Sustainability

Ⅶ. Green Finance

A. Issuance of Investment Corporation Bond (Green Bond)

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. It is with this belief that ADR issued green bond in 2019.

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

Date of acquisition of certification

Book Value of end of 19h period (million yen) Total Floor Area (㎡)

P-50

RESIDIA Nishi-Azabu

★★★★ March 4, 2019 6,476 10,834.93
P-55

RESIDIA TOWER Meguro-Fudomae

★★★★ March 4, 2019 14,616 29,561.91
P-62

RESIDIA TOWER Azabujuban

★★★★ August 25, 2017 6,097 11,053.03

P-73

RESIDIA Shibaura

★★★

July 31, 2019

4,336

12,540.48

P-76

Park Tower Shibaura Bayward Urban Wing

★★★★

March 4, 2019

8,915

19,562.07

C-35 RESIDIA Bunkyo-Otowa

★★★★

January 31, 2020

3,039

8,163.50

C-46

RESIDIA Mejiro

★★★

July 31, 2019

5,986

17,417.59

C-48

RESIDIA Nihonbashi-Bakurocho ★★★ January 31, 2020 4,998 9,605.78
C-49 RESIDIA Suginami-Honancho ★★★ January 31, 2020 3,521 7,561.63
C-55 RESIDIA Minami-asenjyu ★★ July 31, 2019 2,302 10,537.39
C-65 RESIDIA TOWER Kami-Ikebukuro ★★★★ March 4, 2019 7,913 40,910.59

S-20

Pacific Royal Court Minato Mirai Ocean Tower

★★★★

March 4, 2019

11,098

40,527.16

R-30

RESIDIA Izumi

★★★

August 25, 2017

3,223

10,546.49

R-42

RESIDIA Nishijin

★★★

January 31, 2020

2,185

9,233.43

R-53

RESIDIA Higashi-zakura II

★★★

July 31, 2019

2,894

10,944.91

 

Total of Eligible Green Assets

 

 

87,609

249,000.89

 (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. The status of Issuance of Green Bond

ADR Bond #31(Unsecured)
(Special Contract for Specified Bond)(Green Bond)

Issue Amount

(million yen)

5,000

Issue Date

Jul. 24, 2019

Redemption Date

Jul. 24, 2024
Coupon Rate 0.22%
Specific Usage

Repay a loan originally used in the acquisition of

RESIDIA TOWER Meguro-Fudoma

(DBJ Green Building Certification ★★★★)

Remarks Unsecured & Unguaranteed

 

D. Reporting

The fund allocation status and the environmental index of the eligible green assets (as of the end of June each year) are as follows.

1. Total amount of funds raised/Unallocated Procurement Fund Balance

Total amount of net proceeds 4,975million yen
Unallocated Procurement Fund Balance

0 yen

 

2. Quantitative indicators of RESIDIA TOWER Meguro-Fudomae

年度

Energy Consumption(MWh)

GHG Emission (t-CO2)

Water Usage(m3)

FY2019

632,142 335 320

E. Release