522)(40,522)138,017,728

4,646,544

4,646,544

142,664,272

626,123

626,123

Total net assets

142,566,554

Dividends from surplus(3,922,580)

Net income

4,646,422

Net changes of items otherthan unitholder’s equity
Total changes of items during
the period
Balance at the end of theperiod

Unappropriate
d retained
earnings-Valuation and translation
adjustments
Deferred gains Total valuation
or losses on and translation
hedgesadjustments
Balance at the beginning of
the period
Changes of items during theperiod(40,522)

Unitholders'
capital, net

486,391

486,391486,391

486,391

486,391

1,210,233

1,112,515

1,112,515

143,776,788

11

(4) Statement of Cash Distributions
Fiscal Period Ended October 31, 2023
(April 1, 2023 - October 31, 2023)

Item
Ⅰ. Unappropriated retained earnings
Ⅱ. Distributions (Note)(Distributions per unit) (Note)
Ⅲ. Retained earnings carried forward

Method for calculating
cash distributions (Note)

4,646,544,047 yen
4,646,397,732 yen(7,716 yen)
146,315 yen
Based on the merger agreement concluded between KRR, KDXR and KDR
on June 13, 2023, Payment Upon the Merger shall be made to theunitholders listed or recorded on the final unitholders register of KRR on
October 31, 2023, the day immediately prior to the effective date of themerger (November 1, 2023). The per-unit amount of this distribution is
specified as that reached by dividing KRR’s entire distributable profit as of
October 31, 2023, the day immediately prior to the effective date of themerger (November 1, 2023) by the number of KRR’s investment units
issued and outstanding as of the same day (with any amount less than one
yen truncated). In line with this policy, the merger distribution per unit
calculated by dividing unappropriated retained earnings of 4,646,544,047
yen for the fiscal period ended October 31, 2023, by 602,177 units of thetotal number of issued and outstanding investment units was 7,716 yen.
4,646,397,732 yen shall be paid as the merger distribution, which is thevalue obtained by multiplying the total number of issued investment units
by 602,177 units.

(Note) The cash distribution is read as the Payment Upon the Merger.

12