REIT ASIAPAC
We ’ ve always prioritised tenants ’ health and safety , but the COVID-19 outbreak has further stressed the importance of it . To better understand their evolving needs and concerns , we maintain regular conversations with tenants . In our recent tenant satisfaction survey conducted in 2020 , an overwhelming 88.0 % of tenants responded with a 4- or 5-star rating for overall satisfaction . When it comes to the investment community , we seek to enrich their understanding on the real estate sector and its related themes . This includes our ongoing Green Dot Series where we provide informative conferences , seminars , and thought leadership pieces to the investment community . As for the local community , we lend the strength of our team to engage in community service and donation drives , as well as integrate the practice of procuring goods and services from local social enterprises across all possible business functions . Our CSR programmes in 2020 focused on engaging the elderly , supporting social enterprises and helping communities affected by the pandemic .
On the governance front , our focus is to ensure continued adherence to regulations through the highest standards of governance and best practices by employing stringent corporate compliance and internal audit practices . As a sign of the Board ’ s commitment to upholding high corporate governance standards , MUST retained its SGX Fast Track status for the third year running in 2020 .
In 2020 , MUST was ranked 4th by the Governance Index for Trusts ( GIFT ) and 9th by the Singapore Governance Transparency Index ( SGTI ) amongst 45 real estate investment trusts and business trusts listed on the Singapore Exchange . In addition to receiving accolades in corporate governance , MUST ’ s sustainability efforts are well-recognised by major ESG benchmarks with a 5-star rating by the Global Real Estate Sustainability ( GRESB ) Real Estate Assessment , a 4th placing out of 15 listed U . S . office REITs , as well as an ‘ A ’ in GRESB Public Disclosure . It also ranks 1st out of 10 Asia offices and ‘ A ’ in MSCI ESG Ratings .
Q3
MUST received your maiden Green Loan for Peachtree ’ s Refinancing in May 2020 . How was the Green Loan structured – ‘ Green benchmark ’, loan terms , etc .?
The green loan was raised under a newly established green finance framework , which was prepared in line with the relevant international principles and guidelines . The US $ 100 million green loan was primarily used to refinance an existing loan for Peachtree , an ENERGY STAR ® certified building located in Atlanta , as well as environmental initiatives at other green properties within our portfolio ( LEED™ and / or ENERGY STAR ®).
Photo : Michaelson , Irvine , California Source : Manulife US REIT
Q4
Q5
What was the relative market pricing of Green Loans when you received it and in today ’ s context ? Are there tangible economic dividends to Green Loans ?
Currently in the marketplace , there are three types of loans – a ) conventional loan , b ) green loan , c ) sustainability-linked loan .
There is no pricing differential between a conventional loan and green loan . The green loan proceeds must be used for green buildings only .
On the other hand , for a sustainability-linked loan , there is interest rate reduction upon achieving certain green targets .
Do you plan to issue more Green Loans and how will these be structured ?
We take a proactive capital management approach to optimise our capital structure and increase financial flexibility . On top of the green loan , we have successfully obtained a US $ 250
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