• Use of Procured Proceeds
• Management of the Proceeds
• Reporting
• Status of Finance

JPR established a sustainability finance framework (the “Framework”) based on the Sustainability Bond Guidelines 2021, the Green Bond Principles 2021 and the Social Bond Principles 2021, etc. in order to implement sustainability finance and green finance.

Use of Procured Proceeds

Use of proceeds

Proceeds from Sustainability Finance, etc. will be used to fund acquisition of specified assets, to fund renovation work of Eligible Green Assets, and to fund refinancing of loans and investment corporation bonds necessary for the acquisition of target specified assets.

Eligible assets

Eligible Green Assets are assets that meet the green eligibility criteria described below. Eligible Sustainability Assets are assets that meet both of “Green buildings” of the green eligibility criteria and social eligibility criteria described below (Eligible Green Assets and Eligible Sustainability Assets are collectively the “Eligible Assets.”).

Green eligibility criteria

Green buildings

Assets which have received or will receive certification under either of the following standards.

• DBJ Green Building Certification (Note 1): 3 Stars, 4 Stars or 5 Stars
• Certification for CASBEE for Real Estate (Note 2): B+ Rank, A Rank or S Rank
• BELS Certification (Note 3): 3 Stars, 4 Stars or 5 Stars
• LEED Certification (Note 4): Silver, Gold or Platinum

• "DBJ Green Building Certification” is a five-star scale evaluation system launched by Development Bank of Japan Inc. (“DBJ”), giving certifications to properties with proper care for the environment and society (Green Building), based on the comprehensive scoring model developed by DBJ.
• CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system for comprehensively assessing and ranking buildings based on their environmental performance with regard to aspects such as the enhancement of environmental quality and performance including indoor comfort and consideration for the landscape, on top of the aspect of environmental consideration such as energy saving and the use of materials and equipment with a lower environmental burden.
• BELS (Building-Housing Energy-efficiency Labeling System) is a public evaluation system of which evaluation criteria have been set by the Ministry of Land, Infrastructure, Transport and Tourism. It evaluates and ranks energy-saving performance of buildings based on their primary energy consumption on a five-star scale.
• LEED (Leadership in Energy and Environmental Design) is a certification system developed and operated by U.S. Green Building Council (USGBC) to evaluate environmental performance of buildings and cities. Based on the number of points achieved, a project earns one of four LEED rating levels: Certified, Silver, Gold or Platinum.

Renovation work

Renovation work which meets either of the following standards and was completed within three years prior to the execution date of Sustainability Finance, etc. or to be completed in the future.

• Reduction of CO2 emissions or energy consumption by over 30%
• Reduction of water consumption by over 30%
• New acquisition of either of the certifications specified in “Green buildings” above or improvement by one grade or more of acquired such certification

Social eligibility criteria

Among the functions that contribute to solving either of the following social issues, assets with functions that satisfy a certain level or higher in two or more issues.

• Community disaster prevention
• Medical services
• Child care support
• Facilities to support startups
• Barrier-free facilities

Management of the Proceeds

Management of balance of Sustainability Finance, etc.

The amount of liabilities calculated by multiplying the total acquisition price of Eligible Sustainability Assets by the ratio of interest-bearing liabilities to total assets (as of the end of December each year) (the “Eligible Sustainability Liabilities”) will be set as the maximum amount of Sustainability Finance.
The amount of liabilities calculated by multiplying the total acquisition price of green buildings among the Eligible Green Assets by the ratio of interest-bearing liabilities to total assets (as of the end of December each year) (the “Eligible Green Liabilities”) will be set as the maximum amount of Green Finance. The acquisition prices of Eligible Green Assets that are also Eligible Sustainability Assets will be deducted from the total acquisition price of green buildings and be excluded from the calculation of Eligible Green Liabilities.

Reporting

Reporting on the status of appropriation of funds

JPR will, as long as the Proceeds are outstanding, disclose on its website the status of appropriation of the Proceeds and that the balance of the Proceeds does not exceed Eligible Sustainability Liabilities and Eligible Green Liabilities, as of the end of December each year.

Reporting on positive environmental impacts

JPR will, as long as the Proceeds are outstanding, disclose on its website the following items as of the end of December each year.

• Number of properties classed as Eligible Assets
• The levels of third-party certifications acquired by each Eligible Green Asset
• The total amount of floor area of Eligible Assets
• Energy consumption*
• CO₂ emissions*
• Water consumption*
• Positive impact of renovation work

• As to indicators 4 to 6, JPR will announce annual aggregate figures for the Eligible Green Assets. In the case of certain properties, JPR will disclose information to the extent that JPR has energy control authority.

Reporting on social benefits

JPR will, as long as the Proceeds are outstanding, disclose on its website the following items as of the end of December each year.

Output indicators	Overview of subject properties and facilities
Outcome	①Community disaster prevention ・ Acceptable number of people unable to return home ・Amount of emergency stockpile ②Medical services ・Contents of available medical services ③Child care support ・Contents of available services ④Facilities to support startups ・Contents of available services ⑤Barrier-free facilities ・Contents of available services
Impact	Initiative on collaboration with local communities through assets JPR owns; and contribution to enhancing the brand value of the entire area

Reporting in the event of a change in the status

In the event that unappropriated funds arise due to a material ex-post change in the initial appropriation status of the Proceeds, JPR will disclose such on its website.

Status of Finance

Outstanding Balance of Green Finance Issued

As of December 31, 2023

Item	Lender	Balance/ Issue Amount (million yen)	Interest Rate	Drawdown Date /Issue Date	Repayment Date /Maturity Date	Remarks	Use of Proceeds
Twenty Forth Series of Unsecured Investment Corporation Bonds	－	5,000	0.570%	Jul 31, 2019	Jul 31, 2029	Unsecured /Unguaranteed	Repayment of loans for the acquisition of JPR Sendagaya Bldg. and Yakuin Business Garden, which are eligible green assets.
Twenty Fifth Series of Unsecured Investment Corporation Bonds	－	6,000	0.510%	Nov 26, 2020	Nov 26, 2030	Unsecured /Unguaranteed	Repayment of loans for the acquisition of JPR Sendagaya Bldg., which is an eligible green asset.
Twenty eighth Series of Unsecured Investment Corporation Bonds	－	1,000	0.670%	Dec 07, 2021	Dec 05, 2036	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Rise Arena Bldg., which is an eligible green asset.
Green Loan	Mizuho Bank, Ltd.	1,000	0.675%	Mar 30, 2022	Mar 30, 2032	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Rise Arena Bldg., which is an eligible green asset.
Green Loan	Mizuho Bank, Ltd.	1,000	0.9475%	Jun 27, 2023	Jun 27, 2033	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Olinas Tower, which is an eligible green asset.
Green Loan	Mizuho Bank, Ltd.	2,000	0.5325%	Jun 27, 2023	Dec 27, 2028	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Olinas Tower, which is an eligible green asset.
Green Loan	Mizuho Bank, Ltd.	2,000	0.40125%	Jun 27, 2023	Jun 25, 2027	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Olinas Tower, which is an eligible green asset.
Green Loan	The Gunma Bank, Ltd	1,000	0.680%	Jul 05, 2023	Jul 05, 2030	Unsecured /Unguaranteed	Repayment of loans for the acquisition of JPR Omiya Bldg., which is an eligible green asset.
Green Loan	The Ashikaga Bank, Ltd.	1,000	0.47125%	Jul 05, 2023	Jul 05, 2028	Unsecured /Unguaranteed	Repayment of loans for the acquisition of JPR Omiya Bldg., which is an eligible green asset.
Green Loan	The Keiyo Bank, Ltd.	1,000	0.49125%	Jul 05, 2023	Jul 05, 2028	Unsecured /Unguaranteed	Repayment of loans for the acquisition of JPR Omiya Bldg., which is an eligible green asset.
Green Loan	MUFG Bank, Ltd.	1,000	1.11625%	Aug 31, 2023	Aug 29, 2031	Unsecured /Unguaranteed	Repayment of loans for the acquisition of JPR Chayamachi Bldg., which is an eligible green asset.
Green Loan	The Chugoku Bank, Ltd.	2,000	1.2575%	Oct 06, 2023	Oct 06, 2031	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Kawasaki Dice Bldg., which is an eligible green asset.
Green Loan	The Bank of Fukuoka, Ltd	2,000	1.1825%	Oct 06, 2023	Oct 06, 2031	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Kawasaki Dice Bldg., which is an eligible green asset.
Green Loan	The Iyo Bank, Ltd.	1,000	1.301%	Oct 06, 2023	Oct 06, 2031	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Kawasaki Dice Bldg., which is an eligible green asset.
Green Loan	The Chiba Bank, Ltd.	1,000	0.8525%	Oct 25, 2023	Oct 25, 2028	Unsecured /Unguaranteed	Repayment of loans for the acquisition of JPR Nihonbashi-horidome Bldg., which is an eligible green asset.
Green Loan	Nippon Life Insurance Company	2,000	0.90622%	Nov 22, 2023	Apr 20, 2029	Unsecured /Unguaranteed	Repayment of loans for the acquisition of JPR Shinsaibashi Bldg., which is an eligible green asset.
Green Loan	Sompo Japan Insurance Inc.	2,000	0.8025%	Dec 25, 2023	Jun 25, 2029	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Olinas Tower, which is an eligible green asset.
Green Loan	Daido Life Insurance Company	1,000	0.99125%	Dec 25, 2023	Dec 25, 2030	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Sompo Japan Sendai Bldg., which is an eligible green asset.
		33,000

Outstanding Balance of Sustainability Finance Issued

As of December 31, 2023

Item	Lender	Balance/ Issue Amount (million yen)	Interest Rate	Drawdown Date /Issue Date	Repayment Date /Maturity Date	Remarks	Use of Proceeds
Twenty Eighth Series of Unsecured Investment Corporation Bonds	－	1,400	0.420%	Dec 07, 2021	Dec 05, 2031	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Otemachi Financial City North Tower, which is an eligible sustainability asset.
Sustainability Loan	Mizuho Bank, Ltd.	600	0.675%	Mar 30, 2022	Mar 30, 2032	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Otemachi Financial City North Tower, which is an eligible sustainability asset.
Sustainability Loan	The Yamagata Bank, Ltd.	1,000	0.78125%	Jul 05, 2023	Jul 04, 2031	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Ochanomizu Sola City, which is an eligible sustainability asset.
Sustainability Loan	The Yamagata Bank, Ltd.	1,000	0.49125%	Jul 05, 2023	Jul 05, 2028	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Ochanomizu Sola City, which is an eligible sustainability asset.
Sustainability Loan	The Bank of Kyoto, Ltd.	500	0.44125%	Jul 05, 2023	Jul 05, 2028	Unsecured /Unguaranteed	Repayment of loans for the acquisition of Ochanomizu Sola City, which is an eligible sustainability asset.
		4,500

Eligible Green Assets

As of December 31, 2023

Property	Acquisition Price (JPY million)	DBJ Green Building Certification	CASBEE	BELS Certification
Tokyo Square Garden	18,400	★★★★★	－	－
Olinas Tower	31,300	★★★★★	－	－
Ochanomizu Sola City	6,490	★★★★★	－	－
Oval Court Ohsaki Mark West	3,500	★★★★	－	－
Shinjuku Center Bldg.	24,320	★★★★	－	－
Otemachi Financial City North Tower	11,400	★★★★	－	－
Kanematsu Bldg.	16,276	★★★	－	－
Shinagawa Canal Bldg.	2,041	★★★	－	－
Rise Arena Bldg.	13,131	★★★	－	－
Yume-ooka Office Tower	6,510	★★★	－	－
JPR Omiya Bldg.	6,090	★★★	－	★★★★★ （ZEB Oriented）
Kawasaki Dice Bldg.	15,080	★★★	－	－
JPR Harajuku Bldg.	8,400	－	S	－
JPR Kojimachi Bldg.	5,750	－	S	★★★
Shinyokohama 2nd Center Bldg.	1,490	－	S	－
JPR Musashikosugi Bldg.	7,254	－	S	－
Musashiurawa Shopping Square	4,335	－	S	－
FUNDES Ueno	3,800	－	S	－
Sompo Japan Sendai Bldg.	3,150	－	S	－
Sompo Japan Wakayama Bldg.	1,670	－	S	－
JPR Dojima Bldg.	2,140	－	S	－
JPR Shinsaibashi West	3,750	－	S	－
Housing Design Center Kobe	7,220	－	S	－
MS Shibaura Bldg.	11,200	－	S	－
Shinjuku Square Tower	14,966	－	S	－
Tokyo Tatemono Higashi Shibuya Bldg.	11,300	－	S	－
GRAND FRONT OSAKA (Umekita Plaza and South Building)（Note1）	11,800	－	S	－
GRAND FRONT OSAKA (North Building)	9,500	－	S	－
Rokubancho Bldg.	2,800	－	S	－
Tachikawa Business Center Bldg.	3,188	－	S	－
Sencity Bldg.	13,870	－	S	－
Yakuin Business Garden	10,996	－	S	－
FUNDES Suidoubashi	3,250	－	S	－
BYGS Shinjuku Bldg.	15,121	★★★	S	－
Kanematsu Bldg. Annex	2,874	－	A	－
JPR Ningyo-cho Bldg.	2,100	－	A	－
JPR Ichigaya Bldg.	5,100	－	A	－
Minami Azabu Bldg.	3,760	－	A	－
JPR Nihonbashi-horidome Bldg.	5,100	－	A	－
JPR Shibuya Tower Records Bldg.	12,000	－	A	－
JPR Chiba Bldg.	2,350	－	A	－
JPR Yokohama Nihon Odori Bldg.	2,927	－	A	－
Kawaguchi Center Bldg.	8,100	－	A	－
JPR Ueno East Bldg.	3,250	－	A	－
JPR Nagoya Fushimi Bldg.	4,137	－	A	－
JPR Shisaibashi Bldg.	5,430	－	A	－
JPR Chayamachi Bldg.	6,000	－	A	－
Shibadaimon Center Bldg.	4,213	－	A	－
Arca East	5,880	－	A	－
JPR Naha Bldg.	1,560	－	A	－
JPR Sendagaya Bldg.	15,050	★★★	A	－
JPR Jingumae 432	4,275	－	A	－
JPR Ginza Namiki-dori Bldg.	10,100	－	A	－
JPR Yokohama Bldg.	7,000	－	B+	－
FUNDES Tenjin Nishidori	3,310	－	－	★★★★
Total	426,004	－	－	－

• Regarding GRANT FRONT OSAKA (Umekita Plaza and South Building), the South Building has an S rank, and Umekita Plaza has an A rank.

Total Energy Consumption of Eligible Assets (MWh)	115,503
Total CO2 Emissions of Eligible Assets (t-CO2) (Scope1,2,3)	34,921
Total Water consumption of Eligible Assets (㎥)	435,573

*Scope 3 of CO₂ emission of eligible assets is calurated from category 13.
*Energy consumption, CO₂ emission and water consumption of eligible assets are performance of 2022 and exclude figures for properties newly acquired in 2023.

Eligible Sustainability Assets

As of December 31, 2023

Property	1.Community disaster prevention	2.Medical services	3.Child care support	4.Facilities to support startups	5.Barrier-free facilities
Tokyo Square Garden	〇	〇	〇	〇	〇
Otemachi Financial City North Tower	〇				〇
Ochanomizu Sola City	〇				〇

Third-party assessment

JPR has obtained SU1(F) rating, the highest in the “JCR Sustainability Finance Framework Evaluation” from Japan Credit Rating Agency, Ltd. (JCR), as a third-party evaluation for the Framework.

Please click on the link below for further details. (https://www.jcr.co.jp/en)