Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

November 28, 2018
IssuerIchigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, PresidentInquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4892

New Loans and Interest Rate Swap
Ichigo Hotel decided today to borrow funds via new loans (“Term Loan 8” and “TermLoan 9”) and enter into an interest rate swap to lock-in the interest rate on one of the loans.
1. Reason for New Loans and Interest Rate Swap
The new loans will be used to repay an existing floating rate loan of JPY 3.25 billion.
Details of the loan being repaid are in Section 3 below.
Ichigo Hotel is fixing the interest rate on JPY 1.5 billion (Term Loan 9) via a swap in orderto hedge against any future rise in interest rates. The swap will increase the proportion ofIchigo Hotel’s fixed-rate loans from 74% to 81%.
2. Loan and Interest Rate Swap Details
Term Loan 8
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC, Mizuho Bank, Shinsei Bank, Resona Bank
JPY 1.75 billion
Repayment of existing loan (Term Loan 1)
November 30, 2018
May 31, 2020
Repayment will be made in full on the PrincipalRepayment Date
1M JPY TIBOR + 0.40% (p.a.)
Final day of each month following the Loan Date(the first payment date will be December 28, 2018
and the last payment date will be the same as the
Principal Repayment Date)
No1

Term Loan 9
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
1

SMBC, Mizuho Bank, Shinsei Bank, Resona Bank
JPY 1.5 billion
Repayment of existing loan (Term Loan 1)
November 30, 2018
November 30, 2024
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.70% (p.a.)1
Final day of each month following the Loan Date(the first payment date will be December 28, 2018
and the last payment date will be the same as thePrincipal Repayment Date)
NoThe swap will fix the interest rate for Term Loan 9 at 0.92000%.

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
November 28, 2018
0.92000%

Notes:The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on theprevious business day.
3. Existing Loan Being Repaid
Term Loan 1
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Collateralized

SMBC, Mizuho Bank, Shinsei Bank, Resona Bank
JPY 3.25 billion
Asset acquisition and related costs
November 30, 2015
November 30, 2018
Repayment will be made in full on the PrincipalRepayment Date
1M JPY TIBOR + 0.60% (p.a.)No

4. Earnings Outlook
The impact of the new loans and the interest rate swap on Ichigo Hotel’s January 2019 andJuly 2019 fiscal period earnings has already been reflected in Ichigo Hotel’s September 13,
2018 release “July 2018 Fiscal Period Earnings.”2

5. OtherRisks related to these loans have no material impact on the “Investment Risks” describedin the latest Financial Report submitted October 26, 2018.

Reference: Loan Composition after New Loans
Outstanding Loan Balance(JPY million)
BeforeNew Loans(A)AfterNew Loans(B)Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

3,250

–

-3,250Long-term bank loans

18,50021,750+3,250Total bank loans

21,75021,750––––21,75021,750–

Other interest-bearing liabilities–––

Total interest-bearing liabilities

21,75021,750–

Bonds
Total bank loans and bonds

3

Distribution of Loan Maturities
Before New Loans■ Fixed Rate

■ Floating Rate

(JPY million)

5,250
4,500

4,500

Jul
2023

Jan2024

3,250
2,450
1,800

Jan2019

Jul2019

Jan2020

Jul2020

Jan
2021

Jul
2021

Jan
2022

Jul
2022

Jan2023

Jul
2024

Jan2025

Jul2025

After New Loans■ Fixed Rate ■ Floating Rate ■ New Loan (Fixed Rate) ■ New Loan (Floating Rate)(JPY million)

5,250
4,200

4,500

1,750

4,500

2,450
1,800

Jan
2019

Jul
2019

Jan
2020

Jul
2020

Jan
2021

Jul
2021

Jan
2022

4Jul
2022

Jan
2023

1,500

Jul
2023

Jan
2024

Jul2024

Jan2025

Jul2025