August 23, 2022
Provisional translation only

Fukuoka REIT Corporation
1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City
Zenji Koike
Executive Director(Securities Code: 8968)
Asset Management Company:
Fukuoka Realty Co., Ltd.
1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City
Zenji Koike
President and CEO
Inquiries:
Hiroyuki Ayabe
Executive Officer and General Manager
Finance Department
TEL: +81-(0)92-272-3900

Notice Concerning Borrowing of Funds (Sustainability-Linked Loan)
Fukuoka REIT Corporation (FRC) announces that it will conduct the borrowing of funds, as described below.
The borrowing is a syndicated Sustainability-Linked Loan (SLL) to be provided by three sponsor banks ofFukuoka Realty Co., Ltd. (FR), the asset manager of FRC.
1. Borrowing of funds
1) Reason for borrowing
Refinancing on existing borrowing2) Outline of borrowing
Borrowing (long-term debt)
1. Lender:
2. Amount:
3. Interest rate:
4. Borrowing date:
5. Borrowing method:
6. Repayment date:
7. Repayment method:
8. Description:

Development Bank of Japan Inc., The Nishi-Nippon City Bank, Ltd.,The Bank of Fukuoka, Ltd.
4.9 billion yen
To be announced (Note 1) Fixed interest rate
August 31, 2022
Submitted loan application form based on Loan agreement concludedon August 29, 2022
August 31, 2032
Lump-sum upon maturity
No collateral, No guarantee(Note 1) Interest rate will be announced once determined.
The loan is borrowed under an SLL. A 35% reduction in CO2 emissions (basic unit) compared with fiscal 2019 by fiscal
2030 will be set as a Sustainability Performance Target (SPT), and the achievement of the target will be linked to theconditions of the loan. When the SPT is achieved, the contract will offer a preferential interest rate from the interest rate
determined at the time of borrowing from August 2031 until the repayment date. In concluding the SLL agreement, weobtained third-party opinions from Japan Credit Rating Agency, Ltd. on the compatibility with the SLL Principles andthe Ministry of the Environment’s SLL Guidelines regarding the ambition and significance of the SPT. For more
information, please refer to the website of Japan Rating Agency, Ltd. (https://www.jcr.co.jp/en/)

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3)

Outline of refinancing(1) Refinancing (short-term debt)
1. Lender:
The Nishi-Nippon City Bank, Ltd., Resona Bank, Limited, The Oita
Bank, Ltd., The Bank of Nagasaki, Ltd., The Bank of Saga, Ltd.
2. Amount:
0.5 billion yen
3. Repayment date:August 31, 2022
4. Repayment method:
Lump-sum upon maturity
5. Description:
No collateral, No guarantee
6. Disclosed date:July 19, 2022
(2) Refinancing (long-term debt)
1. Lender:
Development Bank of Japan Inc.
2. Amount:
4 billion yen
3. Repayment date:August 31, 2022
4. Repayment method:
Lump-sum upon maturity
5. Description:
No collateral, No guarantee
6. Disclosed date:August 19, 2014(3) Refinancing (long-term debt)
1. Lender:
The Bank of Fukuoka, Ltd.
2. Amount:
0.4 billion yen
3. Repayment date:August 31, 2022
4. Repayment method:
Lump-sum upon maturity
5. Description:
No collateral, No guarantee
6. Disclosed date:August 26, 2015 and August 27, 2015 (Determination of Interest Rate)

2. Status of Debt after Borrowing(mm yen)
Before borrowing

After borrowing

5000(500)

78,40078,900500［5,900］［5,900］0

Total

78,90078,9000

Investment corporation bonds

5,000

5,0000Total Interest-bearing debt

83,90083,9000

Short-term debt (Note 2)Long-term debt
Of which, long-term debt payable due within
one yearChange(Note 2) The borrowings are used from committed credit line [13,000 mm yen]

3．Purpose and background of syndication-based SLL borrowing
FRC and FR are secured the best interests of its unitholders over the medium to long term as their mission. Toachieve this mission, they consider it essential to promote sustainability through securing environmental, socialand governance (ESG) awareness, on top of pursuing profitability as the primary objective. As a policy forspecifically implementing this thinking, FR established its “Sustainability Policy” in January 2018.
In addition, with the intention of "introducing excellent local real estate properties to investors around the world
and attracting funds locally", FRC is the first region-specific REIT in Japan listed from Fukuoka and Kyushu, andFR is jointly sponsored by leading companies in the Kyushu economic community.
-2-The syndicated SLL is structured under collaboration between Development Bank of Japan Inc., The Nishi-Nippon
City Bank, Ltd., and The Bank of Fukuoka, Ltd., with Development Bank of Japan Inc. as the sustainability
coordinator. We will work in close cooperation to reduce CO2 emissions set as SPT as promotion of sustainability
through consideration for the environment.
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 35th Fiscal Period (submitted on May 31,2022).
*FRC’s website is https://www.fukuoka-reit.jp/en/index.html-3-