Green Finance
TOKYU REIT has formulated the Framework in order to contribute to the realization of a sustainable environment and society through financing in investments contributing to the resolution of environmental issues (green financing) and to strengthen the financing base through the expansion of the investor base interested in ESG investments.
Overview of Green Finance Framework
◆Use of Funds
Funds procured through green finance (the “Procured Funds”) shall be allocated to funds for new acquisition of assets fulfilling the green eligibility criteria（1）described below (the “Green Buildings”), funds for renovation work, etc. fulfilling the green eligibility criteria（2）described below (the “Renovation Work, etc.”), or refinancing of borrowings or investment corporation bonds required for them (the “Refinancing of Borrowings, etc.”).
◆Green Eligibility Criteria
（1）Green Buildings
Structures that have acquired or are scheduled to acquire one of the environmental certifications from third-party certification bodies in (i) to (iv) below that are effective as of the payment date of green bonds or the drawdown date of green loans.
| Type | Eligibility Rank |
| ①DBJ Green Building Certification | 3, 4, or 5 Stars |
| ②CASBEE Certification |
■CASBEE - Building, CASBEE - Real Estate: Rank S, A, or B+ |
| ③BELS Certification |
■Fiscal 2016 standard |
| ④LEED Certification （LEED-BD+C、LEED-O+M、 LEED-ND） |
Platinum, Gold or Silver *Limited to v4 or newer |
（2）Renovation Work, etc.
Renovation Work, etc. fulfilling one of the criteria in (i) to (iii) below
(i) Renovation work intending to improve the number of stars or rank by one or more for one of the certifications in green eligibility criteria（1）
(ii) Renovation work capable of reducing energy consumption, greenhouse gas emission or water consumption by 30% or more
(iii) Introduction or acquisition of facilities related to renewable energy
◆Evaluation and Selection Process of Projects
Upon the evaluation and selection of Green Buildings and Renovation Work, etc., the Finance and IR Division considers the adequacy based on the sustainability policy and green eligibility criteria at Tokyu REIM, and the President and Chief Executive Officer conducts evaluation and selection after confirmation by the Sustainability Promotion Committee. The details will be reported at Tokyu REIM’s Board of Directors and TOKYU REIT’s Board of Directors’ meeting.
◆Management of Procured Funds
If there are unallocated funds, the Procured Funds shall be managed as cash or cash equivalents. If the assets subject to the use of funds are excluded from the target due to sale or damage, etc. by the date of redemption or repayment of the targeted investment corporation bonds or borrowings even after the allocation of the entire amount, the unallocated funds which occur temporarily shall be managed through Portfolio Management (Note).
(Note) “Portfolio Management” refers to the management method of confirming that the total balance of green finance does not exceed the amount of green eligible debt in each fiscal period. Moreover, green eligible debt is calculated with the formula of total acquisition price of Green Buildings × total assets LTV ratio (as of the end of fiscal period) + amount invested in Renovation Work, etc., and is the maximum amount of the balance of green finance.
（as of Oct. 30, 2024）
|
Total Acquisition Price of Green Buildings |
Total Assets LTV |
Amount Invested in Renovation Work, etc. |
Green Eligible Debt |
Balance of |
|
173,754 million yen （16 Properties） |
44.6% | ― | 77,494 million yen |
23,500 million yen |
◆Reporting
- Reporting of the status of allocation of funds
＜Green Bonds＞（as of Oct. 30, 2024）
| Name of Green Bonds |
Total Issue Amount (Million yen) |
Issue Date |
Maturity Date |
Green |
Green |
|
9th Series Unsecured |
3,000 |
2022/10/14 | 2027/10/14 |
3,000 |
― |
|
10th Series Unsecured |
3,000 |
2023/1/23 | 2033/1/21 |
3,000 |
― |
| Total |
6,000 |
6,000 |
― |
（as of Oct. 30, 2024）
| Name of Green Loan |
Total Amount (Million yen) |
Origination Date |
Maturity Date |
Green Finance |
Green Finance |
|
Daido Life Insurance |
500 |
2022/12/26 | 2028/12/26 |
500 |
― |
|
Syndicate of lenders |
5,000 | 2023/1/30 | 2030/1/30 | 5,000 | ― |
|
Shinkin Central Bank |
1,000 |
2023/1/30 | 2027/1/30 |
1,000 |
― |
|
Mitsui Sumitomo |
1,000 | 2023/1/30 | 2027/1/30 | 1,000 | ― |
|
Daido Life Insurance |
1,500 | 2023/3/10 | 2028/3/10 | 1,500 | ― |
|
Nippon Life Insurance |
500 | 2023/7/31 | 2029/1/31 | 500 | ― |
|
Nippon Life Insurance |
1,500 | 2023/10/10 | 2031/10/10 | 1,500 | ― |
|
Mizuho Bank, Ltd. |
2,000 | 2023/12/27 | 2026/12/27 | 2,000 | ― |
|
Mitsubishi UFJ Trust |
2,500 | 2024/9/26 | 2032/9/26 | 2,500 | ― |
|
The Bank of Fukuoka, Ltd. |
1,000 | 2024/10/21 | 2031/10/21 | 1,000 | ― |
| Kansai Mirai Bank, Limited |
1,000 | 2024/10/21 | 2031/10/21 | 1,000 | ― |
| Total |
17,500 |
17,500 |
― |
（Note 1）The syndicate of lenders consists of The Bank of Fukuoka, Ltd., The Yamagata Bank, Ltd., THE HACHIJUNI BANK, LTD., Kansai Mirai Bank, Limited, The Bank of Kyoto, Ltd., The 77 Bank, Ltd., The Chiba Bank, Ltd., JOYO BANK, Ltd., and THE NISHI-NIPPON CITY BANK, LTD.
（Note 2）CONZE Ebisu subject to the use of funds has been disposed on September 30, 2024 and the funds are therefore transferred to Portfolio Management.
-
＜Green Buildings＞（as of Oct. 30, 2024）
| Name of Property | Acquisition Price (Million yen) |
CASBEE Certification |
BELS Certification |
|
| QFRONT | 15,100 | A | ― | ― |
| Lexington Aoyama | 4,800 | S | ― | ― |
| cocoti | 24,500 | A | ― | ― |
| TOKYU REIT Shimokitazawa Square | 2,257 | A | ― | ― |
| TOKYU REIT Jiyugaoka Square | 3,160 | A | ― | ― |
| Tokyu Nampeidai-cho Building | 4,660 | S | ★★★★ | ― |
| Tokyu Sakuragaoka-cho Building | 6,620 | S | ― | ― |
| TOKYU REIT Kamata Building | 4,720 | A | ― | ― |
| TOKYU REIT Toranomon Building | 10,177 | S | ― | ― |
| Kojimachi Square | 9,030 | A | ★★★ | ― |
| TOKYU REIT Shinjuku Building | 9,000 | A | ― | ― |
| Tokyu Toranomon Building | 18,550 | A | ― | ― |
| Tokyu Bancho Building | 28,480 | A | ― | ― |
| TOKYU REIT Shibuya Miyashita Koen Building | 6,000 | A | ― | ― |
| Aoyama Oval Building | 18,600 | S | ー | ー |
| Meguro Higashiyama Building | 8,100 | S | ― | ― |
＜Environmental Performance Data＞
|
Energy Consumption |
GHG Emissions |
Water Consumption |
||||
| Scope１ | Scope２ | Scope３ | ||||
|
FY2023 Feb. 2023 –Jan. 2024 |
40,270 （179,973） |
2,569 | 168 | 760 | 1,641 | 40,524 （121,735） |
*The total amount of use in FY 2023 (from February 2023 to January 2024) targeting the green buildings as of the end of the fiscal period ended January 2024 (FP 41) is indicated. The figures are calculated in accordance with the percentage owned for properties under co-ownership or compartmentalized ownership.
*Energy consumption and water consumption are calculated for the portion of the portfolio over which TOKYU REIT has management rights, while the figures in parentheses are actual figures including tenant emissions.
*Scope 1 is city gas used in common areas, Scope 2 is electricity, water and steam used in common areas and Scope 3 is electricity, water and city gas used in exclusive areas and those contracted directly to tenants.
◆Evaluation by External Organization
TOKYU REIT acquired Green1 (F), the highest rating in “Green Finance Framework Evaluation,” from Japan Credit Rating Agency, Ltd. (JCR) as a third-party evaluation of the eligibility of the framework.
Please refer to the JCR website for details. https://www.jcr.co.jp/en/greenfinance/