Green Finance｜Sustainability & ESG｜Advance Residence Investment Corporation

ADR believes that the issuing of green bonds will further promote ESG considerations in its asset management and enhance our financing base by broadening our investor universe, especially for investors interested in ESG investment. With this belief, ADR has developed a Green Finance Framework in 2019 and is implementing Green Finance.

In order to implement green financing in line with the requirements of the Green Bond Principles 2018 of the International Capital Market Association (ICMA), Green Loan Principles of the Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA) and the 2017 Green Bond Guidelines of Ministry of the Environment of Japan, ADR has formulated a green finance framework. Regarding the eligibility of the green finance framework, ADR has received a “Green 1 (F)” rating, the highest rating, in the JCR Green Finance Framework Evaluation by the Japan Credit Rating Agency, Ltd. (JCR), an institution which assesses green finance.

* Please visit the Green 1 (F)” rating in the JCR Green Finance Framework Evaluation for details.

1.Purpose of Funds procured through Green Finance

Funds procured through Green Bonds or Green Loans are applied to the acquisition of the following
Eligible Green Assets, refinancing of those funds or funding or refinancing renovation work.

2.Eligible Green Assets

(1) Funds for the acquisition of Eligible Green Assets

Assets meeting the eligible criteria (Eligible Green Assets) are assets that have acquired or are scheduled to acquire or to be rectified the following certifications.

• 3-star, 4-star or 5-star ratings in DBJ Green Building Certification

• B+, A or S rankings in CASBEE Certification

• 3-star, 4-star or 5-star ratings in BELS Certification

* Please visit the Acquisition of External Certification）for details.

Property No.	Name	Rank of evaluation DBJ　Green Building Certification	Rank of evaluation DBJ　Green Building Certification	Date of acquisition of certification	Acquisition Price （million yen）	Total Floor Space （㎡）
T-035	RESIDIA Nishi-Azabu	-	A	March 3, 2022	6,780	10,834.93
T-038	RESIDIA Roppongi-Hinokichokoen	-	A	January 26, 2024	3,570	6,269.11
T-039	RESIDIA TOWER Meguro-Fudomae	-	S	March 3, 2022	16,500	29,561.91
T-044	RESIDIA TOWER Azabujuban	-	A	August 25, 2023	6,190	11,053.03
T-054	RESIDIA Shibaura	-	A	July 29, 2022	4,670	12,540.48
T-056	RESIDIA Yutenji	-	A	January 26, 2024	5,260	5,846.64
T-057	Park Tower Shibaura Bayward Urban Wing	-	A	March 3, 2022	9,570	19,562.07
T-064	RESIDIA TOWER Nakameguro	-	A	January 26, 2024	3,300	5,594.51
T-065	RESIDIA Sasazuka II	-	A	January 26, 2024	3,760	5,504.20
T-087	RESIDIA Ichigaya-Sadohara	-	A	July 28, 2023	4,085	7,303.76
T-093	RESIDIA Kamata	-	A	January 26, 2024	2,640	5,637.66
T-103	RESIDIA Kinshicho	-	a	January 26, 2024	4,200	5,622.99
T-120	RESIDIA Bunkyo-Otowa	-	A	January 30, 2023	3,380	8,163.50
T-131	RESIDIA Mejiro	-	A	July 29, 2022	6,280	17,417.59
T-133	RESIDIA Nihonbashi-Bakurocho	-	A	January 30, 2023	5,500	9,605.78
T-134	RESIDIA Suginami-Honancho	-	A	January 30, 2023	3,834	7,561.63
T-140	RESIDIA Minami-senjyu	-	S	July 29, 2022	2,580	10,492.28
T-150	R RESIDIA TOWER Kami-Ikebukuro	-	S(Tower) A(Park)	March 3, 2022	8,250	29,454.37 4,081.05
T-170	R RESIDIA Shin-Okachimachi II	-	A	July 28, 2023	4,650	6,843.89
T-185	RESIDIA Shinagawa Seaside	-	A	January 26, 2024	3,315	3,604.99
T-189	RESIDIA Sendagi	-	A	July 26, 2024	2,912	2,745.30
S-020	Pacific Royal Court Minato Mirai Ocean Tower	-	A	March 3, 2022	14,000	40,527.16
S-036	Tokyo Student-House Musashi-Kosugi	★★★★★	-	July 26, 2024	5,835	6,845.00
R-030	RESIDIA Izumi	-	A	August 25, 2023	3,700	10,546.49
R-042	RESIDIA Nishijin	-	A	January 30, 2023	2,380	9,233.43
R-051	RESIDIA Miyakojima I&II	-	A	January 26, 2024	3,232	13,477.82
R-053	RESIDIA Higashi-zakura II	-	A	July 29, 2022	2,862	10,944.91
R-086	RESIDIA Kumamoto-Karashima	-	A	January 26, 2024	4,000	14,988.83
	Total of Eligible Green Assets				147,235	331,865.31

(2) Fund renovation work which meets the eligible criteria

・Construction work and equipment renovation work that contribute to energy conservation and environmental improvement

・Renovation works which meets the eligible criteria are works that aims to reduce energy consumption, CO2 emissions or water consumption by 10% or more.

1. Green Bond

Bonds	Issue Date	Redemption Date	Issue Amount （million yen）	Appropriation of Funds	Fund Appropriation Target (Property No.)
ADR Bond #34(Unsecured)	Oct. 25, 2021	Oct. 25, 2021	1,000	Appropriated	S-020
ADR Bond #35(Unsecured)	Oct. 25, 2021	Oct. 24, 2036	1,600	Appropriated	S-020

Bonds

Issue Date

Redemption Date

Issue Amount

（million yen）

Appropriation

of Funds

Fund Appropriation

Target (Property No.)

ADR Bond #34(Unsecured)

Oct. 25, 2021

1,000

Appropriated

S-020

ADR Bond #35(Unsecured)

Oct. 25, 2021

Oct. 24, 2036

1,600

Appropriated

S-020

2. Green Loan

Lender	Drawdown Date	Principal Repayment Date	Amount （million yen）	Appropriation of Funds	Fund Appropriation Target (Property No.)
Sumitomo Mitsui Trust Bank, Limited	Mar. 29, 2024	Mar. 31, 2034	1,500	Appropriated	T-185
Sumitomo Mitsui Trust Bank, Limited	Mar. 29, 2024	Mar. 30, 2029	1,500	Appropriated	T-185
Mitsubishi UFJ Trust and Banking Corporation	Apr. 24, 2024	Apr. 24, 2036	2,000	Appropriated	S-020 T-057
Mizuho Bank, Ltd.	Jul. 23, 2024	Jan. 24, 2033	1,000	Appropriated	T-039
SBI Shinsei Bank, Limited	Jul. 23, 2024	Jan. 24, 2033	1,500	Appropriated	T-039
The Yamaguchi Bank, Ltd.	Jul. 23, 2024	Jan. 24, 2033	1,500	Appropriated	T-039
The Keiyo Bank, Ltd.	Jul. 23, 2024	Jan. 24, 2033	1,000	Appropriated	T-039

(1) Funds for the acquisition of Eligible Green Assets
As long as the balance of Green Finance remains, ADR plans to disclose the following indicators annually for each Green Eligible Asset for which the proceeds have been allocated.
- Energy-consumption
- Greenhouse gas (CO2) emissions
- Water consumption
- Weight of waste
- Status of Environmental Certification Acquisition
（Number of Properties, Total Floor Space, Date of Certification, Type of Certification）
For more information, please click here

(2) Fund renovation work which meets the eligible criteria
As long as the balance of Green Finance remains, ADR plans to disclose annually one of the following indicators before and after the renovation work.
- Energy-consumption
- Greenhouse gas (CO2) emissions
- Water consumption
- Weight of waste

1. Quantitative indicators

(1) Funds for the acquisition of Eligible Green Assets

Property No. and Name	Energy Consumption （MWh）	GHG Emission （Scope1）（t-CO2）	GHG Emission （Scope2）（t-CO2）	Water Usage （m3）	Water Usage （t）
T-039 RESIDIA TOWER MeguroFudomae	594	0.000	0.000	610	8
S-020 Pacific Royal Court Minato Mirai Ocean Tower	992	0.000	0.000	578	-^*2
T-057 Park Tower Shibaura Bayward Urban Wing	448	0.112	0.000	312	-^*2
T-185 RESIDIA Shinagawa Seaside	9	0.000	0.000	4	0
T-189 RESIDIA Sendagi ^*3	-	-	-	-	-
S-036 Tokyo Student-House Musashi-Kosugi ^*3	-	-	-	-	-

*1 Review period：Jan-Dec 2023
*2 Data is not calculated and disclosed because the properties do not fall within the scope of waste aggregation. For information on data aggregation methods, please click here.
*3 Data is not calculated and disclosed because the properties are not subject to ownership during the 2023 environmental performance data compilation period.

・Notice Concerning Submission of Revised Shelf Registration Statement for Issuance of Green Bond on June 26, 2019

・Notice Concerning Issuance of Investment Corporation Bond (Green Bond) on October 19, 2021

・Notice Concerning Debt Financing (Green Loan) and Repayment of Loan on March 19, 2024

・Notice Concerning Debt Financing (Including Green Loan), Repayment of Loan, and Redemption of Bond on April 15, 2024

・Notice Concerning Debt Financing (Including Green Loan) and Redemption of Bond, Repayment of Loan and Early Repayment of Loan on July 11, 2024