Tokyo Tatemono Investment Advisors

We have formulated a Green Finance Framework to further promote sustainability initiatives through green finance (green bonds, green loans, or green equity) for the private REITs and private funds that we manage.

Use of Funds Raised

1. Eligibility Criteria for Green Finance Investment
2. The funds raised through green finance by the private REITs and private funds managed by us are planned to be used to acquire, refinance, and renovate green buildings that meet the following eligibility criteria.


3. [Eligibility Criteria]
4. (1)Green Building
5. Properties that have already obtained or will obtain any of the following third-party certifications from ① to ⑦
6. ① DBJ Green Building Certification: 3 stars or more
7. ② CASBEE (new construction/real estate): B+ rank or higher
8. ③ Municipal CASBEE: B+ rank or higher
   　　*Valid for three years from the construction completion date
9. ④ BELS (FY2016 standard): 3 stars or more (excluding existing ineligible properties)
   　　*Existing ineligible properties: Factories, etc.
   　　 (including logistics warehouses) BEI = Higher than 0.75
   　 BELS (FY2024 standard): Level 4 or higher
   　　*Non-residential only
   　　*Homes with renewable energy facilities: Level 3 to Level 6
   　　*Homes without renewable energy facilities: Level 3 to Level 4
10. ⑤ BELS (ZEB): ZEB Oriented or higher
11. ⑥ BELS (ZEH): ZEH Oriented or higher, ZEH-M Oriented or higher
12. ⑦ LEED Certification: Silver or higher
    　　*(BD+C applies to v4 and later)
13. (2)Renovation work
14. Renovation work for facilities that meet any of the following criteria ① to ③
15. ① Renovation work intended to improve the rank or number of stars by one or more levels in any of the environmental certifications established by green buildings (1).
16. ② Renovation work on facilities at managed real estate with the aim of making beneficial improvements to the environment, such as reducing energy consumption, greenhouse gas emissions, and water consumption (expected to reduce by 30% or more compared to the previous level)
17. ③ Introduction or acquisition of renewable energy-related facilities

1. Green Investment Policy Based on a Long-Term Vision
2. Aiming for a sustainable future, we will work with investors and other stakeholders to promote green investments that take into account long-term environmental conservation.

1. Funding Methods and Investment Destinations
2. ・Funding methods: investment units, silent partnership investments, preferred investments, capital investments, corporate bonds, loans
3. ・Investment destination: Funds for property acquisition, refinancing of those funds, and funds for renovation work

Project Selection Criteria and Process

Project Selection Process

1. Parties involved in project selection
   The projects to which the proceeds will be used will be selected by the Private REIT Management Department for private REITs, and by the Investment Strategy Department or the Investment Management Department for private funds.
2. Consideration of conformity with eligibility criteria
   Conformity to the eligibility criteria will be confirmed by the Private REIT Management Department for private REITs, and by the Investment Strategy Department or the Investment Management Department for private funds.
3. Project selection process
   Regarding the raising of funds through green finance for the target projects, the Private REIT Management Department will be the initiator of the proposal for private REITs, and the Investment Strategy Department or Investment Management Department will be the initiator of the proposal for private funds, and the proposal will be approved by the Investment Strategy Committee and then by the President to make a decision. If a decision is made to raise funds through green finance, the initiator will report at the Sustainability Promotion Committee.

The Negative Environmental Impacts of Green Projects and How To Address Them

1. Anticipated risks
   Property defects, troubles with neighboring residents, etc.
2. Risk mitigation measures
   Due diligence at the time of acquisition, property inspection, etc.

Disclosure of the Selection Criteria and Process for Eligible Projects

1. The project selection criteria and process will be disclosed in an appropriate manner for each private REIT and private fund, including on the website, in press releases, and in green finance evaluation reports by Japan Credit Rating Agency, Ltd.

How the Funds Are Managed

1. Allocation Plan for Raised Funds
2. The funds raised through green finance will be promptly allocated to the funds for the acquisition of properties that meet the eligibility criteria, the refinancing of those funds, and the funds for renovation work.

1. Tracking Management of Raised Funds
2. Funds raised through green finance will be managed in an Excel spreadsheet for managing green finance for private REITs and private funds (hereinafter referred to as the "Green Finance Management Sheet"), which will clearly state information such as the procurement method, procurement date, amount, and source of funds.
   Green finance for private REITs will be managed by the Private REIT Management Department, and for private funds, by the Investment Management Department, with the head of each department acting as the general manager.
   In addition, when a property acquired using funds raised through green finance is sold, the sales proceeds will also be managed in Green Finance Management Sheet, which will clearly state the date of deposit, amount, redemption/repayment recipient, redemption/repayment date of the sales proceeds (or information regarding the allocation of the proceeds to uses in the "Eligibility Criteria for Green Finance Investment"), etc.

1. Internal Controls and External Audits of Tracking Management
2. We conduct internal audits. In addition, private REITs undergo external audits by auditing firms for all accounting matters, including matters related to fundraising. Private funds are required to submit the financial statements they prepare to investors, which means that they are subject to additional control from a third party other than the parties involved, just like an external audit.

1. How Unallocated Funds Are Managed
2. Until a decision is made on the allocation of the raised funds, the funds will be managed in cash or cash equivalents.
   Even after full allocation, if the assets subject to the use of raised funds are no longer eligible for use due to sale or damage before the funds are redeemed/repaid, the temporary unallocated funds will be managed through portfolio management. However, funds raised through green equity will not be subject to portfolio management, and if unallocated funds occur, the green equity label will be removed unless it is clear that other properties are eligible for reallocation.
3. *Portfolio management
   The "Green Eligible Debt Limit" is calculated by multiplying the size of the eligible green projects (the total acquisition price of owned properties that meet eligibility criteria (1) and the total expenditures for construction and renovation projects that meet eligibility criteria (2))by the LTV of total assets as of the end of the most recent fiscal year, and the Green Eligible Debt Limit will be confirmed to ensure that the balance of green finance does not exceed the Green Eligible Debt Limit.

Reporting

1. Disclosure Status Regarding Allocation of Funds
2. We plan to disclose the following items annually on our website for each private REIT and private fund. However, green equity will only be disclosed for the period in which it exists.
3. The names of private funds will be disclosed to the extent practicable, and in cases where it is difficult for sources of funds (lenders, investors, etc.) to determine the allocation status of their loans and investments due to the non-disclosure of the names of the fundraisers (borrowers, investees, etc.), a separate report will be made to the sources upon request.
4. ・Allocation amount or percentage
5. ・If it is a refinance, indicate that fact.
6. ・If there are unallocated funds, the unallocated amount or percentage and the planned allocation date

1. Impact Reporting Disclosure Method and Frequency
2. We plan to disclose this information annually on our website. However, green equity will only be disclosed for the period in which it exists.
   The names of the fundraisers will be disclosed to the extent practicable. In cases where it is difficult for sources of funds to determine the impact reporting of their own loans and investments due to non-disclosure of the names of the fundraisers, a separate report will be made to the sources of funds upon request.

1. KPIs (Key Performance Indicator) in Impact Reporting
2. ①Type and rank of environmental certification for the acquired assets
3. ②In the case of renovation work:
4. 　・Changes in environmental certification rank due to renovation work
5. 　・Amount of reduction in energy consumption, etc.
   　　due to renovation work
6. 　・Annual power generation or estimated CO2 reduction from introduced
   　　renewable energy sources