Sustainability Initiatives

Social Finance

The Investment Corporation has established the Social Finance Framework, believing that providing investment opportunities to investors who are active in ESG investment through Social Finance is of social significance.
The Investment Corporation received Social 1(F), the highest rating in “JCR Social Finance Framework” from Japan Credit Rating Agency, Ltd.

(Note) JCR Social Finance Framework Evaluations related to the Investment Corporation are described on the JCR website below.
 https://www.jcr.co.jp/en/greenfinance/social/

Social Finance Framework

1. Use of Procured Funds

Funds raised through social bonds or social loans will be used to acquire properties that meet the following eligible criteria or to refinance the funds.

2. Selection process of projects

Under the advice of the asset manager of the asset management company, Daiwa Real Estate Asset Management (DR), the Finance Department will consider the suitability for eligible criteria, and then evaluate and select the projects.
Raising funds through Social Finance for the project is examined by the DR Sustainability Promotion Committee, deliberated by the DR Investment Committee and the Board of Directors, and approved by the Board of Directors of Investment Corporation.

3. Management of procured funds

If there are unallocated funds, the funds raised will be managed in cash or equivalent until the full amount of the funds raised is allotted.
Even after the full amount has been allocated, if the assets for which the funds are used are excluded from the portfolio due to sale, etc., the funds will be managed appropriately by the portfolio management.
【Portfolio management (Every fiscal period)】
Total balance of Social Finance ≦ Social Finance eligible debt limit(Total acquisition price of assets that meet the eligible criteria x Total assets LTV)

4. Reporting

The following items will be disclosed annually on the Investment Corporation website.
 ■ Financing status through Social Finance
 ■ The status of allocation of funds procured through Social Finance  
 ■ Impact Reporting
  <Output indicators>
   Number of acquired healthcare facilities and occupancy rate etc.
  <Outcome indicators>
   Changes in the amount of investment in healthcare facilities of the Investment Corporation

Financing status through Social Finance

The reporting as of March 31, 2022, is as follows.

Total acquisition price of assets held by the Investment Corporation JPY 343.9 billion (239 properties)
Total acquisition price of assets that meet the qualifying criteria JPY 101.9 billion (57 properties)
Total assets LTV 51.0%
Maximum amount of debt eligible for social finance JPY 51.96 billion
Social loan outstanding JPY 770 million
Total issue amount JPY 2 billion

The status of allocation of funds procured through Social Finance 

The status of allocation of financing is as follows. 

Individual Loans (Borrowings dated October 1, 2021)
Lender Sumitomo Mitsui Banking Corporation
Amount of borrowing JPY 770 million
Interest rate 3-month JBA Japanese Yen TIBOR+0. 5200%
Borrowing date October 1, 2021
Repayment Date June 29, 2029
Allocation status Allocated funds for the acquisition of 4 healthcare facilities (Charm Premier Kamakurayama, As-heim Tsunasima, Library Shin-Shibamata and Ishinkan Kamiooka)
Press Release Notice concerning Borrowing of Funds and Early Repayment of Loans
4th Unsecured Investment Corporation Bonds of Daiwa Securities Living
Total issue amount JPY 2 billion
Interest rate 0.460% per annum
Issue Date January 25, 2022
Redemption Date January 23, 2032
Issue period 10 years
Allocation status Allocated funds for the acquisition of 4 healthcare facilities (Charm Premier Kamakurayama, As-heim Tsunasima, Library Shin-Shibamata and Ishinkan Kamiooka)
Press Release Notice Concerning Issuance of Investment Corporation Bonds (Social Bonds)

Impact Reporting

■Output indicators
Number of acquired healthcare facilities and Occupancy rate  etc.
For output indicators, please refer to Financial Results for the 32nd Fiscal Period .
■Outcome indicators
Changes in the amount of investment in healthcare facilities of the Investment Corporation.

  • (Note)Changes after the merger with Nippon Healthcare Investment Corporation in April 2020 are shown.