Kenedix Realty Investment : Updated of IR Presentation Material for the Fiscal Period Ended October 31, 2016

Kenedix Office Investment Corporation

23rd Period Results (Ended October 2016)

December 15, 2016

Ticker Symbol: 8972

Kenedix Real Estate Fund Management, Inc. Table of contents

Section 1 Section 2	Executive summary / highlights 23rd fiscal period results (2016/10) and	P. 2
24th fiscal period earning forecasts (2017/4)	P. 5
Section 3	Portfolio overview	P. 8
Section 4	External growth	P. 11
Section 5	Internal growth	P. 16
Section 6	Financial strategy	P. 24

Appendix 1 Additional material / data P. 28

Appendix 2 Characteristics of KDO P. 44

1

Section 1

Executive summary / highlights

Highlights of 23rd fiscal period (2016/10) and future initiatives

Highlights

External growth

Continue to improve the portfolio quality by selective investment and asset reshuffle

23rd fiscal period (2016/10) 24th fiscal period (2017/4)

Future initiatives

• Continue with ongoing initiatives and policies

  • Acquired 2 office buildings (5.1bn yen)

    • Located within the central 5 wards of Tokyo

    • Negotiated transaction leveraging sponsor's M&A

• Mutual transactions with 2 real estate developers

  • Improved portfolio quality by acquiring prime properties

  • Achieved gain on sales (1.6 bn yen) and increased cash on hand (1.8 bn yen)

    Increase in DPU

    External growth

    Improvement in profitability (NOI yield after depreciation)

    4.2% (3.8%)

    Estimated NOI yield (after depreciation)

    Properties sold (actual)

    2.4%

    Properties acquired (estimate)

    3.6%

    Mid-long term estimate

    +180 yen/period

    Selective investment

    Internal growth

    Further enhance upward trend in revenues by improving actual

    occupancy rate and unit rent

    and asset reshuffle

    • Actual occupancy rates continued to improve with steady increases in new leases and gradual expiration of the existing free rent periods

    • Steady rent growth achieved through tenant turnover and rent revisions

      Increase in actual occupancy rate

      Percentage of the number of new contracts signed with higher rents at tenant turnover

      Increasing change in rent upon rent revisions

      End of 23rd fiscal period

      Growth of unitholder value

      Financial strategy

      Internal growth

      93.4% (+0.9% period over period)

      ※Occupancy rate (contracted area based): 96.8%

      22nd fiscal period

      54.4%

      23rd fiscal period

      60.9%

      Total monthly amount for 23rd fiscal period

      +4.3 mn yen

      Rise in

      actual occupancy rate and unit rent

      Stable financial

      management and reduction of

      Financial strategy

      Maintain stable financial base and continue reducing financial

      cost

    • Reduced financial cost and extended the remaining period to maturity for 6 consecutive fiscal periods

financial cost

Average interest rate on interest-bearing debt

Average remaining period to maturity

LTV (interest-bearing debt ratio)

End of 23rd fiscal period

1.19% (-0.06% period over period)

End of 23rd fiscal period

4.9 yrs (+0.2 yrs period over period)

End of 23rd fiscal period

43.1%(+0.3% period over period)

3