Green Bond Fact Sheet

Activia Properties

Date: 04/10/2019

Issue date: 09-07-2019 Maturity date: 09-07-2024 Tenor: 5Issuer Name

Activia Properties

Amount Issued

JPY5bn/USD46m

Country of riskJapan

CBI Database

Included

Issuer Type1

Non-financial
corporate

Bond Type

Senior unsecured

Green Bond Framework

Framework

Second party opinion

Sustainalytics

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☐ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Buildings☒ Certified Buildings☐ HVAC systems☒ Energyperformance☒ Water performance☐ Energy storage/meters☒ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emission
vehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingCompany information

The issuer will disclose on its website the list of eligible green projects or refurbishments
financed/refinanced, allocation status, including the amount of unallocated proceeds,
schedule of allocation and managing method, as well as other allocation information, of thenet proceeds of green bonds as of end of every May until the proceeds are fully allocated. Itwill also report on the progress and levels of certifications of eligible green projects.
Additionally, API will annually disclose energy, emissions, water and waste indicators ofeligible green projects (estimated for refurbishments) until bond maturity.
Activia Properties Inc. (API) is a Japanese real estate investment trust (J-REIT) establishedon September 7, 2011. API primarily focuses on investments in urban retail properties andoffice buildings across Tokyo in Japan. As of January 10, 2019, the total number ofproperties owned was 45, with a total acquisition price of JPY502bn. In accordance withAPI’s investment policy, the operation and management of its assets are entrusted to theasset manager, TLC REIT Management Inc. (TRM), a wholly owned subsidiary of Tokyu Land
Corporation, a comprehensive real estate company in Japan.

Firsts, records andcertifications
Proceeds description

The proceeds of the green bond will be allocated to acquire the existing or new buildingsthat meet the eligibility criteria A, or refurbishments that meet the eligibility criteria B or torefinance the existing loan/investment corporation bonds which have been allocated toeligible green projects or refurbishments.
A: Buildings that have achieved the following top two levels of third-party green building
certification/recertification within 36 months prior to the payment date of green bonds orwill achieve: A or S Rank under CASBEE; 4 or 5 Stars under DBJ Green Building Certification
Program; 4 or 5 Stars under BELS.
B: Refurbishments with a primary purpose of achieving one of the following criteria and arecompleted within 36 months prior to the payment date of green bond or will be completed:•••Refurbishments with more than 10% reduction in CO2 emissions or energy
consumption;
Refurbishments with more than 10% reduction in water consumption;
Newly achieve the top two levels of green building certifications listed above or morethan one level of star/rank improvement in the green building certifications

The REIT is aiming to reduce average energy consumption across its portfolio, and on
average per property, by 1% a year.

Climate Bonds view

Many J-REITs and real estate companies have issued green bonds for Certified buildings andenergy improvements in 2019. API’s ambition to achieve the top two certification levels iscommendable. While 10% improvements in energy and/or water consumption is below our20% requirement, the fact that the asset owner is also aiming to continually reduce averageenergy consumption across its whole portfolio suggests that this may indeed be a floor. We
hope to see higher levels of improvement for refurbishments.

Underwriters

Mizuho, Daiwa, Mitsubishi, SMBC Nikko Securities

Deal comments
Credit Rating

AA (JCR)

Pricing summary
Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign