Notice Regarding Acquisition of Domestic Real Estate Trust Beneficiary Interest (1 Residential Facility) and Transfer (1 Office Building)

Transaction Overview

KDX REIT is scheduled to acquire the trust beneficiary interest of the recently built designer condominium “KDX Residence Mizue” in Edogawa-ku, Tokyo (scheduled acquisition price 2,550 million yen, appraised value 2,810 million yen, appraised NOI yield 4.1%) on April 1, 2026. Meanwhile, it plans to transfer the sectional ownership office building “Shintoshin Maruzen Building” in Shinjuku-ku, Tokyo (scheduled transfer price 2,072 million yen, book value estimate 1,989 million yen, appraised value 1,720 million yen, appraised NOI yield 4.0%) on April 3, 2026.

Purpose of the Transaction and Future Outlook

This transaction aims to improve portfolio quality and maximize investor value, with anticipated upside in rental income through acquisition of the residential facility. The decision to transfer the office building reflects declining profitability due to aging, and aims to reduce liquidity risk. As a result, portfolio quality and profitability are expected to improve, leading to mid- to long-term dividend growth. The impact on operational performance for the April and October 2026 periods is expected to be minor, with no forecast revisions.