Mori Hills REIT Investment : MHR Announces Conclusion of Interest Rate Swap Agreements

November 26, 2021

For Translation Purposes Only

Real Estate Investment Fund Issuer:

Mori Hills REIT Investment Corporation

(Securities Code: 3234)

1-12-32 Akasaka, Minato-ku, Tokyo

Hideyuki Isobe, Executive Director

Asset Manager:

Mori Building Investment Management Co., Ltd.

Hideyuki Isobe, President & CEO

Inquiries: Akira Nemoto

General Manager of Financial Department

TEL: [phone]

MHR Announces Conclusion of Interest Rate Swap Agreements

Mori Hills REIT Investment Corporation (hereinafter "MHR") concluded today the following interest rate swap agreements.

1. Purpose of Entering Interest Rate Swap Agreements
   To hedge the risk of fluctuation in interest rate payments by converting to a virtual fixed rate for the long-term loans payable disclosed in the press release "MHR Announces Information on Borrowings" dated November 24, 2021.
2. Details of the Interest Rate Swap Agreements
   (1) Borrowings entered into interest rate swap agreements

		Borrowing		Drawdown	Repayment
Category	Lender	amount	Interest rate
date	Date (Note)
		(million yen)
Debt 1	Sumitomo Mitsui Trust	1,040	3-month JBA Japanese		November
Bank,Limited	Yen TIBOR + 0.180%		30, 2026
Debt 2	MUFG Bank, Ltd.	1,100	3-month JBA Japanese	November	November
Debt 3	Sumitomo Mitsui	1,560	Yen TIBOR + 0.300%	30, 2021	30, 2029
Banking Corporation
Debt 4	Mizuho Bank,Ltd.	1,300	3-month JBA Japanese		November
Yen TIBOR + 0.250%		30, 2030

(Note) If any of the above repayment dates are not a business day, the next business day shall be the termination or interest payment date. If this next business day falls into the following month, the business day immediately prior shall be the termination or interest payment date.

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(2) Summary of interest rate swap agreements

		Notional	Interest rate(Note1)		Termination
		principal	Fixed	Fluctuating	Commence-
Category	Counterparty	Date
amount	interest	interest	ment date
		(Note2)
		(million yen)	rate	rate
Debt 1	Nomura Securities	1,040	0.10400%			November
Co.,Ltd.	3-month		30, 2026
Debt 2	Nomura Securities			JBA	November	November
	2,660	0.15800%	Japanese
Debt 3	Co.,Ltd.	30, 2021	30, 2029
		Yen
				TIBOR
Debt 4	Mizuho Bank, Ltd.	1,300	0.17440%		November
		30, 2030

(Note 1) The first interest payment date shall be the last day of February 2022 and subsequent payment dates shall be the last day of February, May, August, and November every year thereafter. The last interest payment date shall be the termination date. However, if any of the above dates are not a business day, the next business day shall be that date. If this next business day falls into the following month, the business day immediately prior shall be that date.

Due to the interest rate swap agreements, the interest rates for long-term loans payable for from Debt 1 to 4 mentioned above will, in effect, be converted into fixed interest rates respectively as follows until the termination date.

0.28400% for Debt 1, 0.45800% for Debt 2 and Debt 3, 0.42440% for Debt4

(Note 2) If the termination date is not a business day, the next business day shall be that date. If this next business day falls into the following month, the business day immediately prior shall be that date.

MHR's website address is https://www.mori-hills-reit.co.jp/en/

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