KDX Realty Investment Corporation (TSE: 8972) said on September 24 that it plans to acquire seven properties, one Yokohama office building, two hotels, and four newly built apartment blocks in the Kansai region, while agreeing to sell a nursing home near Sapporo in what it calls its first sale of a healthcare facility.
| Property | Type | Price | NOI yield | Settlement date |
|---|---|---|---|---|
| TCS-HD Yokohama Building | Office | ¥6.08bn | 3.9% | Oct 1, 2026 |
| ibis Styles Tokyo Bay | Hotel | ¥12.0bn | 4.7% | Oct 1, 2026 |
| BEB5 Okinawa Seragaki | Hotel | ¥6.06bn | 6.2% | Oct 1, 2026 |
| Nishinomiya apartment block | Residential | ¥4.53bn | 3.9% | Nov 2, 2026 |
| Umeda-area apartment tower | Residential | ¥4.48bn | 3.7% | Nov 2, 2026 |
| Tezukayama apartment block | Residential | ¥3.10bn | 4.0% | Nov 2, 2026 |
| Higashi-Osaka apartment block | Residential | ¥2.98bn | 4.2% | Nov 2, 2026 |
The two hotel purchases, both set to settle on October 1, carry the sharpest discounts. KDX has agreed to pay ¥12.0bn for ibis Styles Tokyo Bay in Urayasu, Chiba, against an appraised value of ¥13.1bn, 8% below appraisal, and ¥6.06bn for BEB5 Okinawa Seragaki, a resort in Onna village operated under Hoshino Resorts' BEB brand, against a ¥7.95bn appraisal, 24% below. Both leases tie rent to hotel operating performance rather than a fixed monthly sum, a structure KDX says gives it room for upside.
The sale runs the other way. KDX has agreed to sell a nursing home near Sapporo's Tsukisamu-Chuo subway station to the social welfare corporation that already runs it, for ¥2.39bn, ¥150mn below the facility's assumed book value of ¥2.54bn, with the transfer set for October 23. KDX said the operator's costs have outpaced what it can pass on to residents, eroding the home's income and raising the risk of further declines, so it opted to sell early rather than wait. The REIT's stated policy is now to keep selling long-term fixed-rent healthcare assets and commercially leased land, while buying office, residential and hotel properties where rents can grow with inflation. Grouped with two other deals disclosed earlier this year, the total comes to 10 properties due to be bought for ¥47.8bn at an average appraised NOI yield of 4.5%, against five properties due to be sold for ¥14.6bn at 4.1%.
KDX is borrowing ¥32.1bn from eight lenders, including Sumitomo Mitsui Trust Bank and MUFG Bank, to refinance maturing loans and cover part of the new purchases. Once drawn, KDX's total borrowings and investment corporation bonds rise to ¥610.1bn from ¥586.1bn; the REIT's own forecast assumes ¥24bn of that new debt funds the three properties settling on October 1.
KDX also raised its per-unit distribution forecast for both of its next two accounting periods. Guidance for the period to October 2026 moves to ¥4,268 from ¥4,227, up 1.0%, even though forecast net income for that period was trimmed to ¥15.7bn from ¥15.9bn. Guidance for the period to April 2027 rises further, to ¥4,440 from ¥4,227, up 5.0%, on rental income from the new assets, an expected ¥923mn gain on separate, previously announced property sales, and the cancellation of 38,332 of KDX's own investment units, which shrinks the unit count the payout is divided across. After the pending deals settle, KDX's portfolio is set to total 348 properties worth roughly ¥1.25tn, with healthcare making up 6.9% of the total and hotels 5.9%.