Green Finance

Green Finance Framework

Hulic Reit, Inc. (Hulic Reit) aim to strengthen its funding base by expanding the group of investors interested in ESG investment, as well as to further promote initiatives for sustainability.

Green Finance Framework

Use of Proceeds

The proceeds from green finance will be used for funding acquisitions of eligible green assets and refinancing of such funds, or otherwise funding renovation work of eligible green assets.

Eligibility criteria

Eligibility criteria 1 (Eligible green assets)

Properties that have obtained or are expected to obtain any third-party certificate that falls under items ("Eligible green assets ")

  • DBJ Green Building Certification : Three, four or five stars
  • BELS : Three, four or five stars
  • CASBEE Real Estate Certification : B+, A or S ranking
  • LEED certification : Silver, Gold or Platinum
Eligibility criteria 2 (Renovation work)

Satisfy any of the following

  • Renovation work intended to increase the number of stars or rank by one or more levels in any certfiication of eligible green assets
  • Renovation work intended to reduce energy consumption, CO2 and other greenhouse gas emissions, or water use by at least 10%
  • Installation or acquisition of renewable energy-related facilities

Management of Proceeds

The maximum amount of green finance shall be the amount of debt calculated by multiplying the total book value of Hulic Reit's portfolio of eligible green assets at the end of each fiscal period by the loan to value ratio at the end of the fiscal period (hereinafter called "amount of eligible green debt"), and the total outstanding balance of green finance at the end of each fiscal period shall be managed so as not to exceed the amount of eligible green debt.

  • Owned assets and eligible green assets (excludes "Orchid Square (co-ownership interest of 50%)" and "Shinagawa Season Terrace" transferred as of March, 2021.) are shown as assets held at the end of the most recent period (as of February 28, 2021).
  • The book value of each asset at the end of the most recent period (as of February 28, 2021) is rounded down to the nearest million yen.

Reporting

Once a year, the following items are disclosed on Hulic Reit's website or in various disclosure materials:

  • If there are proceeds not yet allocated through green finance, the allocation of proceeds
  • As long as there is an outstanding balance of green finance, the total book value of eligible green assets , the loan to value ratio, the amount of eligible green debt, and the outstanding balance of green finance

In addition, as long as there is an outstanding balance of green finance, the following items are disclosed on Hulic Reit's website or various disclosure materials once a year:

  • Status of certification of eligible green assets and evaluation of certification
  • Energy consumption, CO2 and other greenhouse gas emissions, and water consumption for eligible green assets as a whole (limited to available assets)
  • Either energy consumption, CO2 and other greenhouse gas emissions, or water usage before and after renovation of eligible green assets that have been renovated, etc.

Reporting on Allocation of Proceeds

Total amount of outstanding green bonds 3,000 million yen
Amount of proceeds not yet allocated

Green Bond Summary

Total issue amount
(Millions of Yen)
Interest rate
(%)
Offering date Redemption date Remarks Press releases
Sixth Series Unsecured Investment Corporation Bond (with pari passu conditions among specified investment corporation bonds)(Green Bonds) 3,000 0.270 October 29, 2020 October 29, 2025 Unsecured
Unguaranteed
PDF
Total 3,000 - - - - -

Impact Reporting

Hulic Reit's eligible green assets

Property name Acquired third-party certification Book value (Millions of Yen)
(Note2)
Hulic Kamiyacho Building CASBEE Real Estate Certification : S ranking 55,508
Toranomon First Garden DBJ Green Building Certification : Four stars
CASBEE Real Estate Certification : S ranking
8,106
Hulic Takadanobaba Building CASBEE Real Estate Certification : A ranking 3,731
Hulic Kanda Building BELS:Three stars 3,538
Ochanomizu Sola City DBJ Green Building Certification : Five stars 36,505
Hulic Toranomon Building DBJ Green Building Certification : Four stars
BELS:Three stars
17,875
Hulic Shibuya 1 Chome Building CASBEE Real Estate Certification : A ranking 5,083
Hulic Higashi Nihombashi Building CASBEE Real Estate Certification : S ranking 3,445
Hulic Ginza 7 Chome Building CASBEE Real Estate Certification : A ranking 21,166
Hulic Asakusabashi Building DBJ Green Building Certification : Five stars
BELS:Three stars
4,844
Hulic Ryogoku Building CASBEE Real Estate Certification : A ranking
BELS:Three stars
5,582
Hulic Asakusabashi Edo-dori CASBEE Real Estate Certification : A ranking 5,474
Hulic Nakano Building CASBEE Real Estate Certification : A ranking 3,216
Oimachi Redevelopment Building (#1) DBJ Green Building Certification : Three stars 6,273
HULIC &New SHIBUYA BELS:Five stars
CASBEE Real Estate Certification : A ranking
3,104
Hulic Mejiro CASBEE Real Estate Certification : S ranking
BELS:Four stars
5,714
Hulic Hachioji Building CASBEE Real Estate Certification : A ranking
BELS:Three stars
4,907
Total 194,079
  • Eligible green assets are shown as assets held as of July 30, 2021.
  • The book value of eligible green assets at the end of the most recent period (as of February 28, 2021) is shown rounded down to the nearest million yen.

Energy consumption per year

Energy consumption per year
(MWh)
CO2 emissions per year
(t-CO2)
Water consumption per year
(1,000m3)
FY2020 21,911 9,434 91
  • When calculating performance value (the entire portfolio), the scope of properties included is as follows:
    ・ Eligible green assets held throughout the year are included (limited to properties for which data is available).
    ・ Eligible green assets in which Hulic Reit holds a share are calculated based on figures equivalent to the shared held by Hulic Reit at the beginning of each year.
  • CO2 and other greenhouse gas emissions are calculated by multiplying energy consumption by the coefficients in the Ministry of the Environment's Greenhouse Gas Emissions Calculation, Reporting, and Disclosure System.
  • The various figures for Oimachi Redevelopment Building (#1) are combined with the figures for Oimachi Redevelopment Building (#2).

Evaluation by an External Organization

For eligibility of the Green Bonds, Hulic Reit has been assigned a final evaluation of “Green 1,” the highest evaluation grade in the JCR Green Bond Evaluation, by Japan Credit Rating Agency, Ltd ("JCR"). For details, please refer to the following JCR homepage.

https://www.jcr.co.jp/en/

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