Activia Properties : Notice Concerning Borrowing of Funds

September 4, 2023

FOR IMMEDIATE RELEASE

Activia Properties Inc.

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

Nobuhide Kashiwagi

Executive Director

(Code: 3279)

Asset Management Company

TLC REIT Management Inc.

Akira Kubo

President & CEO

Inquiries

Manabu Kamikawara

General Manager of Strategy Department

Activia Management Division

(Tel: [phone])

Notice Concerning Borrowing of Funds

Activia Properties Inc. ("API") announces that it decided to borrow funds (the "Borrowing") today. Details are as follows:

I.	Borrowing
	1. Details of the borrowing
< Long-term borrowing >
						Borrowing and
	Lender	Loan	Interest	Drawdown	Due date	repayment
	methods,
	amount	rate	date (plan)	(Note 1)
		security, and
						guarantee
						Borrowing based
						on a borrowing
						agreement with
Sumitomo Mitsui Trust Bank, Limited	1.5	0.14%	September 11,	September 11,	the lenders
shown at left as
Mizuho Bank, Ltd.	billion	+Base rate
2023	2025	the creditor,
MUFG Bank, Ltd.	yen	(Note 2)
		lump-sum
						repayment,
						unsecured, and
						unguaranteed

(Note 1) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month, it shall be the immediately preceding business day.

(Note 2) The interest payment will be made on the last day of September 2023 and the last day of each month thereafter as well as on the due date of the principal. (If an interest payment date is a non-business day, it shall be the following business day. If such day falls in the following month, it shall be the immediately preceding business day.)

The base rate applicable to the period for the calculation of the interest payable on an interest payment date is the JBA one-month Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediately preceding each interest payment date. (For the first interest payment, it will be on the drawdown date.) However, if the base rate applicable to the calculation period doesn't exist, the base rate will be the one corresponding to the period that will be calculated based on a method provided in the agreement. After this, API will not announce the interest rate decisions for the borrowing. For changes in the JBA Japanese Yen TIBOR, the base rate, please check the website of the JBA TIBOR Administration (http://www.jbatibor.or.jp/english).

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2． Reasons for the borrowing

API will use the funds from the borrowing to redeem a long-term borrowing of 1.5 billion yen (the "Existing Long-term Borrowing") with a due date of September 11, 2023. For the details of the Existing Long-term Borrowing, please refer to "Notice Concerning Borrowing of Funds" released on September 6, 2021.

3． Amount, use and schedule of disbursement of funds to be raised

1. Total amount
   1.5 billion yen in total
2. Specific purpose of use

Funds will be used to redeem the Existing Long-term Borrowing

1. Scheduled date of disbursement September 11, 2023

1. Status of borrowings payable, etc. after the Borrowing

1. Interest-bearing debt balance after the Borrowing

			(In	millions of yen)
	Before	After
	the Borrowing	the Borrowing		Change
	(As of September 4,	(As of September 11,
	2023)	2023)
Short-term borrowings	0	0		0
(Note)
Long-term borrowings	34,000	32,500		(1,500)
to be repaid within one year
Long-term borrowings	204,150	205,650		1,500
(Note)
Total amount of borrowings	238,150	238,150		0
Investment corporation bonds	5,000	5,000		0
to be redeemed within one year
Investment corporation bonds	22,700	22,700		0
Total amount of borrowings and	265,850	265,850		0
investment corporation bonds
(Note) Short-term borrowings refer to	borrowings with a maturity	period of one year or less,	and long-term borrowings
refer to borrowings with a maturity period of more than one year.

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2. Basic financing information after the Borrowing

	Before	After	Change
	the Borrowing	the Borrowing
	(As of September 4,	(As of September 11,	(point)
	2023)	2023)
Long-term debt ratio	100.0%	100.0%	0.0
(Note 1) (Note 4)
Long-term debt ratio
(excluding the long-term borrowings	85.3%	85.9%	0.6
to be repaid and investment
corporation bonds to be redeemed
within one year) (Note 2) (Note 4)
Fixed interest ratio	94.1%	94.1%	0.0
(Note 3) (Note 4)

(Note 1) Long-term debt ratio is the ratio of the outstanding long-term borrowings (including the long-term borrowings to be repaid within one year) and investment corporation bonds (including the investment corporation bonds to be redeemed within one year) to the total of outstanding interest-bearing debt.

(Note 2) Long-term debt ratio (excluding the long-term borrowings to be repaid and investment corporation bonds to be redeemed within one year) is the ratio of the outstanding long-term borrowings (excluding the long-term borrowings to be repaid within one year) and investment corporation bonds (excluding the investment corporation bonds to be redeemed within one year) to the total of outstanding interest-bearing debt.

(Note 3) Fixed interest ratio is the ratio of the total of outstanding interest-bearing debt with fixed interest rates to the total of outstanding interest-bearing debt. The total of outstanding interest-bearing debt with fixed interest rates includes debts whose interest rates were converted into fixed interest rates by interest rate swap agreements.

(Note 4) Figures are rounded to the first decimal place.

III. Other

Regarding the risks related to the repayment of the Borrowing, there are no significant changes in the "Investment Risk" section of the securities report submitted on August 30, 2023.

*Website of API: https://www.activia-reit.co.jp/en/

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