Sekisui House Reit : Notice Concerning Issuance of Investment Corporation Bonds (Green Bonds) and Early Repayment of Existing Borrowing

Real Estate Investment Trust Securities Issuer	May 13, 2021
Sekisui House Reit, Inc.
Representative:	Atsuhiro Kida, Executive Director
	(Securities Code: 3309)
Asset Management Company
Sekisui House Asset Management, Ltd.
Representative:	Toru Abe,
Inquiries:	President & Representative Director
Nobuyoshi Sato,
	Director & Investor Relations Department
	Chief Manager
	TEL: [phone] (main)

Notice Concerning Issuance of Investment Corporation Bonds (Green Bonds) and

Early Repayment of Existing Borrowing

Sekisui House Reit, Inc. ("SHR") hereby announces that it has decided today to conduct issuance of investment corporation bonds (green bonds) (the "Investment Corporation Bonds") and make early repayment of an existing borrowing (the "Early Repayment") for the purpose of promoting long-term and fixed interest-bearing debt as well as to diversify its repayment due dates, based on its financial strategy, as described below.

1. Issuance of the Investment Corporation Bonds

(1) Outline of the Investment Corporation Bonds

a.	Name:	Sekisui House Reit, Inc. Ninth Series Unsecured Investment Corporation
		Bonds (with pari passu clause among specified investment corporation
b.	Total issue amount:	bonds) (Green Bonds)
2,000 million yen
c.	Form of the bond certificate:	Subject to the provision of the Act on Book-Entry Transfer of Company
		Bonds, Shares, etc., bond certificates for the Investment Corporation Bonds
d.	Issue price:	will not be issued.
100 yen per 100 yen of each bond
e.	Redemption price:	100 yen per 100 yen of each bond
f.	Interest rate:	0.460% per annum
g.	Denomination of each bond:	100 million yen
h.	Offering method:	Public offering
i.	Subscription date:	May 13, 2021 (Thursday)
j.	Payment date:	May 19, 2021 (Wednesday)
k.	Collateral and guarantee:	No secured mortgage or guarantee is applicable, and no assets are
l.	Redemption method and	specifically reserved as security for the Investment Corporation Bonds.
The total amount will be redeemed on May 19, 2031.
	date:	The Investment Corporation Bonds may be repurchased and cancelled at
		any time after the payment date unless otherwise specified by Japan
m.	Interest payment dates:	Securities Depository Center, Incorporated or laws and regulations.
May 19 and November 19 of each year
n.	Financial covenants:	"Negative Pledge Clause" is applicable.
o.	Credit ratings:	AA (Japan Credit Rating Agency, Ltd.)
p.	Fiscal agent, issuing agent	MUFG Bank, Ltd.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

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and paying agent:

q. Underwriters:Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Mizuho Securities Co., Ltd.

SMBC Nikko Securities Inc.

Nomura Securities Co., Ltd.

1. Reason for Issuance
   SHR decided to issue the Investment Corporation Bonds with the purpose of diversifying the means of financing, extending the maturity of interest-bearing liabilities, and promoting fixed interest rates based on the financial strategy.
   In addition, the Investment Corporation Bonds will be issued in line with the green bond framework for which a second-party opinion has been obtained from Sustainalytics, an ESG rating agency, and through the issuance of the Investment Corporation Bonds, SHR aims for further promotion of asset management with due consideration given to ESG as well as for reinforcement of its fund procurement base by reaching out to investors who are interested in ESG investment to expand its investor base.
2. Amount, Specific Use and Scheduled Outlay of Funds to be Procured
3. 1. Amount of funds to be procured
      1,980 million yen (estimated approximate net proceeds)
   2. Specific use and scheduled outlay of funds to be procured

The funds will be partially used for the Early Repayment on May 20, 2021. For details, please refer to "2. The Early Repayment" stated below.

Furthermore, the existing long-term borrowing, which is the target of the Early Repayment, was for use as repayment funds of borrowing procured for the acquisition of the Eligible Green Projects (Note).

(Note) The Eligible Green Projects are the new and/or existing assets that meet the eligibility criteria, and refer to buildings that have any of the valid third-party certifications described below on the date of a green bond issuance, and/or that are expected to receive any of the third-party certifications described below.

• 3, 4, or 5 Stars under the DBJ Green Building Certification, or
• A or S rank under the Comprehensive Assessment System for Built Environment Efficiency (CASBEE) certification for

real estate

The current validity periods of the third-party certifications are three years for DBJ Green Building Certifications and five years for CASBEE certifications for real estate from the date of receiving respective certifications. These validity periods, however, may change when SHR obtains certifications or recertifications in the future.

(4) Investors who declared investment in the Investment Corporation Bonds

Listed below are investors who declared investment in the Investment Corporation Bonds by today:

・BIHOKU SHINKIN BANK

・Danyo Shinkumi Bank

・Hyogo Shinkin Bank

・Mitsubishi UFJ Trust and Banking Corporation ・Mutual Aid Foundation for Japan Postal Group ・Nagano Shinkin Bank

・Nishihyogo Shinkin Bank

・SHIZUOKA YAIZU SHINKIN BANK

・Sumitomo Mitsui Trust Asset Management Co., Ltd.

・SUWA SHINKIN BANK ・The 77 Bank, Ltd.

・THE AWAJI SHINKIN BANK

・The Choshi Shinkin Bank

・The Dai-ichi Life Insurance Company, Limited

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

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・THE ECHIZEN SHINKIN BANK

・THE FUJI SHINKIN BANK

・The Kita Osaka Shinkin Bank

・The Yamanashi Chuo Bank, Ltd.

・TOKUSHIMA SHINKIN BANK

・Tsuruga Shinkin Bank

(Note) Listed in alphabetical order.

2. The Early Repayment

(1) Terms of

the Early Repayment

Balance

Repayment

Balance after

Drawdown

Repayment

Scheduled

Category

Lenders

before

repayment

amount

repayment

date

date

repayment

(mm yen)

(mm yen)

(mm yen)

date

MUFG Bank, Ltd.

750

750

－

Long-

November 30,

November 30,

May 20,

Mizuho Bank, Ltd.

640

640

－

term

2020

2022

2021

Sumitomo Mitsui

610

610

－

Banking Corporation

Total

2,000

2,000

－

－

－

－

(Note) For details of the above borrowing, please refer to "Notice Concerning Borrowing of Funds" announced on November 25, 2020.

1. Funds for Repayment
   The estimated approximate net proceeds of 1,980 million yen resulting from issuance of the Investment Corporation Bonds described in "1. Issuance of the Investment Corporation Bonds" above will be used for the Early Repayment. Of the difference of approximate 20 million yen between the total repayment of 2,000 million yen, SHR plans to repay with cash on hand.

3. Status of Borrowings, etc. after the issuance of the Investment Corporation Bonds and the Early Repayment

(Unit: million yen)

				Before the issuance of the	After the issuance of the	Increase
				Investment Corporation Bonds	Investment Corporation Bonds
Short-term borrowings (Note)	and the Early Repayment	and the Early Repayment	(Decrease) －
3,000	3,000
Long-term borrowings	(Note)	217,442	215,442	(2,000)
		(repayment due within one year)	35,590	35,590	－
Total		borrowings		220,442	218,442	(2,000)
Investment corporation bonds	32,500	34,500	2,000
		(redemption due within one year)			－
				－	－	－
Total	interest-bearing liabilities	252,942	252,942

(Note) Short-term borrowings refer to borrowings due for repayment with a period of one year or less from the relevant drawdown date, and long-term borrowings refer to borrowings due for repayment with a period of more than one year from the relevant drawdown date.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

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4. Other Matters Necessary for Investors' Appropriate Understanding/Judgment of Relevant Information

With regard to risks associated with the issuance of the Investment Corporation Bonds and the Early Repayment, there is no change from the contents of "Part 1. Fund Information; Section 1. Status of Fund; 3. Investment Risks" of the securities report submitted on January 28, 2021.

• Sekisui House Reit, Inc. website:https://sekisuihouse-reit.co.jp/en/

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

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