October 29, 2020
For Translation Purposes Only
Real Estate Investment Fund Issuer:
Mori Hills REIT Investment Corporation(Securities Code: 3234)
1-12-32 Akasaka, Minato-ku, Tokyo
Hideyuki Isobe, Executive Director
Asset Manager:
Mori Building Investment Management Co., Ltd.
Hideyuki Isobe, President & CEO
Inquiries: Akira Nemoto
General Manager, Financial Department
TEL: +81-3-6234-3234
MHR Announces Submission of Revised Shelf Registration Statement for Issuance of Green Bonds
Mori Hills REIT Investment Corporation (hereinafter, “MHR”) announces that it today submitted arevised shelf registration statement (the original shelf registration statement was submitted onDecember 6, 2019) for the issuance of green bonds (unsecured investment corporation bonds)(hereinafter, “Green Bonds”) as described below.
1. Purpose and Background of Green Bonds Issuance
MHR and Mori Building Investment Management Co., Ltd. (hereinafter, “MIM”) aim to contributeto the realization of a sustainable society and maximization of unitholder value in the medium tolong term by emphasizing ESG (Environment, Social and Governance) and investing in highquality urban assets while striving to improve various environmental and social performancelevels.
MHR’s main environmental initiatives include “CO2 (climate change),” “resource recycling (waterand waste),” “increasing greenery and biodiversity,” and “external assessment and green building
certification.” MHR actively works to acquire green building certifications such as through
CASBEE (Comprehensive Assessment System for Built Environment Efficiency) Real Estate
Certification System and DBJ Green Building Certification and the rate of owned properties thatare certified (Note) as of today is 93.4% (of which, the rate of highest-rank certification is 71.5%),
the highest among J-REITs.
These efforts have been evaluated, MHR received “Green Star” for the eighth consecutive year in
the GRESB (Global Real Estate Sustainability Benchmark) Real Estate Assessment conducted in2019 while also receiving “4 Stars,” the second-highest rank, in “GRESB Rating” that reflects anapplicant’s relative evaluation based on total GRESB Score on a global perspective.
In order to promote the above environmental initiatives and contribute to the realization of asustainable society, MHR plans to procure investment funds for projects that are conscious of theenvironment through the issuance of Green Bonds. It is for this purpose that the revised shelfregistration statement is being submitted.
(Note) The rate is calculated based on the acquisition price of assets (this refers to the transaction price indicatedin the real estate transaction agreement or trust beneficiary interest transaction agreement of each asset(excluding the equivalent of consumption tax and local consumption tax); the same follows hereinafter).
Furthermore, Laforet Harajuku (land) has been exempted from the total.

2. Structure of MHR’s Green Bonds
For the issuance of green bonds, MHR has formulated a green bond framework conforming to theGreen Bond Principles 2018 stipulated by the International Capital Market Association and theGreen Bond Guidelines, 2017 by the Ministry of the Environment. MHR conducts management
based on this framework.

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Funds procured through green bonds shall be allotted to funds for the acquisition of assets thatmeet the eligibility criteria (Note) (hereinafter, “Eligible Green Projects”) and which are selectedby the Sustainability Committee of MIM and determined by the CEO, as well as for refinancing
funds required in borrowings made for the acquisition of Eligible Green Projects and for funds forthe redemption of previously issued investment corporation bonds (including green bonds). MHR
will conduct management so that the green bond issue balance does not exceed the totalacquisition price of Eligible Green Projects.
As of today, 8 properties with the total acquisition price of 355.9 billion yen fall under the categoryof Eligible Green Projects.
Moreover, as long as there is a green bond issue balance, MHR plans to disclose the property
names, total acquisition price, and allocation amount of Eligible Green Projects as well as theissue balance of green bonds, the type and level of certification acquired by each Eligible Green
Project, and the amount of CO2 emissions and energy consumption on its website on an annualbasis.
(Note) “Assets that meet the eligibility criteria” refers to assets for which either of the following certifications
have been acquired or renewed within a 24-month period from the green bond payment date or as of either
reporting, or for whom acquisition or renewal is scheduled in the future.
・Rank of A or S in CASBEE Real Estate/Building Certification System・Four stars or five stars in the DBJ Green Building Certification
・Four stars or five stars in the BELS (Building-housing Energy-efficiency Labeling System) Certification

3. Evaluation by External Organization
MHR has obtained a second-party opinion from Sustainalytics, an ESG rating agency, for theeligibility of green bond framework. (Note 1)
For details of the second-party opinion, please refer to the following website.
https://www.sustainalytics.com/sustainable-finance/wp-content/uploads/2020/10/Mori-Hills-REITInvestment-Corporation-Green-Bond-Second-Party-Opinion.pdf

Furthermore, in acquiring said second-party opinion, with regard to this being eligible for thegranting of a subsidy from the Ministry of the Environment’s 2019 Financial Support Programmefor Green Bond Issuance (Note 2), the issue supporter, Sustainalytics, has received a notice fromthe Green Finance Organization stating that the granting has been determined.
(Note 1) Being eligible for green bond framework means complying with the four requirements set by the Green
Bond Principles: use of proceeds, project evaluation and selection process, management of proceeds andreporting.
(Note 2) The Financial Support Programme for Green Bond Issuance is a project that provides subsidies for theexpenses that are required by registered parties who support companies, municipalities and other bodies
who seek to issue green bonds, in the form of granting external reviews, consultation on establishing agreen bond framework, etc.
For details of the Financial Support Programme for Green Bond Issuance, please refer to the following
website.
The Green Bond Issuance Promotion Platform of the Ministry of the Environment website:
http://greenbondplatform.env.go.jp/en/support/subsidy.html

4. Future Plan
While the issue period, issue amount, and other conditions, etc. of the Green Bonds are yet to be
determined, conditions for the issue are planned to be deliberated through marketing activities.
MHR’s website address is https://www.mori-hills-reit.co.jp/en/2