Ichigo Hotel REIT Investment : New Loan

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.

November 25, 2021

Issuer

Ichigo Hotel REIT Investment Corporation ("Ichigo Hotel," 3463)

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

Representative: Osamu Miyashita, Executive Director

www.ichigo-hotel.co.jp/en

Asset Management Company

Ichigo Investment Advisors Co., Ltd.

Representative: Hiroshi Iwai, President

Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel

Tel: [phone]

New Loan

Ichigo Hotel decided today to borrow funds via a new loan ("Term Loan 16").

1. Loan Rationale

The new loan will be used to repay an existing loan (JPY 7,000 million). Details of the loan to be repaid are in Section 3 below.

2. Loan Details Term Loan 16

			Loan			Repayment		Repayment
Loan Date		Lenders	Amount		Interest Rate	Date			Collateralized
			(JPY million)			(Loan Term)		Terms
		SMBC			3M JPY	Nov 30, 2022		Lump-sum
		Mizuho Bank
Nov 30, 2021		7,000		TIBOR			No
	Shinsei Bank		(1.0 year)		repayment
				+0.50% (p.a.)1
		Resona Bank

1 The interest payment date is the final day of every third month following the first interest payment date (the first payment date will be February 28, 2022 and the last payment date will be the same as the principal repayment date). In the event the interest payment date is not a business day, payment shall be made on the following business day. If the following business day falls into the following month, payment shall be made on the previous business day.

Note:

The base rate for the loan 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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3. Existing Loan Being Repaid Term Loan 15

			Loan			Repayment		Repayment
Loan Date	Lenders		Amount	Interest Rate		Date			Collateralized
			(JPY million)			(Loan Term)		Terms
	SMBC
Nov 30, 2020	Mizuho Bank		7,000	3M JPY TIBOR		Nov 30, 2021		Lump-sum		No
Shinsei Bank		+0.45% (p.a.)		(1.0 year)		repayment
	Resona Bank

4. Earnings Outlook

The impact of the new loan on Ichigo Hotel's January 2022 and July 2022 fiscal period earnings has already been reflected in the forecasts presented in Ichigo Hotel's September 14, 2021 release "July 2021 Fiscal Period Earnings."

5. Other

Risks related to the loan have no material impact on the "Investment Risks" described in the latest Financial Report submitted on October 27, 2021.

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Reference: Loan and Bond Composition after New Loan

Outstanding Loan and Bond Balance

(JPY million)

			Before				After				Change
			New Loan				New Loan
									(B) - (A)
			(A)				(B)
Short-term bank loan		7,000		7,000				-
Long-term bank loans		18,470		18,470				-
Total bank loans		25,470		25,470				-
Bonds		870		870				-
Total bank loans and bonds		26,340		26,340				-

Distribution of Loan and Bond Maturities per Fiscal Period

Before New Loan

■ Long-term Loans (fixed rate) ■ Long-term Loans (floating rate) ■ Short-term Loan (JPY million)

• Bonds

	7,000										2,500
					4,500	4,500
									500
								3,000
			450	1,800			2,220			2,000
									370
January	July	January	July	January	July	January	July	January	July	January	July
2022		2022	2023	2023	2024	2024	2025	2025	2026	2026	2027	2027

After New Loan

												(JPY million)
		8,800			■ Long-term Loans (fixed rate)	■ Long-term Loans (floating rate)
						■ Bonds ■ New Loan
			7,000
					4,500	4,500					2,500
						3,000			500
	450	1,800				2,220			2,000		370
January	July	January	July	January	July	January	July	January	July	January	July
2022	2022	2023		2023	2024	2024	2025	2025	2026	2026	2027	2027

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