Hoshino Resorts REIT : Notice Concerning the Borrowing of Funds

June 15, 2022

For Immediate Release

REIT Securities Issuer

Hoshino Resorts REIT, Inc.

Representative: Kenji Akimoto, Executive Director

(Code: 3287)

Asset Management Company

Hoshino Resort Asset Management Co., Ltd.

Representative: Kenji Akimoto, President & CEO

Contact: Takahiro Kabuki, Director & CFO

TEL: [phone]

Notice Concerning the Borrowing of Funds

Hoshino Resorts REIT Inc. (hereinafter referred to as "HRR") announces the resolution made at its Board of Directors' Meeting held on June 15, 2022 to conduct borrowing (hereinafter the "Borrowing") as follows.

1. Details of the Borrowing (scheduled)

Planned

Final repayment

Lender(s)

borrowing

Interest rate

Repayment method

date

(Note 2)

amount

(Note 2)

(Note 2)

(Note 2)

(Note 3)

MUFG Bank, Ltd.

1.9 billion

Base interest rate +

December 29, 2028

Lump-sum

0.635%

repayment at

Development Bank of Japan Inc.

yen

(Note 6)

(Note 4) (Note 5)

maturity

Sumitomo Mitsui Banking Corporation

Base interest rate +

Lump-sum

Resona Bank, Limited

4.3 billion

December 28, 2029

0.740%

repayment at

Mizuho Bank, Ltd.

yen

(Note 6)

(Note 4) (Note 5)

maturity

(Note 1) This notice is based on details contained in the notice of the screening result regarding this loan issued by the financial institutions (hereinafter referred to as "Letter of Intent"). There is no guarantee that the loan will be actually implemented.

(Note 2) The "Lender(s)", "Interest rate", "Final repayment date" and "Repayment method" are the same as described in the Term Sheet referred to by the Letter of Intent. The actual "Lender(s)", "Interest rate", "Final repayment date" and "Repayment method" may differ from the above. The same applies below.

(Note 3) The "Planned borrowing amount" is an estimated value calculated by the Asset Management Company based on the loan amount stated in the Letter of Intent and the Term Sheet referred to by the Letter of Intent, and on the estimated total amount of the issue value for the Public Offering and the Third-party Allotment (meaning the Public Offering and the Third-party Allotment of the Investment Units resolved at the meeting of HRR's Board of Directors held on June 15, 2022 as stated in the "Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units" separately announced as of today. The same applies below.) The actual loan amount shall be determined based on the loan agreement to be concluded after determination of the issue value of the Public Offering and the Third-Party Allotment, therefore it may change depending on the total issue value of the Public Offering and the total issue value of the Third-Party Allotment, etc. The same applies below.

(Note 4) For the "base interest rate", we schedule to adopt the interest rate (floating rate) determined based on the JBA 3-month Japanese Yen TIBOR, but such schedule is current as of today and is subject to change.

(Note 5) HRR has a policy of concluding an interest rate swap agreement and fixing the interest rates.

(Note 6) If this day does not coincide with a business day, it shall be changed to following business day. If the following business day falls in the following month, then the date shall be the immediately preceding business day. As of today, the drawdown date is scheduled to be July 1, 2022, but may be changed upon agreement between HRR and the lender(s).

(Note 7) If the total amount of the proceeds from the Public Offering and each of the above loans is less than the acquisition funds of the assets to be acquired and related costs, HRR plans, in addition to each of the above loans, to borrow up to the following amount (hereinafter referred to as the "Backup Loan"). However, since the loan is planned to be made only when the total amount of the proceeds from the Public Offering and each of the above loans is less than the acquisition fund of the assets to be acquired and related expenses, the loan is not guaranteed.

Note:	This press release is for the purpose of publicly announcing the borrowing of funds by HRR and has not been prepared
	for the purpose of solicitation of investments. When making an investment, please ensure to read the prospectus for
	the issuance of new Investment Units and Secondary Offering of Investment Units prepared by HRR and any
	amendments thereto. Any investments should be made based on your own assessment and at your own risk.
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Planned

borrowing

Scheduled

Final repayment

Repayment

Lender(s)

amount

borrowing

Interest rate

date

method

(maximum

date

amount)

MUFG Bank, Ltd.

Base interest

Lump-sum

Sumitomo Mitsui Banking

2022

1.3 billion yen

rate

June 30, 2023

repayment at

Corporation

July 1

+0.300%(*)

maturity

Mizuho Bank, Ltd.

1. • The "base interest rate" is scheduled to be the interest rate (floating rate) to be determined based on the JBA 1-month Japanese Yen TIBOR, but such schedule is current as of today and is subject to change.
2. Purpose of the Borrowing
   The Borrowing will be made in order to appropriate them to part of the acquisition cost (planned acquisition price) of 12.21 billion yen and related expenses (consumption tax and local consumption tax are included. The same applies below.) for "HOSHINOYA Okinawa" (Hereinafter referred to as the "Assets to be Acquired".) in the "Notice Concerning Acquisition and Lease of Domestic Real Estate (HOSHINOYA Okinawa (77.47% co-ownership))" announced today.
3. Amount, Use and Timing of Expenditure for Funds to be Procured
4. 1. Amount of Funds to be Procured

6,200,000,000 yen (scheduled) (Note)

(Note) The above amount is the total scheduled amount of the Loan excluding the Backup Loan. Therefore, if the Backup Loan is fully executed, the amount of funds to be procured will be 7,500,000,000 yen (scheduled).

1. Specific Use of Funds to be Procured

Funds will be appropriated to part of the acquisition cost and related expenses for the Assets to Be Acquired.

1. Timing of Expenditure July 1, 2022 (scheduled)

3. Status of Borrowings, etc. Before and After Executing the Borrowings (scheduled)

										(millions of yen)
						Before executing the			After executing the			Change
						Borrowing			Borrowing
			Short-term borrowings (Note 1)		-		-		-
			Long-term borrowings (Note 1)		65,624		71,824		+6,200
			Total borrowings		65,624		71,824		+6,200
			(Green loans)		3,900		3,900		-
			Investment corporation bonds		2,800		2,800		-
			(Green bonds)		1,300		1,300		-
	Total borrowings and investment		68,424		74,624		+6,200
	corporation bonds
	(Green finance)		5,200		5,200		-

(Note 1) Short-term loans refer to loans with original maturities of one year or less, and long-term loans refer to loans with original maturities of more than one year.

(Note 2) Amounts are rounded down to the nearest million yen.

(Note 3) The "Planned borrowing amount" is stated based on the estimated amount of the loan described in the Letter of Intent and the Term Sheet referenced to by the Letter of Intent, which is calculated by the Asset Management Company based on the estimated total Issue Value in the Offering and the Third-Party Allotment calculated based on the closing price of ordinary transactions on the Tokyo Stock Exchange as of May 25, 2022 (Wednesday). The actual loan amount shall be determined by the loan agreement to be concluded after determination of the Issue Value in the Public Offering and the Third-Party Allotment, therefore it may change depending on the total Issue Value in the Public Offering and the total Issue Value in the Third-Party Allotment, etc.

(Note 4) This table does not include the loan amount for the Backup Loan. However, if the Backup Loan is executed, the borrowing amount will be included in the Short-term Loans.

Note:	This press release is for the purpose of publicly announcing the borrowing of funds by HRR and has not been prepared
	for the purpose of solicitation of investments. When making an investment, please ensure to read the prospectus for
	the issuance of new Investment Units and Secondary Offering of Investment Units prepared by HRR and any
	amendments thereto. Any investments should be made based on your own assessment and at your own risk.
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4. Other Matters Necessary for Investors to Appropriately Understand and Evaluate the Provided Information There is no change to the content of "Investment Risks" described in the Securities Report filed today with respect to the risks involved in the Borrowing.

.

• The HRR website address:https://www.hoshinoresorts-reit.com/en/

Note:	This press release is for the purpose of publicly announcing the borrowing of funds by HRR and has not been prepared
	for the purpose of solicitation of investments. When making an investment, please ensure to read the prospectus for
	the issuance of new Investment Units and Secondary Offering of Investment Units prepared by HRR and any
	amendments thereto. Any investments should be made based on your own assessment and at your own risk.
	3