Ichigo Office REIT Investment : Interest Rate Swaps

Make The World

More Sustainable

[Provisional Translation Only]

This English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

May 27, 2022

Issuer

Ichigo Office REIT Investment Corporation ("Ichigo Office," 8975)

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo

Representative: Yoshihiro Takatsuka, Executive Director

www.ichigo-office.co.jp/en

Asset Management Company

Ichigo Investment Advisors Co., Ltd.

Representative: Hiroshi Iwai, President

Inquiries: Norio Nagamine, Head of Ichigo Office

Tel: [phone]

Interest Rate Swaps

Ichigo Office has fixed the interest rates for the first payment date of the three loans announced in the May 26, 2022 release "New Loans." Ichigo Office also executed interest rate swaps to lock in the interest rates on the three loans (total JPY 9,629 million).

1. Interest Rates

			Loan		Interest Rate for		Repayment	Repayment
Loan Date		Lenders	Amount			Date		Collateralized
			(JPY million)		First Payment		(Loan Term)	Terms
		SMBC
		Mizuho Bank			0.56999% (p.a.)1		May 25, 2027
		MUFG Bank	2,589
		The Bank of Fukuoka					(5.0 years)
		Nishi-Nippon City Bank
		SMBC
		Mizuho Bank					May 25, 2028
May 31, 2022		Resona Bank	1,564		0.62999% (p.a.)1		Lump-sum		No
	Shinsei Bank					(6.0 years)	repayment
		Aozora Bank
		Nishi-Nippon City Bank
		SMBC
		Mizuho Bank					May 27, 2030
		Resona Bank	5,476		0.74999% (p.a.)1
		Shinsei Bank					(8.0 years)
		Aozora Bank
		Nishi-Nippon City Bank

1 The term for the first interest payment date is May 31, 2022 through July 25, 2022.

Note:

The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers Association (JBA) two business days before each interest payment date. For current JPY TIBOR rates, please visit the JBA's website: www.jbatibor.or.jp/english/rate

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2. Swap Details

		Notional		Contract Start		Contract End		Fixed		Floating
Counterparty					Interest Rate		Interest Rate
	(JPY million)		Date		Date
					(Pay)		(Receive)
Mizuho Bank		2,589		May 31, 2022		May 25, 2027		0.71770%		3M JPY TIBOR
			(5.0 years)			+0.50%(p.a.)
Mizuho Bank		1,564		May 31, 2022		May 25, 2028		0.81630%		3M JPY TIBOR
			(6.0 years)			+0.56%(p.a.)
Mizuho Bank		5,476		May 31, 2022		May 27, 2030		1.01930%		3M JPY TIBOR
			(8.0 years)			+0.68%(p.a.)

3. Earnings Impact

The impact of the new loans and interest rate swaps on Ichigo Office's October 2022 fiscal period earnings is minimal and thus there is no change to the forecast presented in Ichigo Office's December 14, 2021 release "October 2021 Fiscal Period Earnings."

4. Other

Risks related to the new loans have no material impact on the "Investment Risks" described in the latest Financial Report submitted on January 27, 2022.

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