Along with promoting sustainability initiatives, One REIT aims to strengthen the funding platform by expanding the ESG investor base through procurement of funds using green finance (green bonds, green loans).
Green Finance Framework
1. Use of proceeds
Funds procured through green finance will be used to acquire assets that meet either Eligibility Criteria 1 or Eligibility Criteria 2 described below (hereinafter referred to as “Green Eligible Assets”), fund renovation work, and refinance funds required for such initiatives.
2. Eligibility criteria
Eligibility Criteria 1
Properties which have already acquired/renewed or are scheduled to acquire/renew one of the following certifications granted by a third-party certification body from (1) to (4).
- (1) DBJ Green Building Certification: 3 stars to 5 stars
- (2) CASBEE Certification: CASBEE For Real Estate, CASBEE For Building (New Construction), Rank B+ to Rank S
- (3) LEED Certification: Silver to Platinum (*1)
- (4) BELS Certification:
- (2016 standard)3 stars to 5 stars (*2)
- (2024 standard)Non-residential properties: Level 4 to Level 6 (*3)Residential properties with renewable energy facilities: Level 3 to Level 6 (*4)Residential properties without renewable energy facilities: Level 3 to Level 4 (*4)
- *1 For LEED Certification BD+C, from v4
- *2 Not existing non-compliant (factories, etc. (including logistics warehouses): BEI = 0.75 or higher)
- *3 Existing buildings built before 2016 to be acquired must be level 3 or higher and not existing non-compliant
- *4 Existing buildings built before 2016 to be acquired must be level 2 or higher, regardless of whether they have renewable energy facilities
Eligibility Criteria 2
Renovation work of facilities, etc. that meets any of the following (1) to (3).
- (1) Renovation work intending to improve the number of stars or the rank by one or more for any green eligibility criteria (green building) certification
- (2) Facility renovation work aiming for beneficial environmental improvement, such as energy efficiency and water consumption performance, at real estate under management (those which are expected to reduce consumption by 30% or more compared with previous levels)
- (3) Introduction or acquisition of equipment related to renewable energy
3. Process for evaluation and selection of projects
At the Asset Management Company, the Finance and Administration Division will select a project for which the proceeds will be used, and Head of Investment & Asset Management Division I, Compliance Officer and Chief Executive Officer will discuss and confirm conformity with the eligibility criteria. Subsequently, the board of directors, etc. resolves the implementation of green finance in accordance with the rules of the Asset Management Company and One REIT.
4. Management of proceeds
- Internal management of the proceeds from green finance and unallocated funds will be performed appropriately. If there are unallocated funds, they will be managed as cash or cash equivalents until such funds are allocated.
- Even If One REIT sells the Green Eligible Assets funded by the proceeds it has procured, or even if the Green Eligible Assets no longer meet the eligibility criteria for any reason, the balance of green finance is managed so that it does not exceed the “Upper Limit of Green Eligible Debt”. The Upper Limit of Green Eligible Debt means the amount calculated by multiplying the Scale of Eligible Green Projects (the total acquisition price of owned properties that meet Eligibility Criteria 1 and the total amount of expenses of construction and renovation projects that meet Eligibility Criteria 2) by the LTV (Loan to Value (ratio of interest-bearing debt)) based on total assets as of the end of the most recent fiscal period.
As of February 28, 2025
| Ａ．Total acquisition price (Eligibility Criteria 1) | \82,794 million |
|---|---|
| Ｂ．Total amount of expenses of renovation work of facilities, etc. (Eligibility Criteria 2) | - |
| Ｃ．Total amount of Eligible Green Assets (A+B) | \82,794 million |
| Ｄ．LTV | 48.3% |
| Ｅ．Upper limit of eligible green debt (C×D) | \39,989 million |
- (Note)The figure as of the end of February 2025 is indicated for LTV.
5. Reporting
Reporting on status of fund allocation
As of September 9, 2024
The status of fund allocation regarding green finance of One REIT is as follows.
| Balance of proceeds (million yen) |
Allocated amount (million yen) |
Unallocated amount (million yen) |
||
|---|---|---|---|---|
| Green Bonds | 3,000 | 3,000 | - | |
| Green Loans | 20,000 | 20,000 | - | |
Status of issuance of green bond
| Name | Amount Issue (million yen) |
Annual Coupon |
Issue Date | Maturity Date | Remarks |
|---|---|---|---|---|---|
| 5th Unsecured Investment Corporation Bonds (Green Bonds) | 3,000 | 0.780% | January 27, 2022 | January 27, 2032 | Unsecured Unguaranteed |
Status of borrowing of green loan
| Lender | Balance (million yen) |
Interest rate | Drawdown date | Repayment date | Remarks |
|---|---|---|---|---|---|
| Mizuho Trust & Banking Co., Ltd. Mizuho Bank, Ltd. Sumitomo Mitsui Banking Corporation SBI Shinsei Bank, Limited Resona Bank, Limited The Bank of Fukuoka, Ltd. |
2,000 | 1.12000% | September 07, 2022 | September 07, 2025 | Unsecured Unguaranteed Floating rate (Note1) |
| Mizuho Trust & Banking Co., Ltd. Mizuho Bank, Ltd. Sumitomo Mitsui Banking Corporation Resona Bank, Limited Aozora Bank, Ltd. The Bank of Fukuoka, Ltd. San ju San Bank,Ltd. |
6,000 | 0.79750% | September 07, 2022 | September 07, 2027 | Unsecured Unguaranteed Fixed rate |
| Mizuho Bank, Ltd. Sumitomo Mitsui Banking Corporation SBI Shinsei Bank, Limited Resona Bank, Limited Aozora Bank, Ltd. The Nishi-Nippon City Bank, Ltd. The Bank of Kyoto, Ltd. Nippon Life Insurance Company The Chugoku Bank, Ltd. Daishi Hokuetsu Bank, Ltd. The 77 Bank, Ltd. The Chiba Bank, Ltd. The Hiroshima Bank, Ltd. |
9,000 | 1.03250% | September 07, 2023 | September 07, 2028 | Unsecured Unguaranteed Fixed rate |
| Mizuho Trust & Banking Co., Ltd. Mizuho Bank, Ltd. Sumitomo Mitsui Banking Corporation SBI Shinsei Bank, Limited Resona Bank, Limited The Bank of Fukuoka, Ltd. |
3,000 | 1.00364% | September 09, 2024 | September 07, 2028 | Unsecured Unguaranteed Floating rate (Note2) |
- (Note1)The interest rate is applied from May 30, 2025 to August 28, 2025. The base rate of interest (Japanese Bankers Association (JBA) three-month Japanese yen TIBOR) is 0.77000%. Changes in the JBA Japanese yen TIBOR as the base rate of interest can be checked on the website of the JBA TIBOR Administration (https://www.jbatibor.or.jp/english/rate/).
- (Note2)The interest rate is applied from June 30, 2025 to July 30, 2025. The base rate of interest (Japanese Bankers Association (JBA) one-month Japanese yen TIBOR) is 0.60364%. Changes in the JBA Japanese yen TIBOR as the base rate of interest can be checked on the website of the JBA TIBOR Administration (https://www.jbatibor.or.jp/english/rate/).
Impact Reporting
As of March 19, 2025
Eligible Green Assets owned by One REIT
| Property name | Acquisition price (million yen) |
Total floor space （㎡） |
grade/Rank |
|---|---|---|---|
| ONEST Kanda Square | 7,350 | 7,145.42 | Certification for CASBEE for Real Estate: Rank A |
| Tachikawa Nishiki-cho Building | 3,264 | 8,026.84 | Certification for CASBEE for Real Estate: Rank S |
| Hachioji SIA Building | 730 | 3,920.36 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Motoyoyogi Square | 7,500 | 10,695.54 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Omiya Kishiki-cho Building | 3,000 | 6,155.16 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Ikebukuro East Building | 2,200 | 3,503.13 | Certification for CASBEE for Real Estate: Rank A |
| Crescendo Building | 2,466 | 5,534.88 | Certification for CASBEE for Real Estate: Rank A |
| Tokyo Parkside Building | 10,450 | 18,881.34 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Nishi-Gotanda Square | 4,500 | 6,706.79 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Hongo Square | 5,406 | 5,652.18 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Minami-Otsuka Building | 3,900 | 5,724.39 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Kanda-Nishifukuda-cho Building | 2,100 | 1,796.69 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Kinshicho Square | 3,951 | 4,659.78 | Certification for CASBEE for Real Estate: Rank A BELS Certification: Four stars |
| Shinkawa 1-chome Building | 2,100 | 2,298.06 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Hakozaki Building | 1,771 | 2,283.56 | BELS Certification: Six stars |
| ONEST Kyoto Karasuma Square | 3,700 | 11,998.02 | Certification for CASBEE for Real Estate: Rank A |
| ONEST Nagoya Nishiki Square | 2,381 | 8,147.56 | Certification for CASBEE for Real Estate: Rank A |
| Nagoya Fushimi Square Building | 4,812 | 12,995.90 | Certification for CASBEE for Real Estate: Rank A |
| Higobashi Center Building | 8,930 | 24,556.71 | Certification for CASBEE for Real Estate: Rank A |
| Daido Life Mito Building | 1,650 | 5,332.76 | Certification for CASBEE for Real Estate: Rank A |
| Total 20 Properties | 82,161 | - | - |
- (Note)The "Total floor space" of the Daido Life Mito Building does not include the total floor space of the annexed building (21.36㎡).
Energy consumption/greenhouse gas emissions/water usage of Eligible Green Assets
| Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | |
|---|---|---|---|
| Energy consumption (MWh) | 15,655 | 17,981 | 17,660 |
| Greenhouse gas emissions (t-CO2) | 6,779 | 7,690 | 7,866 |
| Water usage (㎥) | 75,393 | 92,653 | 91,647 |
| Properties (properties) | 15 | 19 | 19 |
- (Note1)The measurement period for each fiscal year is one year from April 1 to March 31 of the following year.
- (Note2)Figures for Fiscal 2021 do not include actual figures for ONEST Motoyoyogi Square, Shinkawa 1-chome Building, MY Kumamoto Building and Daido Life Mito Building, which became Eligible Green Assets after the measurement period.
Evaluation by external agency
For eligibility of the green finance framework, One REIT has been assigned “Green 1 (F)”, the highest evaluation grade in “JCR Green Finance Framework Evaluation” by Japan Credit Rating Agency, Ltd. (JCR).
For details, please refer to JCR’s website（ https://www.jcr.co.jp/en/greenfinance/）