Kenedix Office Investment : Notice Concerning Debt Financing (Series 0004)

Translation of Japanese Original

To All Concerned Parties

October 27, 2023

REIT Issuer:

Kenedix Office Investment Corporation

Hiroaki Momoi, Executive Director

(Securities Code: 8972)

Asset Management Company:

Kenedix Real Estate Fund Management, Inc.

Hikaru Teramoto, President & CEO

Inquiries:

Tomoya Shigaki

Head of Strategic Planning,

Office REIT Department

TEL: [phone]

Notice Concerning Debt Financing (Series 0004)

Kenedix Office Investment Corporation ("the Investment Corporation", the name is to be changed to KDX Realty Investment Corporation) announced today, that the Investment Corporation decided to undertake the debt financing (total of 1,000 million yen) through the green loan. Please see below for the details.

1. Outline of Debt Financing

		Amount	Interest Rate	Contract	Drawdown	Principal	Collateral
Series	Lender	Repayment	Repayment
(Note 1)	Date	Date
				Date (Note 1)	Method
							Unsecured,
		1,000	Base rate (Note 3)				unguaranteed
0004	Sumitomo Mitsui				・
(JPY TIBOR	October 30,	November 1,	April 30,
million	Repayment
(Note 2)	Banking Corporation	for 1 month)	2023	2023	2024
	yen	of principal
		+0.12500%
						in full on
							maturity date

Note 1: The first interest payment of Series 0004 is due at the end of November 2023, and on the last day of every month thereafter with the principal repayment day. If each interest payment day or the principal repayment day is a non-business day, then the interest payment or the principal repayment will be due on the next business day and if that next business day is in the next month, then previous business day will be applied.

Note 2: The debt financing is the green loan. The green loan is to be applied to the repayment of borrowings for the acquisition of the property with a certain level of environmental evaluation and certification in accordance with the Green Finance Framework ("the Framework") established by the Investment Corporation. The Framework has received a "Green1(F)" rating in the "JCR Green Finance Framework Evaluation" from Japan Credit Rating Agency, Ltd. ("JCR") on August 10, 2022. The details of the Investment Corporation's initiatives of green finance are available on the website (https://www.kdo-reit.com/en/sustainability/environment7.html).

Note 3: The base rate that is applied during the interest period for the interest due on the interest payment date shall be calculated based on a Japanese Yen TIBOR, which JBA TIBOR Administration ("the JBATA") releases two business days before the interest payment date. The Japanese Yen TIBOR of the JBATA is available on the JBATA website (https://www.jbatibor.or.jp/english/rate/).

2. Purpose of Debt Financing

Series 0004 is to be applied to the fund towards the repayment of Series 203-A with the principal repayment date of November 1, 2023. For details on Series 203-A, please refer to the press release, "Notice Concerning Debt Financing (Green Loan etc.)" dated August 25, 2023.

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3. Status of Borrowings and Investment Corporation Bonds after the Debt Financing (as of November 1, 2023)

											(Millions of yen)
		Classification			Balance before			Balance after			Difference
				the Debt Financing			the Debt Financing
		Short-Term Borrowings (Note 1)	2,000	2,000	-
		Long-Term Borrowings (Note 2)	199,950	199,950	-
		Total Borrowings	201,950	201,950	-
		Investment Corporation Bonds	13,000	13,000	-
Total Borrowings and Investment Corporation Bonds	214,950	214,950	-

Note 1: Short-term borrowings refer to debt financing with a period less than or equal to one year from the drawdown date to the principal repayment date. However, the borrowings for which the period until the principal repayment date has surpassed one year because the principal repayment date after one year from the drawdown date is not a business day, and for which the principal repayment date has been moved to a different business day, are included in short-term borrowings.

Note 2: Long-term borrowings refer to debt financing with a period more than one year from the drawdown date to the principal repayment date.

Note 3: Changes in interest-bearing debt due to the merger scheduled to take effect on November 1, 2023 have not been taken into account.

4. Other

For risks concerning the repayment, etc. of the aforementioned debt financing, there are no significant changes to the "Investment Risks" as described in the Securities Report (submitted on July 28, 2023).

The Investment Corporation's website: https://www.kdo-reit.com/en/

This notice is the English translation of the Japanese announcement on our website released on October 30, 2023. However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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