June 18, 2020
To All Concerned Parties

Issuer of Real Estate Investment Trust Securities:
Nippon Accommodations Fund Inc.
Takashi Ikeda, Executive Director(TSE Code: 3226)
Investment Trust Management Company:
Mitsui Fudosan Accommodations FundManagement Co., Ltd.
Tateyuki Ikura, President and CEO
Inquiries: Tetsuji Kawakami, CFO and Director(TEL: +81-3-3246-3677)

Notification Concerning Submission of Revised Shelf Registration Statement forIssuance of Green Bonds
Nippon Accommodations Fund Inc. (“NAF”) hereby provides notice of its submission today of a revised shelfregistration statement for issuance of green bonds (unsecured investment corporation bonds) (the “Green Bonds”).
1. Content of the revised shelf registration statement for issuance of the Green Bonds
NAF today submitted a revised shelf registration statement of investment corporation bonds to the DirectorGeneral of the Kanto Local Finance Bureau to enable issuance of the Green Bonds. NAF plans to appoint SMBC
Nikko Securities Inc. (the green bond structuring agent) (Note), Mitsubishi UFJ Morgan Stanley Securities Co.,
Ltd. and Mizuho Securities Co., Ltd. as lead managers to consider the viability of issuance and the terms ofissuance such as interest rates of the Green Bonds and perform other tasks in the issuance of the Green Bonds.
NAF plans to apply all of the proceeds from the Green Bonds to fund the acquisition of eligible green asset(described in “3. Outline of the green finance framework” below) and to make repayments of loans or bonds
taken out to acquire eligible green asset.
(Note)“Green bond structuring agent” refers to a party that supports the issuance of green bonds by advising on formulation of agreen bond framework and on obtaining second-party opinions, among other ways.

2. Purpose and background of issuance of the Green Bonds
As the asset management company for NAF, Mitsui Fudosan Accommodations Fund Management Co., Ltd.
(the “Asset Management Company”), in recognition of the importance of initiatives for sustainability including
environmental and social considerations for carrying out asset management activities, established a“Sustainability Policy” in April 2016, under which it strives to achieve asset management activities giving
consideration to reduction of environmental load and diversified affiliations and collaborations with various
internal and external stakeholders, in line with the "Group Environmental Policy" and “Policy for Social
Contribution Initiatives” established by the Mitsui Fudosan Group, NAF’s sponsor.
As part of these initiatives, proactive efforts are also underway at NAF for acquisition of environmental
certification, such as DBJ Green Building Certification (a certification program for real estate properties withhigh environmental and social awareness by Development Bank of Japan Inc. (DBJ)), in addition to suchactivities as “promoting energy saving and reduction of CO2 emissions” and “preserving water environment andpromoting resource saving and waste reduction.”
NAF has been selected as a “Sector Leader (Residential, Multi-family)” in Asia in the 2019 GRESB Real
Estate Assessment in high recognition of its initiatives for environmental consideration and sustainability.
NAF is conducting this submission of a revised shelf registration statement with the aim of strengthening thefunding base by expanding the group of investors interested in ESG investment and financing, along with

promoting initiatives for sustainability even further, by procuring funds through the Green Bonds.
NAF’s procuring of funds through green finance is also thought to contribute to “promoting energy saving andreduction of CO2 emissions” that has been set as one of the material issues of sustainability to be addressed.
3. Outline of the green finance framework
For implementation of green finance including issuance of the Green Bonds, NAF has formulated a green
finance framework in line with the Green Bond Principles (Note 1) 2018, the Green Bond Guidelines 2020 (Note2), the Green Loan Principles (Note 3) 2018, and the Green Loan and Sustainability Linked Loan Guidelines
2020 (Note 4).
(Note 1) “Green Bond Principles” refers to the guidelines for green bond issuance formulated by the Green Bond Principles Executive
Committee, a non-government organization for which the International Capital Market Association (ICMA) serves as
secretariat, and are hereinafter referred to as the “Green Bond Principles.”(Note 2) “Green Bond Guidelines 2020” refers to the guidelines formulated and published in March 2017 and revised in March 2020
by the Ministry of the Environment of Japan. The Guidelines, in accordance with the Green Bond Principles, seek to provide
market participants with illustrative examples of specific approaches and interpretations tailored to the Japanese market toaid with decision-making regarding green bonds, thereby spurring green bond issuances and investments in Japan. TheGuidelines are hereinafter referred to as the “Green Bond Guidelines.”(Note 3) “Green Loan Principles” refers to the guidelines for loans made available exclusively for use on green projects formulated by
the Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA), and are hereinafter referred toas the “Green Loan Principles.”(Note 4) “Green Loan and Sustainability-Linked Loan Guidelines 2020” refers to the guidelines formulated and published in March
2020 by the Ministry of the Environment of Japan. The Guidelines, in accordance with the Green Loan Principles for greenloans, seek to provide borrowers, lenders and other market participants with illustrative examples of specific approaches andinterpretations tailored to the Japanese market to aid with decision-making regarding green loans, thereby spurring utilizationof green loans in Japan.

(1) Use of proceeds from green financeNAF plans to apply the proceeds from green finance to the funds for acquisition of eligible green assets(described in “(2) Eligibility criteria” below), and the funds for repayment of existing loans or redemption of
investment corporation bonds that were procured for acquisition of the assets.
(2) Eligibility criteria
Assets for which any of the following certifications from a third-party certification body (“green buildingcertification”) has been or will be obtained (“eligible green assets”)
・ DBJ Green Building Certification: 3 Stars, 4 Stars or 5 Stars
・ BELS Certification: 3 Stars, 4 Stars or 5 Stars
・ Certification for CASBEE for Real Estate: B+ , A or S Rank・ Other green building certification: Rating of an equivalent level to the above(3) Process for project evaluation and selection
The eligibility criteria are drafted by the Sustainability Promotion Office (the “Office”), which is made up ofmembers from across the Asset Management Company, and decided at the Investment Committee, themembers of which include the President & CEO, the Chief Investment Officer (CIO) and the Chief Financial
Officer (CFO) of the Asset Management Company.
Green finance projects are selected through examination of eligibility carried out by the Office based on
the eligibility criteria followed by deliberation and approval by the Investment Committee.
(4) Management of proceeds
The amount of debt calculated by multiplying total acquisition price of eligible green assets in NAF’s portfolio
by the ratio of interest-bearing debt to total assets (“amount of eligible green debt”) will be set as the upper
limit amount for green finance and managed so that the balance of green finance does not exceed theamount of eligible green debt.
(5) Reporting
The following items will be disclosed on the NAF website in the information as at the end of February ofeach year so long as the balance of green finance is outstanding.

・ Total acquisition price of eligible green assets
・ Ratio of interest-bearing debt to total assets
・ Amount of eligible green debt
・ Balance of green finance outstanding
The following items will also be disclosed on the NAF website each year so long as the balance of green
finance is outstanding.
・ Status of acquisition of green building certification (number of properties, floor area and ratio ofacquisition (floor area basis))
・ Each eligible green asset’s property name, and certification type, rating and certification (renewal)
date of green building certification
・ Energy (electricity) consumption volume and intensity
・ Energy-originated CO2 emissions volume and intensity
・ Water consumption volume and intensity
4. External review
For eligibility of the green finance framework, NAF has been assigned “Green 1 (F),” the highest evaluation
grade in the JCR Green Finance Framework Evaluation by Japan Credit Rating Agency, Ltd. (JCR). For thecontent and other details of the JCR Green Finance Framework Evaluation, please refer to the following website.
JCR Green Finance Framework Evaluation: https://www.jcr.co.jp/en/greenfinance/
Furthermore, as an issuance supporter under the Ministry of the Environment of Japan’s Fiscal 2020 Financial
Support Programme for Green Bond Issuance (Note 5), JCR has received the notification of decision to grant
the subsidy from the Green Finance Organization, making the assignment of third-party evaluation of the green
finance framework of NAF eligible for grant of the subsidy.
(Note 5) “Financial Support Programme for Green Bond Issuance” refers to a program providing subsidies for the expenses requiredby those who support companies, municipalities and other bodies who seek to issue green bonds, etc. in the form of granting
external reviews, consultation on establishing a green bond or other framework, etc. The requirements for green bonds, etc.
to be eligible are that the proceeds are exclusively applied to green projects and that all of the following requirements are
met at the time of issuance.
(1) One of the following criteria is met at the time of issuance of green bonds, etc.:
1. Contributes mainly to domestic decarbonization (renewable energy, energy efficiency, etc.)
・ Projects for which an equivalent amount or more than half of the procured amount, or of which an equivalent number
or more than half of the number of projects target domestic, decarbonization-related projects
2. Has high effects on decarbonization and vitalization of local economy
・ Decarbonization effects: Those whose subsidy amount per ton of domestic CO2 reduction is less than the specified
amount・ Effects on vitalization of local economy: Projects that are expected to contribute to vitalization of local economy aspart of the ordinance and plan, etc. decided by the municipality, projects for which investment by municipalities canbe anticipated, etc.
(2) Compliance of the green bond or other framework with the Green Bond Guidelines has been confirmed by an external
review organization before issuance(3) Not a so-called “green-wash bond”•NAF website: https://www.naf-r.jp/english/

Please note that this English translation of the Japanese original document is provided solely for information
purposes. In the event of any discrepancy between the Japanese original and this English translation, the Japaneseoriginal shall prevail.