20-D-1218

February 19, 2021
Sustainabilit y Bond Evaluation b y Japan Credit Rating Agenc y, Ltd.
Japan Credit Rating Agency, Ltd. (JCR) announces the following Sustainability Bond Evaluation Results.

JCR Assigned SU 1 to 15th Unsecured Bonds
Issued by Nomura Real Estate Holdings, Inc.
Subject:

Nomura Real Estate Holdings, Inc. 15th Unsecured Bonds(Sustainability Bond)

Type

:

Unsecured Bonds

Issue Amount:

JPY10 billion

Interest Rate:

0.390%

Issue Date:

February 26, 2021

Redemption Date:

February 26, 2031

Method of
Repayment:

BulletUse of Proceeds:

Refinancing of construction costs for 1. PMO Nishi-Shinjuku, 2. PMO Kanda
Iwamoto-cho II, and 3. OUKAS Funabashi; and refinancing of systembuilding and construction costs for 4. H1T<Sustainability Bond Evaluation Results>
Overall evaluation

SU1

Greenness and Social Beneficial
Impacts Evaluation(Use of proceeds)
Management, Operation andTransparency Evaluation

gs1
m1

Chapter 1: Evaluation Overview
Nomura Real Estate Holdings, Inc. (“Nomura Real Estate HD”) was established in June 2004 with the purpose of
establishing a pure holding company structure for corporate groups led by Nomura Real Estate Development Co.,
Ltd. (“Nomura Real Estate Development”). In October 2004, Nomura Real Estate Development Co., Ltd. received
an investment in kind from Nomura Land and Building Co., Ltd. and began operations as a holding company.
Nomura Real Estate HD has a right to make decisions on important matters for the Nomura Real Estate Group (the“Group”) as a whole, such as formulating and deciding strategies for the Group, optimally allocation management

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https://www.jcr.co.jp/en/resources, and managing and monitoring them. In addition, even considering the investment ratio, personal
relationships, etc., the unity with the operating companies under the umbrella is recognized.
The business segments of the Group encompasses the Residential Division, which consists of the rental housing
operations and the elderly housing operations, both newly transferred to the Division, in addition to the property
development and sales operations, which mainly handle condominiums, aside from detached housings andresidential land; the Urban Development Division, which added the fitness club operations to the rental andsubleasing operations for office buildings and retail facilities; the Investment Management Business, which includes
the management of real estate private placement funds and the consignment management of J-REITs; the Property
Brokerage & CRE Business, which supports property brokerage and CRE strategies; and the Property & Facility
Management Business, which includes the operation, management, repair work, etc. of office buildings andcondominiums and other facilities.
The Group set forth the following Group Vision as a promise for its stakeholders: “New Value, Real Value;
Integrating all that is precious to people and communities, we build cities -- dynamic stages that connect today withtomorrow’s possibilities, and embrace every moment of life’s pursuits. We create new value, social value, and above
all, real value.” Through this commitment, the Groups aims to achieve sustainable value enhancement and contributeto sustainability.
The subject of this evaluation is the Sustainability Bonds (the “Bonds”) that Nomura Real Estate HD is scheduled toissue. The proceeds of the Bonds will be 100% used to fund construction and to refinance capital expenditures onproperties that meet the Company's established Sustainability Bond Framework eligible criteria.
The proceeds from the Bonds will be used in full to finance the follows: Refinancing of construction costs for 1.
PMO Nishi-Shinjuku, 2. PMO Kanda Iwamoto-cho II, and 3. OUKAS Funabashi; and refinancing of systembuilding and construction costs for 4. H1T. Based on the above, JCR has judged that the use of proceeds in thisevaluation is a project with environmental improvement effects and social benefits.
The targets for the use of proceeds were selected with the involvement of the management and departments withspecialized knowledge, the methods of cash management were finely defined and planned to be properly made, andthe necessary matters related to reporting are scheduled to be disclosed. Therefore, JCR confirmed that a system for
managing and operating the Bonds has been established and it is highly transparent, and that the management teamof Nomura Real Estate HD has positioned environmental and social issues as priority issues of high importance.
Based on the JCR Sustainability Finance Evaluation Methodology, JCR assigned “gs1” for the "Green Social
Evaluation (Use of Proceeds)" and “m1” for the "Management, Operation and Transparency Evaluation." As aconsequence, JCR evaluated “SU 1” for the "JCR Sustainability Bond Evaluation." Evaluation results are discussed
in detail in the next chapter. The Bonds are considered to meet the standards for items required in the Green Bond
Principles, the Social Bond Principles, the Sustainability Guidelines, and the Green Bond Guidelines issued by the
Ministry of the Environment.1234

1

ICMA (International Capital Market Association) Green Bond Principles 2018 Version
https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Green-Bonds-Principles-June-2018-270520.pdf
2Social Bond Principles 2018 https://www.icmagroup.org/green-social-and-sustainability-bonds/social-bond-principles-sbp/
3
ICMA Sustainability Bond Guidelines 2018https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Sustainability-Bonds-Guidelines-June-2018-270520.pdf
4
Green Bond Guidelines 2020 https://www.env.go.jp/press/files/jp/113511.pdf
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https://www.jcr.co.jp/en/Chapter 2: Current Status of the Project on Each Evaluation Factor and JCR's
Evaluation
Evaluation Phase 1: Greenness and Social Beneficial Impacts Evaluation
JCR assigns "gs1", the highest grade, to "Evaluation Phase 1: Greenness and Social Beneficial
Impacts Evaluation
Rationale: 100% use of proceeds of the Framework will be allocated to a green or social project,considering the factors described below.

(1) JCR's Key Consideration in This Factor
In this section, JCR begins by checking whether proceeds are used for projects with clear environmental
improvement effects or projects with social benefits. Next, in cases where the use of proceeds is expected to havea negative impact on the environment and society, the impact is fully examined by an internal specialized
department or an external third-party organization to confirm whether necessary measures for avoidance andmitigation have been taken. Finally, JCR confirms consistency with the Sustainable Development Goals (SDGs).

(2) Current Status of Evaluation Targets and JCR's Evaluation
Outline of Use of Proceeds
Nomura Real Estate Group has defined the following uses of proceeds in its Sustainability Bond Framework.
JCR assigned "SU 1(F)" to the Sustainability Bonds Framework.
<Green Eligibility Requirements>
The business includes buildings that have confirmed the performance related to the environment thatsatisfy the following green eligibility requirements and land acquisition related to such buildings.

A. Buildings that acquired or renewed any of the following building certifications within the past 36
months retroactive to the date of issuance of the bonds: Alternatively, buildings to be acquired or
renewed in the future.
- Ranked S, A, or B+ in CASBEE building (new construction, existing building and renovation)
or CASBEE real estate (including CASBEE by local governments)- LEED-BD+C (Building Design and Construction) or Platinum, Gold or Silver in LEED-O+M(Building Operations and Maintenance) certification- 5 stars, 4 stars or 3 stars in BELS (Building Energy-efficiency Labeling System)- 5 stars, 4 stars or 3 stars in DBJ Green Building certification- Platinum, Gold Plus or Gold in BCA (Building and Construction Authority in Singapore) GreenMark Certification
B. Residential buildings that qualify as ZEH (Net Zero Energy House) in condominiums (buildingsthat are defined as any of ZEH-M, Nearly ZEH-M, ZEH-M Ready, and ZEH-M Oriented)

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<Social Eligibility Requirements>
The business shall include the building that meets any of the following requirements and theacquisition of land related to the relevant building.
Disaster prevention: Investments and expenditures related to functions and equipment that are
responsible for providing "safety and security" in the event of a disaster in Japan, where there is ahigh probability of natural disasters such as earthquakes and typhoons. This includes securing aplace to accommodate not only building users but also people in the vicinity and people who havedifficulty returning home, and stockpiling food, materials and equipment.
Job creation: Investments and expenditures related to creating businesses that resolve social issues
and providing working space and opportunities for business growth to small and medium-sizedbusinesses that are launching businesses by people with limited employment opportunities(businesses related to H1T, a serviced small office that is offered to contribute to the needs ofcompanies, such as more efficient offices and wanting to locate offices for startups and further
growth).
Services for the elderly and nursing care: Investments and expenditures to provide services that are
indispensable for the lives of people potentially vulnerable, who are to increase amid the rapidly
aging of society in Japan (businesses related to the "OUKAS" rental-type senior residence, which isprovided to contribute to needs such as support for nursing care and independent living as the
population ages). Includes medical care facilities and social infrastructure as a solution to nursing
care separation.
Community empowerment:
1 Supporting people's diverse work styles against the backdrop of diversification needs forhousing accompanying changes in lifestyles and changes in values for offices (this includes
businesses related to "H1T" shared offices, which are provided to contribute to the needs ofdiverse working styles such as teleworking and the promotion of satellite offices).
2 Providing networking and access to social resources for those who may be left behind due tothe aging of society and the increasing number of single-person households (e.g., "ACTO" ofcommunity development activities that contribute to the community).

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The proceeds from issuance of the Bonds will be used in full to the follows: Refinancing of construction costs
for 1. PMO Nishi-Shinjuku, 2. PMO Kanda Iwamoto-cho II, and 3. OUKAS Funabashi; and refinancing ofsystem-building and construction costs for 4. H1T.
PMO Nishi-Shinjuku
Property NamePMO Nishi-Shinjuku

Address
Major
Applications

8-1-2, Nishi-Shinjuku, Shinjuku-ku, Tokyo

Site Area

892.27 m2

Total Floor Area

4,661.64 m2

FloorsCompleted
Environmental
Certification

Office13 floors above ground
June 2019
DBJ Green Building certification 3 stars or more (planned)

PMO Kanda Iwamoto-cho II
Property NamePMO Kanda Iwamoto-cho II

Address
Major
Applications

2-2-4, Iwamoto-cho, Chiyoda-ku, Tokyo

Site Area

286.47 m2

Total Floor Area

1,946.36 m2

OfficeFloors11 floors above ground

Completed

January 2021 (planned)

Environmental
Certification

DBJ Green Building certification 3 stars or more (planned)

The PMO series is a brand name for medium-sized offices provided by Nomura Real Estate Development. It
was developed against the backdrop that there were few buildings of high-quality small and medium-sizedenterprises, while the reconstruction of small and medium buildings with the old earthquake resistance design
became a social issue. As of December 2020, the company has 15 buildings in the Tokyo metropolitan area
and one building in Osaka.
The series is characterized by a favorable location near a station, having an exclusive element with stylish
appearance and functionality, including security aspects, and having a grade like a large office building,
although it is a medium-sized building. Not only design but also environmental performance is taken into
consideration, and it is planned that both buildings subject to the use of proceeds will acquire DBJ Green
Building certification of at least 3 stars.
The Group is promoting the acquisition of environmental certification for properties developed including
PMO, and the acquisition rate of certification is 100% for 3 consecutive years from the fiscal year ended
March 2018 (FY2017) to FY2019.

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OUKAS Funabashi
OUKAS is a brand of rental housing for the elderly with services provided by the Group. Its brand name isbetter than the concept of a home that enjoys life, and it aims to extend the healthy life expectancy of theelderly who live in the home. It has established a unique program that makes people natural and healthy intheir daily life cycles, such as exercise, dining, and dormancy, and a support system such as a 24-hour watch
service.
The Group is advancing the development of “urban-type compact towns” as an environment that allows adiverse range of people to live more comfortable lives, focusing on the increase in single-person households
and elderly households against the backdrop of the declining birthrate and aging population, and theconcentration of population on highly convenient urban areas. “Urban-type compact towns” aim to develop
communities, including surrounding areas, and create individuality unique to the district, while providing
peace of mind and affluence to people of all generations, by making urban development condensed within therange that allows them to walk through various functions, such as housing, commercial facilities, facilities forseniors, parks, hospitals, and schools.
The Group is developing urban compact towns in Funabashi Morino City in Chiba Prefecture and Zutto Cityin Hyogo Prefecture. OUKAS Funabashi, which is subject to the use of proceeds, has recently opened in
Funabashi Morino City. From this, in addition to the social benefit of the property itself, the social benefit of
the convenience of the surrounding environment can also be expected.

H1T
H1T is a satellite-type shared office operated by the Group. H1T was launched in 2019 to provide diverse
work styles. As of the end of January 2021, it had 51 directly managed stores (including 13 planned store
openings) and 23 partner stores. The targets of the use of proceeds are the development costs of systems usedin company-owned stores and construction costs.
The Group develops and operates H1O (small offices with services) and aforementioned PMOs as branded
offices, in addition to H1T. Both brands have been developed with hints from the "market-in" concept, which
responds to the needs rescued through dialogue with customers and the market, leading to the provision ofhighly unique services. These lineups also have the flexibility to provide offices with appropriate
specifications according to the life cycles of the corporates that use them.

a.

On the environmental improvement effects and social benefits of the projects

i. The all proceeds are scheduled to beappropriated for projects that meet the eligibility criteria of

Nomura Real Estate HD, and high environmental improvement effects and social benefits are expected.

Environmental Improvement Effects of the Use of Proceeds
Among the uses of proceeds of the Bonds, both PMO Nishi-Shinjuku and PMO Kanda Iwamoto-cho II are
scheduled to acquire at least 3 stars in DBJ Green Building certification and meet the green eligibility
requirements set forth in the Sustainability Finance Framework of Nomura Real Estate Group.
Accordingly, JCR evaluates the use of proceeds of the Bonds as having a high environmental improvement
effect.
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Social Benefits of the Use of Proceeds
Of the uses of the Bonds, OUKAS Funabashi will contribute to the resolution of social issues from theperspectives of (1) (i) and H1T from the perspectives of (2) (i), and the both will satisfy the social eligibility
criteria set forth by Nomura Real Estate HD in the Sustainability Bond Framework.
(1) Access to essential services(i) Senior housing
Japan is now faced with the problem of a declining birthrate and an aging population. According to the
Population Projections (estimated in April 2017) by the National Institute of Population and Social Security
Research (the "Institute"), the population aged 75 or older in 2025 is approximately 21.8 million,
approximately one in five people nationwide. The number of people aged 65 or older, which was 26% of thetotal population as of 2015, is estimated to reach about 30% of the total population, about 36.77 million
nationwide, and about 3.32 million in Tokyo as of 2025.
According to the Institute's estimate of the number of households (as of April 2017), the total number ofgeneral households with a head of household aged 65 or older will increase by 3.24 million from 19.18
million in 2015 to 22.42 million in 2040. The number of households with a head aged 75 or older will
increase by 3.29 million households from 8.88 million in 2015 to 12.17 million in 2040.
As of 2015, 37.9% of households aged 75 or older were single-person households due to being unmarried,
divorce, marital separation, or bereavement. By 2040, however, 42.1%, almost half of the households are
expected to be single-person. For the elderly's single-person households, even those who can live
independently without the need for nursing care, from the viewpoint of the support system in the event of an
emergency and the prevention of solitary deaths, it is important to develop residential facilities withancillary services such as a 24-hour management system and collaboration with external nursing care andmedical facilities as necessary for the future super-aging society.
In addition, the extension of healthy life expectancy is important from the viewpoint of realizing a society inwhich more elderly people enjoy long and healthy lives in the super-ageing society that Japan faces. While
the average life expectancy is increasing year by year, the gap with healthy life expectancy is 8.84 years formen and 12.35 years for women in 2016, representing that the number of elderly who are unable to live
healthy lives due to mental and physical aging or illness is increasing. Long and healthy living is a social
issue that is also emphasized in the government's SDGs Action Plan 2020.
The Group is developing and operating OUKAS, a rental-type senior residence property. Through its
residential business, the company is working to prevent elderly people who can spend independent livingfrom coming into a status requiring continuous nursing care. It has created an exercise program incollaboration with MEGALOS, a sports club operated by the Group, and has established a support system
aimed at improving physical strength based on an understanding of the physical strength and healthconditions of residents. Various services provided by OUKAS for the elderly contribute to extending thehealthy life expectancy of the elderly.
Furthermore, some OUKAS clubs are being developed together with condominiums in collaboration withthe housing business of the Group. This provides an environment in which the elderly and their families canfrequently come and go, as well as the infrastructure and local communities necessary for their livelihoods,
in the vicinity of the senior residence, thereby contributing to the improvement of convenience for users.

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The concept of urban development that offer safe and comfortable living to all generations is considered
important for saving the elderly who fall out of the watch network due to the decrease in neighborhood
affiliation and the dilution of local communities, and is also consistent with the Ministry of Land,
Infrastructure, Transport and Tourism's compact city initiative.
Based on the above, JCR evaluated that senior housing provided by Nomura Real Estate Development hassocial benefits from the viewpoint of providing essential basic services for the elderly.
(2) Socioeconomic Improvement and Empowerment(i) Shared offices
Since the 2000's, Japan's labor shortage has begun to become a problem, particularly due to the declining
birthrate and aging population. One of solutions is teleworking, which enables both work and childcare andnursing care.
Teleworking refers to a flexible work style that utilizes ICT (Information and Communication Technology)
and enables effective use of time and locations. This is a way of working that contributes to the realizationof work style reforms that can contribute not only to working while balancing nursing care and childcare,
but also to achieving a work-life balance, improving productivity, and revitalizing the local community byworking at or near the home away from the place where they would otherwise work. It is also emphasizedfrom the viewpoint of BCP in the event of a major disaster or an epidemic of an infectious disease.
In the SDGs Action Plan, work style reforms are included as one of the "list of major initiatives to promote
SDGs," and it is planned that Japanese goals, such as the dynamic engagement of all citizens and the social
advancement of women, will be realized through work style reforms and other means.
Teleworking has the option of teleworking, mobile work, and satellite offices. Nomura Real Estate HD
provides satellite offices through the operations of H1T, to promote teleworking and thereby contribute towork style reforms. Based on the above, JCR evaluated the provision of shared offices as having social
benefits.
In light of the foregoing, JCR evaluates the use of proceeds for the Bonds as having high social benefits.
ii. Regarding the use of proceeds, the green projects correspond to "green buildings which meet regional,
national or internationally recognised standards or certifications" and "energy efficiency," in the"Green Bond Principles" and "Green Loan Principles," as well as "projects related to green
buildings" and "projects related to energy efficiency" among the uses of proceeds exemplified in the"Green Bond Guidelines" and "Green Loan and Sustainability Linked Loan Guidelines." Social
projects correspond to "access to essential services (senior housing)" for the elderly and"socioeconomic improvement and empowerment" for workers.
b. Environmental and Social Risks
Nomura Real Estate HD decided specifications in light of safety quality standards when developing projects.
The standards cover not only environmental considerations but also social aspects, including BCP and thewellness of tenants and residents. It was confirmed that projects targeted for development would not resultin a negative impact. Based on this confirmation, JCR confirmed that appropriate consideration was given to
the negative impact on the environment and society of projects targeted for the use of proceeds.

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c. Consistency with SDGs Goals and Targets
i. Consistency with ICMA's SDGs mapping
JCR evaluates projects eligible for funding contribute to the following SDGs goals and targets in light of
ICMA's SDGs mapping.
Goal 5: Gender Equality
Target 5.4. Recognize and value unpaid care and domestic work through the provisionof public services, infrastructure and social protection policies and the promotion ofshared responsibility within the household and the family as nationally appropriate.
Goal 7: Affordable and clean energy
Target 7.3. By 2030, double the global rate of improvement in energy efficiency.

Goal 8: Decent work and economic growthTarget 8.2. Achieve higher levels of economic productivity through diversification,technological upgrading and innovation, including through a focus on high-value
added and labour-intensive sectors
Goal 9: Industry, innovation and infrastructure
Target 9.4. By 2030, upgrade infrastructure and retrofit industries to make themsustainable, with increased resource-use efficiency and greater adoption of clean andenvironmentally sound technologies and industrial processes, with all countries taking
action in accordance with their respective capabilities.
Target 11: Sustainable cities and communities
Target 11.3. By 2030, enhance inclusive and sustainable urbanization and capacity forparticipatory, integrated and sustainable human settlement planning and management
in all countries.
Target 11.6. By 2030, reduce the adverse per capita environmental impact of cities,
including by paying special attention to air quality and municipal and other waste
management.

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ii. Consistency with measures to achieve Japan SDGs
JCR confirmed that the projects subject to the use of proceeds are consistent with the following items in the"Specific Measures for Achieving SDGs" set forth by the Government of Japan as SDGs goals.5
Implementation Guideline Principles 1. Promotion the Active Participation of All People
SDGs and Japan's Priority Issues, which seem to be particularly relevant: 8 (Including Job Satisfaction andEconomic Growth)
Domestic Measures
Strategy Overview
AchievingaSocietywith
Dynamic
Engagement ofAll
Citizens:
Work
Style
Reforms

TargetWork style reform is a cross-sectional issue
and the biggest challenge for realizing
dynamic engagement of all citizens.
Efforts will be made to improve the treatmentof non-regular employees such as realizationof the same wages for the same work,
rectification of long working hours, reductionof total working hours, promotion of theemployment of the elderly by encouraging
continuous employment after 65 years of age
and extending the retirement age to 65 years ofage, in order to broaden the options for diverse
working styles.

Indicators
Indicators listed in the Plan
for Dynamic Engagement of
All Citizens(Reference) DBJ Green Building Certification
A certification system provided by DBJ (Development Bank of Japan) to evaluate real estate withenvironmental and social considerations. The evaluation results are expressed as the number of stars,
and the evaluation axis is "buildings with consideration for the environment and society". Each isrepresented by 5 stars (one of the highest domestic excellence), 4 stars (extremely excellent), 3 stars(very excellent), 2 stars (excellent), and 1 star (sufficient). Although this is not an evaluation
specializing in environmental performance, it is highly recognized in Japan, and it also has certain
evaluation items in terms of environmental performance. Therefore, JCR evaluates this certification as
also equivalent to the "green buildings" of the green project classification defined in the Green Bond
Principles, which is recognized as a "regional, national or internationally recognised standard or
certification." However, since the certification is not limited to the environmental performance, it isconsidered desirable to confirm the evaluation for the environmental performance individually.

5

SDGs Imp l ement at i on Gui del i nes es tab lis hed b y t he SDGs Pr omot i on Hea dq ua rt ers, whic h is c omp os ed of al lna ti onal mi nis t er s.
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Evaluation Phase 2: Management, Operation and Transparency Evaluation
JCR assigns "m1", the highest rating on JCR evaluation Phase 2: Evaluation on Management andOperation and Transparency.
Rationale: These projects have allocated the funding and implemented the business as planner
through a firmly equipped management and operation system and high transparency as described
below.

1. Appropriateness and Transparency Concerning Selection Standard and Processesof Use of Proceeds(1) JCR's Key Consideration in This Factor
In this section JCR evaluates the objectives to be achieved through sustainability bonds, the appropriateness ofproject selection criteria and processes, and the appropriateness of the process, and the appropriateness of theprocess to be properly disclosed to investors and others.

(2) Current Status of Evaluation Targets and JCR's Evaluation
a. Goals
The Group has set the following targets for the issuance of sustainability bonds.
The Group set forth the following Group Vision as a promise for its stakeholders: "New Value, Real
Value; Integrating all that is precious to people and communities, we build cities -- dynamic stages
that connect today with tomorrow’s possibilities, and embrace every moment of life’s pursuits. We
create new value, social value, and above all, real value." The Vision is an important one that wealways keep in mind in our efforts through our business, and it is "our commitment" to the customers
and society. This is also our attitude for the Group to achieve sustainable value enhancement, whichforms the basis of all our activities.

The Group's medium-term management plan, which covers FY2020 to FY2027, together with the Group
Vision described above, publishes four value creation initiatives: realization of enriched lifestyles and work
styles; multifunctional urban development toward exceptional convenience, comfort, and safety; urban
development and community building concerning the future of the global environment and local
communities; and global expansion of high-quality products and services. The green projects and social
projects that satisfy the eligible criteria of this Framework are, in particular, those that correspond to "urban
development and community building concerning the future of the global environment and local
communities," and " multifunctional urban development toward exceptional convenience, comfort, andsafety." These initiatives can be considered to lead to the creation of new value aimed at by the Group Vision.
From this, JCR has evaluated that the issuance of the Bonds by Nomura Real Estate HD is consistent with thegoals of the Group.
b. Eligibility Criteria
Nomura Real Estate HD' standards for selecting the use of proceeds of the sustainability bonds is as describedin Phase 1. JCR evaluated the criteria as being expected to have high environmental improvement effects andsocial benefits.

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c.

Process
Targets for the use of proceeds are selected by Nomura Real Estate HD's staff in charge of the Finance
Department and the Sustainability Promotion Department, and finalized by the officer in charge of the
Finance Department. As such, departments specialized in sustainability and the management are involved in
the selection process and the JCR evaluates that the process is clear.

2. Appropriateness and Transparency of Fund Management(1) JCR's Key Consideration in This Factor
It is usually assumed that the management of proceeds methods vary by issuers. JCR confirms that the proceeds
procured through the issuance of sustainability bonds will be allocated to green and social projects, and that aninternal system are in place to easily track the status of proceeding.
JCR also emphasizes assessing whether the proceeds procured through sustainability bonds are expected to beallocated promptly for projects, as well as how to manage and manage unallocated amounts.

(2) Current Status of Evaluation Targets and JCR's Evaluation
The proceeds from issuance of the Bonds will be used in full to refinance funds, etc. related to the construction of
the projects described in Phase 1 and are not expected to be used for any other purposes.
The proceeds are scheduled to be used for refinancing in about a month. The tracking of the Bonds is conductedby the Finance Department of Nomura Real Estate HD using a dedicated form. Such forms are regularly checkedby the director in charge and are subject to internal audits and accounting audits. Thereby appropriate controls arein place.
Based on the above, JCR evaluates that the appropriateness and transparency of fund management at Nomura
Real Estate HD are high.

3. Reporting(1) JCR's Key Consideration in This Factor
In this section, JCR evaluates at the time of the issuance of sustainability bonds whether the disclosure system forinvestors before and after the issuance of sustainability bonds is planned in detail and in an effective manner.

(2) Current Status of Evaluation Targets and JCR's Evaluationa.

Reporting on the status of allocation of funds
Nomura Real Estate HD plans to disclose the outline of eligible businesses, appropriated and unllocatedamounts by eligible businesses, the scheduled timing of appropriation (if any unappropriated amounts), andthe percentage of new financing and refinancing as the appropriation status of proceeds on the Group website
or on the Integrated Report. In the event that a project subject to the use of proceeds no longer meets theeligibility criteria due to the sale or other reasons before the redemption of the Bonds, Nomura Real Estate
HD intends to use proceeds to appropriate for funds for alternative projects that satisfy the eligibility criteria
or to refinance such funds.

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b. Reporting on environmental improvement effects and social benefit
Nomura Real Estate HD plans to disclose the following items as reporting on environmental improvement
effects and social benefits.
(1) Environmental improvement effects
Names of properties and businesses that constitute businesses that meet the green eligiblity
requirements, the level of certification acquired and the timing of acquisition and reacquisition
The following items for businesses that meet the green eligible requirements (in the portfolio level):- CO2 emissions- Energy consumption- Water consumption(2) Social benefits
Indicators

Services for the elderly and nursing

Community empowerment

care
OutputOUKAS Overview

Overview to H1T

OutcomeNumber of elderly housing users

Number of H1T sites and members

Impact"Integrating all that is precious to people and communities, we build cities—dynamic
stages that connect today with tomorrow’s possibilities, and embrace every moment oflife’s pursuits. We create new value, social value, and above all, real value."
Provision of housing for elderly

Status of users who have realized a variety ofpeople to live with peace of mind

working styles as a result of office use(completion of OUKAS, number of(number of locations and members)

users, etc.)

JCR evaluates that the disclosure items and frequency of disclosure related to the Bonds stipulated by
Nomura Real Estate HD are appropriate.

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4. Organization’s Sustainability Initiatives(1) JCR's Key Consideration in This Factor
In this section JCR evaluates whether the issuer's management positions sustainability issues as a high priority
issue or whether the issuer's policies and processes for issuing sustainability bonds and criteria for selecting
projects are clearly positioned by establishing a department specializing in sustainability issues, including thoserelated to the environment and society, or by collaborating with external organizations.

(2) Current Status of Evaluation Targets and JCR's Evaluation
The Group's Medium-Term Management Plan, "New Value, Real Value," covers the nine-year period from March
2020 to March 2028, sets forth the Group Vision of "New Value, Real Value." The Group Vision is titled "Our
Promises." It incorporates the idea of creating value while making the most of what people and cities' value,building sustainable cities that will lead to the future, and fostering a prosperous time together with people
gathering there.
The Group has established the following four value creation initiatives over the period covered by the Mediumterm Management Plan, based on what can happen in the future that it is aiming for, and the difference between
the present and the future.

Four value creation initiatives:
1) Realization of enriched lifestyles and work styles
2) Multifunctional urban development toward exceptional convenience, comfort, and safety
3) Urban development and community building concerning the future of the global environment and local
communities
4) Global expansion of high-quality products and services(Source: Medium-term Management Plan of Nomura Real Estate HD)

Projects and services that satisfy the eligible criteria of this Framework are in line with one of these value
creation initiatives. Nomura Real Estate HD aims to create a community that will lead to the future bycontributing to the resolution of various environmental and social issues through real estate development and therelated services.
The Group has established the Sustainability Committee, chaired by the Board of directors Vice President andGroup COO of Nomura Real Estate HD, as a council for sustainability management. The committee discusses
and decides on policies and activities related to sustainability and collaborates with the Group companies. In
April 2020, the Sustainability Promotion Department was established as the secretariat, and a system to promote
initiatives more steadily has been established. The Group's sustainability-related activities are carried out with
objectivity based on the expertise of outside experts and consultants.
Nomura Real Estate HD has signed the United Nations Global Compact, the Principles for Responsible
Investment, and the United Nations Environmental Programme and Finance Initiative. In September 2020,
Nomura Real Estate HD announced to disclose information based on the recommendations of TCFD (Task Forceon Climate-related Financial Disclosures). In November 2020, the Group was certified as an international
initiative SBTi (Science Based Target Initiative) with regard to its greenhouse gas emission reduction targets
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compared to FY2019). It is further strengthening its continued efforts to reduce environmental impact.
Based on the above, JCR recognizes that Nomura Real Estate HD regards sustainability as a management priority
and is vigorously working to resolve issues through the business activities of itself and Group companies.

Evaluation Result
Based on JCR Sustainability Finance Evaluation Methodology, JCR assigned “gs1” for the "Greenness and Social
Beneficial Impacts Evaluation (Uses of proceeds)" and “m1” for the "Management, Operation and Transparency
Evaluation." As a result, JCR assigned “SU 1” on the overall "JCR Sustainability Bond Evaluation." In addition, theBonds are considered to meet the standards for the items required in the Green Bond Principles, the Social Bond
Principles, the Sustainability Bond Guidelines, and the Ministry of the Environment's Green Bond Guidelines.

[JCR Sustainability Finance Evaluation Matrix]
Management, Operation and Transparency Evaluation

Greenness and Social Beneficial
Impacts Evaluation

m1

m2

m3

m4

m5

gs1

SU 1

SU 2

SU 3

SU 4

SU 5

gs2

SU 2

SU 2

SU 3

SU 4

SU 5

gs3

SU 3

SU 3

SU 4

SU 5

Not qualified

gs4

SU 4

SU 4

SU 5

Not qualified

Not qualified

gs5

SU 5

SU 5

Not qualified

Not qualified

Not qualified

Scope of Evaluation
Issuer: Nomura Real Estate Holdings, Inc. (Securities code: 3231)
Assignment
Subject

Nomura Real Estate Holdings,
Inc. 15th Unsecured Bonds(Sustainability Bond)

Issue
AmountJPY10
billionIssue Date

February 26,
2021

Redemption Date

February 26,
2031

Interest Rate

Evaluation

0.390%JCR Sustainability Bond Evaluation: SU1
Greenness and Social Beneficial Impacts
Evaluation : gs1
Management, Operation andTransparency Evaluation : m1

(Responsible analysts for this evaluation) Atsuko Kajiwara, and Rieko Kikuchi

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Important explanation of sustainability bond Evaluation
1. Assumptions, Significance, and Limitations of JCR Sustainability bond Evaluation
JCR Sustainability Bond Evaluation, which is granted and provided by Japan Credit Rating Agency, Ltd. (JCR), is acomprehensive opinion of JCR's current status on the extent to which the proceeds procured through the issuance of the
Sustainability Bond to be evaluated will be appropriated for Green Projects and Social Projects as defined by JCR, as well as
the extent to which management, operation and transparency initiatives related to the use of the proceeds of the Sustainability
Bond are undertaken. JCR Sustainability Bond Evaluation does not fully represent the appropriation of the proceeds procured
through the Sustainability Bond and the extent to which management, operation and transparency efforts are undertaken in
relation to the use of the proceeds.
JCR Sustainability Bond Evaluation evaluates plans and conditions, such as the appropriation of proceeds at the time ofissuance or at the time of issuance of the Sustainability Bond, and does not guarantee the appropriation of proceeds in the future.
In addition, JCR Sustainability Bond Evaluation does not prove the effectiveness of the Sustainability Bond on environmental
and social issues, and does not assume responsibility for its effects on environmental and social issues. In principle, JCR does
not directly measure the impact of proceeds procured through the issuance of sustainability bonds on environmental and social
issues, although JCR confirms that they are quantitatively and qualitatively measured by the issuer or a third party requested by
the issuer.
2. Methods used in the conduct of this evaluation
The methods used in this evaluation are listed on JCR website (Sustainability finance and ESG in https://www.jcr.co.jp/en)) as
JCR Sustainable Finance Evaluation Method.
3. Relationship with Acts Related to Credit Rating Business
JCR Sustainability bond Evaluation is determined and provided by JCR as a related business, which is different from theactivities related to the credit rating business.
4. Relationship with Credit Ratings
The Evaluation differs from the Credit Rating and does not promise to provide or make available for inspection a predetermined
Credit Rating.
5. Third-Party Evaluation of JCR Sustainability bond
There is no capital or personnel relationship between the subject of this evaluation and JCR that may give rise to conflicts ofinterest.
■Disclaimers

The information contained in this document has been obtained by JCR from the Issuer and from accurate and reliable sources. Provided, however, that suchinformation may be erroneous due to human, mechanical or other reasons. Accordingly, JCR makes no representation or warranty, express or implied, as to theaccuracy, results, accuracy, timeliness, completeness, marketability, or fitness for a particular purpose of such information, and JCR assumes no responsibility forany error, omission, or result of using such information. In no event shall JCR be liable for any special, indirect, incidental or consequential damages of any kind,including opportunity loss, monetary loss, which may arise from any use of such information, whether contractual, tort, negligence or other cause of liability, andwhether or not such damages are foreseeable or unforeseeable. JCR Sustainability Bond Evaluation does not express any opinion on the various risks (credit risk,
price volatility risk, market liquidity risk, price volatility risk, etc.) involved in the Sustainability Bond subject to assessment. JCR Sustainability Bond Evaluation is
a comprehensive statement of opinion at the present time of JCR and is not a statement of fact and does not make any recommendations regarding risk judgment or
the decision to purchase, sell or hold individual bonds, commercial paper, etc. JCR Sustainability Bond Evaluations may be changed, suspended, or withdrawn due
to changes in information, lack of information, or other reasons. All rights to this document, including data from the JCR Sustainability Bond Evaluation, are held by
JCR. Reproduction, adaptation, modification or alteration of this document, in whole or in part, including data from the JCR Sustainability Bond Evaluation, without
the permission of JCR is prohibited.

■Glossary

JCR Sustainability Bond Evaluation evaluates the extent to which the proceeds procured from the issuance of the Sustainability Bond are appropriated for Green
Projects or Social Projects as defined by JCR, as well as the level of management, operation, and transparency initiatives related to the use of proceeds for the
relevant Sustainability Bond. Evaluations are performed on a five-point scale, from the top to the top, using SU1, SU2, SU3, SU4, and SU5 valuation symbols.

■Sustainable finance of registration as an external assessor of sustainable finance・ Ministry of the Environment's external green bond reviewer registration
・ ICMA (registered as an observer with the International Capital Markets Association)■Status of registration as a credit rating agency, etc.

・ Credit Rating Agency: the Commissioner of the Financial Services Agency (Rating) No.1
・ EU Certified Credit Rating Agency
・ NRSRO: JCR has registered with the following four of the five credit rating classes of the Securities and Exchange Commission's NRSRO(Nationally RecognizedStatistical Rating Organization. (1)Financial institutions, broker dealers, (2) insurance companies, (3) general business corporations, and (4) government and local
governments. If the disclosure is subject to Section 17g-7(a) of the Securities and Exchange Commission Rule, such disclosure is attached to the news releases
posted on JCR website (https://www.jcr.co.jp/en/).

■ For further information, contact

Information Service Dept. TEL: 03-3544-7013 FAX: 03-3544-7026

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

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