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 in the Daiwa House Group’s basic approach and accordingly engages in green finance which encompasses issuance of green bonds in order to further promote real estate investment management in a manner that places consideration on ESG initiatives.

Green Finance Framework

■Eligibility criteria

The proceeds from green bonds or green loans are used for funding acquisitions of eligible green assets that meet the following eligibility criteria and refinancing of such funds, or otherwise funding renovation work and refinancing of such funds.

1. Eligibility criteria 1 (eligible green assets)
Properties which have received or will receive certification from a third-party certification body under any of the following (1) to (3).
(1) DBJ Green Building Certification: 3 Stars, 4 Stars or 5 Stars
(2) CASBEE for Real Estate Certification: B+ Rating, A Rating or S Rating
(3) BELS Certification: 3 Stars, 4 Stars or 5 Stars

2. Eligibility criteria 2 (renovation work)
Renovation work that makes it possible to reduce energy consumption, CO2 emissions or water consumption by 10% or more.

■Management of proceeds

The maximum amount procured through green finance, referred to as the “eligible green debt amount,” is calculated by multiplying the loan-to-value ratio (LTV) as of the end of the most recent fiscal period by the total eligible green assets, calculated as the total acquisition price of eligible green assets plus total funds for renovation work which meet eligibility criteria 2.

Fiscal period August 2019 (27th fiscal period)
Total eligible green assets (million yen) 209,741
LTV 41.5%
Eligible green debt amount (million yen) 87,042

Reporting

■Reporting on status of proceed allocation

Balance (million yen)
Green finance 6,000
Green bonds 6,000
Green loans -
* The amount stated refers to the balance as of November 25, 2019.

Proceeds related to DHR’s green finance are currently allocated as follows.

Green bonds

Name Issue amount
(million yen)
Interest
rate
Issue
date
Redemption date Unallocated amount
(million yen)
External
certifications
9th Unsecured Investment Corporation Bonds 6,000 0.53% November 25,
2019
November 22,
2029
- JCR Green Bond Evaluation of “Green 1” rating

Green Loan

Lender Balance
(million yen)
Interest
rate
Borrowing
date
Repayment date Unallocated amount
(million yen)
External
certifications

■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 types of environmental certifications DHR's properties have received
Please click here for further details.

・Water consumption
・Energy consumption
・CO2 emissions (GHG gas emissions)
Please click here for further details.

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