ORIX JREIT : Announces New Debt Financing "Positive Impact Finance"

For Immediate Release

REIT Issuer:

ORIX JREIT Inc. (TSE: 8954)

Hiroshi Miura

Executive Director

Asset Management Company:

ORIX Asset Management Corporation

Yoshitaka Kamemoto

President and CEO

Inquiries:

Shinji Yamana

Executive Officer and CFO

TEL：[phone]

ORIX JREIT Announces New Debt Financing

• Positive Impact Finance"

TOKYO, December 24, 2021 - ORIX JREIT Inc. ("OJR") announces that its asset management company, ORIX Asset Management Corporation("OAM"), determine d new debt financing as described below.

1. Description of Positive Impact Finance

OJR undertakes "Positive Impact Finance" with Sumitomo Mitsui Trust Bank, Limited("SuMi TRUST

Bank" ) in line with the Principles for Positive Impact Finance (*1), its model framework (Financial products for corporate with unspecified use of funds) and Positive Impact Real Estate Investment Framework released by the United Nations Environment Programme Finance Initiative ("UNEP FI") (*2). This Positive Impact Finance is the first of its kind for the J-REITsector.

Positive Impact Finance (hereinafter "PIF") is intended to support corporations' activities of which we comprehensively analyze and evaluate the impacts (both positive and negative) related to the environment, society and economy. The most notable feature of PIF is that the degree of contribution from corporate activities, products and services in achieving Sustainable Development Goals (SDGs) is used as evaluation indicator and monitored based on publicly disclosed information and to support its activities through engagement.

OJR believes that it is vital to consider issues surrounding ESG in order to achieve sustainable asset management. OAM has established its ESG Policy to put these beliefs into practice and to achieve stable growth in unitholder value, which is in line with OJR's management philosophy. In September 2021, OJR updated its medium-term and long-term targets for climate change, and is promoting the acquirement of green building certifications and supporting TCFD(*3) recommendations to achieve carbon neutrality by 2050. Also, OJR promotes activities contributing to improving customer satisfaction, and maintaining and improving the health and comfort of building users while at the same time enhancing the value of its properties through dialogue with stakeholders.

SuMi TRUST Bank assessed the following initiatives of OJR both qualitatively and quantitatively as initiatives that particularly have impact on achieving SDGs.

1/5

Themes		Contents	Goals and Indicators (KPI)	SDGs
			a. Reduction of CO2 emissions
			(Goals)
			 Achieve carbon neutrality by 2050
			 Reduce CO2 emissions intensity by 35% by
			2030 compared to 2018
			(Indicator (KPI))
			 CO2 emissions intensity (t-CO2/m2)
			b.Reduction of energy consumption
			(Goal)
			 Reduce by an average of 1% or more a year the
		Reduce greenhouse	energy consumption intensity of the properties
	based on the intensity over the past five years
		gas emissions by
		(Indicator (KPI))
		installing
		 Energy consumption intensity (kl/m2)
		equipment that
		c. Expansion of use of renewable energy
		contributes to
		(Goal)
		improving energy
		 Continue reviewing and disclosing the
		efficiency and
		amount of renewable energy generation, and
		energy saving at
Promotion of		consider formulating the goal
	our properties
climate change		(Indicators (KPI))
countermeasures		Work for	 The amount of renewable energy generation
	 The status of consideration in formulating the
		visualization of
		goal for renewable energy use
		objectivity and
		d.Supplying tenants with renewable energy
		performance by
		(Goal)
		acquiring "green
		 Consider reviewing and disclosing the status
		building"
		of supplying tenants with renewable energy
		certifications
		(Indicator (KPI))
			 Status of consideration in reviewing and
			disclosing the status of supplying tenants
			with renewable energy
			e. Promotion of acquiring green building
			certifications
			(Goal)
			 Achieve green certification for over 70% of
			floor space of properties under OJR's
			operational control by 2030
			(Indicator (KPI))
			 Rate of acquisition of green building
			certifications
	 Promote efficient	a. Reduction of waste
		use of resources,
		(Goal)
		waste reduction and
		recycling	 Maintain the landfill disposal rate at 1% or less
		in 2030
Management of		When disposing of	(Indicator (KPI))
waste and water	 Landfill disposal rate
	waste, comply with
resources		b.Reduction of use of water
	laws and
		(Goal)
		regulations and
		 Reduce water use compared to the previous
		dispose properly
		year
	 Use water resources	(Indicator (KPI))
		efficiently	 The amount of the use of water

2/5

	 At our properties,
	improve the
	satisfaction of
	customers and
	enhance the
	competitiveness of
	the properties by
	conducting
	environmental and
	energy-saving
	measures and asset
	management aimed
	at improving health,	(Goal)
Improve the	safety and well-	 Improve the health, safety, well-being and
health, safety and	being	satisfaction of customers (tenants and users)
well-being of
customers	 Work for	(Indicator(KPI))
(tenants and	visualization of	 Status of work for improvement of the health,
users)	objectivity and	safety, well-being and satisfaction for
	performance by	customers (tenants and users)
	acquiring various
	"green building"
	certifications
	 Increase the
	intangible and
	tangible resiliency
	of properties
	through our asset
	management so that
	it leads to customer
	satisfaction
		(Goal)
	 Promote ESG	 Promote the conclusion of property
Collaboration	through the	management agreements to include clauses
with stakeholders	collaboration with	regarding ESG
/ supply chain	stakeholders /	(Indicator (KPI))
	supply chain	 Status of the conclusion of property
		management agreements including clauses
		regarding ESG

The PIF has obtained a third-party opinion (*4) from Japan Credit Rating Agency, Ltd. regarding compliance of the procedures related to this evaluation to the Principles as well as the rationality of the evaluation indicators.

(*1) The Principles for Positive Impact Finance

The Principles for Positive Impact Finance was developed by UNEP FI in January 2017 as a financial framework for achieving the SDGs. Companies disclose the level of contributions to achieving SDGs through KPIs. Banks then provide funding by evaluating the positive impact observed from these KPIs that is intended to guide the borrowers to increase positive impact and reduce negative impact.

The lending bank, as a responsible financial institution, will check if the impact is continuing or not by monitoring the indicators.

3/5

(*2) The United Nations Environment Programme Finance Initiative (UNEP FI)

The United Nations Environment Programme (UNEP) is an executive body for implementing the "Human Environment Declaration" and the "International Environmental Action Programme", established in 1972 as a subsidiary body to the United Nations system. UNEP FI represents a broad as well as close partnership between UNEP and more than 200 global financial institutions. Since its establishment in 1992, UNEP FI has been working in concert with financial institutions, policy/regulatory authorities to transform itself into a financial system that integrates economic development and ESG considerations.

(*3) TCFD (Task Force on Climate-related Financial Disclosures)

The TCFD, chaired by Michael Bloomberg, was established by the Financial Stability Board (FSB) in response to a call from the G20 to develop a set of recommendations for use by companies on how to disclose climate-related information and respond to financial institutions.

(*4) For the independent opinion from Japan Credit Rating Agency, Ltd., please visit:

https://www.jcr.co.jp/en/

2.Total amount of debt financing, use of proceeds and the scheduled timing of disbursement

1. Total amount of debt financing JPY 2,560 million
2. Use of proceeds and the scheduled timing of disbursement

	Total amount of debt	The scheduled
Use of proceeds	financing	timing of
	(JPY million)	disbursement
To allocate to repay the long-term loan of JPY2,560 million	2,560	March 31, 2022
due on March 31, 2022

3. New debt financing summary

Long-term loan

a.	Lender		Sumitomo Mitsui Trust Bank, Limited
b.	Loan amount		JPY 2,560,000,000
c.	Applicable interest rate	(Note1)	To be determined (Fixed rate)
d.	Drawdown date		March 31, 2022
e.	Method of borrowing		Based on the term loan agreement dated December 24, 2021
f.	Maturity date		March 22, 2032
g.	Principal payment		Bullet payment on the maturity date
h.	Collateral / Guarantee		Un-secured /Non-guaranteed
i.	Purpose for new debt financing	To allocate to repay the long-term loan of JPY2,560 million
due on March 31, 2022
Notes

1. The interest rate will be announced when applicable interest rate is determined.
2. The first interest is scheduled to be paid on June 20, 2022, each interest is thereafter scheduled to be paid on the 20th day of March, June, September and December in every year by the principal payment date and on the principal payment date respectively. But if any such date is not a business day, payment shall be made on the next business day or, if such next business day is in the following month, the immediately preceding business day.

4/5

4. Change in interest-bearing liabilities and LTV post-drawdown

					Unit: million yen
		Pre-drawdown	Post-drawdown	Change
		As of December 24, 2021	As of March 31, 2022
Short-term loans			―	―	―
Long-term loans			267,137	267,137	―
Total of loans			267,137	267,137	―
Investment corporation bonds			30,500	30,500	―
Total interest-bearing liabilities		297,637	297,637
LTV based on total assets	(Note)		43.5%	43.5%
Note: "LTV based on total assets" (%) = Interest-bearing	liabilities ÷ Expected total assets × 100
"Expected total assets" is calculated by adding or	subtracting the increase or decrease amount of interest-bearing

liabilities and unitholders' capital since September 1, 2021 to the total assets as of the end of the 39th fiscal period ended August 31, 2021. LTV figure is rounded to the one decimal place. Accordingly, change in the LTV figures may not tally due to rounding error.

5. Additional information for investors

With respect to the risks associated with new debt financing, the content of "Investment Risks" stated in our Security Report (Yukashoken Hokokusho) for the 39th fiscal period ended August 31, 2021, has not changed.

Note: This is the English translation of original Japanese documents and is provided solely for information purposes. If there are any discrepancies between the translation and the Japanese original, the latter shall prevail.

5/5