NEWS RELEASE
March 23, 2023
For Immediate Release

Investment Corporation
Japan Real Estate Investment Corporation
Jo Kato, Executive Director(TSE code: 8952)
Asset Management Company
Japan Real Estate Asset Management Co., Ltd.
Shojiro Kojima , President & CEO
Contact: Masaru Motooka
Executive Officer & General Manager
Strategic Planning Department
Phone: +81‐3‐3211‐7951

Announcement of Loan Prepayment and Debt Financing
Japan Real Estate Investment Corporation hereby announces its decision today to repay an existing
short‐term loan before the due date and procure funds as follows:

1. Prepayment of Short‐Term Loan(I) Prepayment date:
March 27, 2023
(II) Overview of loan to be repaid before the due date:(1) Amount of loan
JPY 29,000 million(2) Lender
MUFG Bank, Ltd.
(3) Interest rate
0.09182% (from February 27, 2023 through March 26, 2023)(4) Borrowing dateFebruary 27, 2023
(5) Method of borrowing
Loan based on overdraft agreement
Unsecured/unguaranteed loan(6) Interest payment date
The principal repayment date and the 27th of every monthin the period until the principal repayment date(7) Method of principal repayment Lump‐sum repayment on the principal repayment date
(8) Principal repayment dateFebruary 27, 2024
(9) Disclosure dateFebruary 22, 2023
*There will be no early repayment fee due to this loan prepayment.
2. Debt Financing(I) Reason for the borrowing① To repay before the due date the above short‐term loan of JPY 29 billion② To repay the existing long‐term loans of JPY 3.5 billion executed on March 25, 2015 andJPY 2 billion executed on March 26, 20181

(II) Overview of the borrowing«Short‐term loan related to ①»(1) Amount of loan
(2) Lender(3) Interest rate
(4)
(5)

Borrowing date
Method of borrowing(6)

Interest payment date

(7)
(8)

Method of principal repayment
Principal repayment date

JPY 29,000 million
MUFG Bank, Ltd.
Base rate (1‐month JPY TIBOR published by Japanese Bankers
Association (hereinafter “JBA”)) + 0.040% (Note1)
March 27, 2023
Loan based on overdraft agreement
Unsecured/unguaranteed loan
The principal repayment date and the 7th of every month in
the period until the principal repayment date (Note2)
Lump‐sum repayment on the principal repayment date
March 7, 2024

(Note1)・ The base rate to calculate the interest to be paid on interest payment dates is JBA 1‐month JPY TIBOR as ofthe second preceding business day of the borrowing date for the first interest payment date and as of thesecond preceding business day of the most recent interest payment date for the subsequent interest
payment dates. (JBA 1‐month JPY TIBOR as of March 23, 2023 is 0.06273%.)
・The interest calculation period for the first interest payment date is 11 days, from March 27, 2023 throughApril 6, 2023.
･ For the JBA Japanese Yen TIBOR, please refer to JBA TIBOR administration’s website(https://www.jbatibor.or.jp/english/rate/).
(Note2) ･ 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.

(1)
(2)
(3)
(4)

«Short‐term loan related to ②»
Amount of loan
LenderInterest rate
Borrowing date(5)

Method of borrowing(6)

Interest payment date

(7)
(8)

Method of principal repayment
Principal repayment date

JPY 3,500 million
JPY 2,000 million
The Norinchukin BankThe Chugoku Bank, Limited
0.73375%(fixed) (Note1)
0.68375%(fixed)
March 27, 2023
Loan agreement dated March 23, 2023
Unsecured/unguaranteed loan
The principal repayment date and the 27th of every Marchand September in the period until the principal repayment
date (Note2)
Lump‐sum repayment on the principal repayment date
March 28, 2033
March 25, 2033

(Note1) This borrowing will be procured through a sustainability‐linked loan (“SLL”), whose loan terms are aligned with
JRE’s achievement status of the following sustainability performance targets (“SPTs”) set beforehand.
・SPT 1: Reduce CO2 emissions by 80% by fiscal 2030 (Base year: Fiscal 2019 / Absolute basis)・SPT 2: Own five ZEBs (Net zero Energy buildings) by fiscal 2030
The applicable interest rate will be lowered by 0.01% on the condition that either one of the above targets
set as SPTs is achieved for the respective performance levels set for September 2023, September 2026,
September 2029, and September 2031, for the period until the performance level is next confirmed (for thetime of final confirmation, until the repayment date). Please refer to “Loans and Bonds” under Financial
Summary of JRE’s website https://www.j‐re.co.jp/en_cms/finance/debt.html for the interest rate applicable
after the performance level is confirmed.
Moreover, in concluding the agreement for the SLL, JRE has obtained a second‐party opinion from Japan
Credit Rating Agency, Ltd. (JCR) with regard to conformity with the Sustainability Linked Loan Principles andthe rationality of the established SPTs. For more details, please refer to the press release by JCR.
https://www.jcr.co.jp/greenfinance/ (in Japanese)
As for details of the SLL, please refer to the joint release by the Norinchukin Bank and JRE, “Conclusion ofSustainability Linked Loan Agreement between The Norinchukin Bank and Japan Real Estate Investment
Corporation” announced today.

2(Note2) 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.

<Reference> Overview of Existing Loans Subject to Repayment
LenderAmount of loan
Borrowing datePrincipalrepayment date

Disclosure date

The Norinchukin
Bank

JPY 3,500 million

March 25, 2015

March 27, 2023

March 18, 2015

The Chugoku
Bank, Limited

JPY 2,000 million

March 26, 2018

March 27, 2023

March 22, 2018

3. Balance of interest‐bearing debt after the debt financing(Units: millions of JPY)

BeforeShort‐term loans payable
Long‐term loans payable(Variable interest rate)
Long‐term loans payable(Fixed interest rate)
Total loans
Investment corporation bonds
Total
investment corporation bonds
Total interest‐bearing debt

After

Increase/Decrease

47,00047,000±022,000

22,000±0337,200

337,200±0406,200

406,200±042,993

42,993±042,993

42,993±0449,193

449,193±04. Others
Regarding risks pertaining to these loan repayments, there is no material change to thedescriptions of “Investment risks” in the latest securities report submitted on December 26, 2022.

This is the English translation of the announcement in Japanese dated March 23, 2023.
No assurance or warranties are given for the completeness or accuracy of this English translation.
3