February 20, 2019

Provisional translation only

Fukuoka REIT Corporation
1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City
Etsuo Matsuyuki
CEO & Representative Director(Securities Code: 8968)
Asset Management Company:
Fukuoka Realty Co., Ltd.
1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City
Etsuo Matsuyuki
CEO & Representative Director
Inquiries:
Keishi Tamura
General Manager of Finance Department
TEL: +81-(0)92-272-3900

Notice Concerning Borrowing of Funds and Interest Rate Swap Transaction
Fukuoka REIT Corporation announces that it will conduct the borrowing of funds and has executed an interestrate swap transaction, as described below.
1. Borrowing of funds
1) Reason for borrowings
Refining on existing borrowings
2) Outline of borrowings
Borrowing 1 (long-term debt)
1. Lender: The Oita Bank
2. Amount: 200 million yen
3. Interest rate: To be determined (Note1) / Fixed rate
4. Drawdown date: February 28, 2019
5. Borrowing method: Loan agreement concluded as of February 26, 2019
6. Repayment date: February 27, 2026
7. Repayment method: Lump-sum upon maturity
8. Description: No collateral, No guarantee
Borrowing 2 (long-term debt)
1. Lender: The Kagoshima Bank
2. Amount: 200 million yen
3. Interest rate: To be determined (Note1) / Fixed rate
4. Drawdown date: February 28, 2019
5. Borrowing method: Loan agreement concluded as of February 26, 2019
6. Repayment date: February 27, 2026
7. Repayment method: Lump-sum upon maturity
8. Description: No collateral, No guarantee-1-Borrowing 3 (long-term debt)
1. Lender: The Higo Bank
2. Amount: 200 million yen
3. Interest rate: To be determined (Note1) / Fixed rate
4. Drawdown date: February 28, 2019
5. Borrowing method: Loan agreement concluded as of February 26, 2019
6. Repayment date: February 27, 2026
7. Repayment method: Lump-sum upon maturity
8. Description: No collateral, No guarantee
Borrowing 4 (long-term debt)
1. Lender: Resona Bank
2. Amount: 200 million yen
3. Interest rate: Base interest rate (JBA 3-month Japanese Yen TIBOR) +0.20% (Note2)
4. Drawdown date: February 28, 2019
5. Borrowing method: Loan agreement concluded as of February 26, 2019
6. Repayment date: February 28, 2029
7. Repayment method: Lump-sum upon maturity
8. Description: No collateral, No guarantee(Note1) Interest rate will be announced once determined.
(Note2) The applied base interest rate is the JBA 3-month Japanese Yen TIBOR two business days before the last day ofFebruary, May, August, and November every year. (The repayment date will be the following business day if the date falls
on a non-business day or the preceding business day if the date fall into the next month) Moreover, JBA Japanese YenTIBOR can be checked on the website of JBA TIBOR Administration. http://www.jbatibor.or.jp/rate/ (Japanese)3) Outline of refinancing
Refinancing 1
1. Lender: The Bank of Fukuoka and Resona Bank
2. Amount: 400 million yen
3. Repayment date: February 28, 2019
4. Repayment method: Lump-sum upon maturity
5. Description: No collateral, No guarantee
Refinancing 2
1. Lender: The Nishi-Nippon City Bank, Resona Bank, The Oita Bank, The Bank of Nagasaki,
and The Bank of Saga
2. Amount: 400 million yen
3. Repayment date: February 28, 2019
4. Repayment method: Lump-sum upon maturity
5. Description: No collateral, No guarantee
2. Interest rate swap transaction
1) Reason for the execution of interest rate swap transaction
To hedge the risks of interest rate volatility by converting the floating interest rates payable to fixedinterest rates for these borrowings.
2) Outline of Interest rate swap transaction-2-1. Counterparty

Sumitomo Mitsui Trust Bank, Limited

2. Notional Amount

200 million yen

Fixed interest rate
3.Interest rate

To be announced (Note3)

for payment
Floating interest

Base interest rate (JBA3-month Japanese yen TIBOR)+0.20％

rate for receipt
4. Commencement dateFebruary 28, 2019

5. Termination dateFebruary 28, 2029

6. Payment date

Fixed interest rate for payment and floating interest rate for receipt are due onFebruary 28, 2029. The first payment will be made at the end of May 2019, andon the last day of February, May, August, and November every year. (therepayment date will be the following business day if the date falls on a nonbusiness day or the preceding business day if the date fall into the next month)(Note3) Interest rate will be announced once determined.

3. Status of Debt after Borrowing(mm yen)

Before borrowing

After borrowing

Change8000(800)

71,70072,500800［4,200］［4,200］

［0］

Total

72,50072,5000

Investment Corporation Bonds

5,000

5,0000Interest-bearing debt

77,50077,5000

Short-term debt (Note4)Long-term debt
Of which, long-term debt payable due within
one year(Note4) The borrowings are used from committed credit line [13,000 mm yen]

4. Others
Concerning risks related to repayments of this borrowing, etc., there are no material changes from the“Investment risks” disclosed in the latest Securities Report for the 28th Fiscal Period (submitted on November 29,2018).
*This document was distributed to Kabuto Club (press club within the Tokyo Stock Exchange), Press Club for the Ministry ofLand, Infrastructure, Transport and Tourism, Construction Trade Paper Press Club for the Ministry of Land, Infrastructure,
Transport and Tourism, Fukuoka Economic Press Club, and Fukuoka Securities Finance Press Club.
*Fukuoka REIT Corporation’s website is https://www.fukuoka-reit.jp/eng/-3-