Kenedix Retail REIT : Notice Concerning Debt Financing (Series 46) and Execution of Interest Rate Swaps

Translation of Japanese Original

February 3, 2022

To All Concerned Parties

REIT Issuer:

Kenedix Retail REIT Corporation

Representative: Moyuru Watanabe, Executive Director

(Securities Code: 3453)

Asset Manager:

Kenedix Real Estate Fund Management, Inc.

Representative: Masahiko Tajima, President & CEO

Contact:Koichiro Nobata, Head of Strategic Planning,

Retail REIT Department

TEL:[phone]

Notice Concerning Debt Financing (Series 46) and Execution of Interest Rate Swaps

Kenedix Retail REIT Corporation ("KRR") announced today its decision to undertake debt financing (for a total of 7,000 million yen) (the "Borrowings") and the execution of interest rate swap agreements. The details are provided as follows. In addition, all the Borrowings are to be procured as green loan ("Green Loan").

1. Details of debt financing

		Amount	Interest rate		Drawdown	Principal	Collateral /
Series	Lender	(millions	Contract date	repayment date	Repayment
(Note 1)	date
		of yen)		(Note 1)	method
46-A1	Sumitomo Mitsui	2,600
Banking Corporation
46-A2	Sumitomo Mitsui	600
Trust Bank, Ltd.
			Base rate
46-A3	Mizuho Trust &	400
Banking Co., Ltd.	(JBA TIBOR
			for 3-month)
46-A4	Aozora Bank, Ltd.	400	+0.45000%			January 31,
(Note 2)
					2029	Unsecured,
46-A5	Mizuho Bank, Ltd.	300		February 8,	February 10,		unguaranteed /
		Repayment of
				2022	2022
					principal in full
46-A6	Resona Bank, Ltd.	300					on maturity date
			To be
46-B	MUFG Bank, Ltd.	800	determined
(Fixed rate)
			(Note 3)
			Base rate
	Development Bank		(JBA TIBOR			January 31,
46-C	1,600	for 3-month)
of Japan Inc.			2031
		+0.55000%
			(Note 2)
Notes:

1. The first interest payment is at the end of April 2022, and on the last day of every three months thereafter, with the last interest payment on the principal repayment date. The interest payment and the principal repayment will be made on the following business day in case such date falls on a non-business day and the preceding business day in case such date falls in the next calendar month.
2. The JBA TIBOR is available on the JBA TIBOR Administration website (http://www. jbatibor.or.jp/english/).
3. The undecided matters will be announced upon determination.

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2. Purpose of debt financing

The proceeds of the Borrowings will be applied to the repayment of Series 1-E and 1-G (total amount of 7,000 million in total) on February 10, 2022. For details of the Series1-E and 1-G, please refer to "Notice Concerning the Borrowings and Execution of Interest Rate Swap" dated February 10, 2015. The Green Loan will be applied to the repayment of the borrowings that were borrowed for the purpose to acquire the eligible green assets (Note) in accordance with KRR's green finance framework (Note). Furthermore, this Green Loan will be

KRR's first borrowings as green loans in accordance with green finance framework.

Note: For details of "eligible green assets" and "KRR's green finance framework", please refer to "Notice Concerning Submission of Amended Shelf Registration Statement for Issuance of Green Bonds" dated December 23, 2021.

3. Interest rate swap agreements

1. Purpose of interest rate swap agreements
   For a hedge against possible increases in future interest rate for Series 46 with floating interest rates.
2. Details of interest rate swap agreements

Series

46-A1

46-A2

46-A3

46-A4

46-A5

46-A6

Counterparty

To be determined and announced upon determination

Notional amount (millions of yen)

2,600

600

400

400

300

300

Fixed interest rate for

To be determined and announced upon determination

Interest

payment

rate

Floating interest rate for

Base rate (JBA TIBOR for 3-month)

receipt

Commencement date

February 10, 2022

Termination date

January 31, 2029

The first payment will be made at the end of April 2022, and on the last day

Payment date (Note)

of every three months thereafter, with the last payment on the termination

date.

Series

46-C

Counterparty

To be determined and announced upon determination

Notional amount (millions of yen)

1,600

Fixed interest rate for

To be determined and announced upon determination

Interest

payment

rate

Floating interest rate for

Base rate (JBA TIBOR for 3-month)

receipt

Commencement date

February 10, 2022

Termination date

January 31, 2031

The first payment will be made at the end of April 2022, and on the last day

Payment date (Note)

of every three months thereafter, with the last payment on the termination

date.

Note: Each payment date will be made on the following business day in case such date falls on a non-business day and the preceding business day in case such date falls in the next calendar month.

4. Status of the interest-bearing debt after the Borrowings (as of February 10, 2022)

										(Millions of yen)
	Category			Balance before			Balance after			Difference
			the Borrowings			the Borrowings
	Short-term borrowings (Note 1)	750		750		-
	Long-term borrowings (Note 2)	113,550	113,550	-
	Total borrowings	114,300	114,300	-
	Investment corporation bonds	9,000	9,000	-
Total borrowings and investment corporation bonds	123,300	123,300	-

Notes:

1. Short-term borrowings refer to the amount of debt financing with a period of less than or equal to one year from the borrowing date to the maturity date. However, in the case where the maturity date has been moved to a different business day because the maturity date of one year from the borrowing date is not a business day, and as a result the borrowing period surpasses one year, the borrowings are included in short-term borrowings.

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2. Long-term borrowings refer to the amount of debt financing with a period of more than one year from the borrowing date to the maturity date.

5. Other matters

Risks pertaining to the Borrowings and the repayment remain unchanged from the description of "Investment Risks" described in the Securities Report submitted on December 23, 2021.

KRR's website address:https://www.krr-reit.com/en/

This notice is the English translation of the Japanese announcement on February 3, 2022. However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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