Mori Hills REIT Investment (TYO:3234) said it entered interest rate swap agreements to hedge interest rate risks on six long-term loans totaling 4.79 billion yen, according to a Monday filing on the Tokyo Stock Exchange.
The swaps convert floating-rate debt to fixed-rate payments ranging from 1.4173% to 1.654%, effective from late July.
The agreements cover borrowings from lenders including Shinkin Central Bank, Sumitomo Mitsui Trust Bank, Resona Bank, and Hiroshima Bank.
Swap counterparties include Mizuho Securities, Sumitomo Mitsui Trust Bank, and The Norinchukin Bank. Mori Hills REIT Investment said the move aims to reduce volatility in interest payments and stabilize financing costs.