NEWS RELEASE
November 28, 2023
For Immediate Release

Investment Corporation
Japan Real Estate Investment Corporation
Jo Kato, Executive Director(TSE code: 8952)
Asset Management Company
Japan Real Estate Asset Management Co., Ltd.
Shojiro Kojima , President & CEO
Contact: Masaru Motooka
Executive Officer & General Manager
Strategic Planning Department
Phone: +81-3-3211-7951

Announcement of Loan Prepayment andDebt Financing (Sustainability-Linked Loan) (2)Japan Real Estate Investment Corporation hereby announces its decision today to repay the existingloans before the due date and to procure funds as follows:

1. Prepayment of Short-Term Loans
Overview of loans to be repaid before the due date:(1) Prepayment dateNovember 30, 2023
December 7, 2023
(2) Amount of loan to be
JPY 9,000 million
JPY 1,000 million
prepaid(3) Amount of loan
JPY 9,000 million (Note1)
JPY 1,500 million (Note2)(4) Amount of loan
outstanding
JPY 500 million
after the prepayment(5) Lender
MUFG Bank, Ltd.
(6) Interest rate
0.09636% (from October 31, 2023
0.08818% (from November 7, 2023
through November 29, 2023)
through December 6, 2023)(7) Borrowing dateJuly 3, 2023
March 27, 2023
(8) Method of borrowing Loan based on overdraft agreement
Unsecured/unguaranteed loan(9) Interest payment date The principal repayment date andThe principal repayment date andthe last day of every month in thethe 7th of every month in theperiod until the principal
period until the principal
repayment date
repayment date(10) Method of principal
Lump-sum repayment on the principal repayment date
repayment(11) Principal repayment
March 29, 2024
March 7, 2024
date1

(12) Disclosure dateJune 29, 2023
March 23, 2023
*There will be no early repayment fee due to this loan prepayment.

(Note1) The number stated in the “(2) Amount of loan” refers to the loan amount outstanding after the loan prepayment
as described in the press release titled “Announcement of Loan Prepayment and Debt Financing” dated
September 27, 2023.
(Note2) The number stated in the “(2) Amount of loan” refers to the loan amount outstanding after the loan prepayment
as described in the press release titled “Announcement of Loan Prepayment and Debt Financing” dated June 5,2023.

2. Debt Financing(I) Reason for the borrowing① To apply the following loan to the prepayment of the above mentioned loan
② To repay the existing long-term loan of JPY 10 billion executed on December 19, 2014
(II) Overview of the borrowing«Long-term loan related to ①»(1) Amount of loan
(2) Lender(3) Interest rate(4) Borrowing date(5) Method of borrowing(6)

Interest payment date

(7)
(8)

Method of principal repayment
Principal repayment date

JPY 10,000 million
MUFG Bank, Ltd.
0.61%(fixed) (Note3)
November 30, 2023
Loan agreement dated November 28, 2023
Unsecured/unguaranteed loan
The principal repayment date and the last day of every Mayand November in the period until the principal repayment
date (Note4)
Lump-sum repayment on the principal repayment dateNovember 30, 2028

(Note3) This borrowing will be procured through a sustainability-linked loan (“SLL”), whose loan terms are aligned with
JRE’s achievement status of the following sustainability performance target (“SPT”) set beforehand.
・SPT : Reduce CO₂ emissions by 80% by fiscal 2030 (Base year: Fiscal 2019 / Absolute basis)
The applicable interest rate will be lower by 0.01% on the condition that the above target set as SPT is achieved forthe respective performance levels set for May 2024, May 2027, and May 2030, for the period until theperformance level is next confirmed (for the time of final confirmation, the repayment date). Please refer to“Loans and Bonds” under Financial Summary of JRE’s website https://www.j-re.co.jp/en_cms/finance/debt.html
for the interest rate applicable after the performance level is confirmed.
Moreover, in concluding the agreement for the SLL, JRE has established “Sustainability-Linked Loan Framework”
and obtained a second‐party opinion from Japan Credit Rating Agency, Ltd. (JCR) with regard to conformity with
the Sustainability Linked Loan Principles and the rationality of the established SPT. For more details, please refer tothe press release by JCR.
https://www.jcr.co.jp/greenfinance/ (in Japanese)(Note4) When an interest payment date is not a business day, the interest shall be paid on the following business day or
the immediately preceding business day if the following business day is in the following month.

(1)
(2)
(3)
(4)
(5)

«Long-term loan related to ②»
Amount of loanLenderInterest rate
Borrowing date
Method of borrowing(6)

Interest payment date

(7)
(8)

Method of principal repayment
Principal repayment date

JPY 10,000 million
MUFG Bank, Ltd.
0.71125%(fixed) (Note5)
December 19, 2023
Loan agreement dated November 28, 2023
Unsecured/unguaranteed loan
The principal repayment date and the 19th of every June andDecember in the period until the principal repayment date
(Note6)

Lump-sum repayment on the principal repayment date
December 19, 2029
2(Note5) This borrowing will be procured through a sustainability-linked loan (“SLL”), whose loan terms are aligned withJRE’s achievement status of the following sustainability performance target (“SPT”) set beforehand.
・SPT : Reduce CO₂ emissions by 80% by fiscal 2030 (Base year: Fiscal 2019 / Absolute basis)
The applicable interest rate will be lower by 0.01% on the condition that the above target set as SPT is achieved forthe respective performance levels set for June 2024, June 2027, and June 2030, for the period until theperformance level is next confirmed (for the time of final confirmation, the repayment date). Please refer to“Loans and Bonds” under Financial Summary of JRE’s website https://www.j-re.co.jp/en_cms/finance/debt.html
for the interest rate applicable after the performance level is confirmed.
Moreover, in concluding the agreement for the SLL, JRE has established “Sustainability-Linked Loan Framework”
and obtained a second‐party opinion from Japan Credit Rating Agency, Ltd. (JCR) with regard to conformity with
the Sustainability Linked Loan Principles and the rationality of the established SPT. For more details, please refer tothe press release by JCR.
https://www.jcr.co.jp/greenfinance/ (in Japanese)(Note6) When an interest payment date is not a business day, the interest shall be paid on the following business day or
the immediately preceding business day if the following business day is in the following month.

<Reference> Overview of Existing Loan Subject to Repayment
LenderAmount of loan
Borrowing datePrincipal
repayment date

Disclosure date

December 19,
2014

December 19,
2023

December 17,
2014

MUFG Bank, Ltd.

JPY 10,000 million

3. Balance of interest-bearing debt after the debt financing
BeforeShort-term loans payable(Units: millions of JPY)
After

Increase/Decrease

43,00033,000-10,000

20,50020,500±0353,700

363,700+10,000

Total loans

417,200

417,200±0

Investment corporation bonds

32,99332,993±0

Total
investment corporation bonds

32,99332,993±0Total interest-bearing debt

450,193450,193±0Long-term loans payable(Variable interest rate)Long-term loans payable(Fixed interest rate)(Note7) The balance stated in the “Before” column shows the one in the “After” column of the said table stated in thepress release titled “Announcement of Loan Prepayment and Debt Financing (Sustainability-Linked Loan)”announced today, which takes into account repaying JPY 9 billion short-term loan before the due date andborrowing JPY 9 billion long-term loan.
(Note8) The balance stated in the “After” shows the one after the above JPY 10 billion long-term loan form MUFG, Bank Ltd.
will be executed on December 19, 2023.

4. Others
Regarding risks pertaining to this loan repayment, there is no material change to the descriptionsof “Investment risks” in the latest securities report submitted on June 26, 2023.

This is the English translation of the announcement in Japanese dated November 28, 2023.
No assurance or warranties are given for the completeness or accuracy of this English translation.
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