February 26, 2019

FOR IMMEDIATE RELEASE

Activia Properties Inc.
1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo
Kazuyuki Murayama
Executive Director(Code: 3279)
Asset Management Company
TLC REIT Management Inc.
Hiroyuki Tohmata
President & CEOInquiries
Kazuyuki Murayama
General Manager of Strategy Department
Activia Management Division(Tel: +81-3-6804-5671)

Notice Concerning Borrowing of Funds and Early Repayment of Borrowing
Activia Properties Inc. (“API”) announces today that it decided to borrow funds (the “Borrowing”) andto make early repayment of borrowing (the “Early Repayment”). Details are as follows:1.

Borrowing(1) Details of the Borrowing< Long-term borrowing >Borrowing andrepayment
Lendermethods, security,and guarantee
Borrowing basedon a borrowing
Mizuho Trust & Banking Co., Ltd.
To be
agreement with theResona Bank, Limited.
determined
lenders shown at
5 billion
March 7,
September 7,
The Bank of Fukuoka, Ltd.
(Fixed rate)
left as the creditor,yen
2019
2026
The Norinchukin Bank
(Note 2)lump-sumThe 77 bank, Ltd.
(Note 3)
repayment,
unsecured, andunguaranteed(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month,it shall be the immediately preceding business day.
(Note 2) Interest rate will be announced upon determination.
(Note 3) The interest payment will be made on the last day of September 2019 and the last day of March and September ineach year thereafter as well as on the due date of the principal. (If the interest payment date is a non-business day, it
shall be the following business day. If such day falls in the following month, it shall be the immediately precedingbusiness day.)Loanamount(2)

Interestrate

Drawdown
date (plan)Due date(Note 1)

Reasons for the Borrowing

API will use the Borrowing to make early repayment of the existing short-term borrowing of 5 billion
yen which becomes mature on May 31, 2019 (the “Existing Short-term Borrowing”). For the details of theExisting Short-term Borrowing, please refer to “2. Early Repayment - (1) Details of the Borrowing to be1

repaid before maturity date” and “Notice Concerning Borrowings of Funds” released on December 25,
2018.
(3)

Amount, use and schedule of disbursement of funds to be raised① Total amount
5 billion yen in total② Specific purpose of use
Early repayment of the Existing Short-term Borrowing③ Scheduled date of disbursement
March 7, 20192.

Early Repayment(1)

Details of the Borrowing to be repaid before maturity dateLenderLoanamountRepayment
amountLoanamountafter early
repaymentInterestrate

Drawdown
date

Maturity
date

Scheduleddate ofearly
repayment

Sumitomo Mitsui Trust Bank,
0.13% +
5 billion
5 billion
LimitedJanuaryMay 31,March 7,
Base rate
10, 2019
20192019yenyen
Mizuho Bank, Ltd.
(floatingrate)
The MUFG Bank, Ltd.
(Note) Break-funding costs upon this early repayment will occur. However, the impact of these costs on API is minimal.

(2)

Funds for repayment
Funds raised by the Borrowing will be used for the Early Repayment

3．Status of borrowings payable, etc. after the Borrowing and the Early Repayment (the “Borrowing andRepayment”)(1)

Interest-bearing debt balance after the Borrowing and Repayment(In millions of yen)

Beforethe Borrowing andRepayment(As of February 26,2019)

After
the Borrowing andRepayment(As of March 7,2019)19,10014,100(5,000)

20,90020,9000176,350

181,350

5,000

216,350

216,3500Investment corporation bonds
to be redeemed within a year

8,000

8,0000Investment corporation bonds

10,00010,0000234,350

234,350

0

Short-term borrowings(Note)

Long-term borrowings
to be repaid within a year
Long-term borrowings(Note)

Total amount of borrowings

Total amount of borrowings andinvestment corporation bonds

2ChangeOther interest-bearing debt
Total interest-bearing debt

000

234,350

234,3500(Note) Short-term borrowings refer to borrowings with a maturity period of a year or less, and long-term borrowings refer toborrowings with a maturity period of more than a year.

(2)

Basic financing information after the Borrowing and Repayment
Beforethe Borrowing andRepayment(As of February 26,2019)

After
the Borrowing andRepayment(As of March 7,2019)

91.8%

94.0%

2.1

79.5%

81.7%

2.1

86.8%

89.0%

2.1

Long-term borrowing ratio(Note 1) (Note 4)Long-term borrowing ratio(excluding the long-term borrowings
to be repaid and investment
corporation bonds to be redeemedwithin a year) (Note 2) (Note 4)
Fixed interest ratio

Change(point)(Note 3) (Note 4)(Note 1) Long-term borrowing ratio is the ratio of the outstanding long-term borrowings (including the portion of longterm borrowings to be repaid within a year) and the investment corporation bonds (including the investment
corporation bonds to be redeemed within a year) to the total of outstanding interest-bearing debt.
(Note 2) Long-term borrowing ratio (excluding the long-term borrowings to be repaid and investment corporation bonds
to be redeemed within a year) is the ratio of the outstanding long-term borrowings (excluding the long-termborrowings to be repaid within a year) and investment corporation bonds (excluding the investment corporation
bonds to be redeemed within a year) to the total of outstanding interest-bearing debt.
(Note 3) Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the totalof outstanding interest-bearing debt. The total of outstanding interest-bearing debt with fixed interest rates
includes debts whose interest rates were converted into fixed interest rates by interest rate swap agreements.
(Note 4) Figures are rounded to the first decimal place.

4.

OtherRegarding the risks related to the repayment of the Borrowing, there are no significant changes in the“Investment Risk” section of the securities report submitted on February 26, 2019.

*Website of API: https://www.activia-reit.co.jp/en/

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