Kenedix Residential Next Investment : Notice Concerning Debt Financing Interest Rate Determination and Execution of Interest Rate Swap Agreements

Translation of Japanese Original

July 27, 2022

To All Concerned Parties

REIT Issuer:

Kenedix Residential Investment Corporation

Representative: Tetsu Kawashima, Executive Director

(Securities Code Number: 3278)

Asset Management Company

Kenedix Real Estate Fund Management, Inc.

Representative: Masahiko Tajima, President & CEO

Contact: Shin Yamamoto, Head of Strategic Planning,

Residential REIT Department

TEL: [phone]

Notice Concerning Debt Financing Interest Rate Determination and

Execution of Interest Rate Swap Agreements

Kenedix Residential Next Investment Corporation (the "Investment Corporation") today announced details regarding the interest rate and applicable period for the following debt financing. In addition, the Investment Corporation announced the execution of interest-rate swap agreement. Details are as follows.

1. Borrowing Interest Rate

Series

Lender

Amount

Interest Rate

Drawdown

Principal

(million)

Date

repayment Date

68-B

MUFG

900

0.22500%（Note 1）

July 29, 2022

January 31, 2024

Bank, Ltd.

(Fixed rate)

（Note 1）The interest rate applicable period is from July 29, 2022 to January 31, 2024. （Note 2）The abovementioned debt financing is unsecured and unguaranteed.

For further details concerning the abovementioned debt financing, please refer to the press release "Notice Concerning Debt Financing and Execution of Interest Rate Swap Agreement" announced on July 26, 2022.

2. Interest Rate Swap Agreements

1. Reason for Executing the Interest Rate Swap Agreements
   For a hedge against possible increases in future interest rate for series 68-D with floating interest rate. For further details concerning the abovementioned debt financing, please refer to the press release "Notice Concerning Debt Financing and Execution of Interest Rate Swap Agreement" announced on July 26, 2022.
2. Details of the Interest Rate Swap Agreements

			Series 68-D
Counterparty		Nomura Securities Co.,Ltd.
Notional Amount		¥ 1,100 million
	Fixed interest	0.25000%
Interest	Rate for payment
Rate	Floating interest		Base rate (JPY TIBOR for 3 month)
	Rate for receipt
Commencement Date		July 29, 2022
Termination Date		July 31, 2027
Payment Date		The first payment is due at the end of October 2022, and on the last day of every three
		1

months thereafter, with the last payment on the principal repayment day.

(If each payment day is a non-business day, then the payment will be due on the next business day and if the next business day is in the next month, then the previous business day will be applied.)

(Note) By entering into the interest rate swap agreements, the interest rate for series 68-D is essentially fixed at 0.55000％.

3. Others

In relation to the risks associated with the borrowings, there have been no significant changes to the "Investment Risks" stated in the securities report (Yuka Shoken Hokokusyo) submitted on April 26, 2022.

*Website URL of the Investment Corporation: https://www.kdr-reit.com/en/

[Provisional Translation Only]

English translation of the original Japanese document is provided solely for information purposes.

Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

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