8 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.
| Item | Overview |
|---|---|
| KPI | Ratio of properties with environmental certification (based on acquisition price)* |
| SPT | Ratio of properties with environmental certification: 50% (based on acquisition price) by FY2030 |
* The term “properties with environmental certification” refers to assets that qualify as Green-Qualified Assets under the Green Finance Framework as of May 1, 2025, and Sustainability-Qualified Assets under the Sustainability Finance Framework.
Second Party Opinion
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. (hereinafter referred to as "JCR"), an independent third-party organization.
[JCR Second Party Opinion on the Sustainability-Linked Finance Framework]
Sustainability-Linked Loan Borrowing Record (As of April 30, 2026)
サステナビリティ・リンク・ローン 借入実績非表示時test
| Execution Date | Borrowing Bank | Contract Number | Loan Amount | Period |
|---|---|---|---|---|
| October 31, 2025 | MUFG Bank, Ltd. / Sumitomo Mitsui Banking Corporation |
0154-A | 970 million yen | 7.5 years |
| October 31, 2025 | Development Bank of Japan Inc. | 0154-B | 500 million yen | 7.5 years |
| October 31, 2025 | Mizuho Bank, Ltd. | B-002 | 100 million yen | 8.0 years |
| November 4, 2025 | MUFG Bank, Ltd. / Sumitomo Mitsui Banking Corporation |
0158-A | 1500 million yen | 8.0 years |
| November 4, 2025 | Development Bank of Japan Inc. | 0158-B | 900 million yen | 8.0 years |
| November 4, 2025 | Mizuho Bank, Ltd. | 0158-C | 600 million yen | 8.0 years |
Reporting based on the Sustainability-Linked Finance Framework
SPT Progress Status
| FY2024 | FY2025 | |
|---|---|---|
| Total acquisition price of properties (100 million yen) * | 2,297 | 2,339 |
| Total acquisition price of properties with environmental certification (100 million yen)* | 1,103 | 1,210 |
| Ratio of properties with environmental certification (based on acquisition price) | 48.0% | 51.7% |
- Amounts are rounded down to the nearest unit.
Post-execution Verification Report
Regarding the progress status of the SPT, the Investment Corporation has obtained a post-execution verification report from Japan Credit Rating Agency, Ltd. (JCR), an independent third-party organization.
[JCR Post-execution Verification Report on Sustainability-Linked Loan (FY2025)]