Notice Concerning Acquisition of Properties (Total of 5 Residential Properties)

Translation of Japanese Original July 26, 2016 To All Concerned Parties REIT Issuer: Kenedix Residential Investment Corporation Representative: Akira Tanaka, Executive Director (Securities Code Number: 3278)

Asset Management Company Kenedix Real Estate Fund Management, Inc. Representative: Ryosuke Homma, CEO and President Contact: Keisuke Sato, General Manager of Planning Department, Residential REIT Division TEL: +81-3-5623-8682

Kenedix Residential Investment Corporation (the “Investment Corporation”) announced today that Kenedix Real Estate Fund Management, Inc. (the “Asset Management Company”), the asset management company for the Investment Corporation, has decided to acquire the following properties (the “Acquisition”). The details are provided as follows.

1. Overview of the Acquisition (1) To-be acquired Assets As follows (2) Date of Contract July 26, 2016 (3) Scheduled Date of Acquisition August 1, 2016 (4) Seller Please refer to “4. Seller’s Profile” (5) Funds for Acquisition Proceeds from Debt Finance(1) and Cash on Hand (6) Settlement Method Payment in full on date of acquisition

(in thousands of yen) Property Acquisition Property Name(3) Type of Assets Number Price(2) T-70 KDX Residence Nishi-azabu Trust beneficiary interest in real estate 1,224,000 T-71 KDX Residence Azabu Sendaizaka Trust beneficiary interest in real estate 792,300 T-72 KDX Residence Waseda Tsurumaki Trust beneficiary interest in real estate 561,000 T-73 KDX Residence Bunkyo Yushima Trust beneficiary interest in real estate 695,000 T-74 KDX Residence Kamishakujii Trust beneficiary interest in real estate 648,000 Total 3,920,300 (Note 1) The debt finance with new loan is under consideration as of today. The Investment Corporation will announce the detail of the new loan by the date of acquisition. (Note 2) “Acquisition Price” is the sales amount of the trust beneficiary interest (excluding acquisition costs, property tax, city planning tax or consumption tax, etc.) indicated in the trust beneficiary interest sales contract concerning the to-be acquired asset and is rounded down to the nearest thousand yen. The same shall apply hereafter.

2. Reason for the Acquisition The Investment Corporation originated bridge fund and acquired the preferential negotiation rights (1) for 8 properties including to-be acquired assets on March 2015 by utilizing the independent network of the Asset Management Company. This time, the Investment Corporation decided to acquire the to-be acquired assets by exercising the preferential negotiation rights. In the decision of this acquisition, asset composition of the entire portfolio and profitability in the future, etc. are taken into account in accordance with the Investment Corporation’s investment targets and policies, as set forth in its Articles of Incorporation. For the detail of this transaction, please refer to the material “Supplemental Material on the Acquisition and Sale Announced Today” announced today. The other 3 properties held by the bridge fund have been already sold to the third parties and the silent partnership equity interest will be redeemed after the Acquisition.

The Investment Corporation is committed to maximizing the unitholders’ value by realizing stable rental revenues and steady growth of assets by leveraging the characteristics of rental housing and other residential properties through flexible and dynamic real estate investment management. (Note 1) For the detail of the preferential negotiation rights, etc., please refer to the press release “Notice Concerning Acquisition of Asset (Silent Partnership Equity Interest)” announced on March 18, 2015.

3. Overview of the To-be Acquired Assets (T-70) KDX Residence Nishi-azabu Property name KDX Residence Nishi-azabu Type of assets Trust beneficiary interest in real estate Trustee Mizuho Trust & Banking Co., Ltd. Trust term(1) February 27, 2009 through March 31, 2025 Previous owner G. K. Bohemian Location (Address) (2) 3-5-10, Nishi-azabu, Minato-ku, Tokyo Type of ownership Proprietary ownership Site area 362.90 m2 Neighborhood commercial districts / Category 1 Land Use districts medium-to-high-rise exclusive residential districts Building coverage ratio(3) 80 % / 60 % Floor area ratio(3) 400 % / 200% Type of ownership Proprietary ownership Total floor area 1,822.33 m2 Construction completion date February 2008 Usage Apartment building Building Type(4) Small family Structure / Reinforced concrete structure with flat roof / Number of stories Fourteen-story building with a one-floor basement Leasable number of units 33 units Architect DESIGN FACTORY INC. Constructor Tokyo Branch, SumitomoMitsui Construction Co., Ltd. THE JAPAN BUILDING EQUIPMENT AND Building permit agency ELEVATOR CENTER FOUNDATION Probable maximum loss(5) 7.34 % Acquisition price ¥1,224,000 thousand Appraisal value(6) ¥1,420,000 thousand Appraiser Japan Real Estate Institute Existence of security after acquisition No Details of tenant (as of June 30, 2016) Total number of tenants(7) 1 Total rental income(8) ¥6,005 thousand Security and guarantee deposit(9) ¥10,697 thousand Total leased units(10) 32 units Total leased area(11) 1,316.75 m2 Total leasable area(12) 1,357.88 m2 Occupancy ratio(13) 97.0 % Existence of security No Property management company(14) R. A. Asset Management Inc. Master lease company(15) R. A. Asset Management Inc. Type of master lease(16) Pass through structure Contract period(17) August 1, 2016 through July 31, 2017(Schedule) Other special considerations None

This property is located in one of the most distinguished land in Tokyo. Initially developed as a residential district during the period from Meiji through Taisho-era, the area has now become known as an exclusive residential uptown district. As situated in a central area of Tokyo, it provides an easy access to major business and commercial areas: located about 9 minutes’ walk to Hiroo Station and about 10 minutes’ walk to Roppongi Characteristics of the property Station on the Tokyo Metro Hibiya Line. In the surrounding area, there are convenient facilities for living, such as commercial complexes like Roppongi Hills and Tokyo Midtown. It also has an excellence in habitability having Mohri Garden and Arisugawa-no-miya Memorial Park within the walking distance. Therefore, stable rental demand can be expected mainly from singles and couples. (Note 1) The expiration date of the trust term of the asset to be acquired is planned to be changed to the end of August, 2026 accompanying the acquisitions by the Investment Corporation upon agreement with the trustee. The same shall apply hereafter. (Note 2) “Location” is the indication of the residential address. In case there is no indication of the residential address, it is the building address under the lot address or the building location indicated in the registration items certificate (the lot number among such if there are multiple lot addresses). The same shall apply hereafter. (Note 3) “Building Coverage Ratio” and “Floor Area Ratio” are the designated building-to-land ratio and designated floor-area ratio provided in the city plan. The same shall apply hereafter. (Note 4) “Type” is the classification of the principal residential unit of the to-be acquired asset, the studio type, the small family type or family type as described below (provided, however, in case the principal residential units fall under more than one type, the type to which the largest principal units based on the exclusively-owned area is described). The same shall apply hereafter. Studio type Small family type Family type (housing mainly for single (housing mainly for (housing mainly for family households) married-couple households and households of 3 persons or more) family households with an infant) The exclusively owned area per The exclusively owned area per The exclusively owned area per residential unit contains at least 18m2, residential unit contains at least 30m2, residential unit contains at least 60m2 but less than 30m2 and at least 20 but less than 60m2 and at least 15 per unit and at least 5 rentable units rentable units per property. rentable units per property. per property. (Note 5) “Probable Maximum Loss” (PML) is the figure described in the earthquake PML valuation report (level 2) prepared for the to-be acquired asset created by Sompo Risk Management & Health Care Inc. in July 2016. The same shall apply hereafter. (Note 6) The “Appraisal Date” is July 1, 2016. The same shall apply hereafter. (Note 7) In the case that there is a master lease contract entered into with a master lease company, “Total Number of Tenants” is indicated as “1.” The same shall apply hereafter. (Note 8) The “Total Rent Income” is the sum of the monthly rent according to the lease agreements actually executed with the end tenants (the sum of rent and common area maintenance charges of the residents etc., provided, however, that in case the adjunct facilities fee such as car parking space usage fees are included in the lease agreements, it includes such fees) in the case that the master lease type is pass-through and is the monthly rent according to the sublease agreements with rent insurance executed with master lease company (the sum of rent and common area maintenance charges of the residents etc., provided, however, that in case the adjunct facilities fee such as car parking space usage fees are included in the lease agreements, it includes such fees) in the case that the master lease type is rent insurance. Furthermore, the figures are rounded down to the nearest thousand yen. The same shall apply hereafter. (Note 9) “Security and Guarantee Deposit” is the sum of the security and guarantee deposits, etc. of each end tenant based on the lease agreement executed with the each end tenant (the sum of security and guarantee deposits, etc. of the residents etc., provided, however, that in case the adjunct facilities deposits such as car parking space usage deposits are included in the lease agreements, it includes such deposits). However, in case there is a part for which returning is unnecessary due to special provision of deduction of security deposits, etc. in each lease agreement, it is the amount after the amount is deduced. In addition, the balance of the security and guarantee deposit, etc. based on the lease agreement with rent insurance executed with a master lease company is displayed in the case that the master lease type is rent insurance. However, it is the sum of pass-through security and guarantee deposits, etc. and rent insurance security and guarantee deposits, etc. in case agreement with a different master lease type has been executed. Furthermore, the figures are rounded down to the nearest thousand yen. The same shall apply hereafter. (Note 10) “Total Leased Units” is the number of leased residential units, where the lease agreements were actually executed with end tenants. The same shall apply hereafter.

(Note 11) “Total Leased Area” is the leased floor area described in the lease agreements which were actually executed with end tenants. The same shall apply hereafter. (Note 12) “Total Leasable Area” is the floor area described in the lease agreements that is leasable at the to-be acquired asset (in case the o-be acquired asset contains more than one building, the sum of the leasable floor area of such buildings) (with regard to the vacant floor area as of June 30, 2016, the most recent contracted leased floor area described in the lease agreements or floor area based on calculations using completion drawings of the building). The same shall apply hereafter. (Note 13) “Occupancy Ratio” is the ratio of the “Total Leased Areas” (based on the lease agreements) to the “Total Leasable Area” of the to-be acquired asset rounded to the first decimal place. The same shall apply hereafter. (Note 14) “Property Management Company” is the property management company scheduled to execute the property management agreement for the to-be acquired asset. The same shall apply hereafter. (Note 15) “Master Lease Company” is the master lease company scheduled to execute the master lease agreement for the property. The same shall apply hereafter. (Note 16) “Type of master lease” is described as following; “Pass through structure” in case of the conclusion of the master lease contract without rent guarantee, “Rent guarantee structure” in case of the conclusion of the master lease contract with rent guarantee, and “-” in case that the owner concludes lease contract with end-tenant directly or there’s no end-tenant. The same shall apply hereafter. (Note 17) If scheduled date of acquisition is changed, the date of acquisition after the change will be the commencement date of contract period. The same shall apply hereafter.

(T-71) KDX Residence Azabu Sendaizaka Property name KDX Residence Azabu Sendaizaka Type of assets Trust beneficiary interest in real estate Trustee Mitsubishi UFJ Trust and Banking Corporation Trust term March 20, 2015 through March 31, 2025 Previous owner G. K. Bohemian Location (Address) 3-1-7, Minami-azabu, Minato-ku, Tokyo Type of ownership Proprietary ownership Site area 283.33 m2 Neighborhood commercial districts / Category 1 Land Use districts residential districts Building coverage ratio 80 % / 60% Floor area ratio 300 % / 300% Type of ownership Proprietary ownership Total floor area 1,220.43 m2 Construction completion date October 2006 Usage Apartment building Building Type Studio Structure / Reinforced concrete structure with flat roof and roofing/ Number of stories Nine-story building with a one-floor basement Leasable number of units 30 units Architect Modern Studio Architects Corporation Tokyo Architecture Branch, P. S. Mitsubishi Constructor Construction Co., Ltd. Tokyo Disaster Prevention and Building Community Building permit agency Development Center Foundation Probable maximum loss 5.44 % Acquisition price ¥792,300 thousand Appraisal value ¥890,000 thousand Appraiser Japan Real Estate Institute Existence of security after acquisition No Details of tenant (as of June 30, 2016) Total number of tenants 1 Total rental income ¥4,198 thousand Security and guarantee deposit ¥6,716 thousand

Total leased units 30 units Total leased area 853.45 m2 Total leasable area 878.50 m2 Occupancy ratio 97.1 % Existence of security No Property management company R. A. Asset Management Inc. Master lease company R. A. Asset Management Inc. Type of master lease Pass through structure Contract period August 1, 2016 through July 31, 2017 (Schedule) Other special considerations None This property is located at the upslope of Sendai-Zaka; the name of the place was come from the fact that Matsudaira the Governor of Mutsu Province (a Date family in the Sendai domain) had the suburban residence at the south of this hill. This property has excellent access to two stations on three routes and is 9 minutes’ walk from Azabu-juban Station on the Tokyo Metro Namboku Line and the Toei Subway Oedo line, and 9 minutes’ walk from Hiroo Station on the Tokyo Metro Hibiya Line. From Hiroo Station, Otemachi Station is about 18 minutes by train. Also, Roppongi, Characteristics of the property one of the most prosperous areas in Tokyo, is within the walking distance. While the property is excellent in transportation convenience, it is located in a quiet and exclusive residential area and is situated in one of the most distinguished land in Tokyo. The property is adjacent to Arisugawa-no-miya Memorial Park, which is landscaped in Japan’s traditional Rinsen-style garden, expressing an elegant natural beauty, providing an excellence in habitability. Therefore, stable rental demand can be expected mainly from singles and couples.

(T-72) KDX Residence Waseda Tsurumaki Property name KDX Residence Waseda Tsurumaki Type of assets Trust beneficiary interest in real estate Trustee Mitsubishi UFJ Trust and Banking Corporation Trust term March 20, 2015 through March 31, 2025 Previous owner G. K. Bohemian Location (Address) 574-25, Waseda tsurumaki-cho, Shinjuku-ku, Tokyo Type of ownership Proprietary ownership Site area 177.89 m2 Land Use districts Commercial districts Building coverage ratio 80 % Floor area ratio 500 % Type of ownership Proprietary ownership Total floor area 1,027.05 m2 Construction completion date August 2007 Usage Apartment building Building Type Studio Structure / Reinforced concrete structure with flat roof / Number of stories Eleven-story building Leasable number of units 39 units Architect PLAN DO SEE Corporation

Constructor Tokyo Branch, UEKI Corporation Building permit agency Good Eyes Building Inspection Organization Inc. Probable maximum loss 3.86 % Acquisition price ¥561,000 thousand Appraisal value ¥765,000 thousand Appraiser Japan Real Estate Institute Existence of security after acquisition No Details of tenant (as of June 30, 2016) Total number of tenants 1 Total rental income ¥3,023 thousand Security and guarantee deposit ¥4,696 thousand Total leased units 33 units Total leased area 689.19 m2 Total leasable area 808.54 m2 Occupancy ratio 85.2 % Existence of security No Property management company Tokyu Housing Lease Corporation Master lease company Tokyu Housing Lease Corporation Type of master lease Pass through structure Contract period August 1, 2016 through July 31, 2017(Schedule) Other special considerations None This property has excellent access to two stations on two routes and is just 6 minutes’ walk from Edogawabashi Station on the Tokyo Metro Yurakucho Line, and 10 minutes’ walk from Waseda Station on the Tokyo Metro Tozai Line. It has an excellent transportation convenience with about 15 minutes by train to Otemachi Station from Edogawabashi Station. The area is known as one of the greatest academic Characteristics of the property districts in Tokyo, with educational institutions such as Waseda University and Gakushuin Women’s College are located. The property has all the facilities in the neighborhood that are convenient for living including supermarkets, banks, and hospitals. The area also has a leafy environment with Shin Edogawa Park and Toyama Park which is known for magnificent cherry trees. Therefore, a stable rental demand can be expected from singles working in central Tokyo and students.

(T-73) KDX Residence Bunkyo Yushima Property name KDX Residence Bunkyo Yushima Type of assets Trust beneficiary interest in real estate Trustee Mitsubishi UFJ Trust and Banking Corporation Trust term March 20, 2015 through March 31, 2025 Previous owner G. K. Bohemian Location (Address) 2-29-2, Yushima, Bunkyo-ku, Tokyo Type of ownership Proprietary ownership Site area 271.53 m2 Land Use districts Neighborhood commercial districts Building coverage ratio 80 % Floor area ratio 400 % Type of ownership Proprietary ownership Building Total floor area 1,107.93 m2 Construction completion date January 2006

Usage Apartment building Type Studio Structure / Reinforced concrete structure with flat roof / Number of stories Twelve-story building Leasable number of units 38 units Architect Global Corporation Co., Ltd. Constructor Tokyo Branch, Saekikensetsukogyo Corporation Building permit agency eHomes Corporation Probable maximum loss 4.81 % Acquisition price ¥695,000 thousand Appraisal value ¥854,000 thousand Appraiser Japan Real Estate Institute Existence of security after acquisition No Details of tenant (as of June 30, 2016) Total number of tenants 1 Total rental income ¥3,871 thousand Security and guarantee deposit ¥6,657 thousand Total leased units 37 units Total leased area 917.89 m2 Total leasable area 939.89 m2 Occupancy ratio 97.7 % Existence of security No Property management company ITOCHU Urban Community Corporation Master lease company ITOCHU Urban Community Corporation Type of master lease Pass through structure Contract period August 1, 2016 through July 31, 2017(Schedule) Other special considerations None There are various theories on what “Yushima” (meaning literally hot-water island in Japanese) was named after. One theory said, before the Edo-era, the area was a rising land and looked like an island because Shinobazu-noike pond back then was connected to the sea. The area is one of the distinguished lands in Tokyo which still maintains an atmosphere of the Edo-era and there are many historical structures including Yushima Seido (Sacred Hall). The property is located 5 minutes’ walk from Yushima Station on the Tokyo Metro Chiyoda Line and Hongo-sanchome Station on the Tokyo Metro Marunouchi Line and the Toei Subway Characteristics of the property Oedo Line. From Yushima Station, Otemachi Station is about 5 minutes by train, providing excellent transportation convenience. In the surrounding area, there are many convenient facilities for living; for example, it is within a walking distance to Ameyoko Street where about 400 stores stand along both sides of streets, stretching about 400 meters. The area is also favorable in habitability as being adjacent to Ueno Onshi Park, which has many cultural facilities such as museums and art museums. Therefore, stable rental demand can be expected mainly from singles and couples.

(T-74) KDX Residence Kamishakujii Property name KDX Residence Kamishakujii Type of assets Trust beneficiary interest in real estate

Trustee Mitsubishi UFJ Trust and Banking Corporation Trust term March 20, 2015 through March 31, 2025 Previous owner G. K. Bohemian Location (Address) 1-18-5, Kamishakujii, Nerima-ku, Tokyo Type of ownership Proprietary ownership Site area 743.97 m2 Category 1 medium-to-high-rise exclusive residential Land Use districts districts Building coverage ratio 50 % Floor area ratio 150 % Type of ownership Proprietary ownership Total floor area 1,400.72 m2 Construction completion date June 2007 Usage Apartment building Building Type Studio Structure / Reinforced concrete structure with flat roof / Number of stories Five-story building Leasable number of units 47 units Architect Ishibashi Planning Corporation Constructor Sanpei Construction Co., Ltd. Tokyo Disaster Prevention and Building Community Building permit agency Development Center Foundation Probable maximum loss 11.79 % Acquisition price ¥648,000 thousand Appraisal value ¥735,000 thousand Appraiser Japan Real Estate Institute Existence of security after acquisition No Details of tenant (as of June 30, 2016) Total number of tenants 1 Total rental income ¥3,461 thousand Security and guarantee deposit ¥5,955 thousand Total leased units 43 units Total leased area 944.17 m2 Total leasable area 1,032.18 m2 Occupancy ratio 91.5 % Existence of security No Property management company Taisei Housy Property Co., Ltd. Master lease company Taisei Housy Property Co., Ltd. Type of master lease Pass through structure Contract period August 1, 2016 through July 31, 2017(Schedule) Other special considerations None

The property is about 4 minutes’ walk to Kami-shakujii Station on the Seibu Shinjuku Line, from which Otemachi Station is about 32 minutes by train, providing an excellent transportation convenience to the central area of Tokyo. The name of Shakujii (literary meaning stone god well) came from a blade-shaped stone that was discovered underground when people dug a well and held this stone up as a god. The area is considered to have a long history as its name appeared in a document at Kamakura-era. It has all the Characteristics of the property convenient facilities for living in the surrounding area such as Kami-shakujii Shopping District where about 200 stores are centered around and spread every direction from the station. It also has a favorable living environment and habitability, being surrounded by Shakujii Park, which has Sanpojiike pond known as one of the three biggest spring-fed ponds in Musashino area, and other spacious parks that still maintain 4 riches in nature of this area. Therefore, a wide range of rental demand can be expected from singles working in central Tokyo.

4. Seller’s Profile Company Name G. K. Bohemian Location 6-5, Nihombashi Kabuto-cho, Chuo-ku, Tokyo Title and Name of Representative, Ippan Shadan Hojin Bohemian Representative Office administrator, Kazumasa Izuka 1. Acquisition, holding, disposal, leasing and management of real estate Description of 2. Acquisition, holding and disposal of trust beneficiary interest in real Business estate 3. All business incidental to the above Capital ¥1 million Date of Incorporation February 20, 2015 Net Assets Not disclosed according to seller’s intention Total Assets Not disclosed according to seller’s intention Relationship with the Investment Corporation and the seller / the Asset Management Company and the seller The Investment Corporation owns silent partnership equity interest of Capital ¥130 millions of G. K. Bohemian. Furthermore, Kenedix, Inc. (“KDX”), Relationship the parent company of the Asset Management Company, owns silent partnership equity interest of ¥70 millions of G. K. Bohemian. There is no special personnel relationship between the Investment Corporation and the operator or the Asset Management Company and the Personnel operator. Furthermore, there is no personnel relationship to report between Relationship related parties or associated companies of the Investment Corporation or the Asset Management Company and related parties or associated companies of the operator. Except the silent partnership equity interest described above capital relationship, there is no special business relationship between the Business Investment Corporation and the operator or the Asset Management Relationship Company and the operator. In addition, The asset management of G. K. Bohemian is entrusted to KDX. The seller is not a related party, etc. as defined under the Act on Applicability of Investment Trusts and Investment Corporations but fall under a related Related Party party as set forth in the Related-party Transaction Rules of Residential Relationships REIT Division in the Asset Management Company.

5. Profile of Property Buyer, etc.

(T-70)KDX Residence Nishi-azabu (T-71)KDX Residence Azabu Sendaizaka (T-72)KDX Residence Waseda Tsurumaki (T-73)KDX Residence Bunkyo Yushima (T-74)KDX Residence Kamishakujii Previous Owner Second Previous Owner Company Name G. K. Bohemian Other than a party with special interest Relationship The specially interested party as between the Asset defined in the Related-party Management Transaction Rules of Residential － Company and a Division in the Asset Management party with special Company interest Acquisition For the purpose of investment background and management － reason, etc. Acquisition Date March 20, 2015 － Acquisition Price Omitted because the ownership by － the previous owner exceeds 1 year.

6. Details of Brokerage For the above acquisition of the properties, no party acted as broker.

7. Related-party Transactions As described above, the transactions related to the acquisition of the property fall under the category of a transaction with the related party as defined in the Related-party Transaction Rules of Residential Division in the Asset Management Company. Therefore, the Asset Management Company has determined to acquire the properties in accordance with the Related-party Transactions Rules of Residential Division in the Asset Management Company through discussion and approval at the meeting of the Compliance Committee and the meeting of Management Committee. In addition, concerning the transactions related to the acquisition of the property with related-party, the Asset Management Company submits the document to the Investment Corporation in accordance with the provisions of the Investment Trust Law.

8. Seismic Resistance The Investment Corporation has implemented a survey conducted by a third-party concerning the validity of the structural calculation sheets of the Property and obtained a survey result from HI International Consulting Co., LTD. concerning each property that was accepted as not having falsified their structural calculation sheets by the willful intention of the designers and, concerning the structural design, the third-party survey results determined that design generally conforms to the Building Standards Law and regulations for seismic resistance in the order for enforcement of the law, etc.

9. Forecasts The schedule date of acquisition is August 1, 2016. Therefore, the forecast of financial results for the period remains unchanged.

10. Appraisals Report Summary Property Name KDX Residence Nishi-azabu

Appraisal Value ¥1,420,000,000 Appraiser Japan Real Estate Institute Appraisal Date July 1, 2016 (Unit: Yen) Item Content Basis Estimate by treating equally the value calculated using the Income Capitalization Approach Value 1,420,000,000 Direct Capitalization method and the Value Calculated Using the Discounted Cash Flow method. Value Calculated Using the Assess by using the cap rate based on medium to long-term 1,440,000,000 Direct Capitalization Method stable net income

(1) Gross Operating Revenue 75,722,000 Maximum Gross Operating Assess based on a level of fair rent that is believed to remain 79,297,000 Revenue stable over the medium and long term Shortfall Attributed to Vacancies Assess based on the premise of an occupancy ratio that can 3,575,000 be maintained over the medium and long term (2) Operating Expenses 13,955,000 Assess taking into account the characteristics of the property, etc. by reference to the maintenance expenses in Maintenance Expenses 1,948,000 prior years, the level of expenses at similar properties, and other factors Assess taking into account the utility expenses in prior Utility Expenses 1,200,000 years, the characteristics of the property, etc. by reference to the level of expenses at similar properties and other factors. Assess using expenses in prior years, expenses at similar Repair Expenses 1,122,000 properties, annual average repair, maintenance and renewal expenses in the engineering report, and other factors Assess taking into account the characteristics of the property Property Management Fees 1,457,000 by reference to the current compensation rate, compensation rates at similar properties, and other factors Recognize the average annual turnover and occupancy rate Tenant Recruit Expenses, etc. 2,788,000 based on figures in prior years by reference to the rental condition at similar properties, and other factors. Recognize an amount based on the fiscal 2016 tax base Taxes and Dues 4,961,000 amount, etc. Recognize an amount that reflects the insurance premium Damage Insurance Fees 71,000 rate at similar properties and other factors Other Expenses 408,000 Recognize the internet service fee, etc. (3) Net Operating Income 61,767,000 (NOI= (1)-(2)) (4) Gain on guarantee deposit Assess income from investments by using an investment 141,000 investment return of 2.0% Assuming that an equal amount is added to a reserve in each fiscal period, assess by taking into account the level of (5) Capital Expenditure 1,467,000 capital expenditures at similar properties, the age of the property, and the average annual repair, maintenance and renewal expenses in the engineering report. (6) Net Cash Flow 60,441,000 (NCF=(3)+(4)-(5)) Assess by adjusting the spread due to the property’s location, the characteristics of the building by reference to (7) Capitalization Rate 4.2% the uncertainty in the future, transaction yield at similar properties and other factors. Value Calculated Using the 1,400,000,000 Discounted Cash Flow Method While reflecting investment returns of similar properties, Discount Rate 4.0% assess by taking into account the property’s unique characteristics While reflecting returns associated with acquisitions of similar properties, assess by taking into account upcoming changes in investment returns, risks associated with the Terminal Capitalization Rate 4.4% property to be acquired, general prediction of economic growth rate, trends in real estate prices and rent rates, and all other applicable factors Value Calculated Using the Cost Method 1,410,000,000 Land 77.6% Building 22.4%

Use the Income Capitalization Approach Value with the Value Calculated Using the Cost Method used only for Items applied to adjustments in approaches to the value and the reference if the decision is made that the Income determination of the appraisal value Capitalization Approach Value is more persuasive because the price determination process has been accurately reproduced with respect to earnings.

※Reference (Appraisal NOI Cap Rate=NOI above described /Acquisition Price) Property Name KDX Residence Nishi-azabu

Appraisal NOI Cap Rate (rounded to the first decimal place) 5.0%

Property Name KDX Residence Azabu-sendaizaka

Appraisal Value ¥890,000,000 Appraiser Japan Real Estate Institute Appraisal Date July 1, 2016 (Unit: Yen) Item Content Basis Estimate by treating equally the value calculated using the Income Capitalization Approach Value 890,000,000 Direct Capitalization method and the Value Calculated Using the Discounted Cash Flow method. Value Calculated Using the Assess by using the cap rate based on medium to long-term 903,000,000 Direct Capitalization Method stable net income (1) Gross Operating Revenue 51,375,000 Maximum Gross Operating Assess based on a level of fair rent that is believed to remain 53,516,000 Revenue stable over the medium and long term Shortfall Attributed to Vacancies Assess based on the premise of an occupancy ratio that can 2,141,000 be maintained over the medium and long term (2) Operating Expenses 11,724,000 Assess taking into account the characteristics of the property Maintenance Expenses 3,500,000 by reference to the maintenance expenses in prior years, the level of expenses at similar properties, and other factors Assess taking into account the utility expenses in prior Utility Expenses 700,000 years, the characteristics of the property, etc. by reference to the level of expenses at similar properties and other factors. Assess using expenses in prior years, expenses at similar Repair Expenses 732,000 properties, annual average repair, maintenance and renewal expenses in the engineering report, and other factors Assess taking into account the characteristics of the property Property Management Fees 998,000 by reference to the current compensation rate, compensation rates at similar properties, and other factors Recognize the average annual turnover and occupancy rate Tenant Recruit Expenses, etc. 2,030,000 based on figures in prior years by reference to the rental condition at similar properties, and other factors. Recognize an amount based on the fiscal 2016 tax base Taxes and Dues 3,063,000 amount, etc. Recognize an amount that reflects the insurance premium Damage Insurance Fees 47,000 rate at similar properties and other factors Other Expenses 654,000 Recognize the internet service fee, etc. (3) Net Operating Income 39,651,000 (NOI= (1)-(2)) (4) Gain on guarantee deposit Assess income from investments by using an investment 135,000 investment return of 2.0% Assuming that an equal amount is added to a reserve in each fiscal period, assess by taking into account the level of (5) Capital Expenditure 963,000 capital expenditures at similar properties, the age of the property, and the average annual repair, maintenance and renewal expenses in the engineering report. (6) Net Cash Flow 38,823,000 (NCF=(3)+(4)-(5)) Assess by adjusting the spread due to the property’s location, the characteristics of the building by reference to (7) Capitalization Rate 4.3% the uncertainty in the future, transaction yield at similar properties and other factors. Value Calculated Using the 877,000,000 Discounted Cash Flow Method While reflecting investment returns of similar properties, Discount Rate 4.1% assess by taking into account the property’s unique characteristics

While reflecting returns associated with acquisitions of similar properties, assess by taking into account upcoming changes in investment returns, risks associated with the Terminal Capitalization Rate 4.5% property to be acquired, general prediction of economic growth rate, trends in real estate prices and rent rates, and all other applicable factors Value Calculated Using the Cost Method 869,000,000 Land 80.4% Building 19.6%

※Reference (Appraisal NOI Cap Rate=NOI above described /Acquisition Price) Property Name KDX Residence Azabu-sendaizaka Appraisal NOI Cap Rate (rounded to the first decimal place) 5.0%

Property Name KDX Residence Waseda Tsurumaki

Appraisal Value ¥765,000,000 Appraiser Japan Real Estate Institute Appraisal Date July 1, 2016 (Unit: Yen) Item Content Basis Estimate by treating equally the value calculated using the Income Capitalization Approach Value 765,000,000 Direct Capitalization method and the Value Calculated Using the Discounted Cash Flow method. Value Calculated Using the Assess by using the cap rate based on medium to long-term 770,000,000 Direct Capitalization Method stable net income (1) Gross Operating Revenue 43,288,000 Maximum Gross Operating Assess based on a level of fair rent that is believed to remain 45,092,000 Revenue stable over the medium and long term Shortfall Attributed to Vacancies Assess based on the premise of an occupancy ratio that can 1,804,000 be maintained over the medium and long term (2) Operating Expenses 9,134,000 Assess taking into account the characteristics of the property Maintenance Expenses 2,816,000 by reference to the maintenance expenses in prior years, the level of expenses at similar properties, and other factors Assess taking into account the utility expenses in prior Utility Expenses 700,000 years, the characteristics of the property, etc. by reference to the level of expenses at similar properties and other factors. Repair Expenses 614,000 Assess using expenses at similar properties and other factors Assess taking into account the characteristics of the property Property Management Fees 834,000 by reference to the current compensation rate, compensation rates at similar properties, and other factors Recognize the average annual turnover and occupancy rate Tenant Recruit Expenses, etc. 1,373,000 based on figures in prior years by reference to the rental condition at similar properties, and other factors. Recognize an amount based on the fiscal 2016 tax base Taxes and Dues 1,983,000 amount, etc. Recognize an amount that reflects the insurance premium Damage Insurance Fees 42,000 rate at similar properties and other factors Other Expenses 772,000 Recognize the internet service fee, etc. (3) Net Operating Income 34,154,000 (NOI= (1)-(2)) (4) Gain on guarantee deposit Assess income from investments by using an investment 127,000 investment return of 2.0% Assuming that an equal amount is added to a reserve in each fiscal period, assess by taking into account the level of (5) Capital Expenditure 861,000 capital expenditures at similar properties and the age of the property. (6) Net Cash Flow 33,420,000 (NCF=(3)+(4)-(5)) Assess by adjusting the spread due to the property’s location, the characteristics of the building by reference to (7) Capitalization Rate 4.3% the uncertainty in the future, transaction yield at similar properties and other factors. Value Calculated Using the 753,000,000 Discounted Cash Flow Method While reflecting investment returns of similar properties, Discount Rate 4.1% assess by taking into account the property’s unique characteristics While reflecting returns associated with acquisitions of similar properties, assess by taking into account upcoming changes in investment returns, risks associated with the Terminal Capitalization Rate 4.5% property to be acquired, general prediction of economic growth rate, trends in real estate prices and rent rates, and all other applicable factors Value Calculated Using the Cost Method 486,000,000

Land 61.2% Building 38.8%

※Reference (Appraisal NOI Cap Rate=NOI above described /Acquisition Price) Property Name KDX Residence Waseda Tsurumaki Appraisal NOI Cap Rate (rounded to the first decimal place) 6.1 %

Property Name KDX Residence Bunkyo Yushima

Appraisal Value ¥854,000,000 Appraiser Japan Real Estate Institute Appraisal Date July 1, 2016 (Unit: Yen) Item Content Basis Estimate by treating equally the value calculated using the Income Capitalization Approach Value 854,000,000 Direct Capitalization method and the Value Calculated Using the Discounted Cash Flow method. Value Calculated Using the Assess by using the cap rate based on medium to long-term 866,000,000 Direct Capitalization Method stable net income (1) Gross Operating Revenue 47,401,000 Maximum Gross Operating Assess based on a level of fair rent that is believed to remain 49,376,000 Revenue stable over the medium and long term Shortfall Attributed to Vacancies Assess based on the premise of an occupancy ratio that can 1,975,000 be maintained over the medium and long term (2) Operating Expenses 8,479,000 Assess taking into account the characteristics of the property Maintenance Expenses 1,568,000 by reference to the maintenance expenses in prior years, the level of expenses at similar properties, and other factors Assess taking into account the utility expenses in prior Utility Expenses 650,000 years, the characteristics of the property, etc. by reference to the level of expenses at similar properties and other factors. Assess using expenses in prior years, expenses at similar Repair Expenses 757,000 properties, annual average repair, maintenance and renewal expenses in the engineering report, and other factors Assess taking into account the characteristics of the property Property Management Fees 913,000 by reference to the current compensation rate, compensation rates at similar properties, and other factors Recognize the average annual turnover and occupancy rate Tenant Recruit Expenses, etc. 1,740,000 based on figures in prior years by reference to the rental condition at similar properties, and other factors. Recognize an amount based on the fiscal 2016 tax base Taxes and Dues 2,348,000 amount, etc. Recognize an amount that reflects the insurance premium Damage Insurance Fees 47,000 rate at similar properties and other factors Other Expenses 456,000 Recognize the internet service fee, etc. (3) Net Operating Income 38,922,000 (NOI= (1)-(2)) (4) Gain on guarantee deposit Assess income from investments by using an investment 134,000 investment return of 2.0% Assuming that an equal amount is added to a reserve in each fiscal period, assess by taking into account the level of (5) Capital Expenditure 970,000 capital expenditures at similar properties, the age of the property, and the average annual repair, maintenance and renewal expenses in the engineering report. (6) Net Cash Flow 38,086,000 (NCF=(3)+(4)-(5)) Assess by adjusting the spread due to the property’s location, the characteristics of the building by reference to (7) Capitalization Rate 4.4% the uncertainty in the future, transaction yield at similar properties and other factors. Value Calculated Using the 841,000,000 Discounted Cash Flow Method While reflecting investment returns of similar properties, Discount Rate 4.2% assess by taking into account the property’s unique characteristics

While reflecting returns associated with acquisitions of similar properties, assess by taking into account upcoming changes in investment returns, risks associated with the Terminal Capitalization Rate 4.6% property to be acquired, general prediction of economic growth rate, trends in real estate prices and rent rates, and all other applicable factors Value Calculated Using the Cost Method 699,000,000 Land 70.6% Building 29.4%

※Reference (Appraisal NOI Cap Rate=NOI above described /Acquisition Price) Property Name KDX Residence Bunkyo Yushima Appraisal NOI Cap Rate (rounded to the first decimal place) 5.6%

Property Name KDX Residence Kamishakujii

Appraisal Value ¥735,000,000 Appraiser Japan Real Estate Institute Appraisal Date July 1, 2016 (Unit: Yen) Item Content Basis Estimate by treating equally the value calculated using the Income Capitalization Approach Value 735,000,000 Direct Capitalization method and the Value Calculated Using the Discounted Cash Flow method. Value Calculated Using the Assess by using the cap rate based on medium to long-term 744,000,000 Direct Capitalization Method stable net income (1) Gross Operating Revenue 45,888,000 Maximum Gross Operating Assess based on a level of fair rent that is believed to remain 47,814,000 Revenue stable over the medium and long term Shortfall Attributed to Vacancies Assess based on the premise of an occupancy ratio that can 1,926,000 be maintained over the medium and long term (2) Operating Expenses 9,919,000 Assess taking into account the characteristics of the property Maintenance Expenses 2,000,000 by reference to the maintenance expenses in prior years, the level of expenses at similar properties, and other factors Assess taking into account the utility expenses in prior Utility Expenses 750,000 years, the characteristics of the property, etc. by reference to the level of expenses at similar properties and other factors. Assess using expenses in prior years, expenses at similar Repair Expenses 837,000 properties, annual average repair, maintenance and renewal expenses in the engineering report, and other factors Assess taking into account the characteristics of the property Property Management Fees 877,000 by reference to the current compensation rate, compensation rates at similar properties, and other factors Recognize the average annual turnover and occupancy rate Tenant Recruit Expenses, etc. 1,762,000 based on figures in prior years by reference to the rental condition at similar properties, and other factors. Recognize an amount based on the fiscal 2016 tax base Taxes and Dues 3,245,000 amount, etc. Recognize an amount that reflects the insurance premium Damage Insurance Fees 53,000 rate at similar properties and other factors Other Expenses 395,000 Recognize the internet service fee, etc. (3) Net Operating Income 35,969,000 (NOI= (1)-(2)) (4) Gain on guarantee deposit Assess income from investments by using an investment 100,000 investment return of 2.0% Assuming that an equal amount is added to a reserve in each fiscal period, assess by taking into account the level of (5) Capital Expenditure 1,100,000 capital expenditures at similar properties, the age of the property, and the average annual repair, maintenance and renewal expenses in the engineering report. (6) Net Cash Flow 34,969,000 (NCF=(3)+(4)-(5)) Assess by adjusting the spread due to the property’s location, the characteristics of the building by reference to (7) Capitalization Rate 4.7% the uncertainty in the future, transaction yield at similar properties and other factors. Value Calculated Using the 726,000,000 Discounted Cash Flow Method While reflecting investment returns of similar properties, Discount Rate 4.5% assess by taking into account the property’s unique characteristics

While reflecting returns associated with acquisitions of similar properties, assess by taking into account upcoming changes in investment returns, risks associated with the Terminal Capitalization Rate 4.9% property to be acquired, general prediction of economic growth rate, trends in real estate prices and rent rates, and all other applicable factors Value Calculated Using the Cost Method 614,000,000 Land 67.4% Building 32.6%

※Reference (Appraisal NOI Cap Rate=NOI above described /Acquisition Price) Property Name KDX Residence Kamishakujii Appraisal NOI Cap Rate (rounded to the first decimal place) 5.6%

Attached Materials Reference Material (1) Outline of Engineering Reports Reference Material (2) Exterior Photos and Map of To-be Acquired Assets Reference Material (3) List of Property Portfolio (as of November 1, 2016)

* The original Japanese version of this material is released today to the Kabuto Club (the press club of the Tokyo Stock Exchange), the Ministry of Land, Infrastructure, Transport and Tourism Press Club, and the Ministry of Land, Infrastructure, Transport and Tourism Press Club for Papers in the Construction Industry. * Website URL of the Investment Corporation: http://www.kdr-reit.com/english/

[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.

Reference Material (1) Outline of Engineering Reports (Unit: Yen in thousand) T-70 KDX Residence T-71 KDX Residence T-72 KDX Residence Property Name Nishi-azabu Azabu Sendaizaka Waseda Tsurumaki HI International HI International HI International Investigation Company Consulting Co., Ltd. Consulting Co., Ltd. Consulting Co., Ltd. Investigation Date April 2016 April 2016 April 2016 Repairs Maintenance and Renovation Expenses 370 1,040 950 Required over the Next Year Repairs Maintenance and Renovation Expenses 52,710 49,310 42,700 Expected to be Required within 2-12 Years Unit-in-Place 401,800 262,500 236,800

T-73 KDX Residence T-74 KDX Residence Property Name Bunkyo Yushima Kamishakujii HI International HI International Investigation Company Consulting Co., Ltd. Consulting Co., Ltd. Investigation Date April 2016 April 2016 Repairs Maintenance and Renovation Expenses 1,250 390 Required over the Next Year Repairs Maintenance and Renovation Expenses 45,220 52,020 Expected to be Required within 2-12 Years Unit-in-Place 266,800 296,400

※The above mentioned investigation company undertakes building assessments for the property as follows. -assessment of legal compliance with related laws -investigation for building construction and facilities -environmental investigation -formulation of a short-term and long-term repair and maintenance plan -analyses of the existence of hazardous substances and the soil environment

Reference Material (2) Exterior Photos and Map of To-be Acquired Assets T-70 KDX Residence Nishi-azabu

T-71 KDX Residence Azabu Sendaizaka

T-72 KDX Residence Waseda Tsurumaki

T-73 KDX Residence Bunkyo Yushima

T-74 KDX Residence Kamishakujii

Reference Material (3) List of Property Portfolio (as of November 1, 2016) Acquisition Price Ratio Acquisition Date Area Property Name (Thousands of yen) (Note 1) (Note 1) (Scheduled)

KDX Daikanyama Residence 4,700,000 3.0 May 1, 2012 KDX Odemma Residence 1,775,000 1.1 May 1, 2012 KDX Iwamoto-cho Residence 822,000 0.5 May 1, 2012 KDX Bunkyo Sengoku Residence 1,488,000 1.0 May 1, 2012 KDX Azumabashi Residence 650,000 0.4 May 1, 2012 KDX Shimura Sakaue Residence 2,830,000 1.8 May 1, 2012 Cosmo Heim Motosumiyoshi 1,750,000 1.1 April 26, 2012 (Land with leasehold interest) KDX Musashi Nakahara Residence 637,000 0.4 May 1, 2012 KDX Chiba Chuo Residence 1,480,000 1.0 May 1, 2012 KDX Kawaguchi Saiwai-cho 1,150,000 0.7 May 1, 2012 Residence KDX Residence Shirokane I 3,000,000 1.9 August 7, 2013 KDX Residence Shirokane II 2,800,000 1.8 August 7, 2013 KDX Residence Minami-aoyama 2,230,000 1.4 August 7, 2013 KDX Residence Minami-azabu 2,080,000 1.3 August 7, 2013 KDX Residence Shiba Koen 1,781,000 1.2 August 7, 2013 KDX Residence Azabu East 1,560,000 1.0 August 7, 2013 KDX Residence Takanawa 770,000 0.5 August 7, 2013 KDX Residence Nishihara 1,450,000 0.9 August 7, 2013 Tokyo Metropolitan KDX Residence Daikanyama II 730,000 0.5 August 7, 2013 Area KDX Residence Sendagaya 650,000 0.4 August 7, 2013 KDX Residence Nihombashi Suitengu 3,240,000 2.1 August 7, 2013 KDX Residence Nihombashi Hakozaki 1,147,000 0.7 August 7, 2013 KDX Residence Higashi-shinjuku 3,270,000 2.1 August 7, 2013 KDX Residence Yotsuya 2,260,000 1.5 August 7, 2013 KDX Residence Nishi-shinjuku 1,000,000 0.6 August 7, 2013 KDX Residence Kagurazaka 720,000 0.5 August 7, 2013 KDX Residence Futako Tamagawa 1,250,000 0.8 August 7, 2013 KDX Residence Komazawa Koen 920,000 0.6 August 7, 2013 KDX Residence Mishuku 760,000 0.5 August 7, 2013 KDX Residence Yoga 700,000 0.5 August 7, 2013 KDX Residence Shimouma 600,000 0.4 August 7, 2013 Raffine Minami-magome 1,250,000 0.8 August 7, 2013 KDX Residence Yukigaya Otsuka 1,050,000 0.7 August 7, 2013 KDX Residence Denen Chofu 1,000,000 0.6 August 7, 2013 KDX Residence Tamagawa 776,000 0.5 August 7, 2013 KDX Residence Monzennakacho 773,000 0.5 August 7, 2013 KDX Residence Okachimachi 850,000 0.6 August 7, 2013 KDX Residence Moto-asakusa 800,000 0.5 August 7, 2013

KDX Residence Itabashi Honcho 620,000 0.4 August 7, 2013 KDX Residence Azusawa 550,000 0.4 August 7, 2013 KDX Residence Tobu Nerima 420,000 0.3 August 7, 2013 KDX Residence Yokohama Kannai 800,000 0.5 August 7, 2013 KDX Residence Miyamaedaira 999,000 0.6 August 7, 2013 KDX Residence Machida 1,800,000 1.2 August 7, 2013 KDX Residence Kinshicho 1,350,000 0.9 March 28, 2014 KDX Residence Nihombashi Hamacho 996,000 0.6 August 7, 2014 KDX Residence Nihombashi 530,000 0.3 August 7, 2014 Ningyocho KDX Residence Jiyugaoka 1,268,000 0.8 August 7, 2014 KDX Residence Togoshi 3,745,000 2.4 August 7, 2014 KDX Residence Shinagawa Seaside 2,593,000 1.7 August 7, 2014 KDX Residence Ojima 1,857,000 1.2 August 7, 2014 KDX Residence Oyama 2,679,000 1.7 August 7, 2014 KDX Residence Hanzomon 4,832,000 3.1 February 5, 2015 B-Site Akihabara 850,000 0.6 February 5, 2015 Bureau Kagurazaka 1,360,000 0.9 February 5, 2015 Tokyo KDX Residence Sendagi 2,200,000 1.4 February 5, 2015 Metropolitan Area KDX Residence Seijo 1,400,000 0.9 February 5, 2015 KDX Residence Akihabara 1,250,000 0.8 February 5, 2015 KDX Residence Iriya 1,062,000 0.7 February 5, 2015 KDX Residence Tachikawa 3,026,200 2.0 February 5, 2015 KDX Residence Tsurumi 1,050,000 0.7 February 5, 2015 KDX Residence Morishita Chitose 1,100,000 0.7 June 1, 2015 KDX Residence Akasaka 1,150,000 0.7 September 30, 2015 KDX Residence Kanda 700,000 0.5 September 30, 2015 KDX Residence Ebisu 2,845,000 1.8 October 30, 2015 KDX Residence Nishi-magome 1,130,000 0.7 August 30, 2016 KDX Residence Nishi-azabu 1,224,000 0.8 August 1, 2016 KDX Residence Azabu Sendaizaka 792,300 0.5 August 1, 2016 KDX Residence Waseda Tsurumaki 561,000 0.4 August 1, 2016 KDX Residence Bunkyo Yushima 695,000 0.4 August 1, 2016 KDX Residence Kamishakujii 648,000 0.4 August 1, 2016 KDX Residence Shin-otsuka(Note 2) 764,000 0.5 November 1, 2016 KDX Residence Sakurajosui(Note 2) 894,000 0.6 November 1, 2016 KDX Residence Ryogoku(Note 2) 842,000 0.5 November 1, 2016 74 properties subtotal 107,281,500 69.5 KDX Toyohira Sanjo Residence(Note 2) -- May 1, 2012 Other Regional KDX Jozenji Dori Residence 1,015,000 0.7 May 1, 2012 Areas KDX Izumi Residence 1,120,000 0.7 May 1, 2012

KDX Chihaya Residence 1,080,000 0.7 May 1, 2012

KDX Sakaisuji Hommachi Residence 2,910,000 1.9 May 1, 2012 KDX Shimmachi Residence 1,015,000 0.7 May 1, 2012 KDX Takarazuka Residence 1,510,000 1.0 May 1, 2012 KDX Shimizu Residence 1,680,000 1.1 May 1, 2012 KDX Residence Odori Koen 765,000 0.5 August 7, 2013 KDX Residence Kikusui Yojo 830,000 0.5 August 7, 2013 KDX Residence Toyohira Koen 445,000 0.3 August 7, 2013 KDX Residence Kamisugi(Note 2) -- August 7, 2013 KDX Residence Ichiban-cho 530,000 0.3 August 7, 2013 KDX Residence Kotodai 520,000 0.3 August 7, 2013 KDX Residence Izumi Chuo 480,000 0.3 August 7, 2013 KDX Residence Higashi-sakura I 2,350,000 1.5 August 7, 2013 KDX Residence Higashi-sakura II 900,000 0.6 August 7, 2013 KDX Residence Atsuta Jingu 840,000 0.5 August 7, 2013 KDX Residence Nishi-oji 813,000 0.5 August 7, 2013 KDX Residence Saiin 440,000 0.3 August 7, 2013 KDX Residence Namba 1,410,000 0.9 August 7, 2013 Other KDX Residence Namba-minami 1,350,000 0.9 August 7, 2013 Regional KDX Residence Shin-osaka 510,000 0.3 August 7, 2013 Areas KDX Residence Ibaraki I ・II 1,275,000 0.8 August 7, 2013 KDX Residence Toyonaka-minami 740,000 0.5 August 7, 2013 KDX Residence Moriguchi 551,000 0.4 August 7, 2013 KDX Residence Sannomiya 1,080,000 0.7 August 7, 2013 Ashiya Royal Homes 1,360,000 0.9 August 7, 2013 KDX Residence Funairi Saiwai-cho 588,000 0.4 August 7, 2013 KDX Residence Tenjin-higashi II 680,000 0.4 August 7, 2013 KDX Residence Nishi Koen 763,000 0.5 August 7, 2013 KDX Residence Hirao Josui-machi 760,000 0.5 August 7, 2013 Melody Heim Gotenyama 400,000 0.3 August 7, 2014 Leopalace Flat Shin-sakae 3,500,000 2.3 November 28, 2014 KDX Residence Konan Yamate 973,000 0.6 November 14, 2014 KDX Residence Hommachibashi 3,201,000 2.1 December 18, 2014 KDX Residence Minami Kusatsu 1,974,666 1.3 February 5, 2015 KDX Residence Ohori Harbor View 4,606,296 3.0 February 5, 2015 Tower KDX Residence Minami-sanjo 915,000 0.6 September 30, 2015 Serenite Kita-kyuhoji 1,290,740 0.8 October 27, 2015 38 properties subtotal 47,170,703 30.5 112 properties total 154,452,203 100.0 (Note 1) Any fraction of the acquisition price less than one thousand yen is rounded down, and the ratios are rounded off to the first decimal place. (Note 2) For the acquisition of KDX Residence Shin-otsuka, KDX Residence Sakurajosui and KDX Residence Ryogoku and the sale of KDX Toyohira Sanjo Residence and KDX Residence Kamisugi, please refer to the “Notice Concerning Acquisition of Properties (Total of 3 Residential Properties) and Sale of Properties (Total of 2 Residential Properties)” announced today.