Notice Regarding the Increase in Green Financing Quota: Additional 1 Trillion Yen, Total of 2 Trillion Yen ( 272.3KB )

	April 16, 2024
To whom it may concern:
Company:	Sumitomo Realty & Development Co., Ltd.
Representative:	Kojun Nishima,
	Representative Director and President
Securities code:	8830 (TSE Prime Market)
Contact:	Tetsuya Mogi,
	Executive Officer and General Manager of
	Corporate Administration Department

Notice Regarding the Increase in Green Financing Quota: Additional 1 Trillion Yen,

Total of 2 Trillion Yen

As a comprehensive developer, the Sumitomo Realty Group has been working on "Sustainability Management" to continuously enhance its corporate value under fundamental mission of "Creating even better social assets for the next generation." Throughout our business activities, we have been pursuing an integrated approach to not only create economic value but also contribute to solutions to social issues of the local communities, thus creating social value that will continue to serve future needs.

In our mainstay real estate leasing business, as a result of continuous efforts in developing properties with high level environmental performance and maintaining and improving that performance, we have obtained the DBJ Green Building Certification* for about 75% of all our leasing assets (based on gross floor area, approximately 1.1 million tsubo, 1 tsubo ≈ 3.3 m2) as of the end of March 2024. We aim to further expand our portfolio with the certification by proceeding with application of existing properties and obtaining certification for new properties as a standard practice as we continue developing properties with high environmental performance.

*A green building certification system by the Development Bank of Japan to evaluates real estate for its performance and initiatives regarding "environmental and social awareness" beyond its "profitability."

When we formulated the Ninth Medium-term Management Plan (fiscal year ending March 31, 2023 to fiscal year ending March 31, 2025), we established a Green Finance Framework that raises a total of 1 trillion yen, limiting its use to properties certified by DBJ with high environmental performance. As we expect our financing to exceed the quota due to strong demand, we have decided to add 1 trillion yen to the quota, bringing the cumulative total to 2 trillion yen.

Overview of the Green Finance Framework

1. Limits the use of proceeds to properties with excellent environmental performance

The Sumitomo Realty Group's Green Finance, which is financed through loans and bonds, limits the use of proceeds to the development and refinancing, etc. of properties that have acquired three stars or above in the DBJ Green Building Certification (including plan certification), which is granted to properties with excellent environmental performance.

2. Principles for target properties under this Green Finance Framework

The Sumitomo Realty Group aims to develop properties with excellent environmental performance and hold them for the long term, ensuring that their performance is maintained and improved through appropriate maintenance and renewal, to contribute to the improvement of the environment for society as a whole. Based on this policy, we have set the principles below for target properties during the period of financing.

1. Periodically disclose environmental performance information, such as CO2 emissions and energy consumption
2. Maintain at least three stars in the DBJ Green Building Certification, and continue to hold those properties to maintain their performance

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3. Evaluation by two rating agencies

This Green Finance Framework has acquired evaluations by the Japan Credit Rating Agency, Ltd. and Rating and Investment Information, Inc., to certify compliancewith the Green Bond Principles*¹ (2021), the Green Loan Principles*² (2021), the Green Bond Guidelines*³ (2020), and the Green Loan and Sustainability Linked Loan Guidelines*³ (2020).

*1. Formulated by the International Capital Market Association (ICMA)

*2. Formulated by each of the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), and the Loan Syndications and Trading Association (LSTA)

*3. Formulated by the Ministry of the Environment

Properties subject to the Green Finance Framework (total amount: 2 trillion yen)

		DBJ Green Building	Gross floor
	Property name	area (tsubo)	Main purpose	Completion
		Rank	Year	1 tsubo≈3.3 m2
*	Roppongi Grand Tower	★★★★★	2022	63,674	Office	Oct 2016
Izumi Garden Tower	★★★★★	2023	61,971	Office	Oct 2002
*	Tokyo Mita Garden Tower	★★★★★	2023	60,412	Office	Feb 2023
	Shinjuku Grand Tower	★★★★★	2023	54,386	Office	Dec 2011
	Osaki Garden Tower	★★★★★	2023	53,888	Office	Jan 2018
	Shinjuku Central Park Building	★★★★★	2023	46,423	Office	Mar 2010
	Shinjuku Garden Tower	★★★★★	2023	43,127	Office	Mar 2016
	Tokyo Nihombashi Tower	★★★★★	2023	41,313	Office	Apr 2015
*	Shiodome Sumitomo Building	★★★★★	2023	30,224	Office	Jul 2004
Shinjuku First Tower	★★★★★	2023	27,406	Office	Mar 2023
*	Chiyoda First Building West	★★★★★	2023	19,043	Office	Jan 2004
*	Shinjuku Central Park Tower	★★★★★	2023	18,178	Office	Aug 2019
Kojimachi Garden Tower	★★★★★	2023	14,422	Office	May 2020
*	Azabujuban Building	★★★★★	2023	13,961	Office	Jan 2017
Onarimon Tower	★★★★★	2023	9,890	Office	May 2018
*	Izumi Garden Annex	★★★★★	2023	2,393	Office	Mar 2019
	Shinjuku Oak Tower	★★★★	2023	49,337	Office	Jan 2003
	Iidabashi First Tower	★★★★	2023	23,715	Office	Apr 2010
*	Shibakoen First Building	★★★★	2023	19,306	Office	Jul 2000
Aobadai Tower	★★★★	2023	16,876	Office	Aug 2009
*	Iidabashi Building No. 3	★★★★	2023	16,871	Office	Mar 2002
*	Osaki Twin Building East	★★★★	2022	14,279	Office	Jan 2022
*	Akihabara Building	★★★★	2023	9,682	Office	Jun 2009
*	Mita Building	★★★★	2022	7,544	Office	Nov 2015
*	Hanzomon First Building	★★★★	2024	7,208	Office	Jan 2004
*	Tamachi First Building	★★★★	2023	6,595	Office	Apr 2012
*	Shinagawa Seaside Building	★★★★	2022	6,578	Office	Nov 2009
*	Nishi-Shinjuku Building No. 5	★★★★	2022	6,413	Office	May 2008
*	Shin-Akasaka Building	★★★★	2024	6,023	Office	Sep 2005
*	Nishi-Shinjuku Building No. 6	★★★★	2023	5,757	Office	May 2008
*	Nibancho First Building	★★★★	2022	5,627	Office	Mar 2016
*	Chiyoda Fujimi Building	★★★★	2022	5,507	Office	Apr 2011
*	Ikebukuro Higashi Building	★★★★	2022	4,956	Office	Aug 2019
*	Iidabashi Ekimae Building	★★★★	2022	4,844	Office	May 2008
*	Yotsuya Building	★★★★	2022	4,281	Office	Oct 2007
*	Kojimachi First Building	★★★★	2023	4,084	Office	Apr 2018
*	Chiyoda First Building South	★★★★	2023	3,962	Office	Oct 2007
*	Tamachi Building East	★★★★	2022	3,898	Office	Apr 2021
*	Ochanomizu Building	★★★★	2023	3,870	Office	Jan 2021
*	Hirakawacho Building	★★★★	2022	3,729	Office	Jan 2015
*	Tamachi Building	★★★★	2022	3,577	Office	Aug 2017
*	Fukuoka Hanzomon Building	★★★★	2022	3,533	Office	Oct 2018
*	Akihabara Kita Building	★★★★	2022	3,508	Office	Nov 2018

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*	Kanda Izumicho Building	★★★★	2023	3,033	Office	Sep 2021
*	Shiodome Wing	★★★★	2023	2,994	Office	Jan 2021
*	Kojimachi Building	★★★★	2023	2,979	Office	Mar 2004
*	Hatchobori Building	★★★★	2023	2,716	Office	Sep 2018
*	Onarimon Ekimae Building	★★★★	2023	2,691	Office	Apr 2014
*	Chiyoda First Wing	★★★★	2023	2,688	Office	Jan 2014
*	Shiba-Daimon2-chome Building	★★★★	2023	2,598	Office	Jun 2019
*	Shimbashi Building	★★★★	2023	2,540	Office	Jul 2016
*	Ichigaya-Akebonobashi Building	★★★★	2023	2,039	Office	Feb 2022
*	Ueno Okachimachi Building	★★★★	2023	1,922	Office	Jun 2022
*	Suidobashi Ikizaka Building	★★★★	2023	1,586	Office	May 2022
	Property Total			840,057

* Properties covered by the additional 1 trillion yen

(Reference) The Sumitomo Realty Group's Environmental Initiatives

Throughout our business activities, the Sumitomo Realty Group has pursued an integrated approach that creates not only economic value, but also necessary social value to enhance our corporate value in a sustainable manner. This Green Finance Framework reflects our policy of continuing contribution for reducing the environmental impact of society as a whole through our mainstay real estate leasing business, by continuously providing properties with outstanding environmental performance.

In addition, we are working to address a wide range of environmental social issues, including resource recycling and waste reduction. For decarbonization, which is a global focus, we have established an interim target by fiscal 2030 to reduce CO2 emissions, and incorporated this target into our Ninth Medium-term Management Plan.

While pursuing business expansion, the Sumitomo Realty Group will continue to promote Sustainability Management that contributes to addressing various social issues including environment.

The initiatives related to this release contribute to the following SDGs objectives:

Goal 9: INDUSTRY, INNOVATION AND INFRASTRUCTURE	Goal 11: SUSTAINABLE CITIES AND COMMUNITIES
Goal 12: RESPONSIBLE CONSUMPTION AND PRODUCTION	Goal 13: CLIMATE ACTION
Goal 15: LIFE ON LAND	Goal 17: PARTNERSHIPS FOR THE GOALS

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