Japan Rental Housing Investments Inc. : Notice Concerning Interest-Rate Swap Agreement

To All Concerned Parties

English Translation

The following is an English translation of the original Japanese press release and is being provided for informational purposes only.

January 11, 2013
REIT Issuer: Japan Rental Housing Investments Inc.
6-16-12 Shinbashi
Minato-ku, Tokyo 105-0004
Toshiya Kuroda, Executive Director
(Securities Code: 8986) Asset Manager: Mi-Casa Asset Management Inc.

Yutaka Higashino, President and Chief Executive Officer

Inquiries: Tetsu Kasuga, Chief Financial Officer
Tel: [phone]

Notice Concerning Interest-Rate Swap Agreement

Japan Rental Housing Investments Inc. (the "Investment Corporation") announces that the Investment Corporation concluded an interest-rate swap agreement. Details are provided as follows.

I. Purpose of the Interest-Rate Swap Agreement

The Investment Corporation has decided to conclude an interest-rate swap agreement as a hedge against possible increase of the interest rates in future. This interest-rate swap agreement, the Investment Corporation concluded similar agreements on January 8 and January 10 (please refer to each press release on January 8 and January 10), is not for the specific borrowing, is for the amount of 5 billion yen out of the entire borrowing.

II. Summary of the Interest-Rate Swap Agreement

Counterparty:	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Notional Amount:	5 billion yen
Interest Rate:	Pay a fixed interest rate: 0.3180% Receive a floating interest rate: Base rate (JPY TIBOR for 1-month of JBA)
Commencement Date:	January 22, 2013
Termination Date:	January 22, 2018
Payment Date:	First interest payment on February 22, 2013, and at 22nd of every month (on the next business date, if 22nd is a non-business day)

Note: Based on this interest-rate swap agreement, basically, the base rate for the amount of 5 billion yen out of the entire borrowing is fixed at

0.3180%.

Note: The base rate shall be calculated based on JPY TIBOR for 1-month which Japanese Bankers Association (JBA) releases two business days prior to each payment date. JPY TIBOR appears on website of JBA (http://www.zenginkyo.or.jp/en/tibor/).

III. Forecast

The impact from this interest-rate swap agreement on the accounts for 14th fiscal period (the fiscal period ending in March 2013; from September 1, 2012 to March 31, 2013) is nominal. Thus, the forecast of the fiscal results on 14th fiscal period has not been changed.
*URL: http://www.jrhi.co.jp/en/

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