Sustainable Finance

Overview of the Sustainability-Linked Finance Framework

Hoshino Resorts REIT, Inc. (the “Investment Corporation”) has established a Sustainability-Linked Finance Framework as a basic policy for implementing sustainability-linked finance in line with the Sustainability-Linked Bond Principles and other relevant principles and guidelines.
Through the execution of sustainability-linked finance based on this framework, the Investment Corporation aims to enhance its sustainability and maximize unitholder value.

[Press release can be found here]

A Sustainability-Linked Loan (“SLL”) is a loan designed to encourage borrowers to achieve ambitious Sustainability Performance Targets (“SPT”).
The Investment Corporation and Hoshino Resort Asset Management Co., Ltd. (the “Asset Management Company”) have inherited the environmental philosophy consistently upheld by Hoshino Resorts Inc, the sponsor, since its founding, and have been working to reduce environmental impact and create social value through the operation of their properties.
Based on this background, under this framework, the Investment Corporation has set the following Key Performance Indicator (“KPI”) and SPT for the SLLs issued.

This table can be scrolled sideways.

* The term “properties with environmental certification” refers to assets that qualify as ^{(Note 1)} Green-Qualified Assets under the Green Finance Framework as of May 1, 2025, and ^{(Note 2)} Sustainability-Qualified Assets under the Sustainability Finance Framework.

The above KPI and SPT are of high strategic importance to the business operations of the Investment Corporation and are considered ambitious targets. The Investment Corporation has obtained a Second Party Opinion from Japan Credit Rating Agency, Ltd. (JCR), an independent third-party organization.

[JCR Second Party Opinion on the Sustainability-Linked Finance Framework]

• Refers to assets that meet item (1) or (2) of “2. Eligible Criteria” described in “Overview of the Green Finance Framework.”
  [Overview of the Green Finance Framework]
• Refers to assets that meet the “Social Eligible Criteria” and item (1) or (2) of the “Green Eligible Criteria” in “3. Eligible Criteria” described in the “Overview of the Sustainability Finance Framework.”
  [Overview of the Sustainability Finance Framework]

Sustainability-Linked Loan Borrowing Record (As of November 4, 2025)

Reporting

The actual results and achievement status of the KPI are scheduled to be disclosed after the figures as of March 2026 have been verified by an independent third-party organization.