Comforia Residential REIT : Notice Concerning Issuance of Investment Corporation Bonds

June 30, 2021

For Immediate Release

Real Estate Investment Trust Securities Issuer:

Comforia Residential REIT, Inc

21-1 Dogenzaka 1-chome,Shibuya-ku,Tokyo

Takehiro Izawa

Executive Director

(Code: 3282)

Asset Management Company:

TLC REIT Management Inc.

Hiroyuki Tohmata

President & CEO

Inquiries:

Daisuke Kawauchi

General Manager of Strategy Department

Comforia Management Division

(TEL: [phone])

Notice Concerning Issuance of Investment Corporation Bonds

Comforia Residential REIT, Inc ("CRR") announces that it decided today to issue investment corporation bonds ("the Investment Corporation Bonds"). Details are as follows:

1. Summary of the Investment Corporation Bonds

(1)	Name	Comforia Residential REIT, Inc		Comforia Residential REIT, Inc		Comforia Residential REIT, Inc
		9th unsecured bonds		10th unsecured bonds		11th unsecured bonds
		(with pari passu clause among		(green bonds) (with pari passu		(with pari passu clause among
		specified investment corporation	clause among specified		specified investment
		bonds)		investment corporation bonds)		corporation bonds)
(2)	Total amount of bonds	2,000 million yen		3,000 million yen		1,600 million yen
(3)	Form of bonds	Under the Act on Book-Entry Transfer of Company Bonds, Shares, etc., there are no bond certificates.
	Certificate
(4)	Issue price			100 yen per 100 yen of each bond
(5)	Redemption price			100 yen per 100 yen of each bond
(6)	Coupon rate	0.180% per annum		0.460% per annum			0.730% per annum
(7)	Denomination price			100 million yen
(8)	Offering method			Public offering
(9)	Offering period			June 30, 2021 (Wednesday)
(10)	Payment date			July 8, 2021 (Thursday)
(11)	Collateral/Guarantee	Neither collateral nor guarantee is provided for the Investment Corporation Bonds, and no assets are
		reserved as security specifically for the Investment Corporation Bonds.
(12)	Redemption method	The entire principal shall be		The entire principal shall be			The entire principal shall be
	and date	redeemed on July 8, 2026.		redeemed on July 8, 2031.			redeemed on July 8, 2036.
		The Investment Corporation Bonds may be purchased and cancelled at any time on or after the day
		following the payment date unless otherwise stipulated by the depository.
(13)	Interest payment date	January 8 and July 8 every year (The first payment date is January 8, 2022. If the interest payment date is
		a bank holiday, then the bank business day preceding it shall be deemed to be the interest payment date.)
(14)	Financial Covenants	Negative pledge among unsecured bonds
(15)	Credit rating	AA－ (Japan Credit Rating Agency, Ltd.)
(16)	Depository		Japan Securities Depository Center, Inc.
(17)	Financial,issuing and	Sumitomo Mitsui Trust Bank,		MUFG Bank, Ltd.		Sumitomo Mitsui Trust Bank,
	paying agent	Limited					Limited
(18)	Underwriters	Mizuho Securities Co., Ltd.,		Mizuho Securities Co., Ltd.,		Mizuho Securities Co., Ltd.,
		Mitsubishi UFJ Morgan Stanley		SMBC Nikko Securities Inc.,		SMBC Nikko Securities Inc.
		Securities Co., Ltd.,		Mitsubishi UFJ Morgan Stanley
		SMBC Nikko Securities Inc.		Securities Co., Ltd.,
				Daiwa Securities Co.Ltd.

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2. Reasons for the Issuance

CRR has decided to issue the Investment Corporation Bonds, to extend the debt maturity, to diversify repayment dates, and to vary the financing methods.

In terms of 10th unsecured bonds, through the issuance of the Investment Corporation Bonds as green bonds in accordance with the Green Bond Framework for which a second-party opinion obtained from Sustainalytics, as ESG rating agency, CRR aims to further promote its sustainability initiatives and invite new investors to its investment corporation bonds by stimulating their demand who have interest in ESG investment.

3. Amount, Use, and Time of Disbursement of Funds to Be Raised

1. Amount of funds to be raised (estimated amount of net proceeds) 6,554 million yen
2. Specific use of funds to be raised and time of disbursement

CRR will appropriate 3,600 million yen for the early repayment of loan (3,600 million yen in total) on July 14, 2021 that will come due on July 31, 2021 (the "Existing Loan") and appropriate the rest of the funds for part of the redemption of the corporation bonds (3,000 million yen) on July 30, 2021 that will come due on July 30, 2021(the "Existing Corporation Bonds").

For further details of the early repayment of loan, please refer to "Notice Concerning Early Repayment" released as of today. For further details of the Existing Corporation Bonds, please refer to "Notice Concerning Issuance of Investment Corporation Bonds" released on July 11, 2014.

4. Investors who declared intention to invest in 10th unsecured bonds (green bonds)

Listed below in alphabetical order are investors to date who declared their intention of investment in 10th unsecured bonds (green bonds) and agreed to disclose their names.

- GUNMAMIRAI Shinkumi Bank		- The Dai-ichi Life Insurance Company, Limited
- Hyogo Shinkin Bank		- THE FUJI SHINKIN BANK
- Mutual Aid Foundation for Japan Postal Group	- The Kita Osaka Shinkin Bank
- Nishihyogo Shinkin Bank	.	- The SAGAMI Shinkin Bank
- Osaka Shoko Shinkin Bank		- The Sawayaka Shinkin Bank
- SHIZUOKA YAIZU SHINKIN BANK		- THE TAIKO BANK,LTD.
- Sumitomo Mitsui Trust Asset Management Co., Ltd	- The Tsuruga Shinkin Bank
- Suwa Shinkin Bank		- The Yamanashi Chuo Bank, Ltd.

• THE CHOSHI SHINKIN BANK

5. Status of Borrowings and Investment Corporation Bonds after the Issuance of the Investment Corporation Bonds

			(million yen)
	Before the issuance	After the issuance	Change
	(As of July 30, 2021)
	(As of June 30, 2021)
	(Note 1)
Short-Term Loans (Note 2)	-	-	-
Current portion of long-
term loans (to be repaid	24,200	20,600	▲3,600
within one year or less)
Long-Term Loans (Note 2)	104,930	104,930	-
Total of Loans	129,130	125,530	▲3,600
Current portion of investment
corporation bonds (to be redeemed	3,000	1,000	▲2,000
within one year or less) (Note 3)
Investment Corporation Bonds	9,500	15,100	5,600
(Note 3)
Total of Loans and	141,630	141,630	-
Investment Corporation Bonds

(Note 1) The calculation of the outstandings is based on the assumption that the early repayment of the Existing Loan (3,600 million yen) will be executed on July 14, 2021 and the Existing Corporation Bonds(3,000 million yen) will be redeemed on July 30, 2021 .

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(Note 2) Short-term loans are loans that will come due within one year, while long-term loans are loans that will come due after one year.

(Note 3) The 2nd unsecured bonds (with pari passu clause among specified investment corporation bonds) (total amount of bonds:1,000 million yen, redemption date: July 15, 2022) is included in the section of "Investment Corporation Bonds" on "Before the issuance" and is included in the section of "Current portion of investment corporation bonds (to be redeemed within one year or less) " on "After the issuance".

*Website of CRR: https://www.comforia-reit.co.jp/en/

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