Specific Initiatives

Environmental Initiatives

● Promotion of energy-saving

Through using LED lighting, replacing or upgrading air-conditioners, etc., we strive to increase energy efficiency.

● Effective use of roofs, outer walls, etc.

As part of measures against the heat-island effect, we green the outer walls of part of commercial facilities.

We installed solar photovoltaic panels on part of logistics facilities.

● Purchase of electricity generated from renewable energy sources

At Shinjuku Eastside Square, one of the investment properties under management, we purchase electricity generated from renewable energy sources and use it.

● Use of public subsidy programs

By leveraging the government subsidy program for carbon dioxide (CO2) emission control projects, we did construction work to make the building environmentally compatible.

Social Initiatives

● Distribution of the tenant sustainability guide

As part of our sustainability promotion initiative, we hand out a guide intended for tenants (office building version). This guide is drawn up to collaborate with tenants, describing specific cases of energy-saving activities.

● Ensuring tenants’ safety and security

Expanded deployment of AEDs (automated external defibrillators)

● Green lease

We created a template for the clauses of an environment-friendly green lease and promote its incorporation into a lease with a tenant.

● Contribution to the region/local community

Increased convenience for local residents

For example, at Honmoku Front, we offered a space needed to install ports for Yokohama City’s “baybike” community bicycles and installed parcel lockers, thereby contributing to cutting CO₂ emissions or enhancing local residents’ convenience.

Implementation of, co-sponsoring for events at facilities we manage

Initiatives for Employees

Realization of flexible way of working, employees’ well-being and comfort

Number of employees

Item	Unit	FYE Mar.2020	FYE Mar.2021	FYE Mar.2022
Number of employees	people	15	19	27
Male	people	11	14	20
Female	people	4	5	7
Regular employees	people	14	19	27
Non-regular employees	people	1	0	0

State of paid holidays taken

Item	Unit	FYE Mar.2020	FYE Mar.2021	FYE Mar.2022
Number of paid holidays taken	Day/year	12.5	11.0	15.5

Healthcare for employees

Item	Unit	FYE Mar.2020	FYE Mar.2021	FYE Mar.2022
Percentage of those who had a medical checkup / comprehensive medical examination	％	100	100	89.5

Promoting the success of women

Item	Unit	FYE Mar.2020	FYE Mar.2021	FYE Mar.2022
Percentage of female employees	％	26.7	26.3	25.9
Turnover (men)	％	14.3	0	0
Turnover (women)	％	0	0	0

Number and percentage of certificate/license holders

	Unit	FYE Mar.2020	FYE Mar.2021	FYE Mar.2022
Real estate transaction agent	people	11	16	22
	％	73.3	84.2	81.5
ARES Certified Master	people	6	14	15
	％	40.0	73.7	55.6

Questionnaire survey on employee satisfaction

Item	Unit	FYE Mar.2020	FYE Mar.2021	FYE Mar.2022
Percentage of satisfied employees	％	―	88.9	88.0
Employee satisfaction	points	―	86.6	79.2
Employee satisfaction (national average*)	points	―	69.2	69.4
Number of responses/ number of respondents	People /people	―	18/18	25/25
Response rate	％	―	100	100

(*)	An average of 1,560 companies nationwide that participated in the same survey during the fiscal year ending march 2022.

Track record in training (incl. joint training with group companies)

Item	Unit	FYE Mar.2020	FYE Mar.2021	FYE Mar.2022
Compliance training	Times	13	12	12

● Prevention of the spread of COVID-19

We take various measures against the spread of COVID-19 in investment properties under management and our office to ensure hygiene control.

Investment properties under management

Our office

Initiatives for Governance

● About the Operational System for Investment Corporation/Private Funds
 (decision-making on investment management)

Key decisions on property acquisition are made according to the following flow:

(*)

Decision-making on business operations related to a REIT that the Private REIT Div. oversees will be reported to our board of directors and the board of the investment corporation(*) following the resolution by the Investment Committee and the Internal Control Committee. Further, if a resolution needs to be passed at the board of the investment corporation, such as for a transaction with an interested party, it will be reported to our board of directors following the resolution by the Investment Committee and the Internal Control Committee followed by that of the board of the investment corporation.

● Operational System for Investment Corporation/Private Funds (rules on non-competition)

Summary of Rules on Non-competition

・The target properties of the investment corporation for which we manage assets are wide-ranging, from offices to industrial facilities, hotels, commercial facilities, and residential properties, and the target of investments of private funds that our Private Fund Div. oversees may be in competition with each other. ・We prohibit individuals from holding the positions of General Manager of the Private Fund Div. and the Private REIT Div. concurrently. As stated above, given that a private REIT and a private fund may compete for opportunities to acquire investment properties in our operations, we grant a “priority right” to review information about real estate properties we obtain (including information that we obtained on potential buyers of real estate or real estate-backed assets that can be an investment target in our private REIT or fund) to the Private REIT Div. and manage according to such rules. ・Information on a property that comes in will be first reviewed by the Private REIT Div. that manages private REIT assets in principle and if it defers its review, that information will be then reviewed by the Private Fund Div. ・We apply such rules properly and smoothly to prevent the arbitrary distribution of property information and competition between a private REIT and private funds, thereby ensuring the integrity of operations.

● Readiness for Compliance

We built the governance system needed for internal control to ensure compliance with laws and regulations and risk management in asset management operations we are entrusted with.

1.System

（1）Board of Directors

The board of directors shall give top managerial priority to thorough compliance with laws and regulations and exercise overall control over the arrangements of the system for compliance. The board of directors shall review annually in principle and as needed the system for compliance and its effect and take necessary remedial action.

（2）Chief Compliance Officer (CCO)

We appoint a Chief Compliance Officer (CCO) who is responsible for compliance.
The CCO shall oversee compliance-related operations, have the command-and-control right over such operations, verify the status of compliance with laws and regulations across all operations, and promptly respond to improvement requests by the internal control unit.

（3）Internal Control Committee

We shall set up the Internal Control Committee that is responsible for verifying compliance and the arrangements and operations of the internal control system. The Internal Control Committee shall be chaired by the President and composed of the Chairperson, COO, General Managers for internal control and business administration, and an outside expert. The Internal Control Committee shall deliberate compliance-related matters, matters passed by the Investment Committee to be discussed by the Internal Control Committee, and other matters outlined in the "internal control committee regulations.”

2.Annual Action Plan

（1）We formulate a compliance program to achieve compliance with laws and regulations as a concrete execution plan.

（2）The CCO shall be responsible for formulating a compliance program and conducting an important review, which shall be resolved by the board of directors.

（3）The CCO shall be responsible for overseeing the progress and achievement of a compliance program and keeping the board of directors informed.

3.Training for Ensuring Compliance

To build a system for ensuring compliance with laws and regulations, it is of vital importance that all officers and employees enhance their awareness of compliance and put corporate ethics into practice. Based on the recognition that putting an educational/training system in place is crucial for accomplishing such, we conduct internal training every month to enhance officers' and employees' awareness and knowledge of compliance, thereby educating them and promoting the practice of corporate ethics.

4.Internal Regulations

We have the "Compliance Manual" in place as a concrete guide for ensuring compliance with laws and regulations.

5.Legal Check System over Day-to-day Operations

The CCO shall oversee compliance-related operations, have the command-and-control right over such operations, and verify the status of compliance with laws and regulations across all operations, including day-to-day affairs.

● Risk Management System

The President who is the internal control administrator, has appointed three executives, i.e., COO, GM for business administration, and GM for internal control, as internal control managers. Furthermore, the GMs for sales (GMs for the private REIT and private funds) are appointed to be "in charge of internal control,” and monitor daily operations and report accidents, complaints, or other risk factors to the internal control managers to share information. The GM for business administration (internal control manager) shall exercise overall control over operations associated with risk management and said GM or an internal control manager (CCO) who is delegated based on the risk management regulations shall determine the degree of impact of risks to be managed according to the prescribed risk assessment standards and the possibility of occurrence and take necessary steps. In assessing the degree of impact of potential risks and the possibility of occurrence, the effects of risk management measures that were already taken shall be taken into account.