Kenedix Retail REIT : FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2021 (REIT) (April 1, 2021 to September 30, 2021)

Kenedix Retail REIT Corporation (3453)

Translation of Japanese Original

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2021 (REIT) (April 1, 2021 to September 30, 2021)

November 16, 2021

Kenedix Retail REIT Corporation ("KRR") is listed on the Tokyo Stock Exchange with the securities code number 3453. (URL https://www.krr-reit.com/en/)

Representative:	Moyuru Watanabe, Executive Director
Asset Management Company: Kenedix Real Estate Fund Management, Inc.
Representative:	Masahiko Tajima, President & CEO
Inquiries:	Koichiro Nobata, Head of Strategic Planning, Retail REIT Department
	TEL [phone]
Planned submission of semiannual securities report:	December 23, 2021
Planned start of distribution payments:	December 16, 2021
Preparing presentation material:		Yes
Hold a financial brief meeting:		No (Cancelled to prevent the spread of COVID-19 infection.
		Presentation video of financial results is scheduled to be webcasted.)

1．PERFORMANCE FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2021 (April 1, 2021 to September 30, 2021)

(1) Business Results														(Amounts are rounded down to the nearest million yen)
																(Percentages show period-on-period changes)
			Operating revenues			Operating income				Ordinary income			Net income
Fiscal period ended		Millions of yen		%		Millions of yen		%		Millions of yen		%	Millions of yen	%
September 30, 2021			9,576		9.8			4,881		11.5			4,262		12.2		4,261	12.2
March 31, 2021			8,717		3.8			4.379		7.3			3,799		8.4		3,798	8.4
			Net income per unit			Return on net assets				Ordinary income to total assets	Ordinary income to operating
								revenues
Fiscal period ended					Yen					%					%				%
September 30, 2021			7,384					3.3					1.6				44.5
March 31, 2021			7,084					3.1					1.5				43.6
Note:	Net income per unit is calculated by dividing the net income by the weighted average number of units.
(2) Distribution
									Total
		Distributions per	Distributions per														Distribution ratio
		Distributions in	distributions		Total distributions	Total distributions		Payout ratio
		unit (including	unit (excluding
		excess of earnings	(including		(excluding excess	in excess of				to net assets
		excess of	excess of
		per unit		excess of				of earnings)	earnings
		earnings)	earnings)
					earnings)
Fiscal period ended		Yen		Yen			Yen	Millions of Yen		Millions of Yen	Millions of Yen		%			%
September 30, 2021	7,328	7,274			54	4,266		4,234			31		99.4			3.1
March 31, 2021	7,095	7,085			10	3,804		3,798			5		100.0			3.1

Note 1: Total distributions in excess of earnings account for the distributions in regard to the allowance for temporary adjustment. There is no distribution by decreasing unitholders' capital on taxation. Please refer to "iv) Results of Operations" on page 3 for the distribution in excess of earnings.

Note 2: The payout ratio is 100.1% for the fiscal period ended March 31, 2021 and 100.1% for the fiscal period ended September 30, 2021 when calculated as follows. Payout ratio = Total distributions (including excess of earnings) / Net income x 100

(3) Financial Position

	Total assets	Net assets	Net assets to total assets	Net asset per unit
As of	Millions of yen	Millions of yen	%	Yen
September 30, 2021	272,622	137,052	50.3	235,414
March 31, 2021	251,773	124,701	49.5	232,575

(4) Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at the end of the period
Fiscal period ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
September 30, 2021	8,757	-22,416	15,571	24,143
March 31, 2021	7,047	-3,111	-3,510	22,230

This is an English-language translation of the original Japanese announcement on our website released on November 16, 2021. However, no assurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

Kenedix Retail REIT Corporation (3453)

2．EARNINGS FORECASTS FOR THE FISCALPERIODS ENDING MARCH 31, 2022 (October 1, 2021 to March 31, 2022) AND SEPTEMBER 30, 2022 (April 1, 2022 to September 30, 2022)

(Percentages show period-on-period changes)

													Distributions		Distributions		Distributions
		Operating		Operating							per unit			per unit
				Ordinary income	Net income			in excess of
		revenues		income			(excluding			(including
				(Millions of yen)	(Millions of yen)		earnings per
		(Millions of yen)	(Millions of yen)	excess of			excess of
								unit
													earnings)			earnings)
Fiscal period ending				%			%		%			%	Yen		Yen		Yen
March 31, 2022		9,308		-2.8	4,702		-3.7	4,077	-4.3	4,076		-4.3	7,001		9		7,010
September 30, 2022		9,062		-2.6	4,435		-5.7	3,809	-6.6	3,808		-6.6	6,541		9		6,550
Reference:	Forecasted net income per unit (Forecasted net income / Forecasted average number of investment units during the period)
	7,001 yen for the fiscal period ending March 31, 2022 and 6,541 yen for the fiscal period ending September 30, 2022
Note:	Distributions per unit are calculated based on the number of investment units issued and outstanding totaled 582,177 as of the date of this material.

*OTHERS

1. Changes in Accounting Policies/Changes in Accounting Estimate/Retrospective Restatement
2. 1. Changes in accounting policies accompanying revisions to accounting standards: Yes
   2. Changes in accounting policies other than (a): None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
3. Number of Investment Units Issued and Outstanding (including treasury investment units)

1. Number of investment units issued and outstanding at the end of the period (including treasury investment units) As of September 30, 2021: 582,177 units
   As of March 31, 2021: 536,177 units
2. Number of treasury investment units at the end of the period

As of September 30, 2021: 0 units

As of March 31, 2021: 0 units

Note: Please refer to "Notes to Per Unit Information" on page 27 for the number of investment units used as the basis for calculating net income per unit.

* Status of audit procedures

As of the time of disclosure of this financial report, audit procedures for the financial statements pursuant to the Financial Instruments and Exchange Act of Japan are incomplete.

* Remarks on appropriate use of forecasts of performance and other special notes

Forward-looking statements presented in this financial report, including forecasts of performance, are based on information currently available to KRR and on certain assumptions KRR deems to be reasonable. As such, actual operating and other results may differ materially from these forecasts as a consequence of numerous factors. The following are important factors that may affect the actual operation status. The above- mentioned forecasts are based on "Assumptions for the Earnings Forecasts of Financial Results for the Fiscal Periods Ending March 31, 2022 and September 30, 2022" on page 8 for calculation, and our judgment as of November 16, 2021. Actual operating revenues, operating income, ordinary income, net income, distributions per unit and distributions in excess of earnings per unit may vary according to changes in market conditions. These forecasts do not guarantee the distribution amount.

Decrease in rent revenues due to the further spread of COVID-19 and prolonged impact, and non-payment of rent or bankruptcy of tenants.

This is an English-language translation of the original Japanese announcement on our website released on November 16, 2021. However, no assurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.

Kenedix Retail REIT Corporation (3453)

Contents of Attachments

1. Status of Asset Management …………………………………………………….……………………………………………………. 2
2. 1. Status of Asset Management …………………………………………………………………………………………………… 2
   2. Investment Risks …………………………………………………………………………………………………………………10
3. Financial Statements
4. 1. Balance Sheets ...…………………………………………………………………………………………………………………11
   2. Statements of Income and Retained Earnings ……………………………………………………………………………………. 13
   3. Statements of Changes in Net Assets …………………………………………………………………………………………… 14
   4. Statements of Cash Distributions …………………………………………………………………………………………………16
   5. Statements of Cash Flows ……………………………………………………………………………………………………… 17
   6. Notes on Assumption of Going Concern ………………………………………………………………………………………… 18
   7. Summary of Significant Accounting Policies …………………………………………………………………………………… 18
   8. Notes to Financial Statements …………………………………………………………………………………………………… 20
   9. Changes in Investment Units Issued and Outstanding ……………………………………………………………………………. 28
5. Reference Information …………………………………………………………………………………………………………29
6. 1. Information on Price of the Managed Assets ……………………………………………………………………………………. 29
   2. Capital Expenditures on the Managed Assets…………………………………………………………………………………… 50
   3. Information Concerning Major Tenants ………………………………………………………………………………………… 51 (Reference) Earnings Performance of the Properties ………………………………………………………………………………… 53 (Reference) Borrowings …………………………………………………………………………………………………………… 60

Kenedix Retail REIT Corporation (3453)

1. Status of Asset Management

1. Status of Asset Management

(Overview of the Period ended September 30, 2021) i) Transition of KRR

KRR was established on October 3, 2014, under the Act on Investment Trusts and Investment Corporations of Japan (the "Investment Trust Act"). On October 30, 2014, KRR was registered with the Director-General of the Kanto Local Finance Bureau (registration number: Director-General of the Kanto Local Finance Bureau No. 97). KRR was listed on the Real Estate Investment Trust Securities ("J-REIT") Market of Tokyo Stock Exchange, Inc. (the "Tokyo Stock Exchange") (Securities code: 3453) on February 10, 2015. Subsequently, KRR raised funds through public offerings, including an international offering. As a result, the number of investment units issued at the end of the period ended September 30, 2021 was 582,177 units.

KRR seeks to invest primarily in neighborhood, community and other shopping centers that cater to the day-to-day needs of local area customers and have stable demand from retailers and customers, and also seeks to invest in distribution centers, which supplement shopping centers in providing goods to consumers, in order to provide stable investment returns over the long term. Sponsored by Kenedix, Inc., KRR entrusts its asset management and investment operations to Kenedix Real Estate Fund Management, Inc. ("KFM"), with the following strategies.

Note: For our management purposes and ease of classification, we define shopping centers for daily needs as retail properties that generally have the following characteristics: a. Retail trade area of approximately a one to ten km radius (and generally, a three to five km radius), with customers predominantly from local areas surrounding the

retail property

b. Operational capacity to accommodate certain daily local retail needs and strong customer traffic on both weekdays and weekends

c. Composed of various specialty stores to meet a range of day-to-day needs such as groceries, clothing and other daily goods and services

ii) Investment Environment

During the fiscal year under review, the Japanese economy continued to show signs of recovery, including improvements in corporate capital spending. However, conditions remained challenging with weak consumer spending, particularly in service spending, due to the impact of COVID-19 and the accompanying state of emergency declarations.

Shopping centers for daily needs, in which KRR focuses its investment, sales of service-oriented tenants including restaurants and some apparel stores have been declining amid the COVID-19 pandemic, but specialty stores such as supermarkets and home & garden stores that cater to the day-to-day needs of customers are expected to maintain steady demand. However, there have been some signs of instability, partly due to expectations of tapering of monetary easing in the United States.

In the real estate trading market, some investors initially took a cautious stance toward real estate investment due to the spread of the COVID-

19. However, investors' willingness to invest in real estate has been recovering against the backdrop of monetary easing policies in Japan and overseas, and active transactions are taking place.

1. Management Performance

(A) Acquisition of Assets

KRR acquired four assets (Unicus Urawamisono (Land) with acquisition price (Note 1) of 732 million yen, Kitera Town Chofu with acquisition price of 10,500 million yen, Merado Daikai with acquisition price of 5,440 million yen and Apita Terrace Yokohama Tsunashima (49% trust beneficiary quasi co-ownership interests) with acquisition price of 5,667 million yen). KRR disposed of three assets (Daikanyama Address Dixsept (30% trust beneficiary quasi co-ownership interests) with sale price (Note 2) of 1,993 million yen (acquisition price was 1,617 million yen), Unicus Ina (20% trust beneficiary quasi co-ownership interests) with sale price of 1,048 million yen (acquisition price was 894 million yen) and Hankyu Oasis Hirakatadeguchi with sale price of 1,500 million yen (acquisition price was 1,280 million yen)).

As a result, the portfolio at the end of the period under review (September 30, 2021) consists of 66 properties with the total acquisition price of 245,274 million yen.

Note 1: "Acquisition price" represents the amount specified in the purchase and sale agreement for the trust beneficiary interests, exclusive of the various expenses (acquisition expenses, property tax, city planning tax, consumption tax, etc.) required in the acquisition of the asset.

Note 2: "Sale price" represents the amount specified in the purchase and sale agreement for the trust beneficiary interests, exclusive of the various expenses (sale expenses, property tax, etc.) required in the sale of the asset.

(B) Management and Operation of Assets

KFM provides property management services for all of the properties owned by KRR at the end of the period under review (September 30, 2021) (Note 1). By using the same company for both asset management and property management services, KRR aims to build stronger relationships with tenants and increase returns from its portfolio. Furthermore, by implementing retail property and distribution centers management that better reflects the needs of our tenants, KRR strives to accumulate know-how and improve tenant satisfaction.

KRR invests primarily in neighborhood and community shopping centers that cater to the day-to-day needs of customers. The portfolio is diversified in terms of properties, tenants and other characteristics with a goal to generate consistent long-term cash flows. At the same time,

2

(Shelf Registration)

KRR filed a shelf registration statement for investment corporation bonds (excluding short-terminvestment corporation bonds) on October 1, 2020. Details are as follows.

Planned issue amount 100,000,000,000 yen

Planned issuance period October 9, 2020 to October 8, 2022

Acquisition funds for specified assets (as defined in Article 2, Paragraph 1 of the Investment

Use of proceeds Trust Law), repayment funds for borrowings, repayment funds for investment corporation bonds (including short-terminvestment corporation bonds), refund funds for lease and

guarantee deposits, funds to pay for repairs and maintenance, working capital, etc.

iv) Results of Operations

For this period, revenue was 9,576 million yen, operating income was 4,881 million yen, ordinary income was 4,262 million yen and net income was 4,261 million yen.

Furthermore, in accordance with the distribution policy in the KRR Articles of Incorporation, KRR made a distribution (excluding excess of earnings) of 4,234,755,498 yen which is almost equivalent to the earnings (as defined in Article 136-1of Act of Investment Trust and

3

Japan Credit Rating Agency, Ltd. (JCR)

Details of the ratings

Long-termissuer ratingA+ (Outlook: Positive)

Rating on bondsA+

The status of the credit ratings as of September 30, 2021 is as follows. Credit rating agency

(Credit Ratings)

Long-termdebt ratio = (Long-termborrowings + Investment corporation bonds) / (Borrowings + Investment corporation bonds) LTV ratio = (Loans payable + Investment corporation bonds) / Total assets

Note 1: Note 2:

(C) Financing

When financing to acquire properties, KRR seeks to achieve the proper balance between financial stability and the cost of the funds with the objectives to achieve stable medium- to long-termreturns and consistent growth of assets under management.

(Equity Finance)

In the fiscal period under review, KRR issued a total of 43,800 new units offered on April 20, 2021, and raised 11,350 million yen that was used to partially fund the acquisition of properties. In addition, 2,200 units were issued through third party allotment on May 18, 2021, raising 570 million yen, which is retained and will be used to fund part of the acquisition of properties or repayment of borrowings in the future. Due to these activities, unitholders' capital increased to 133,103 million yen as of September 30, 2021.

(Debt Finance)

During the fiscal period under review, KRR borrowed 7,500 million yen for the acquisition of properties and 7,200 million yen for refinancing. Consequently, borrowings totaled 112,300 million yen and interest-bearingdebt including investment corporation bonds (excluding interest-bearingtenant leasehold and security deposits) totaled 120,300 million yen at the end of the fiscal period under review (September 30, 2021).

When undertaking borrowings, KRR seeks to spread out repayment dates and lengthen borrowing periods. KRR may use swaps to fix the interest payments to hedge against the risk of a rise in interest rates.

As a result, the average maturity of debt is 4.4 years, the weighted average interest rate is 0.98%, the long-termdebt ratio (Note 1) is 100.0% and the LTV ratio (Note 2) is 44.1%.

Kenedix Retail REIT Corporation (3453)

KRR seeks to explore the upside potential (Note 2) for rental income by optimization of tenant composition and property expansion. By using these measures, KRR aims to pursue a portfolio that achieves both stability and growth.

As of the end of the period under review, portfolio as a whole performed well with an overall occupancy ratio of 99.6%. Furthermore, the portfolio is diversified in terms of tenants as there are 528 end-tenants (Note 3) in KRR's retail properties and distribution centers.

Note 1: On December 1, 2020, KRR disposed of a quasi-co-ownership interest (40% interest) in the trust beneficiary interest of Daikanyama Address Dixsept, and accordingly, the PM business of the property has been entrusted to a third-party other than the Asset Manager.

Note 2: "Upside potential" represents feasibility of rental income or cash flow growth.

Note 3: The number of end-tenants is the sum of the number of end-tenants in a pass-through type master lease and the number of master lessees in a sublease type master lease.