Notice Regarding Transfer of Domestic Real Estate Trust Beneficiary Interest (KDX Utsunomiya Building)

Overview of the Transfer

KDX REIT has decided to transfer the real estate trust beneficiary interest in the 27-year-old office building 'KDX Utsunomiya Building' located in Utsunomiya City, Tochigi Prefecture, for 3,150 million yen. The transfer price exceeds both the expected book value of 2,033 million yen and the appraised value of 2,650 million yen as of October 2025, and a gain on sale of approximately 1,116 million yen is anticipated. The transfer date is scheduled for April 28, 2026.

Reason for Transfer and Future Outlook

Although the property has contributed to earnings over a long period, upside in rental income is limited due to its location and scale, and potential future repair cost increases are a concern. Therefore, the transfer was decided to enhance portfolio quality. The gain on sale may be retained internally to support stable medium- to long-term dividend growth, with details to be disclosed at the fiscal year-end announcement for April 2026. The transferee is a domestic non-affiliated company with no capital or personnel relationships.