KDX Realty Investment (8972) Investor presentation summary

Asset acquisition and disposition strategy

• Acquired office, residential, and hotel properties with earnings growth potential, while disposing of healthcare and retail land assets with limited revenue upside.

• Major acquisitions include TCS-HD Yokohama Building, ibis Styles Tokyo Bay, BEB5 Okinawa Seragaki, and four PREGIO residential properties.

• Disposed of healthcare facility 'Ten' due to deteriorating operator profitability and limited future growth, achieving a sale at the highest realizable price.

• Asset reshuffle aims to maintain cash flow and appropriate LTV levels, with continued property sales planned.

• Average NOI yield for newly acquired assets is 4.5%, while disposed assets averaged 4.1%.

Financial performance and distribution outlook

• Forecasted DPU (distribution per unit) increased by 4.9% annually, driven by new acquisitions, asset sales gains, and unit repurchases.

• DPU expected to reach 4,440 yen for the fiscal period ending April 2027, up from 4,045 yen in April 2025.

• 3% annualized DPU growth targeted from April 2025 baseline.

Details of key acquisitions

• TCS-HD Yokohama Building: recently built, 100% occupancy, negative rent gap over 10%, acquired for 6,080 mn yen at a 3.9% NOI yield.

• ibis Styles Tokyo Bay: acquired for 12,000 mn yen, 4.7% NOI yield, rent linked to hotel performance, close to Tokyo Disney Resort.

• BEB5 Okinawa Seragaki: acquired for 6,057 mn yen, 6.2% NOI yield, significant embedded gain, rent linked to performance.

• PREGIO Umeda and Sakura Shukugawa: recently built residentials in prime locations, acquired for 4,480 mn yen and 4,530 mn yen, with NOI yields of 3.7% and 3.9% respectively.

• PREGIO Tezukayama and Nagata: acquired for 3,100 mn yen and 2,979 mn yen, NOI yields of 4.0% and 4.2%, high occupancy rates.