Notice regarding Transfer of Domestic Real Estate Trust Beneficiary Interest (Round Cross Kagoshima)

Transaction Overview

ORIX JREIT Inc. has decided to transfer the real estate trust beneficiary interest of Round Cross Kagoshima, which it manages, to a domestic operating company. The transfer will be mediated; the planned transfer price is 1,242 hundred million yen, the book value is 1,184 hundred million yen, and the estimated gain on transfer is approximately 29 hundred million yen. The transfer date is scheduled for 2026-12-22. Proceeds from the transfer are planned to be applied to repayment of borrowings and similar purposes. The forward commitment includes provisions for cancellation and penalty payments in the event of non-fulfillment.

Impact and Outlook

This transfer is part of an asset replacement aimed at improving portfolio quality over the medium to long term, and the transfer gains are planned to be returned to unitholders. The impact on operations after completion of the transfer will be referenced in the REIT financial summary for the fiscal period ending August 2026 when the date is announced, and the portfolio composition after completion will be updated in accompanying disclosure materials. Depending on future use of funds, an improvement in the financial structure is expected.