Japan Hotel REIT Investment : Notice Concerning New Loans (including Refinancing with Green Loan)

This English translation is provided for information purposes only. If any discrepancy is identified between this translation and the Japanese original, the Japanese original shall prevail.

March 21, 2024

REIT Issuer:

Japan Hotel REIT Investment Corporation (TSE code: 8985)

Kaname Masuda, Executive Director

Asset Management Company:

Japan Hotel REIT Advisors Co., Ltd.

Hiroyuki Aoki, President and CEO

Contact:

Makoto Hanamura

Director of the Board, Managing Director

Head of Finance and Planning Division

TEL: [phone]

Notice Concerning New Loans (including Refinancing with Green Loan)

Japan Hotel REIT Investment Corporation (hereinafter called "JHR") informs you that JHR resolved today on new borrowing including Green Loan (hereinafter called the "New Loans") for the purpose of refinancing the existing loans.

1. Summary of the New Loans

(1) Content of the New Loans

JHR plans to refinance the existing loans due on March 29, 2024 (hereinafter called the "Loans Scheduled for Repayment").

(2) Details of the New Loans

		Amount of		Scheduled		Collateral/
Name	Lender	Interest Rate	Maturity	Method of
New Loan	Borrowing
(*1)	Date	Principal
		(JPY MM)	Date
				Repayment
						Unsecured/
Term Loan	SBI Shinsei Bank, Limited	3,000	Base interest rate	March 29,	March 31,	Unguaranteed
Lump-sum
95	+ 0.25%	2024	2025
		payment on the
						maturity date
			To be determined			Unsecured/
Term Loan			March 29,	March 31,	Unguaranteed
Sompo Japan Insurance Inc.	1,000	(fixed)	Lump-sum
96	2024	2027
		(*2)	payment on the
						maturity date
	Development Bank of
	Japan Inc.,
	SBI Shinsei Bank, Limited,					Unsecured/
	Sumitomo Mitsui Banking		Base interest rate
Term Loan		March 29,	March 31,	Unguaranteed
Corporation,
4,050	+ 0.40%	Lump-sum
97	Sumitomo Mitsui Trust	2024	2027
	(*3)	payment on the
	Bank, Limited,
					maturity date
	Resona Bank, Limited,
	The Nishi-Nippon City
	Bank, Ltd.

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		Amount of		Scheduled		Collateral/
Name	Lender	Interest Rate	Maturity	Method of
New Loan	Borrowing
(*1)	Date	Principal
		(JPY MM)	Date
				Repayment
	Sumitomo Mitsui Banking
	Corporation,		Base interest rate			Unsecured/
Term Loan	SBI Shinsei Bank, Limited,		March 29,	March 30,	Unguaranteed
Resona Bank, Limited,	4,000	+ 0.50%	Lump-sum
98	2024	2029
Sumitomo Mitsui Trust		(*3)	payment on the
	Bank, Limited,					maturity date
	The Chiba Bank, Ltd.
			To be determined			Unsecured/
Term Loan			March 29,	March 30,	Unguaranteed
MUFG Bank, Ltd.	800	(fixed)	Lump-sum
99	2024	2029
		(*2)	payment on the
						maturity date
	Sumitomo Mitsui Banking
	Corporation,
	Resona Bank, Limited,		Base interest rate			Unsecured/
Term Loan	Sumitomo Mitsui Trust		March 29,	March 29,	Unguaranteed
Bank, Limited,	14,839	+ 0.55%	Lump-sum
100	2024	2030
SBI Shinsei Bank, Limited,		(*3)	payment on the
	The Chiba Bank, Ltd.,					maturity date
	Mizuho Bank, Ltd.,
	The Bank of Fukuoka, Ltd.
	Sumitomo Mitsui Banking
	Corporation,
	Mizuho Bank, Ltd.,
Term Loan	SBI Shinsei Bank, Limited,		Base interest rate			Unsecured/
Sumitomo Mitsui Trust		March 29,	March 29,	Unguaranteed
101
Bank, Limited,	3,300	+ 0.55%	Lump-sum
Green Loan	2024	2030
Kansai Mirai Bank,		(*3)	payment on the
(*4)
Limited,					maturity date
	The Hokuriku Bank, Ltd.,
	The Minato Bank, Ltd.,
	Aozora Bank, Ltd.

(*1) The first interest payment will be due on the last day of April 2024, and subsequent interest payments will be due on the last day of each month thereafter (or the immediately preceding business day if that day is not a business day) and the maturity date.

The base interest rate for the calculation period of the interest to be paid on the interest payment date will be the 1-month JBA Japanese Yen TIBOR as of two business days prior to the immediately preceding interest payment date (excluding interest rates to be determined). Please refer to the website of the JBA TIBOR Administration for the JBA Japanese Yen TIBOR (http://www.jbatibor.or.jp/english/rate/).

(*2) The interest rates to be determined will be announced once they are determined.

(*3) For Term Loans 97, 98, 100 and 101, JHR plans to conclude interest rate swap contracts to fix the interest rate. Further details will be announced once they are determined.

(*4) Term Loan 101 will be borrowed as a green loan under the Green Finance Framework formulated by JHR in January 2024. The loan will be used to partially fund the repayment of borrowings (including borrowings from subsequent refinancing) for acquiring Uan kanazawa and Hilton Tokyo Odaiba, green buildings that meet the Eligibility Criteria.

For details on the Green Finance Framework, please refer to the press release dated January 31, 2024, titled "Notice Concerning Formulation of Green Finance Framework and Acquisition of Green Finance Framework Evaluation."

2. Summary of Loans Scheduled for Repayment

1. Summary of Repayment

JHR plans to repay the loans using the New Loans.

1. Amount of Repayment
   JPY30,989MM
2. Scheduled Repayment Date March 29, 2024

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(4) Details of the Loans Scheduled for Repayment

		Loan Balance before
Name	Lender	Repayment	Borrowing Date	Maturity Date
		(JPY MM)
Term Loan	Sumitomo Mitsui Banking
Corporation,	2,100	March 28, 2016	March 29, 2024
22-1
Mizuho Bank, Ltd.
	The Nomura Trust and Banking
Term Loan	Co., Ltd,	2,536	March 31, 2016	March 29, 2024
The Chiba Bank, Ltd.,
22-2
Development Bank of Japan Inc,
	The Bank of Fukuoka, Ltd.
Term Loan	Sumitomo Mitsui Trust Bank,	800	March 31, 2016	March 29, 2024
24	Limited.
Term Loan	Development Bank of Japan Inc.	500	March 31, 2016	March 29, 2024
25
Term Loan	Sumitomo Mitsui Banking
Corporation,	4,000	November 15, 2017	March 29, 2024
43
SBI Shinsei Bank
Term Loan	The Bank of Fukuoka, Ltd.,
The Chiba Bank, Ltd.,	2,500	April 8, 2019	March 29, 2024
53	The Nishi-Nippon City Bank, Ltd.,
	Sompo Japan Insurance Inc.
	Sumitomo Mitsui Banking
	Corporation,
Term Loan	SBI Shinsei Bank, Limited,	2,985	January 31, 2023	March 29, 2024
Sumitomo Mitsui Trust Bank,
79
Limited,
	Resona Bank, Limited,
	Aozora Bank, Ltd.
	Sumitomo Mitsui Banking
	Corporation,
Term Loan	SBI Shinsei Bank, Limited,
Sumitomo Mitsui Trust Bank,	14,768	March 31, 2023	March 29, 2024
82	Limited,
	Resona Bank, Limited,
	The Chiba Bank, Ltd.,
	The Minato Bank, Ltd.
Term Loan	Kansai Mirai Bank, Limited,	800	January 31, 2024	March 29, 2024
94	The Hokuriku Bank, Ltd.

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3. Status of the Interest-bearing Debt After the New Loans (scheduled)

				(Unit: JPY MM)
Category	Before	After	Variance
	Short-term loans	15,568	-	(15,568)
	Long-term loans (*2)	122,763	138,331	15,568
Total loans	138,331	138,331	-
Total investment corporation bonds	36,900	36,900	-

	Total interest-bearing debt		175,231	175,231
(*1)
Amounts are rounded down to the nearest millions of yen.
(*2)	Long-term loans payable within one year are included in the long-term loans.

-

The fixed interest rate ratio to the total interest-bearing debt after the New Loans is forecasted to be around 74%.

4. Other

For the risks of the New Loans, please refer to the section "Investment Risk" in the Securities Report submitted today (Japanese only).

* Website of Japan Hotel REIT Investment Corporation: https://www.jhrth.co.jp/en/

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