August 18, 2022
For Immediate Release
Real Estate Investment Trust Securities Issuer:
NIPPON REIT Investment Corporation
1-18-1 Shimbashi, Minato-ku, Tokyo
Toshio Sugita
Executive Officer
(Securities Code: 3296)
Asset Management Company:
Sojitz REIT Advisors K.K.
Toshio Sugita
President & CEO
Contact:Takahiro Ishii
General Manager
Corporate Planning Department
Finance & Planning Division
(TEL: +81-3-5501-0080)
Notice Concerning Conclusion of Interest Rate Swap Agreement
NIPPON REIT Investment Corporation ("NIPPON REIT") announces today that the following interest rate swap agreements have been concluded for part of the borrowings announced in "Notice Concerning Borrowing of Funds" dated March 29, 2022 (the "Borrowings")".
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Reason for the Conclusion of the Interest Rate Swap Agreements
To hedge against the risk of interest rate fluctuations by fixing the interest rate of the Borrowings. - Details of the Interest Rate Swap Agreements
Notional | Interest Rate (Note 1) | Corresponding Loan | ||||||
Fixed | Floating | |||||||
Amount | Commence- | Termination | Loan | |||||
Counterparty | interest | interest rate | Loan | Loan | ||||
(mm | ment Date | Date | Amount | |||||
rate | receivable | No. | Period | |||||
yen) | (mm yen) | |||||||
payable | ||||||||
JBA Japanese | ||||||||
Yen TIBOR | ||||||||
Nomura | applicable to | |||||||
0.2130% | the respective | August 22, | August 20, | 4 | ||||
Securities Co., | 2,450 | 075 | 2,450 | |||||
(Note 2) | interest | 2022 | 2026 | years | ||||
Ltd. | ||||||||
calculation | ||||||||
period of the | ||||||||
Loan No. 075 | ||||||||
JBA Japanese | ||||||||
Yen TIBOR | ||||||||
applicable to | 7 | |||||||
Mizuho Bank, | 2,550 | 0.3555% | the respective | August 22, | April 22, | 076 | 2,550 | years |
Ltd. | (Note 3) | interest | 2022 | 2030 | and 8 | |||
calculation | months | |||||||
period of the | ||||||||
Loan No. 076 | ||||||||
JBA Japanese | ||||||||
Yen TIBOR | ||||||||
applicable to | ||||||||
Shinsei Bank, | 2,000 | 0.4570% | the respective | August 22, | August 20, | 077 | 2,000 | 10 |
Limited | (Note 4) | interest | 2022 | 2032 | years | |||
calculation | ||||||||
period of the | ||||||||
Loan No. 077 |
Note 1: Interest payment date shall be the 20th day of January, April, July and October every year until the termination date, and the termination date (if the day is not a business day, then it shall be the next business
1
day).
Note 2: The interest rate payable for the Loan No. 075 will be fixed at 0.5030% by the interest rate swap agreement.
Note 3: The interest rate payable for the Loan No. 076 will be fixed at 0.8180% by the interest rate swap agreement.
Note 4: The interest rate payable for the Loan No. 077 will be fixed at 1.0920% by the interest rate swap agreement.
Note 5: Please refer to "Notice Concerning Borrowing of Funds" dated March 29, 2022, for details of each borrowing.
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Future outlook
Forecast of the management status for the fiscal period ending December 2022 (from July 1, 2022 to December 31, 2022) and the fiscal period ending June 2023 (from January 1, 2023 to June 30, 2023) announced in the "Summary of Financial Results for the Fiscal Period Ended June 30, 2022 (REIT)" dated August 16, 2022 remain unchanged because the impact of the conclusion of interest rate swap agreement will be minimal. - Others
Concerning the risks associated with the conclusion of the interest rate swap agreement, there is no change in "3. Investment Risks" under "Section 1. Status of Fund" of "Chapter I. Fund Information" in the Securities Reports submitted on March 29, 2022.
* NIPPON REIT website: https://www.nippon-reit.com/en
This notice is the English translation of the original Japanese document and is provided solely for information purposes. There is no assurance as to the accuracy of the English translation. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.
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