Japan Real Estate Investment Corporation ("JRE") announces that it decided to borrow funds (the "Borrowings"), as described below, which will be procured through sustainability-linked loans (the "SLLs"*), the first such arrangement in the JREIT industry. JRE will borrow the funds to repay an existing short-term loan of JPY 5.5 billion executed on January 15, 2021 and an existing long-term loan of JPY 4.0 billion executed on January 31, 2014, and to allocate the remainder as cash on hands. However, the applicable interest rate will be lower by 0.01% for each, on the condition that either one of the following targets set as SPTs are achieved for the performance levels set for the end of July 2021, July 2024 and July 2028 (as well as July 2031 for Loan 2 only), respectively, for the period until the performance level is next confirmed (for the time of final confirmation, the repayment date). The interest rate applicable after the performance level is confirmed will be announced each time. SPT 1: Reduce CO2 emissions by 35% by fiscal 2030 (Base year: Fiscal 2013 /Carbon intensity basis). SPT 2: Own five ZEBs (zero-energy buildings) by fiscal 2030. Interest payment date: The principal repayment date and the 31st of every January and July in the period until the principal repayment date. Borrowing method: Loan agreement dated January 18, 2021, Unsecured and unguaranteed. JRE believes that it is the social responsibility of a listed investment corporation to endeavor for enhanced sustainability of society, including environmental awareness, social contributions and reinforced governance, and that such is essential for maximizing unitholder value. Under this policy, Japan Real Estate Asset Management Co. Ltd. (JREAM), the asset management company, established its Sustainability Policy that set forth the material issues and basic policies on sustainability when conducting real estate investment management. JREAM became a signatory to PRI (the Principles for Responsible Investment) in 2018; disclosed information in line with the TCFD (Task Force on Climate Related Financial Disclosures) recommendations, the first such disclosure among JREITs, in 2019; and announced the environmental Key Performance Indicators (KPIs) for fiscal 2030 in 2020. Moreover, the SLLs are designed in such a way that, based on the above SPTs, achievement confirmation shall be made several times and, if the predetermined levels are achieved upon each confirmation, the reduction in the interest rate will be offered. In concluding the agreement for the SLLs, JRE has obtained a second-party opinion from Japan Credit Rating Agency Ltd. (JCR) with regard to conformity with the SLLP and the rationality of the established SPTs.