Daiwa House REIT

TSE code : 8984

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Green Finance

The Daiwa House Group’s basic approach is “Creating Dreams, Building Hearts.” As a group that co-creates value for individuals, communities and people’s lifestyles, the group aims to build trust relationships with stakeholders and contribute to society through its businesses, and to realize a sustainable society by meeting the challenge of achieving “zero environmental impacts.” DHR shares the basic stance of the Daiwa House Group and engages in Green Finance, including the issuance of Green Bonds, to further promote real estate investment management that considers ESG.

Green Finance Framework

■Third-party evaluation

DHR has obtained a rating of “Green 1 (F)” for our Green Finance Framework. This is the highest rating offered in JCR Green Finance Framework Evaluations conducted by the third party, Japan Credit Rating Agency, Ltd. (JCR).
For details on this evaluation, see the JCR website at https://www.jcr.co.jp/en/greenfinance/

■Eligibility criteria

Funds procured through Green Bonds or Green Loans are applied to the acquisition of eligible green assets that meet the eligibility criteria below, refinancing of those funds or funding or refinancing renovation work.

1. Eligibility criterion 1 (Eligible green assets)
Properties that have received or received one of the following three third-party certifications:
(1) DBJ Green Building Certification: 3 Stars, 4 Stars or 5 Stars
(2) CASBEE for Real Estate Certification: B+ rating to S rating
(3) BELS Certification: 3 Stars, 4 Stars or 5 Stars

2. Eligibility criterion 2 (Renovation work)
Renovation work that can reduce energy consumption, CO2 emissions or water usage by 10% or more

■Management of financing

The eligible green debt amount is calculated by multiplying the sum of the total acquisition price of eligible green assets and the total amount of renovation work that meets Eligibility criterion 2 (total amount of eligible green assets) by the interest-bearing-debt to total assets ratio (LTV) as of the end of the most recent fiscal period. This is the maximum amount for Green Finance.

Period August 2021 (31st fiscal period)
Total amount of eligible green assets
(millions of yen)
324,661
LTV 42.0%
Eligible green debt amount (millions of yen) 136,357

Reporting

■Reporting on status of fund allocation

Balance (millions of yen)
Green Finance 25,500
Green Bonds 15,000
Green Loans 10,500
* The amount stated refers to the balance as of October 1, 2021.

Green Bonds

Name Outstanding Issue
(millions of yen)
Interest
rate
Issue
date
Maturity Unallocated amount
(millions of yen)
Third-party
evaluation
9th Unsecured Investment Corporation Bonds 6,000 0.53% November 25,
2019
November 22,
2029
- JCR Green Bond Evaluation “Green 1”
10th Unsecured Investment Corporation Bonds 2,400 0.34% May 27,
2020
May 27,
2025
- JCR Green Bond Evaluation “Green 1”
11th Unsecured Investment Corporation Bonds 1,600 0.64% May 27,
2020
May 27,
2030
- JCR Green Bond Evaluation “Green 1”
12th Unsecured Investment Corporation Bonds 1,000 1.00% May 27,
2020
May 25,
2040
- JCR Green Bond Evaluation “Green 1”
14th Unsecured Investment Corporation Bonds 4,000 0.50% April 15,
2021
April 15,
2031
- JCR Green Bond Evaluation “Green 1”

Green Loans

Lender Balance
(millions of yen)
Interest
rate
Borrowing
date
Repayment date Unallocated amount
(millions of yen)
Third-party
evaluation
Sumitomo Mitsui Banking Corporation; Sumitomo Mitsui Trust Bank, Limited; MUFG Bank, Ltd.; Mizuho Bank, Ltd.; Development Bank of Japan Inc.; Mizuho Trust & Banking Co., Ltd.; Shinsei Bank, Limited; The Yamanashi Chuo Bank, Ltd.; Kansai Mirai Bank, Limited; Shinkin Central Bank; The Bank of Kyoto, Ltd.; The Yamaguchi Bank, Ltd. 10,500 0.56419% September 3,
2021
August 29,
2031
- JCR Green Loan Evaluation “Green 1”

■Impact reporting

DHR will annually disclose the following indicators on its website for as long as the funds procured through green finance are outstanding.

・Number and type of environmental certifications of portfolio assets
Please click here for further details.

・Water consumption
・Electric power consumption (energy consumption)
・CO2 emissions (GHG emissions)
Please click here for further details.

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