Kiwi Property revised Sustainable Debt Framework

Kiwi Property
Sustainable Debt
Framework
May 2022

Kiwi Property
Sustainable Debt Framework
02
Contents
Purpose
03
Introduction to Kiwi Property
04
Sustainable Debt Framework
05
Section 1: Green Bonds and Loans
06
Section 2: Sustainability-Linked Bonds and Loans
09
Further information
11

03
Sustainable Debt Framework
Kiwi Property
Purpose
This document outlines
the governance framework
(Framework) that applies
to Sustainable Debt issued
by Kiwi Property.

Kiwi Property
Sustainable Debt Framework
04
Kiwi Property is one of New Zealand’s largest
NZX listed property companies. We own,
invest in, develop and manage some of the
country’s most well-known properties.
Introduction
to Kiwi Property
Our purpose is to ‘create connected
communities’ underpinned by a
deeply held commitment to
environmental, social and
governance (ESG) factors, that
dates back almost 20 years.
We recognise that sustainability is
critical to the people who work, visit,
shop, socialise and stay at our assets
– as well as to the long-term
performance of our business.
Accordingly, Kiwi Property has a
comprehensive and quantifiable
sustainability strategy, focused on
three priority pillars:
• Reducing our environmental
footprint
• Creating thriving communities
• Elevating ESG consciousness
We are committed to delivering a
brighter New Zealand by decreasing
our resource consumption, and
making a positive contribution to
society. With our broad reach across
multiple stakeholder groups
(including tenants, customers and
suppliers), our sustainability strategy
also aims to galvanise and empower
others to make positive change
within their own businesses. By
ensuring our assets are resilient,
investing in our communities and
intensively managing our assets, we
not only optimise the performance of
our property portfolio, we also drive
sustainable returns for our investors.
Kiwi Property aims to lead in an
industry where sustainability is a
key driver. Amongst our peers,
we are well placed, achieving an
‘A’ rating from the Carbon Disclosure
Project in 2020, the first New Zealand
company to do so. In addition, we
benchmark our ESG performance
using GRESB, a standardised and
globally recognised framework for
the real estate industry.
Year on year, Kiwi Property measures
the material impacts of its buildings,
across energy, waste, water
consumption and carbon footprint
metrics. Key milestones include
achieving a 60% reduction in 2021
emissions from operations,
compared to the 2012 baseline.
We own, invest in, develop and
manage low carbon and energy
efficient buildings. We have large
solar arrays at a number of our
properties and are one of the largest
users of commercial solar energy
in the country. Electric vehicle and
bike charging stations are also
available at most of our assets,
encouraging customers to adopt
more environmentally friendly
transport alternatives.
Kiwi Property proudly partners with a
range of leading environmental and
social organisations, including the
New Zealand Green Building
Council, Safe Space Alliance and
Keystone Trust.
In 2020, we gained Be.Lab
accessibility accreditation for our
entire shopping centre portfolio,
the first New Zealand company
to achieve this milestone.
For more information on Kiwi
Property’s sustainability efforts and
latest sustainability report, please
visit www.kiwiproperty.com/
corporate/sustainability/

Kiwi Property
Sustainable Debt Framework
05
Sustainable
Debt Framework
This Framework is designed to govern
Kiwi Property’s use of Sustainable Debt
on an ongoing basis.
Sustainable Debt may include:
• Green Bonds and Loans; and
• Sustainability-Linked Bonds
and Loans.
This Framework sets out the
processes for these products
separately and may be amended
from time to time at Kiwi Property’s
discretion, including as relevant
market standards and best practices
continue to evolve.
A reference in this Framework to:
• we, our and Kiwi Property
includes a reference to (a) Kiwi
Property Group Limited, Kiwi
Property Holdings Limited and
each other Group member that
provides a cross-guarantee in
respect of the indebtedness of
the Group; and (b) in relation to
property management functions,
any other company established
by Kiwi Property to provide
investment management services
on its behalf; and
• Green Debt proceeds means an
amount equal to the proceeds of
Green Bonds and Green Loans.
Important Notice
This Framework does not form part
of the contractual terms of any
Sustainable Debt issued by Kiwi
Property. This means there is no legal
obligation for Kiwi Property to
comply with this Framework or the
relevant market standards described
in this Framework on an ongoing
basis. If Kiwi Property fails to comply
with this Framework or the relevant
market standards:
• this does not constitute an event
of review, event of default or any
other breach in relation to the
Green Bonds and/or Green Loans;
• there is no requirement on Kiwi
Property to repay the Green Bonds
and/or Green Loans early; and
• the Green Bonds and/or Green
Loans may cease to be labelled as
“green”.
If Kiwi Property fails to comply
with this Framework or the relevant
market standards, or if any Green
Bonds and/or the Green Loans
cease to be labelled as “green”,
Kiwi Property will set out this
information in its annual use of
proceeds reporting.

Kiwi Property
Sustainable Debt Framework
06
Green Bonds and Loans under the
Framework may take the form of:
•Green Bonds in accordance with
the ICMA Green Bond Principles
(GBP)
1
and, where appropriate,
Climate Bonds Standard (CBS) as
published by the Climate Bonds
Initiative (CBI); and
•Green Loans in accordance with
the APLMA Green Loan Principles
(GLP)
2
and, where appropriate,
the CBS.
In accordance with the above
market standards and best practice,
the Framework covers four key
components:
1.Use of proceeds;
2.Process for project evaluation
and selection;
3.Management of proceeds; and
4.Reporting.
1. Use of proceeds
Kiwi Property intends to allocate
Green Debt proceeds to finance
or refinance its direct and indirect
investments in low carbon and
energy efficient buildings that
constitute Eligible Projects
(see below).
Kiwi Property may allocate Green
Debt proceeds to refinance low
carbon and energy efficient buildings
without any limitation on the
look-back period provided the
buildings constitute Eligible Projects
at the time of refinancing.
A reference in this Framework to
Green Debt proceeds being
“allocated” means a notional
allocation in Kiwi Property’s systems.
Eligible Projects
Criteria
To qualify as an Eligible Project, a
low carbon and energy efficient
building must meet one or more of
the following criteria:
•Certified as obtaining, or targeting,
a minimum 5-Star NZGBC
Green Star Design (for planned
buildings) and/or Built (for existing
buildings) rating. Green Star is an
internationally recognised rating
system for the sustainable design,
construction and operation of
buildings and fit-outs;
•Certified as obtaining, or targeting,
a minimum 4-Star NABERSNZ
Energy Base Building rating or
Energy Whole Building rating.
NABERSNZ is a system for rating
the energy efficiency of office
buildings. It is an independent
tool, backed by the New Zealand
government; or
•Certified as obtaining, or targeting,
a minimum 7-Star Homestar
rating. Homestar is an independent
rating tool for assessing the health,
efficiency and sustainability of
residential properties.
Existing and/or planned buildings
that are targeting (but are yet to
receive) one or more of the above
ratings criteria may also qualify as an
Eligible Project where we have
evidence indicating that the rating
will be achieved.
Ownership or investment interest
Eligible Projects may include
existing and/or planned buildings
that Kiwi Property:
•owns outright;
•owns in part (for example, through
an unincorporated joint venture); or
•has an interest in because we
hold a direct or indirect equity
investment in the owner of the
relevant buildings, where the entity
in which we invest derives at least
90% of its revenue from green or
green targeted assets (an equity
investment).
Interests that fall within either of the
final two investment categories
above will only qualify as Eligible
Projects if Kiwi Property is also the
appointed manager of the buildings.
Kiwi Property’s management is
intended to ensure alignment
with our sustainability strategy
and this Framework.
Where Kiwi Property partially owns
an Eligible Project, the amount of
Green Debt proceeds we may
allocate to finance or refinance
that Eligible Project will not exceed
our proportionate share of the
Eligible Project.
Where Kiwi Property has an interest
in Eligible Projects through an equity
investment, the amount of Green
Debt proceeds we may allocate to
finance or refinance our equity
investment will not exceed the
proportionate value of those Eligible
Projects equal to the percentage of
our equity investment.
However, if the relevant owner of
those Eligible Projects issues its own
green bonds or loans to finance or
refinance such Eligible Projects, Kiwi
Property will immediately reduce the
allocation of our Green Debt
proceeds on a proportionate basis so
that there is no double counting.
Green Bonds
and Loans
1 https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-
gbp/
2 https://www.lsta.org/content/green-loan-principles/
Section 1:

Kiwi Property
Sustainable Debt Framework
07
Valuation
Each Eligible Project is valued at its
latest independent market valuation
or at cost (or projected cost if the
Eligible Project is not yet complete)
where a separate market valuation
has not been obtained. When
determining the projected cost of an
incomplete Eligible Project, Kiwi
Property relies on the professional
judgement of its development and
senior management teams and any
relevant external advice (for example,
a quantity surveyor).
Continued monitoring
If a building no longer meets the
eligibility criteria set out in this
Framework, Kiwi Property will:
• cease to categorise that building
as an Eligible Project; and
• reduce the aggregate value of the
pool of Eligible Projects by the
value of that building.
A list of Eligible Projects will be
published within the annual use of
proceeds reporting. For any Green
Bonds or Loans that are certified by
the CBI as complying with the CBS,
the ongoing certification status will
be noted within these reports.
2. Process for project
evaluation and selection
Kiwi Property manages the process
of selecting and evaluating whether
an existing and/or planned building
may qualify as an Eligible Project by:
• utilising the external star rating
tools summarised above and, in
the case of a planned building,
assessing the evidence indicating
that a rating will be achieved;
• assessing alignment with
the eligible green projects
contemplated by the GBP or,
as applicable, the GLP and
the following United Nations
Sustainable Development Goals
(SDGs):
• SDG 9: Build resilient
infrastructure, promote inclusive
and sustainable industrialisation
and foster innovation; and
• SDG 11: Make cities and human
settlements inclusive, safe,
resilient and sustainable;
• assessing alignment with Kiwi
Property’s wider sustainability
strategy and objectives;
• assessing any potential negative
social and/or environmental
impacts from the building and
mitigants to these impacts;
• obtaining external advice where
appropriate; and
• applying professional judgement
and sustainability knowledge.
Once a building is determined to
have met the relevant criteria for
inclusion, it will be included as an
Eligible Project.
3. Management
of proceeds
In accordance with this Framework,
Kiwi Property intends to allocate
Green Debt proceeds to finance or
refinance its direct and indirect
investments in Eligible Projects.
Kiwi Property maintains a register
of Eligible Projects that outlines
(among other things) their current
value, allocation of proceeds, the
applicable NABERSNZ, Green Star
and/or Homestar rating(s), and
the level of Kiwi Property’s
ownership interest.
Kiwi Property monitors the allocation
of proceeds and the current value of
Eligible Projects on a yearly basis,
aligned to the end of year annual
financial reporting process.
Kiwi Property intends to ensure that
the aggregate value of the pool of
Eligible Projects is at least equal to
the aggregate amount of all
outstanding Green Bonds and Loans.
Kiwi Property services its debt
obligations under Green Bonds and
Loans out of its general cashflows
and not specifically from revenues
generated by Eligible Projects alone.
Green Bonds
and Loans
Section 1:

Kiwi Property
Sustainable Debt Framework
08
Unallocated proceeds or
surplus funds
In the event that there are
unallocated Green Debt proceeds:
• Kiwi Property will apply an amount
equal to those unallocated
proceeds to repay revolving bank
debt or to invest in cash deposits
or cash equivalents until Kiwi
Property is able to allocate an
amount equal to those unallocated
proceeds in accordance with this
Framework;
• no contractual right of review or
repayment will arise, and no loss of
green classification will occur; and
• Kiwi Property will disclose this
information within the annual use
of proceeds reporting.
Kiwi Property will endeavour to
allocate any unallocated Green Debt
proceeds in accordance with this
Framework as soon as practicable.
4. Reporting
Kiwi Property understands the
importance of transparency and
disclosure. All reporting will be in line
with applicable market standards.
The reporting described below will
be publicly available.
Use of proceeds reporting
Kiwi Property intends for annual use
of proceeds reporting (aligned to the
end of year financial reporting
process) to include:
• summary of the pool of Eligible
Projects, including location, type
of asset, whether complete or
in development, ownership or
investment interest and valuation
(adjusted to reflect our ownership
or investment interest);
• current NABERSNZ, Green Star
and/or Homestar rating(s);
• confirmation of the aggregate
amount of Green Bonds and Loans
outstanding;
• disclosure of any unallocated
proceeds;
• alignment with relevant SDGs;
• confirmation of compliance with
applicable market standards; and
• assurance updates or the most
recent assurance report.
Impact reporting
Kiwi Property will also report on
relevant environmental impact
metrics in its sustainability report.
Examples of impact indicators that
may be reported include NABERSNZ
rating, floor space of qualifying
green real estate (m2), carbon
footprint by building, and reduction
over time (tCO2).
Assurance
In accordance with the applicable
market standards, Kiwi Property will
seek assurance from an approved
verifier on an annual basis for the use
of proceeds issued under this
Framework, and as deemed
necessary by Kiwi Property.
Confirmation of assurance will be
made publicly available.
Sustainable Debt Framework
Any amendments to the Framework
will be made publicly available.
Green Bonds
and Loans
Section 1:

Kiwi Property
Sustainable Debt Framework
09
Sustainability-Linked
Bonds and Loans
Sustainability-Linked Bonds and
Loans are distinct from Green Bonds
and Loans as described above.
Proceeds from Sustainability-Linked
Bonds and Loans are utilised for
general corporate purposes. The
proceeds are not required to be
allocated towards, monitored or
tracked against any specific purpose.
Sustainability-Linked Bonds and
Loans issued under the Framework
may take the form of:
• Sustainability-Linked Bonds
in accordance with the ICMA
Sustainability-Linked Bond
Principles (SLBP)
3
; and
• Sustainability-Linked Loans in
accordance with the APLMA
Sustainability-Linked Loan
Principles (SLLP)
4
.
In accordance with the above market
standards and best practice, the
Framework covers five key
components:
1. Selection of key performance
indicators (KPIs);
2. Selection of sustainability
performance targets (SPTs);
3. Financial characteristics;
4. External review; and
5. Reporting.
The above components form part of
the SLBP. The SLLP has four key
components, which are substantially
similar and aligned to those above,
and references for Sustainability-
Linked Loans will be highlighted
where required.
1. Selection of KPIs
When undertaking an issuance of
Sustainability-Linked Bonds or Loans,
Kiwi Property will communicate how
the instrument and selected KPIs
relate to elements of Kiwi Property’s
sustainability strategy and the
Framework that are material to the
Company’s overall performance.
Kiwi Property is committed to
delivering a brighter New Zealand by
reducing its resource consumption,
supporting community building and
providing a reliable investment
option via a resilient and high-quality
property portfolio.
For the issuance of Sustainability-
Linked Bonds or Loans, where the
bond coupon or the loan margins are
linked to the achievement of
sustainability targets, Kiwi Property
has provided the following metrics as
a guide for potential target setting:
• NABERSNZ building ratings;
• Green Star building ratings;
• Homestar building ratings;
• Ratings on a subset of properties
or Kiwi Property’s total portfolio;
• Energy, water or waste
consumption for properties, or on
a portfolio basis;
• Greenhouse gas (GHG) emissions
for properties, or on a portfolio
basis; and
• Other environmental or social
sustainability metrics that are
relevant to Kiwi Property’s overall
sustainability strategy and this
Framework.
Kiwi Property will ensure the targets
set and metrics used will be
meaningful to Kiwi Property’s
sustainability programme and will
be aligned to the group’s
sustainability strategy.
Measurement of performance with
respect to selected SPTs for any
Sustainability-Linked Bonds or Loans
will be undertaken periodically as
relevant for the selected targets.
At a minimum, measurement will
be annual.
Material factors that may impact the
achievement of SPTs (either
positively or negatively) will be
disclosed in the relevant
documentation for each
Sustainability-Linked Bond or Loan.
3. Financial
characteristics
The proceeds of Kiwi Property’s
Sustainability-Linked Bonds and
Loans will be used for general
corporate purposes, unless
otherwise stated. These transactions
will feature financial and/or
structural characteristics that
encourage the achievement of
the SPT. This may include both
penalties and/or incentives,
depending on the transaction.
The magnitude of the coupon or
margin adjustment, as well as the
effective date(s) (otherwise known
as trigger date(s)) will be detailed
in the relevant documentation for
each transaction.
3 https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/sustainability-linked-bond-principles-slbp/
4 https://www.lsta.org/content/sustainability-linked-loan-principles-sllp/
Section 2:
2. Selection of sustainability
performance targets

Kiwi Property
Sustainable Debt Framework
10
4. External review
Kiwi Property will undertake an
appropriate external verification for
each Sustainability-Linked Bond or
Loan on issue. This includes external
assurance of sustainability
performance prior to issuance and
ongoing performance in relation to
the selected SPTs for each issuance.
5. Reporting
For Sustainability-Linked Loans, Kiwi
Property and the arranging bank(s)
will agree on appropriate reporting
parameters and the schedule for
disclosing information on
sustainability performance to the
lenders.
For Sustainability-Linked Bonds, at a
minimum, Kiwi Property will
undertake annual public reporting
regarding the issuance and
performance in relation to the SPTs.
This reporting will be available in
Kiwi Property’s Annual Report and
website, and will include relevant
information relating to the aspects of
Section 2 of this Framework.
At issuance, Kiwi Property will
disclose the reporting that will be
provided, including its location,
frequency, scope and assurance
commitments. Kiwi Property will
ensure the provision of timely
information regarding the
performance in relation to the
selected SPTs for each transaction.
Governance
Kiwi Property’s Audit and Risk
Committee (ARC) and
Environmental, Social and
Governance Committee (ESGC)
will oversee matters relating to
Sustainable Debt.
The ARC is a sub-committee of the
Company’s Board, responsible for
oversight of matters including
financial management and controls,
reporting and risk management.
The ESGC is a sub-committee of the
Company’s Board, responsible for
reviewing and recommending to the
Board for approval the ESG strategy,
frameworks and initiatives, amongst
other things.
The ARC and ESGC meet at least
quarterly and will consider
Sustainable Debt issues and
opportunities on an ongoing basis.
Sustainability-Linked
Bonds and Loans
Section 2:

Kiwi Property
Sustainable Debt Framework
11
Further
information
Contacts
Kiwi Property Group Limited
Level 7, Vero Centre
48 Shortland Street
Auckland 1140
+64 9 359 4000
kp.co.nz
info@kp.co.nz
Registrar
Link Market Services Limited
Level 30, PwC Tower
15 Customs Street West
Auckland 1010
+64 9 375 5998 or
0800 377 388
linkmarketservices.co.nz
enquiries@linkmarketservices.co.nz
More information on Kiwi Property’s sustainability strategy
and performance can be found at:
Sustainability: https://www.kiwiproperty.com/corporate/sustainability/
Latest Kiwi Property Annual Report: https://www.kiwiproperty.com/corporate/annual-result/

w
ww.kp.co.nz

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NZX RELEASE
23 May 2022
Kiwi Property revised Sustainable Debt Framework


Kiwi Property today published its revised Sustainable Debt Framework, which has been
updated to (among other things):
• Align with the current version of the ICMA Green Bond Principles (June 2021); and
• Expand Kiwi Property's Eligible Project definition to include the Homestar rating tool
for residential developments (minimum 7-star).
The revised framework, annual use of proceeds report and the accompanying assurance
report are available on the company’s website: kp.co.nz

> Ends
Contact us for further information:
Campbell Hodgetts
Head of Communications and Investor Relations
campbell.hodgetts@kp.co.nz
+64 27 563 4985

About us:
Kiwi Property (NZX: KPG) is one of the largest listed property companies on the New Zealand Stock
Exchange and is a member of the S&P/NZX 20 Index. We’ve been around for over 25 years and
proudly own and manage a significant real estate portfolio, comprising some of New Zealand’s
best mixed-use, retail and office buildings. Our objective is to provide investors with a reliable
investment in New Zealand property through the ownership and active management of a
diversified, high-quality portfolio. S&P Global Ratings has assigned Kiwi Property an issuer credit
rating of BBB (stable) and an issue credit rating of BBB+ for each of its fixed rate senior secured
green bonds. Kiwi Property is the highest rated New Zealand company within CDP (Carbon
Disclosure Project) and is a member of FTSE4 Good, a series of benchmark and tradable indices for
ESG (Environmental, Social and Governance) investors. Kiwi Property is licensed under the Real
Estate Agents Act 2008. To find out more, visit our website kp.co.nz