Notice on Acquisition of Domestic Real Estate Trust Beneficiary Rights (KDX Logistics Sapporo Kita, underlying land) and Sale (Primam ham Kinki Center)

Overview of acquisition and disposition

KDX Real Estate Investment Corporation has decided to acquire and dispose of domestic real estate trust beneficiary rights through its asset management company. The asset to be acquired is KDX Logistics Sapporo Kita (underlying land); the asset to be disposed is Primam Ham Kinki Center. Acquisition price 1,165 million yen, appraised value 1,290 million yen; disposition price 1,130 million yen, appraised value 1,107 million yen. Funding for acquisition will be from internal funds, and disposition will use internal funds. Going forward, the aim is to enhance portfolio quality and profitability through continued portfolio replacement.

Portfolio strategy and risk considerations

This transaction aligns with the portfolio construction policy, combining acquisition of underlying land with long-term rent growth potential and disposal of logistics facilities with limited future earnings growth potential as an asset replacement for medium- to long-term earnings growth. Considering terms such as CPI-linked underlying land contracts and master lease agreements, long-term rent growth is expected. While there are cautions regarding relationships with the disposal counterparties and boundary verifications, boundary checks are planned to be carried out promptly moving forward.