Fukuoka REIT : Notice Concerning Borrowing of Funds

Provisional translation only

December 19, 2023

Fukuoka REIT Corporation

1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City

Zenji Koike

Executive Director

(Securities Code: 8968)

Asset Management Company:

Fukuoka Realty Co., Ltd.

1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City

Zenji Koike

President and CEO

Inquiries:

Hiroyuki Ayabe

Executive Officer and General Manager

Finance Department

TEL: [phone]

Notice Concerning Borrowing of Funds

Fukuoka REIT Corporation (FRC) announces that it will conduct the borrowing of funds, as described below.

1. Borrowing of funds

1. Reason for borrowing

To be used to fund the redemption of the 1st unsecured investment corporation bond (hereinafter, "The 1st bond") which will mature on December 29, 2023.

1. Outline of borrowing Borrowing 1 (short-termdebt)

1.	Lender:	The Nishi-Nippon City Bank, Ltd., Resona Bank, Limited, The Oita
			Bank, Ltd., The Bank of Nagasaki, Ltd., The Bank of Saga, Ltd.
2. Amount:	1.1 billion yen
3.	Interest rate:	Base interest rate (JBA 1-month Japanese Yen TIBOR) + 0.35% (Note 1)
4.	Borrowing date:	December 29, 2023
5.	Borrowing method:	Submitted loan application form based on commitment line contract as
			of February 28, 2023.
6.	Repayment date:	January 31, 2024
7.	Repayment method:	Lump-sum upon maturity
8.	Description:	No collateral, No guarantee
Borrowing 2 (short-term debt)
1.	Lender:	The Bank of Fukuoka Ltd., Resona Bank, Limited
2. Amount:	0.9 billion yen
3.	Interest rate:	Base interest rate (JBA 1-month Japanese Yen TIBOR) + 0.35% (Note1)
4. Borrowing date:	December 29, 2023
5.	Borrowing method:	Submitted loan application form based on commitment line contract
			change agreement as of July 31, 2023
6.	Repayment date:	January 31, 2024
7. Repayment method:	Lump-sum upon maturity
8.	Description:	No collateral, No guarantee
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(Note 1) The applied base interest rate is the JBA 1-month Japanese Yen TIBOR two business days before the borrowing date. Moreover, JBA Japanese Yen TIBOR can be checked on the website of JBA TIBOR Administration. http://www.jbatibor.or.jp/english/rate/

1. Use of funds
   The above borrowings will be used to fund the redemption of the 1st bond. (Note2)

1.	Name:	Fukuoka REIT Investment Corporation 1st Unsecured
			Investment Corporation Bond (hereinafter called the
			"1st Bond" with pari passu conditions among the specified investment
			corporation bonds)
	2. Amount:	2.0 billion yen
	3. Interest rate:	1.32% per annum
	4. Issued date:	December 30, 2013
5.	Issued term:	10.0 years
6.	Redemption period:	December 29, 2023
7.	Repayment method:	Lump-sum upon maturity
8.	Ratings:	AA- Japan Credit Rating Agency, Ltd. (JCR)
	(Note2) Please refer to the "Notice Concerning Issuance of Investment Corporation Bonds" dated December 17, 2013
regarding the detail of the 1st bond.
2. Status of Debt after Borrowing
							(mm yen)
				Before borrowing	After borrowing	Change
Short-term debt (Note2)			0	2,000	2,000
Long-term debt			93,850	93,850	0
	Of which, long-term debt payable due within		［5,200］	［5,200］	［0］
	one year
Total				93,850	93,850	0
Investment corporation bonds			5,000	3,000	(2,000)
Total Interest-bearing debt			98,850	98,850	0

(Note3) The borrowings are used from committed credit line [13,000 mm yen]

3. Others

Concerning risks related to repayments of this borrowing, etc., there are no material changes from the "Investment risks" disclosed in the latest Securities Report for the 38th Fiscal Period (submitted on November 29, 2023).

*FRC's website isFukuoka REIT Corporation(fukuoka-reit.jp)

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