NEWS RELEASE

Japan Real Estate Investment CorporationJanuary 5, 2016
To whom it may concern:<Investment Corporation>
Japan Real Estate Investment Corporation
Hiroshi Nakajima, Executive Director(TSE code: 8952)<Asset Management Company>
Japan Real Estate Asset Management Co., Ltd.
Hiroshi Katayama, CEO & President
Contact: Ryuta Yoshida,
Executive Officer, General Manager, Planning Department
Phone: +81-3-3211-7951

Notice concerning New Loan andExecution of Interest Rate Swap Agreement
Japan Real Estate Investment Corporation hereby announces its decision on January 5, 2016 to procure
funds and enter into interest rate swap agreement on the new loan relating thereto as follows:

1. Reason for drawing down of the loan
To apply the funds toward a repayment of the existing short-term loan of ¥1,500 million executed on
January 7, 2015.

2. Details of the loan<Long-term loan >(1) Total amount of loan:(2) Lender:(3) Interest rate:(4) Start of loan period:(5) Borrowing method:(6) Interest payment date:(7) Repayment of principal:(8) Principal repayment date:¥1,500 million
The Daishi Bank, Ltd.
Base rate (3-month EUR/JPY LIBOR by IBA (ICEBenchmark Administration)) + 0.07% (Note 1)
January 7, 2016
Loan agreement concluded with lender on January 5, 2016
Unsecured/unguaranteed loan
7th of January, April, July and October of every year until theprincipal repayment date (Note 2)
Payment in full on the principal repayment date
January 10, 2023 (pre-payment possible)1(Note 1) Base rate to calculate the interest to pay on an interest payment date is 3-month EUR/JPY LIBOR released
two bank business days in London before the interest payment date at 11:00 am (GMT) by IBA (3-month
EUR/JPY LIBOR by IBA released on January 4, 2016 is 0.08286%).
(Note 2) In the event that the interest payment date does not fall on a business day, the interest shall be paid on thefollowing business day. If the following business day, however, falls in the following month, the payment
shall be made on the preceding business day of the interest payment date.

3. Interest Rate Swap Agreement(1) Reason for execution of interest rate swap agreement
To hedge against risks of interest rate fluctuations on the above long-term loan that will start fromJanuary 7, 2016.
(2) Details of the interest rate swap agreement<Interest rate swap agreement for the long-term loan >(1) Counterparty:
Mizuho Bank, Ltd.
¥1,500 million(2) Notional amount:(3) Interest rate, etc.:
Fixed rate payment:
0.2802%
Floating rate receipt:(3-month EUR/JPY LIBOR by IBA) + 0.07%(4) Contract start date:
January 7, 2016
(5) Contract end date:
January 10, 2023
(6) Interest payment date:
7th of January, April, July and October of every year
until the contract end date (Note 3)
Interest rate for the long-term loan (1,500 million yen with 7-year maturity) will be fixed at 0.2802% byexecuting the above interest rate swap agreement. Therefore, the ensuring fixing of the 3-month EUR/JPY
LIBOR by IBA will not be announced going forward.
(Note 3) In the event that the interest payment date does not fall on a business day, the interest shall be paid on thefollowing business day. If the following business day, however, falls in the following month, the payment
shall be made on the preceding business day of the interest payment date.

24. Balance of interest-bearing debt after the new loan
(Units: millions of yen)
Before new loan
(Note 4)After new loan

Increase/Decrease

Short-term loans

33,70032,200－1,500Current portion of long-term loans
Long-term loans(except for current portion)
Total loans
Current portion of investment
corporation bonds
Investment corporation bonds(except for current portion)
Total investment corporation
bonds
Total interest-bearing debts

38,10038,100±0281,150

282,650＋1,500352,950

352,950±000±020,000

20,000±020,000

20,000±0372,950

372,950±0(Note 4) This is the balance after the loan announced in the release “Notice concerning New Loan” dated
December 25, 2015.

5. Others
Regarding loan repayment related risks, there is no important change to the “Investment risks”
description in the latest securities report submitted on December 24, 2015.

This notice is the English translation of the announcement in Japanese dated January 5, 2016.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

3