Green Finance

Ⅷ. Green Finance

A. Implementation of Green Finance

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.

B.Outline of Green Finance Framework

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 financing shall be allotted to fund the acquisition of assets which meet the eligible criteria (hereinafter referred to as “Eligible Green Assets”), to fund renovation work which meets the eligible criteria or fund the repayment of loans or redemption of investment corporation bonds that initially funded such acquisitions or renovations.

2.Eligible Green Assets

(1) Fund the acquisition of 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

Book Value of end of 25h period (million yen) Total Floor Area (㎡)

T-035

RESIDIA Nishi-Azabu

- A March 3, 2022 6,363 10,834.93

T-038

RESIDIA Roppongi-Hinokichokoen

★★★★ - January 28, 2021 3,501 6,269.11
T-039

RESIDIA TOWER Meguro-Fudomae

- S March 3, 2022 14,326 29,561.91
T-044

RESIDIA TOWER Azabujuban

★★★★ - August 26, 2020 5,977 11,053.03

T-054

RESIDIA Shibaura

-

A

July 29, 2022

4,174

12,540.48

T-056

RESIDIA Yutenji

★★★

-

July 28, 2021

5,076

5,846.64

T-057

Park Tower Shibaura Bayward Urban Wing

-

A

March 3, 2022

8,899

19,562.07

T-064

RESIDIA TOWER Nakameguro

★★★★

-

January 28, 2021

3,397

5,594.51

T-065

RESIDIA Sasazuka II

★★★

-

January 28, 2021

3,540

5,504.20

T-087

RESIDIA Ichigaya-Sadohara

★★★

-

July 31, 2020

4,218

7,549.82

T-093 RESIDIA Kamata

★★★

-

January 28, 2021

1,997

5,637.66

T-103 RESIDIA Kinshicho

★★★★

-

January 28, 2021

3,838

5,622.99

T-120 RESIDIA Bunkyo-Otowa

-

A

January 30, 2023

2,920

8,163.50

T-131

RESIDIA Mejiro

-

A

July 29, 2022

5,801

17,417.59

T-133

RESIDIA Nihonbashi-Bakurocho - A January 30, 2023 5,041 9,605.78
T-134 RESIDIA Suginami-Honancho - A January 30, 2023 3,515 7,561.63
T-140 RESIDIA Minami-asenjyu - S July 29, 2022 2,136 10,537.39
T-150 RRESIDIA TOWER Kami-Ikebukuro - S(Tower)
A(Park)
March 3, 2022 7,322

29,454.37

4,081.05

T-170 RRESIDIA Shin-Okachimachi II ★★★ - July 31, 2020 4,608 6,755.68

S-20

Pacific Royal Court Minato Mirai Ocean Tower

-

A

March 3, 2022

10,213

40,527.16

R-30

RESIDIA Izumi

★★★★

-

August 26, 2020

3,102

10,546.49

R-42

RESIDIA Nishijin

-

A

January 30, 2023

2,066

9,233.43

R-53

RESIDIA Higashi-zakura II

-

A

July 29, 2022

2,780

10,944.91

 

Total of Eligible Green Assets

 

 

 

114,822

290,203.37

 (2) Fund renovation work which meets the eligible criteriap

・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.

C. Appropriation of Funds

1. Green Bond

Bonds

Issue Date

Redemption Date

Issue Amount

(million yen)

Appropriation

of Funds

Fund Appropriation

Target (Property No.)

ADR Bond #31(Unsecured)

Jul. 24, 2019 Jul. 24, 2024 5,000 Appropriated T-039

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

2. Green Loan

Loans

Drawdown Date

Principal

Repayment Date

Amount

(million yen)

Appropriation

of Funds

Fund Appropriation

Target (Property No.)

Green Loan (Mizuho Bank)

Apr. 24, 2023 Apr. 24, 2024 2,000 Appropriated

S-020

T-057

D. Reporting

The environmental index of the eligible green assets (as of the end of June each year) is as follows.

1. Quantitative indicators (Water consumption, GHG emissions, etc.) in FY 2021

Property No. and Name

Energy Consumption(MWh)

GHG Emission (t-CO2)

Water Usage(m3)

T-039 RESIDIA TOWER MeguroFudomae

602 267 401
S-020 Pacific Royal Court Minato Mirai Ocean Tower 30,268 1,033 444

E. Release