Japan Real Estate Investment : Announcement of Debt Financing

NEWS RELEASE

August 12, 2020

For Immediate Release

Investment Corporation

Japan Real Estate Investment Corporation

Yutaka Yanagisawa, Executive Director

(TSE code: 8952)

Asset Management Company

Japan Real Estate Asset Management Co., Ltd.

Naoki Umeda, President & CEO

Contact: Masaru Motooka

Executive Officer & General Manager

Planning Department

Phone: +81‐3‐3211‐7951

Announcement of Debt Financing

Japan Real Estate Investment Corporation hereby announces its decision today to procure funds as follows:

1. Reason for the borrowing

Repayment of the existing short‐term loan of JPY 11 billion executed on May 18, 2020.

2. Outline of the borrowing

(1)	Borrowing date	August 18, 2020
(2)		Lender, Amount of loan, Principal repayment date
		Lender		Amount of loan	Principal repayment date
		MUFG Bank, Ltd. (Note1)		JPY 11,000 million	November 18, 2020
(3)						Bankers
	Interest rate:		Base rate ( 3‐month JPY	TIBOR published by Japanese
				Association (hereinafter "JBA")) + 0.040% (Note2)
(4)	Method of borrowing:	Loan based on overdraft agreement
				Unsecured/unguaranteed loan
(5)		Interest payment date:	The principal repayment date
(6)		Method of principal repayment:	Lump‐sum repayment on the principal repayment date

(Note1)・ The lender, MUFG Bank, Ltd., will assign all or part of the loan receivable to be owed by JRE to Mitsubishi UFJ Trust and Banking Corporation ("MUTB"), and then MUTB will form a money trust called "jointly‐operated designated money trust". In the money trust operations, MUTB manages their investors' money in trust, whose investment destination is designated as the said loan receivable. For more information, please refer to "Announcement of Debt Financing" dated November 8, 2019.

(Note2)・ The base rate to calculate the interest to be paid on the interest payment date is JBA 3‐month JPY TIBOR as of the second preceding business day of the borrowing date. (JBA 3‐month JPY TIBOR as of August 12, 2020 is 0.06909%.)

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• For the JBA Japanese Yen TIBOR, please refer to JBA TIBOR administration's website (http://www.jbatibor.or.jp/english/rate/).

3. Balance of interest‐bearing debt after the debt financing

								(Units: millions of JPY)
			Before		After		Increase/Decrease
	Short‐term loans payable	36,000		36,000		±0
	Long‐term loans payable	23,000	23,000	±0
	(Variable interest rate)
	Long‐term loans payable	327,000	327,000	±0
	(Fixed interest rate)
	Total loans		386,000			386,000			±0
	Investment corporation bonds	32,993		32,993		±0
	Total		32,993			32,993			±0
	investment corporation bonds
	Total interest‐bearing debt		418,993			418,993			±0

4. Others

Regarding risks pertaining to this loan repayment, there is no material change to the "Investment risks" description in the latest securities report submitted on June 25, 2020.

This is the English translation of the announcement in Japanese dated August 12, 2020.

No assurance or warranties are given for the completeness or accuracy of this English translation.

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