Comforia Residential REIT : Notice Concerning Borrowing of Funds and Repayment of Loan

March 23, 2022

For Immediate Release

Real Estate Investment Trust Securities Issuer:

Comforia Residential REIT, Inc

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

Takehiro Izawa

Executive Director

(Code: 3282)

Asset Management Company:

TLC REIT Management Inc.

Masaoki Kanematsu

President & CEO

Inquiries:

Daisuke Kawauchi

General Manager of Strategy Department

Comforia Management Division

(TEL: +81-3-6455-3388)

Notice Concerning Borrowing of Funds and Repayment of Loan

Comforia Residential REIT, Inc ("CRR") announces that it decided today to proceed with the borrowing of funds and repayment of loan. Details are as follows:

1． Description of New Borrowing and Repayment

(1) Description of New Borrowing

• Long-termLoans（Term：1 year 6 month, variable interest rate）

• Long-termLoans（Term：2 year, variable interest rate）

1

• Short-termLoans（Term：1 year, variable interest rate）

• Long-termLoans（Term：8 year, fixed rate）

2

(Note 1) The base rate used for the calculation period for interest to be paid on interest payment dates is the 1-month Yen TIBOR announced by JBA TIBOR Administration(JBATA), two business days before the interest payment date immediately preceding each interest payment date. However, if the calculation period is not one month, the base rate will be the one corresponding to the period that will be calculated based on a method provided for in the agreement.

After this, CRR will not announce the interest rate decisions for its borrowings on a floating-rate basis.

For changes in the yen TIBOR of the JBA, the base rate, please check the website of JBATA. (http://www.jbatibor.or.jp/english/). (Note 2) Funds will be borrowed at a fixed interest rate, which will be announced once it has been determined.

(2) Description of Repayment of Loan

Current portion of long-term loans (Term：3 year, variable interest rate)

2．Reason for Borrowing and Repayment

CRR will appropriate the funds to acquire the investment assets as described in the press release titled "Notice Concerning Acquisition of Investment Assets (COMFORIA SAKURAJOSUI, and other 5 assets)"issued on January 5, 2022 and to pay the expenses related to the acquisition. Also CRR will appropriate the funds to repay loans (refer to 1.(2) shown above for details).

3．Amount, Use, and Scheduled Time of Disbursement of Funds to Be Raised

(1) Amount of funds to be raised

A total of 9,600 million yen

(Borrowing scheduled on March 29, 2022 : 1,800 million yen)

(Borrowing scheduled on March 31, 2022 : 2,800 million yen)

(Borrowing scheduled on April 4, 2022 : 5,000 million yen)

(2) Specific use of funds to be raised

Funds will be used ① to acquire the investment assets (refer to 2. shown above for details), and ② to repay loans (refer to 1.(2) shown above for details),

Funds raised by the borrowing scheduled on March 29, 2022 will be used to acquire the investment assets.

Funds raised by the borrowing scheduled on March 31, 2022 will be used to repay loans.

Funds raised by the borrowing scheduled on April 4, 2022 will be used to acquire the investment assets.

3