NEWS RELEASE
January 18, 2021
For Immediate Release
Investment Corporation
Japan Real Estate Investment Corporation
Yutaka Yanagisawa, Executive Director(TSE code: 8952)
Asset Management Company
Japan Real Estate Asset Management Co., Ltd.
Naoki Umeda, President & CEO
Contact: Masaru Motooka
Executive Officer & General Manager
Planning Department
Phone: +81‐3‐3211‐7951

Announcement of Debt Financing (Sustainability‐Linked Loans)
Japan Real Estate Investment Corporation (“JRE”) hereby announces that it today decided to borrowfunds (the “Borrowings”), as described below, which will be procured through sustainability‐linkedloans (the “SLLs”*), the first such arrangement in the J‐REIT industry.
*Sustainability‐linked loans are loan instruments that aim to facilitate and support environmentallyand socially sustainable economic activity and growth. In this loan scheme, the borrower setssustainability performance targets (“SPTs”) based on its business management strategy, and thelender incentivizes the borrower’s achievement of those objectives by aligning loan terms to theborrower’s performance against the relevant predetermined SPTs.
1. Reason for the Borrowings
JRE will borrow the funds to repay an existing short‐term loan of JPY 5.5 billion executed on January
15, 2021 and an existing long‐term loan of JPY 4.0 billion executed on January 31, 2014, and toallocate the remainder as cash on hands.
2. Overview of the Borrowings
Loan 1
(1)
(2)
(3)
(4)
(5)

Lender:Loan amount:
Borrowing date:Principal repayment date:Principal repayment method:(6)

Interest rate (Note 1):

Loan 2The Norinchukin Bank
JPY 5,000 million
JPY 5,000 million
January 29, 2021
January 29, 2021
July 31, 2031
January 30, 2032Lump‐sum repayment
Lump‐sum repaymenton the principal
on the principal
repayment date
repayment date
0.35625% (fixed)
10.37750% (fixed)

However, the applicable interest rate will be lower by
0.01% for each, on the condition that either one of thefollowing targets set as SPTs are achieved for theperformance levels set for the end of July 2021, July 2024
and July 2028 (as well as July 2031 for Loan 2 only),respectively, for the period until the performance level isnext confirmed (for the time of final confirmation, therepayment date). The interest rate applicable after theperformance level is confirmed will be announced eachtime.
・SPT 1: Reduce CO2 emissions by 35% by fiscal 2030
(Base year: Fiscal 2013 / Carbon intensity basis)・SPT 2: Own five ZEBs (zero‐energy buildings) (Note 2) byfiscal 2030
(7)Interest payment date:(8)

Borrowing method:

The principal repayment date and the 31st of every
January and July in the period until the principal
repayment date (Note 3)
Loan agreement dated January 18, 2021
Unsecured and unguaranteed(Note 1) The Borrowings are SSLs based on the Sustainability Linked Loan Principles (SLLP) that is internationallyrecognized and will be granted incentives for the loan terms if the predetermined sustainability targets
are achieved.
(Note 2) The ZEBs that is certified by BELS (Building‐Housing Energy‐efficiency Labeling System) shall include
buildings that are Nearly ZEB, ZEB Ready and ZEB Oriented.
(Note 3) 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.

3. Background of the Borrowings
・ JRE believes that it is the social responsibility of a listed investment corporation to endeavor forenhanced sustainability of society, including environmental awareness, social contributions andreinforced governance, and that such is essential for maximizing unitholder value. Under this policy,
Japan Real Estate Asset Management Co., Ltd. (JRE‐AM), the asset management company,
established its Sustainability Policy that set forth the material issues and basic policies onsustainability when conducting real estate investment management. JRE‐AM became a signatory toPRI (the Principles for Responsible Investment) in 2018; disclosed information in line with the TCFD
(Task Force on Climate Related Financial Disclosures) recommendations, the first such disclosure
among J‐REITs, in 2019; and announced the environmental Key Performance Indicators (KPIs) forfiscal 2030 in 2020.
JRE’s ESG website: https://jre‐esg.com/en/
・ In the SLLs, focus is placed on climate change risks, especially reduction of CO2 emissions. Among theJRE’s environmental KPIs for fiscal 2030, the following targets have been set as the SPTs.
Reduce CO2 emissions by 35% (Base year: Fiscal 2013 / Carbon intensity basis)
Own five ZEBs

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Moreover, the SLLs are designed in such a way that, based on the above SPTs, achievement
confirmation shall be made several times and, if the predetermined levels are achieved upon eachconfirmation, the reduction in the interest rate will be offered.
・ In concluding the agreement for the SLLs, JRE has obtained a second‐party opinion from Japan Credit
Rating Agency, Ltd. (JCR) with regard to conformity with the SLLP and the rationality of theestablished SPTs.
For more details, please refer to the press release by JCR.
https://www.jcr.co.jp/greenfinance/
4. Balance of Interest‐Bearing Debt after the Borrowings(Unit: millions of JPY)
BeforeAfter

Increase/Decrease

23,50018,000‐5,50023,00023,000±0329,500

335,500+6,000Total loans

376,000

376,500+500

Investment corporation bonds
Total investment
corporation bonds
Total interest‐bearing debt

42,99342,993±042,993

42,993±0418,993

419,493+500

Short‐term loans
Long‐term loans(Variable interest rate)
Long‐term loans(Fixed interest rate)

5. Others
With regard to the risks pertaining to the repayment, etc. of the Borrowings, there is no materialchange to the descriptions of "Investment risks" in the latest securities report submitted onDecember 25, 2020.

This is the English translation of the announcement in Japanese dated January 18, 2021.
No assurance or warranties are given for the completeness or accuracy of this English translation.
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