Make The World
More Sustainable[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.

July 17, 2019
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: Hiroshi Iwai, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4892

New Loan and Interest Rate Swap
Ichigo Hotel decided today to borrow funds via a new loan (“Term Loan 11”) and enter
into an interest rate swap to lock-in the interest rate on the loan.
1. Reason for New Loan and Interest Rate Swap
The new loan will be used to acquire the Valie Hotel Hiroshima, as announced in today’s
release “Hotel Acquisition (Valie Hotel Hiroshima),” and fund related expenses.
Ichigo Hotel is fixing the interest rate on the new loan via a swap in order to hedge againstany future rise in interest rates.
2. Loan and Interest Rate Swap Details
Term Loan 11Lender
Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
1SMBC, Mizuho Bank, Shinsei Bank, Resona Bank,Aozora Bank (New)JPY 1.5 billion
Asset acquisition and related costs
July 19, 2019
November 29, 2024 (5.3 year loan term)
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.637% (p.a.)1
Final day of each month following the Loan Date(the first payment date will be July 31, 2019
and the last payment date will be the same as thePrincipal Repayment Date)
NoThe swap will fix the interest rate for Term Loan 11 at 0.73575%. However, the interest
rate for the payment on the first payment date (from July 19, 2019 through July 31, 2019)will be 0.62544%.

1

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
July 17, 20190.73575%

Notes:The base rate for the loan 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. Earnings Outlook
The impact of the new loan and swap on Ichigo Hotel’s July 2019 and January 2020 fiscal
period earnings announced on March 14, 2019 is minimal, and therefore the forecasts areunchanged.
4. OtherRisks related to these loans have no material impact on the “Investment Risks” describedin the latest Financial Report submitted April 25, 2019.

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

Long-term bank loans(due within one year)

4,200

4,200

–

Long-term bank loans

19,77021,270+1,500Total bank loans

23,97025,470+1,500–––Total bank loans and bonds

23,97025,470+1,500Total interest-bearing liabilities

23,97025,470+1,500

Bonds

Post-Loan Lender Distribution (as of July 19, 2019)
NishiNippon Fukuoka Aozora1%
City
3%4%

Resona
10%
SMBC
39%

Shinsei
12%

Mizuho31%3Distribution of Loan Maturities
Before New Loan (as of July 17, 2019)■ Fixed Rate

(JPY million)■ Floating Rate
5,250
4,500

4,200

4,500

2,220

1,800

July
2019

January
2020

July
2020

January
2021

July
2021

January
2022

July
2022

January
2023

1,500

July
2023

January
2024

July
2024

January
2025

July
2025

After New Loan (as of July 19, 2019)■ Fixed Rate

■ Floating Rate

(JPY million)■ New Loan

5,250
4,500

4,200

4,500
3,000
1,500
2,220

1,800

July
2019

January2020

July2020

January
2021

July
2021

January
2022

July
2022

January
2023

1,500

July
2023

January
2024

July
2024

January
2025

July
2025

The forecast Post-Loan LTV is 43.6%.
Post-Loan LTV = (Post-Loan Total Interest Bearing Liabilities) / (January 2019 Total
Assets – January 2019 Total Dividends + Acquisition Price of Nest Hotel Kumamotoacquired on April 25, 2019 + Acquisition Price of Valie Hotel Hiroshima to be acquired on
July 19, 2019)4