Link REIT’s Green Bond:How we got it done

Profile of Link REIT

VVisionTobeaworldclassrealestateinvestorandmanager,servingandimprovingthelivesofthosearoundus

MMissionBuilding relationshipswithourstakeholders through

• Providing valueandqualityservice• Partneringwithlocalcommunities• Deliveringsustainablegrowth

VValuesManagingandoperatingourbusinesswithRespect� Excellence� Integrity� Teamwork

It started with a clear vision.....

To link sustainability with everything we do

• Preparation• Communication• Delivery

Three Stages of Link’s Green Bond

CorporateSocialResponsibility(CSR)

.

SustainabilityFramework . IntegratedValue

CreationModel

Environmental,SocialandGovernance

(ESG)

IntegratedReporting(IR)

2009 2011 2017

2013

Itisajourney…

Proud to champion of sustainable development

Translation and Communication

Delivering our Green Bond

In order for a project to be funded through the green bond proceeds, the project must meet one or more of the following eligibility criteria:

1. Existing or new buildings that expect to receive certification

2. Energy efficiency

3. Projects such as those that reduce waste to landfill, improve water efficiency, promote adoption of low carbon transportation including electric vehicles, and improve climate change resilience

P.10

Link Green Bond Framework

In order for a project to be funded through the green bond proceeds, the project must meet one or more of the following eligibility criteria:

1. Existing or new buildings that expect to receive certificationa) Hong Kong BEAM - Silver, Gold or Platinum; or b) LEED Silver, Gold or Platinum

2. Energy efficiencya) 15% improvement in energy efficiency or, a NABERS Shopping Centres rating

equal to or greater than 3 or similar rating scheme to an equivalent rating level

3. Projects such as those that reduce waste to landfill, improve water efficiency, promote adoption of low carbon transportation including electric vehicles, and improve climate change resilience

P.12

Link’s Green Bond Framework - Expanded

SummaryofTermsandConditions

Asia- 96%

Europe- 4%

ISSUER TheLinkFinance (Cayman)2009Limited

GUARANTOR

TheLinkHoldings Limited,LinkPropertiesLimitedandHSBCInstitutionalTrustServices(Asia)Limited(initscapacityastrusteeofLinkRealEstateInvestmentTrust)

GUARANTORRATINGS A(S&P)stable/A2(Moody's) stable

ISSUERATINGS A(S&P)/A2(Moody’s)

STATUS Senior,Unsecured, DrawdownfromMTNProgramme

FORMAT Reg S,RegisteredTENOR 10-YearMATURITYDATE 21July 2026ISSUESIZE USD500mCOUPON 2.875%s/aREOFFERSPREAD 145bps vs10-year USTyieldsREOFFERPRICE/YIELD 99.123/2.977%

USEOFPROCEEDS Torefinanceorfund eligiblegreenprojects

TERMS HKSEListing, EnglishLaw

FundManager- 42%Bank- 45%PrivateBank- 7%Insurance- 5%Other- 1%

Distribution by Investor Type

US$500m 10-year green bond at 2.875% coupon

DarkGreen- 6%

LightGreen- 14%

Others- 80%

DarkGreen: Investorshavededicatedgreenfundswithinthefundhouse

LightGreen: InvestorshaveESGinvestmentapproachandisactiveingreenbonds.

Distribution by Geography

Distribution by Green Investors

P.13

P.14

Highlights of Link’s Green Bond

• Identify eligible green projects

• Set up “green bond framework” conforming to Green Bond Principles with second opinion accreditation

• Investor roadshows and conference calls in Frankfurt, Paris, London, Singapore and HK with focus on green investors

• After bond issue, tracking and reporting of eligible green projects and use of proceeds

Processes

• First green bond issued by HK business enterprise and in Asian property sector

• Attracted 3.3x oversubscription with 20% green investors

• Achieved one of the lowest coupons at 2.875% for a 10-year HK corporate bond

• Leadership in sustainability and contribution to the green financing of HK

Achievements

• QuantifyingLinkREIT’sTotalImpact– Goingbeyondthetraditionalfinancialmetrics,wecommissionedTrucost toconducta

TIA(TotalImpactAssessment)measuringLink’snatural,socialandhumancapital

• Firstkick-offinDecember2015• Intendtodeveloparobust managementtoolwithin3years

– Tohaveacomprehensiveunderstandingonthebusinessrelevanceofitssustainabilityprogrammes

– Toinformandimproveourbusinessdecision-making– Tosupport Link’sESGinvestortargetingstrategywithbettercommunicationwiththe

investmentcommunity

NaturalCapital

•Electricityandwaterconsumption, wastegeneration

•GHGEmission andsocialcostofcarbon

SocialCapital

• LinkTogetherInitiatives•Marketingeventsandactivities

HumanCapital

•Healthandsafetytraining• Learninganddevelopment

15

Reporting on our Green Bond

• Conducted2pilotcasesonspecificprojectstoassessTotalImpact:

16

ValuationofLink’sAEProject:LokFuCaseStudy

• Every$1investedinLokFuAEgenerated$4.1-$6.7insocio-economicbenefits

UsedKPMGmethodologytoassessfinancialvalueofbenefitssuchasjobscreated,changesincustomerspendingandsatisfaction,andimprovementinenvironmentalperformance.

Quantifyingsocial/communityvalues:LinkTogetherInitiatives

• Every$1investedWGO’sSurplusFoodDonationProjectgenerated$1.59ofsocio-environmentalbenefits

UsedTIAtoassessfinancialvaluesofbenefitssuchasavoidedfoodwastetolandfill,strengthenedsocialnetworkamongintraandinter-generations

Quantifying our Total Impact

Appendix: Case Studies

18

Development§ Built between 1983 and 1991 by government

§ Renovated in 2010/11

Project features

§ Electricity consumption reduced by ~30%

§ Retrofitted energy efficient chillers with environmental friendly refrigerant R134a

§ Improved lighting systems, replacing T8 lightings by T5 fluorescent tubes

§ Promote low carbon transportation

§ Awarded Indoor Air Quality Certificates (“Good Class”) for Public Areas of Lok Fu Plaza Phase I and Dry Market

First Link property to undergo renovation work with a focus on environmental performance

Lok Fu Place

Development§ Built between 1999 and 2000 by government

§ Renovated in 2011/12

Project features

§ Passive Design Approach

§ All-embracing considerations from neighborhood to building interiors

§ Outdoor Environmental Qualities (OEQ)

§ Indoor Environmental Qualities (IEQ)

§ Energy and water conservation

§ Materials conservation in a life cycle perspective

§ Sustainability policy and feedback loop

First HK-BEAM Platinum certified propertyPassive design capitalizing on its waterfront location

Stanley Plaza

Development§ Built in 1983

§ Renovation in progress

Project features

§ 8-storey retail podium and 15-storey tower block of service trades

§ Innovations and Additions§ Smartphone App§ Hong Kong Guide Dog Accessible and

Training provided§ Adopt sustainable flooring, ceiling, walls and

doors where possible.

§ Focus on indoor Environmental Quality

§ Targeting IAQ “Good Class” Certificate

Targeting BEAM - Plus Interiors CertificationLandmark commercial building in the heard of Kowloon

700 Nathan Road

Development§ Built in 2003

§ Renovated in 2016

Project features

§ Replacing air filters to enhance air quality

§ Introducing waste separation and educating tenants about eco-friendly practices

§ Extensive tenant and occupier engagement to raise awareness and seek feedback

§ Revamping of the green areas to highlight the main entrance

§ Upgrading of the standby power generator system

LEED EB-OM Platinum CertificationHighest-scoring mixed-use commercial complex in China

Link Square

Development § Grade-A office with retail element and car park

Project features§ Twin towers with connected floors of about

50,000 sq ft floor plate and a three-level retail podium

Expected Completion Date § 2019

Estimated Total Development Costs

§ HK$9.9 Billion

JV Structure§ Link Asset Management Ltd – 60%

§ Nan Fung Development Ltd – 40%

LEED and HK-BEAM Platinum precertificationWELL Gold precertificationDesign, build and hold for long-term income growth

77 Hoi Bun Road