Green Finance｜Sustainability & ESG｜Advance Residence Investment Corporation

ADR has established Green Finance Framework in 2019 and is implementing green finance with the aim of 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.

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

・Eligible Criteria 1
　Properties that have already acquired or are planning to acquire one of the following certifications from a third-party certification organization
　① 3, 4, or 5 stars in DBJ Green Building Certification
　② B+, A, or S rank in CASBEE building and real estate certification (excluding local government version)
　③BELS (2016 criteria): 3, 4, or 5 stars (excluding existing non-compliant buildings)
　　BELS (2024 criteria):
　　 Non-residential properties: Level 4, Level 5, or Level 6*1
　　 Residential properties without renewable energy equipment: Level 3 or Level 4^*2
　　 Residential properties with renewable energy equipment: Level 3, Level 4, Level 5, or Level 6^*2
　*1 For new acquisitions of existing buildings built before 2016, the level must be 3 or higher and the building must not be non-compliant.
　*2 For new acquisitions of existing buildings built before 2016, the level must be 2 or higher regardless of whether or not renewable energy is used.

・Eligible Criteria 2
　　Refurbishment work (with the aim of making beneficial improvements in terms of the environment, such as energy efficiency and water consumption performance) on real estate managed by ADR (with the expected effect of reducing usage by 30% compared to conventional levels).

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

Property No.	Name	Rank of evaluation DBJ　Green Building Certification	Rank of evaluation CASBEE 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

3. Management of financing

・Appropriate internal management will be carried out for funds procured through green finance and unallocated funds. If there are unallocated funds, they will be managed as cash or cash equivalents until they are allocated.

・Even in cases where the Green Eligible Assets for which the funds raised by ADR have been allocated are sold, or where the Green Eligible Assets in question no longer meet the eligibility criteria for some reason, the total amount of the Acquisition Price of the properties that meet the eligibility criteria 1 and the total amount of the expenditure for the construction and renovation projects that meet the eligibility criteria 2, multiplied by the total assets LTV at the end of the most recent fiscal year, will be calculated as the “Green Eligible Debt Limit”, and the balance of the Green Finance will be managed so that it does not exceed the Green Eligible Debt Limit. multiplied by the LTV (total assets base) at the end of the most recent fiscal period, and the balance of green finance will be managed so that it does not exceed the maximum amount of green-qualified liabilities.

As of February 28, 2025 (million yen)

A. Total Acquisition Price (Qualifying Criterion 1)	147,235
B. Total expenditure on facility renovation work (Qualifying Criteria 2)	0
C. Total Eligible Green Assets（A+B)	147,235
D. LTV^*	48.5%
E. Maximum amount of Green Eligible Liabilities（C×D）	71,409

^*The LTV is the ratio as of the end of July 2024.

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. 24, 2031	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

Oct. 24, 2031

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 (Trust Account)	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
MUFG Bank, Ltd.	Jul. 31, 2024	Jul. 29, 2033	1,000	Appropriated	T-189 S-036
MUFG Bank, Ltd.	Jul. 31, 2024	Jan. 31, 2030	1,000	Appropriated	T-189 S-036
The Chiba Bank, Ltd. The Norinchukin Bank	Jul. 31, 2024	Jan. 31, 2030	2,500	Appropriated	T-189 S-036
Resona Bank, Limited.	Jul. 31, 2024	Jul. 31, 2034	1,600	Appropriated	T-189 S-036
The Bank of Fukuoka, Ltd.	Nov. 29, 2024	Nov. 30, 2034	1,500	Appropriated	T-044
Mitsubishi UFJ Trust and Banking Corporation (Trust Account)	Jan. 31, 2025	Jan. 30, 2037	1,150	Appropriated	T-057 T-170

(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 Usage
- Waste Volume
- 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 Usage
- Waste Volume

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）	Waste Volume （t）
T-039 RESIDIA TOWER Meguro-Fudomae	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

・Notice Concerning Debt Financing (Including Green Loan) and Repayment of Loan on November 21, 2024

・Notice Concerning Debt Financing (Including Green Loan) and Repayment of Loan on January 24, 2025