Daiwa Office Investment : Notice Concerning Borrowing of Funds (Including Green Loans and ESG Loan for J-REIT)

This translation of the original Japanese notice is provided solely for information purposes. Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

November 25, 2022

REIT Issuer: Daiwa Office Investment Corporation (Stock Code No.: 8976)

Representative: Keiichi Sakai, Executive Director

Asset Manager: Daiwa Real Estate Asset Management Co. Ltd.

Representative: Yoshiki Nishigaki, President and Representative Director

Inquiries to: Kentaro Azumi, General Manager, Corporate Division (Tel: [phone])

Notice Concerning Borrowing of Funds

(Including Green Loans and ESG Loan for J-REIT)

We hereby give notice that Daiwa Office Investment Corporation (the "Investment Corporation") decided today to borrow a total of 12,300 million yen (the "Borrowing").

1. Details for the Borrowing

	Loan		Scheduled	Borrowing /	Repayment
Lender	Amount	Interest Rate	Borrowing	Repayment
Date
	(million yen)		Date	Method
		3 month Japanese Yen
	4,000	TIBOR + 0.3750%			2031/5/30
Sumitomo Mitsui Banking		(Note3)
Corporation (Note1)		3 month Japanese Yen
	1,000	TIBOR + 0.3000%			2029/11/30
		(Note3)
Sumitomo Mitsui Trust Bank,		3 month Japanese Yen
1,000	TIBOR + 0.2500%			2028/11/30
Limited
	(Note3)
MUFG Bank, Ltd.		3 month Japanese Yen
1,000	TIBOR + 0.3750%			2031/5/30
(ESG Loan for J-REIT (Note2))
	(Note3)
				Unsecured
		3 month Japanese Yen
			Repayment
	1,500	TIBOR + 0.3500%	2022/11/30	2030/11/29
	in lump
		(Note3)
Mizuho Bank, Ltd.			sum
	3 month Japanese Yen
	1,000	TIBOR + 0.3125%			2030/2/28
		(Note3)
		3 month Japanese Yen
Resona Bank, Limited.	1,500	TIBOR + 0.3000%			2029/11/30
		(Note3)
Tokio Marine & Nichido Fire		3 month Japanese Yen
1,000	TIBOR + 0.2000%			2027/11/30
Insurance Co., Ltd.
	(Note3)
TAIYO LIFE INSURANCE		0.75375%
300	(Fixed Interest- Rate)			2029/11/30
COMPANY
	(Note4)

(Note1) Of the 4,000 million yen loan from Sumitomo Mitsui Banking Corporation, 2,000 million yen will be raised funds as green loans based on the Green Finance Framework established by the Investment Corporation. The Green Finance Framework has obtained Green1 (F) of the "JCR Green Finance Framework Evaluation." For details of the Green Finance Framework established by the Investment Corporation and the "JCR Green Finance Framework Evaluation", please refer to the Notice Concerning Establishment of Green Finance Framework, etc. announced on July 17, 2020.

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(Note2) For details of the ESG Loan for J-REIT, please refer to the Notice Concerning Borrowing of Funds (Including ESG Loan for J-REIT) and Acquisition of "MUFG ESG Rating Certificate for J-REIT supported by JCR" announced on March 26, 2019. The Investment Corporation has acquired "S Rank," the highest rating in "MUFG ESG Rating Supported by JCR for J-REITs" on March 31, 2022.

(Note3) Interest payments shall be made at the end of February, May, August and November (If any such date is not a business day, the immediately following business day; and if such date falls within the next month, the preceding last business day). Interest rate is calculated based on 3 month Japanese Yen TIBOR which Japanese Bankers Association ("JBA") announces two business days prior to the first day of the loan period. The JPY TIBOR of the JBATA is available on the JBATA website (https://www.jbatibor.or.jp/english/rate/)

(Note4) Interest payments shall be made at the end of February, May, August and November (If any such date is not a business day, the immediately following business day; and if such date falls within the next month, the preceding last business day).

1. Reason for the Borrowing
   The Borrowing will be provided for the repayment of 12,300 million yen borrowed in total due on November 30, 2022. For the details of the borrowings, please refer to the press release "Notice Concerning Borrowing of Funds" on May 27, 2014 and "Notice Concerning Borrowing of Funds" on June 17, 2014 and "Notice Concerning Borrowing of Funds" on November 25, 2014 and "Notice Concerning Borrowing of Funds" on November 25, 2015 and "Notice Concerning Borrowing of Funds" on November 27, 2017
2. Date of Signing Contract November 25, 2022
3. Status of Interest-Bearing Liabilities after the Borrowing

Please refer to "Reference" for the status of interest-bearing liabilities after the Borrowing.

5. Other Matters Required for Investors to Appropriately Understand and Evaluate the Above Information

There arises no change in the content of the investment risks described at "1. Fund Information, 1-1 Status of Fund, 1-1-3 Investment Risk" of the Yukashouken Houkokusyo filed as of August 22, 2022 with respect to the risks involved in repayment of the Borrowing.

• End -

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[Reference]

1. Outstanding Balance of Interest-Bearing Liabilities after the Borrowing

November 30, 2022		(Unit: JPY million)
		Before	After	Increase/
		the Borrowing	the Borrowing	Decrease
	Short-term loans (loan period: 1 year or less)	38,500	26,200	-12,300
	Long-term loans (loan period: over 1 year)	158,300	170,600	+12,300
	(Note)
	Total loans	196,800	196,800	0
	Investment corporation bonds	9,000	9,000	0
	Total interest-bearing liabilities	205,800	205,800	0

*The long-term loans to be repaid within 1 year are included in the short-term loans.

1. Ratio of Floating-Rate and Fixed-RateInterest-Bearing Liabilities after the Borrowing

November 30, 2022		(Unit: JPY million)
	Total amount of interest-bearing	Ratio
	liabilities
Floating-rateinterest-bearing liabilities	59,850	29.08％
Fixed-rateinterest-bearing liabilities*	145,950	70.92％

• Fixed-rateinterest-bearing liabilities include liabilities changed from floating-rate to fixed-rate through swap transactions.

*Website URL of the Investment Corporation:

https://www.daiwa-office.co.jp/en/

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