Next investment Kenedix Residential: Notification on inheritance of merger status

Translated from Japanese original

June 20, 2022

To all stakeholders

Issuer of REIT:

Kenedix Residential Next Investment Corporation

Representative: Tetsu Kawashima, Executive Director

(Securities code: 3278)

Asset Management Company:

Kenedix Real Estate Fund Management, Inc.

Representative: Masahiko Tajima, President and Chief Executive Officer

contact:Shin Yamamoto, Head of Strategic Planning,

Housing department REIT

TEL:+ 81-3-5157-6011

Notice of inheritance of merger status

Kenedix Residential Next Investment Corporation announced today that it will decide to accept the inheritance of operator status due to the next merger of the operator of the health facility that the investment corporation owns (“Heritage”). The details are as follows.

1. Summary of inheritance

Trust Garden Co., Ltd. is the operator of the (H-10) Activa Biwa (“Facility”). HIMEDIC, Inc., which belongs to the same parent company, Resorttrust, Inc. and manages medical operations, will merge with Trust Garden Co., Ltd. with effect from 1 July 2022 (Note). As a result, HIMEDIC, Inc., as a surviving company, will inherit the status of Operator of the Facility.

The merger is expected to enable medical and adult lifestyle operations to be further developed in the Resorttrust group by creating synergies between medical and medical services. The Investment Corporation decided to accept the request for inheritance, as the merger will contribute to the creation of a flexible structure for the provision of services in the Mechanism, which meets the needs of changing times and to maximize the interests of shareholders.

(Note) The shareholders’ meeting will be held on June 28, 2022, at which a decision will be made to accept the merger. For more details, please see the press release issued by Resorttrust, Inc. HIMEDIC, Inc. and Trust Garden Co., Ltd.

2. Change of operator through continuity

Property name:(H-10) Activate Biwa

New operator

Current operator

Operator name (final tenant)

HIMEDIC, Inc.

Trust Garden Co., Ltd.

(Note) HIMEDIC, Inc. will inherit this lease without changing the terms and conditions.

Effective date:July 1, 2022

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3. Review a new operator

Company profile and business overview

Company name

HIMEDIC, Inc.

Address

Resorttrust Tokyo Bldg., 6F 4-36-19, Yoyogi, Shibuya-ku Tokyo

Representative

Arioshi Fushimi, President

Business description

Construction and operation of medical institutions to order from

medical establishments, sale of membership for use of medical establishments

by members, etc.

Capital

300 million yen

Established

September 29, 1992

Net sales

18.4 billion yen

(Note) Equity is based on the register as of April 27, 2022, Net sales are based on financial statements for the fiscal period ended March 2021, and other items are based on information published by HIMEDIC, Inc.

Parent company profile and business overview

Company name

Resorttrust, Inc.

Address

2-18-31, Higashisakura, Naka-ku, Nagoya-shi, Aichi

Representative

Yoshiro Ito, founder and CEO of the group

Katsuyasu Ito, Chairman of the Board

Arioshi Fushimi, President

Business description

Sale and administration of membership, operation of hotels and restaurants,

etc., operation of golf clubs, medical business, other businesses.

Capital

19.5 billion yen

Established

April 2, 1973

Net sales

157.7 billion yen

(Note) Equity is based on the register as of June 7, 2022. Net sales are based on financial statements for the fiscal period ended March 2022, and other items are based on information published by Resorttrust, Inc.

* URL of the investment corporation’s website: https://www.kdr-reit.com/en/

[Provisional Translation Only]

The English translation of the original Japanese document is provided for informational purposes only.

If there are any discrepancies between this translation and the Japanese original, the latter takes precedence.

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