Nippon Prologis REIT : Notice Regarding Debt Financing and Completion of Interest Rate Swap Agreement

September 27, 2018

FOR IMMEDIATE RELEASE

Notice Regarding Debt Financing and Completion of Interest Rate Swap Agreement

Nippon Prologis REIT, Inc. ("NPR") today announced that it will obtain debt financing (the "Borrowing") and has executed an interest rate swap agreement for the Borrowing.

Details are outlined below:

I.

Borrowing Details

Category	Lender	Borrowing Amount	Interest Rate (Note 2) (Note 3) (Note 4)	Borrowing Date	Borrowing Method	Repayment Date (Note 5)	Repayment Method (Note 6)	Collateral
Long-term Borrowing	Syndicate of lenders arranged by Sumitomo Mitsui Banking Corporation and MUFG Bank, Ltd. (Note 1)	5 billion Yen	Base interest rate (JBA 1-month Japanese yen TIBOR) +0.205%	October 1, 2018	Borrowing based on individual term loan agreements dated September 27, 2018, with the lenders shown on the left	October 1, 2024	Paid in full upon maturity	Unsecure d and non-guarante ed

Notes:

• 1. The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd., Development Bank of Japan Inc., Resona Bank, Limited, The Norinchukin Bank, The Bank of Fukuoka, Ltd., Mizuho Trust & Banking Co., Ltd and The Iyo Bank, Ltd.

• 2. The interest rate does not include financing-related costs to be paid to the financial institutions.

• 3. The first interest payment date is October 31, 2018, and thereafter the interest payment date will be the last day of every month (except for September 30, 2024) until and including the repayment date. An interest payment date that falls on a non-business day will be moved to the following business day or to the preceding business day if the following business day carries over to the next month.

• 4. The base interest rate refers to the Japanese yen Tokyo Interbank Offered Rate ("TIBOR") for one-month deposits announced by the JBA TIBOR Association (General Incorporated Association) two business days before the interest payment date for the immediately preceding interest calculation period. The base interest rate will be revised on each interest payment date. However, if there is no corresponding to the interest calculation period of such deposits, the base interest rate defined in the loan agreements will be applied according to the terms and conditions of the loan agreements.

  Please refer to the JBA TIBOR Association's website (http://www.jbatibor.or.jp/english/) for information about changes in the JBA Japanese yen TIBOR.

• 5. The repayment date will be the following business day if the date falls on a non-business day, unless such day falls within the following month, in which case the repayment date will be the preceding business day.

• 6. We may repay the Borrowing either in whole or in part prior to the maturity date if certain requirements, including our advance written notice, are met.

• II. Rationale:

  The Borrowing will be made for funding the acquisition cost of Prologis Park Koga 3 and related expenses, which was previously described in the press releases "Nippon Prologis REIT Announces Acquisition of Domestic Real Estate Trust Beneficiary Interests and Lease Contract with New Tenants" dated Feb. 26, 2018 and "Notice Regarding Acquisition of Domestic Real Estate Trust Beneficiary Interests (Determination of Acquisition Price for Prologis Park Koga 3)" dated Sep. 20, 2018.

  (Note) For details of properties to be acquired, such as an acquisition price, please refer to the press releases" Nippon Prologis REIT Announces Acquisition of Domestic Real Estate Trust Beneficiary Interests and Lease Contract with New Tenants" and "Notice Regarding Acquisition of Domestic Real Estate Trust Beneficiary Interests (Determination of Acquisition Price for Prologis Park Koga 3)."

• III. Total Amount, Purpose of Use and Scheduled Outlay Date of the Proceeds

  • (1) Total amount: 5 billion yen

  • (2) Purpose of use: To be allocated to an acquisition cost of Prologis Park Koga 3 and related expenses

  • (3) Scheduled outlay date: October 1, 2018

• IV. Summary of Interest Rate Swap Agreement

  (1) Reason for the Execution of Interest Rate Swap Agreement

  NPR has executed the interest rate swap agreement to hedge the risks of interest rate volatility by converting the floating interest rates payable to fixed interest rates for the Borrowing.

  (2) Interest Rate Swap Agreement for the Borrowing

  1. Counterparty	Sumitomo Mitsui Trust Bank, Limited
  2. Notional Amount	5 billion yen
  3. Interest Rate	Fixed Interest Rate: 0.2433% Floating Interest Rate: JBA 1-month Japanese yen TIBOR
  4. Trade Date	September 27, 2018
  5. Effective Date	October 1, 2018
  6. Termination Date	October 1, 2024
  7. Interest Payment Date	The interest payment is set forth on October 31, 2018 for the first time, subsequently on the last day of every month (except for September 30, 2024) and the Termination Date, respectively (an interest payment date on a non-business day is moved to the following business day or the immediately preceding business day in case the following business day falls in the following month).

  (Note) The subject interest rate swap agreement shall, in effect, fix the interest rate of the Borrowing at 0.4483%.

• V. Outstanding Loan Balance after the Borrowing

(Unit: Millions of yen)

Before Borrowing	After Borrowing	Variance
Short-Term Loan (Note 1) Long-Term Loan (Note 1) Total Loan Amount Investment Corporation Bonds Total Interest-Bearing Debt	0	0	0
	188,000	193,000	+5,000
	188,000	193,000	+5,000
	18,000	18,000	0
	206,000	211,000	+5,000

(Note 1) Short-term loan refers to loans that are due within one year from the borrowing date, and long-term loan refers to loans due within a period longer than one year from the borrowing date.

(Note 2) In addition to the above, NPR maintains a commitment line of 20 billion yen with three banks; there is no outstanding loan balance under this commitment line.

VI.

Impact on Forecasts

There will be no changes to NPR's forecasts of results for the fiscal period ending Nov. 30, 2018 (fromJune 1, 2018 to Nov. 30, 2018) and the fiscal period ending May 31, 2019 (from Dec. 1, 2018 to May 31, 2019) which NPR announced on July 17, 2018 since the effects of the Borrowing is not material.

VII.

Additional Information for Investors

There is no material change to the risks stated in "I Fund Information, 1. Fund Status, 3 Investment Risks"

as noted in the securities report filed on Aug. 30, 2018 (Japanese only).

For more information about Nippon Prologis REIT, please visit:http://www.prologis-reit.co.jp/english/index.html

Real Estate Investment Trust Securities Issuer: Nippon Prologis REIT, Inc. (Code 3283) Tokyo Building 21F, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo

Executive Director: Masahiro Sakashita

Asset Management Company: Prologis REIT Management K.K. Representative: CEO Masahiro Sakashita

Inquiries: CFO Atsushi Toda Tel: [phone]