Kenedix Residential Next Investment : Notice Concerning Execution of Interest Rate Swap Agreements

Translation of Japanese Original

July 29, 2020

To All Concerned Parties

REIT Issuer:

Kenedix Residential Next Investment Corporation

Representative: Keisuke Sato, Executive Director

(Securities Code: 3278)

Asset Management Company:

Kenedix Real Estate Fund Management, Inc.

Representative: Masahiko Tajima, President & CEO

Contact:Shin Yamamoto, Head of Planning

Division, Residential REIT Department

TEL:[phone]

Notice Concerning Execution of Interest Rate Swap Agreements

Kenedix Residential Next Investment Corporation (the "Investment Corporation") announced today the decision regarding the execution of interest-rate swap agreements. The details are as follows.

1. 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 43-B with floating interest rate. For further details concerning the abovementioned debt financing, please refer to the press release "Notice Concerning Debt Financing and the Execution of Interest Rate Swap Agreements" announced on July 22, 2020.
2. Details of the Interest Rate Swap Agreements

			Series 43-B
Counterparty		Nomura Securities Co.,Ltd.
Notional Amount		¥ 1,000 million
	Fixed interest	0.13600%
Interest	Rate for payment
Rate	Floating interest		Base rate (JPY TIBOR for 3 month)
	Rate for receipt
Commencement Date		July 31, 2020
Termination Date		July 31, 2028
			The first payment is due at the end of October 2020, and on the last day of every three months
			thereafter, with the last payment on the principal repayment day.
Payment Date		(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 43-B is essentially fixed at 0.68600%.

• 2. 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 28, 2020.

• 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.

1