NEWS RELEASE

Japan Real Estate Investment CorporationJanuary 13, 2016
To whom it may concern:<Investment Corporation>
Japan Real Estate Investment Corporation
Hiroshi Nakajima, Executive Director(TSE code: 8952)<Asset Management Company>
Japan Real Estate Asset Management Co., Ltd.
Hiroshi Katayama, CEO & President
Contact: Ryuta Yoshida,
Executive Officer, General Manager, Planning Department
Phone: +81-3-3211-7951

Notice concerning New Loans andExecution of Interest Rate Swap Agreements
Japan Real Estate Investment Corporation hereby announces its decision on January 13, 2016 to procure
funds and enter into interest rate swap agreements on the new loans relating thereto as follows:

1. Reason for drawing down of the loans
To apply the funds toward a repayment of the existing long-term loans of ¥2,000 million executed on
January 15, 2013.

2. Details of the loans<Long-term loan ①>(1) Total amount of loan:(2) Lender:(3) Interest rate:(4) Start of loan period:(5) Borrowing method:(6) Interest payment date:(7) Repayment of principal:(8) Principal repayment date:¥1,000 million
The Hachijuni Bank, Ltd.
Base rate (3-month EUR/JPY LIBOR by IBA (ICEBenchmark Administration)) + 0.07% (Note 1)
January 15, 2016
Loan agreement concluded with lender on January 13, 2016
Unsecured/unguaranteed loan
15th of January, April, July and October of every year until theprincipal repayment date (Note 2)
Payment in full on the principal repayment date
January 16, 2023 (pre-payment possible)1

<Long-term loan ②>(1) Total amount of loan:(2) Lender:(3) Interest rate:(4) Start of loan period:(5) Borrowing method:(6) Interest payment date:(7) Repayment of principal:(8) Principal repayment date:¥1,000 million
The Iyo Bank, Ltd.
Base rate (3-month EUR/JPY LIBOR by IBA (ICEBenchmark Administration)) + 0.07% (Note 1)
January 15, 2016
Loan agreement concluded with lender on January 13, 2016
Unsecured/unguaranteed loan
15th of January, April, July and October of every year until theprincipal repayment date (Note 2)
Payment in full on the principal repayment date
January 16, 2023 (pre-payment possible)(Note 1) Base rate to calculate the interest to pay on an interest payment date is 3-month EUR/JPY LIBOR released
two bank business days in London before the interest payment date at 11:00 am (GMT) by IBA (3-month
EUR/JPY LIBOR by IBA released on January 12, 2016 is 0.08086%).
(Note 2) In the event that the interest payment date does not fall on a business day, the interest shall be paid on thefollowing business day. If the following business day, however, falls in the following month, the payment
shall be made on the preceding business day of the interest payment date.

3. Interest Rate Swap Agreements(1) Reason for execution of interest rate swap agreements
To hedge against risks of interest rate fluctuations on the above long-term loans that will start fromJanuary 15, 2016.
(2) Details of the interest rate swap agreements<Interest rate swap agreement for the long-term loan ①>(1) Counterparty:
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(2) Notional amount:¥1,000 million(3) Interest rate, etc.:
Fixed rate payment:
0.265%
Floating rate receipt:(3-month EUR/JPY LIBOR by IBA) + 0.07%
January 15, 2016
(4) Contract start date:(5) Contract end date:
January 16, 2023
(6) Interest payment date:
15th of January, April, July and October of every year
until the contract end date (Note 3)
Interest rate for the long-term loan① (1,000 million yen with 7-year maturity) will be fixed at 0.265% byexecuting the above interest rate swap agreement. Therefore, the ensuring fixing of the 3-month EUR/JPY
LIBOR by IBA will not be announced going forward.

2

<Interest rate swap agreement for the long-term loan ②>(1) Counterparty:
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(2) Notional amount:¥1,000 million(3) Interest rate, etc.:
Fixed rate payment:
0.265%
Floating rate receipt:(3-month EUR/JPY LIBOR by IBA) + 0.07%
January 15, 2016
(4) Contract start date:(5) Contract end date:
January 16, 2023
(6) Interest payment date:
15th of January, April, July and October of every year
until the contract end date (Note 3)
Interest rate for the long-term loan② (1,000 million yen with 7-year maturity) will be fixed at 0.265% byexecuting the above interest rate swap agreement. Therefore, the ensuring fixing of the 3-month EUR/JPY
LIBOR by IBA will not be announced going forward.
(Note 3) In the event that the interest payment date does not fall on a business day, the interest shall be paid on thefollowing business day. If the following business day, however, falls in the following month, the payment shallbe made on the preceding business day of the interest payment date.

4. Balance of interest-bearing debt after the new loans(Units: millions of yen)
Before new loans

After new loans

Increase/Decrease

Short-term loans

32,20032,200±0

Current portion of long-term loans
Long-term loans(except for current portion)
Total loans
Current portion of investment
corporation bonds
Investment corporation bonds(except for current portion)
Total investment corporation bonds

38,10036,100－2,000282,650

284,650＋2,000352,950

352,950±000±020,000

20,000±020,000

20,000±0372,950

372,950±0Total interest-bearing debts

5. Others
Regarding loan repayment related risks, there is no important change to the “Investment risks”
description in the latest securities report submitted on December 24, 2015.

This notice is the English translation of the announcement in Japanese dated January 13, 2016.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

3