ESG Initiatives （Environment）
Reduction of environmental load

Enhancing energy efficiency
Fukuoka REIT・ Utilization of renewable energy NEW（common areas, etc.）
・ Reduction in Air Conditioning Load (applied coating
film containing a shading agent)・ Greening of common spaces / Arrangement of water
areas / Creation of shaded spaces
・Installation of charging station for electric vehicles
・Installation of electronic circuit breaker・ Water and energy conservation Measures

Maintenance and enhancement of environmental and construction performance

BeforeAfter

BeforeAfter

Green Building certification
Green Building certification obtained for 80.3%
of entire portfolio

Emergency
signOutdoor
spotlight■Ratio of environmental certification acquisition
BELS Evaluation
Certification

Certification

14.2％

Gofukumachi Business Center●GRESB Real Estate Asssessment:
Received the rating of “ 4 stars”
and “Green Star”●Disclosure Assessment:
Received the highest “A Level”

1.5％

0.5％

＜Gas Heat Pump （GHP） air conditioner replacement＞ NEW

BeforeCASBEEGRESB2023

Certificatedproperties

After

80.3％

DBJ Green
Building
Certification

78.3％＊As of September 1, 2023
（based on total floor space）●DBJ Green Building Certification

Park Place Oita

13 properties owned by FRC were certified （One property has been newly acquired, and two properties
have been recertified.）□ Contributing to reducing running costs and CO2 emissions by replacing withenergy-saving equipment

Waste reduction / resource recycling / water resources, etc.
・ Separate collection of garbage
・ Conversion of raw garbage into animal feed （Canal City Hakata, Park Place Oita）
・ Collection of secondhand clothing（Canal City Hakata, Konoha Mall Hashimoto）

Fukuoka REIT

Conducting periodic property performance and functional assessmentsExamples of Gofukumachi Business Center initiatives＜Upgrading of an automatic fire alarm equipment receiver （emergency broadcasting panel）＞ NEWBefore

After●Installation of canal water filtration system, greywater
plant and water-saving toilets （Canal City Hakata）●Canal City Hakata has worked to reduce water consumption

through a canal water filtration system (rainwater reusesystem), a greywater plant (kitchen drainage reuse system),water-saving toilets, etc.

・ Canal water filtration system(rainwater reuse system)□ It plays an important role in the safety and security of tenants by guiding them toevacuate in the event of a fire through early detection and sounding.

ESG Initiatives （Society①）

Creation of pleasant workplaces

Fukuoka Realty

Initiatives for employees《Fukuoka Realty: Numbers of credentialed personnel》《Support for flexible working styles》 《Training for employees》■The average number of years of continuous service●（As of August 31, 2023）

of permanent employees: 8 years and 3 months●■Full-time personnel: 47 [Male:21 Female:26] * Gender ratio●●Employees seconded from sponsors：3Employees seconded to a sponsor：9●

Male : 44.7％
Female : 55.3％●●■Number of credentialed personnel
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●Real estate brokers : 23

ARES Certified Masters : 22

Certified Building Administrators : 5

First-class registered architect : 3
Real estate appraisers : 3

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Attorney : 1

MBA : 2
CMA : 3

Licensed Representative of Condominium
Management Company : 1

Certified as a
“Fukuoka‘ Work-Style Reform’
Promotion Company ”（August 2018）

Registration withSDGs in Fukuoka
Fukuoka CityPrefectureWell-Being & SDGs Entry intoRegistration System registration system（July 2022）（February 2023）

Leave for voluntary work
Employee welfare（401K, cumulative
investment system, etc.）
Encouraging use of paid holidays, etc.

Regular lectures by Kyushu Economic
Research Center● Compliance training●●

ESG training●

Integrated Report training●

In-house recreation, etc.

《Career development support》
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＊The total number of permanent employees, contract employees and employees seconded from other companies.

Child-rearing support（maternity leave,childcare leave system）
Nursing care leave

Employee satisfaction survey
Self-assessment system
Career interview
Secondment system（dispatching ofemployees to sponsor companies）
Promotion from contract employee topermanent employee status

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Offering of training programs tailoredto each management level
System for supporting acquisition ofqualifications（Real estate brokers,
ARES Certified Masters, etc.）
Support for language learning, etc.

Other Initiatives《health management ・Improvement of office environment》
Initiatives to prevent infectious diseases such as influenza（Implementation of influenza vaccination and full coverage of vaccination costs）●●

Mandatory health checkups and comprehensive medical examinations●

Application system to restrict excessive overtime work●

Assistance for use of sports clubs●

Installation of personal booths, meeting booths, plants, etc.

●

Installation of personal lockers

personal booths,meeting booths

plants, etc.

Installation ofpersonal lockers

Create an attractive workplace （tenants） Fukuoka REIT
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Training for tenants’ employees
Improvement of employee lounge
Emergency drills to improve safety and security of tenants
Implementation of tenant satisfaction surveys
Distribution of sustainability guidelines
Park Place Oita and Konoha Mall Hashimoto introduced "Flexible Business Hours System （＊） " for tenants on a trial basis. NEW
Support for tenants’ employees and part-time job recruitment（posted on property websites） ＊System in which opening and closing hours are set at the discretion of the store●●●

ESG Initiatives （Society②）

Contribute to increased attractiveness and vitalization of Fukuoka and Kyushu area

Provision of regional information Fukuoka Realty●Implementation of corporate version ofFurusato （hometown） tax payment by corporations●Participation in local event （Yamakasa）

Information provision using website, social media, financial results briefing materials, etc.
Announcement of financial results at the Fukuoka Stock Exchange
Exchange of information and opinions with the governments, major companies and research institutes in the region

Linking with and provision of venues
for various regional events and festivals

Fukuoka Realty

Fukuoka REIT

Support for Yamakasa Festival, Hakata Dontaku, Nakasu Jazz, Funa Norikomi （boat boarding; Kabukistars unveiling their arrival） and locally based professional sports, etc.
Local companies and regional supporters supported “O-Vision Ice Arena Fukuoka” and “the sponsors of Avispa Fukuoka”

Implementation of Corporate Version of Hometown Tax System Fukuoka Realty
Continue to implement the corporate version of the hometown tax payment system（Kikuyo-machi, Ozu-machi, and Koshi City, Kumamoto）

NEW

Employees of the Company participated in theHakata Gion Yamakasa Oiyama, the first regular event
held in four years （Hachiban Yamakasa Kamikawabata Dori）

Donations to 3 municipalities in Kumamoto NEW（Photo: Presentation ceremony in Koshi City ）Involvement in local community

Initiatives for
local communicaties, etc. Fukuoka Realty●●Regional collaboration events （ 9 sake breweries fromFukuoka/Kyushu, Furimaniacs "SAKE" and "SDGs WEEK," ahands-on experience of the recycling of waste plastic, etc. wereorganized） . NEW
Participates in Hakata Town Planning Promotion Council（Clean Day, etc.）

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Participates in Fukuoka Directive Council
Hosts the Kyushu IR Workshop
Hosted the Real Estate, Finance and Economic Networking

Others●Fukuoka Realty

Canal City Hakata

Canal City Hakata

Furimaniacs "SAKE"NEW

Canal City Hakata「 SDGs WEEK 」 NEW

Participation in Clean Day

Hosted the Real Estate,Finance and Economic Networking

Fukuoka REIT

Child-rearing support

Individual facility initiatives- Safety and security activities（crime prevention patrol, AED installation）- Local contribution （bike share service, EV charging station） , etc.

●Child-rearing support

Park Place Oita

Canal City Hakata, others

Canal City Hakata, others

Canal City Hakata, others

Parking lot dedicated to pregnant
women and stroller users

Crime prevention patrol（Jointly conducted withcommunities and schools）

AED installationbike share service

EV charging stationESG Initiatives （Governance）
Compliance / Risk management

Governance System

Fukuoka Realty

Fukuoka REIT

Fukuoka Realty has established a Basic Policy on Compliance, as well ascompliance regulations and other internal rules to prevent conflicts of interest.
We conduct with stakeholders in an appropriate manner based on theabovementioned rules and regulations with preliminary assessment carriedout by the Compliance Depar tment general manager and deliberations
conducted by the Compliance Assessment Committee（consisting of theCompliance Department general manager and three outside experts）.

◎Decision-making process （＊1）
Proposals by responsible department

Conjunction with investors' and sponsors' profit
Fukuoka REIT

Fukuoka Realty・Same-boat investment by sponsor
Fukuoka Jisho Co., Ltd., the main sponsor, has 9.18% of FRC’s investment units
・Cumulative investment system for investment units（About 1/3 of officers and employees participate in this system）
A cumulative investment system for investment units was introduced for theAsset Manager officers and employees in April 2015 in order to enhancetheir mindset for FRC’s investment unit price and better performance aswell as promote their assets formation.

Management Fee Structure Fukuoka Realty
Inspection by Compliance Department general manager

Unitholder interest-linked asset management fees
Management Fee 1 （＊2）

Deliberations by the Investment Management Committee

Deliberations/resolution by the Compliance Assessment Committee

Based on total assets
Based on operating revenues
Based on distributable profit
Acquisition fee
Transfer fee

Management Fee 2

Management Fee 3 （＊2）
Management Fee 4
Management Fee 5（＊2） We reduced the ratio of Management Fee 1 and increased the ratio of Management

Resolution/decision-making report by Board of Directors

Fukuoka REIT Corporation Board of Executive Officers◎Third-party assessment by external experts［Real estate appraisals］■ Japan Real Estate Institute■ The Tanizawa Sogo Appraisal Co., Ltd.
■ Daiwa Real Estate Appraisal Co., Ltd.
［Market reports］■ Analysis on trade areas and competition situation■ Adequate rent levels, etc.
［Engineering reports］■ Law abidance and earthquake resistance■ Check of soil contamination, toxic substance and use status■ Replacement market price, expenses for long-term maintenance and repairs, etc.
（＊1）The prior consent of the investment corporation’s Board of Directors is obtained in cases fallingunder the provisions of Article 201-2（1）of the Act on Investment Trusts and Investment Corporations.

Fee 3 as of the fiscal period ended February 2021.

Appointment of Outside Directors（other than interested persons）

Fukuoka Realty

Information Security

Fukuoka Realty

・ Established information management regulations（for protection and handlingof information assets and prevention of information loss, leakage, etc.）（June 10, 2014）

Customer-oriented Business Operations
Fukuoka Realty
・Adopted the Principles for Customer-Oriented
Business Conduct published by the Financial Services Agency onMarch 30, 2017, and established Policies for Customer-Oriented
Business Operations（September 20, 2017）
・Disclosed the status of initiatives regarding customer- oriented
business operations on our website

Regular Compliance Training

Fukuoka Realty

We regularly carried out training for all officers and employees toenhance their awareness.
Oct. 2020– Sept. 2021

Oct. 2021– Sept. 2022

6 times

6 times

Oct. 2022– Sept. 2023

7 times（including e-learning）

Information disclosure and dialogue with stakeholders

Secure transparency and fairness of the Board of Directors
Title
President and CEO
Vice President Board of Directors（Non-Executive）
Vice President Board of Directors（Non-Executive）
Vice President Board of Directors（Non-Executive）
Vice President Board of Directors（Non-Executive）

Name
Zenji Koike
Hiroshi Shimuta
Yukitaka Ohara
Masanori Kozuma
Kazuomi Kamikawa

Attendance at board meetings at 38th

Information on attendanceat board meetings at 38th, etc.
Title

Name

Executive director

Zenji Koike

Supervisory director

Yasuo Kawasho

Supervisory director

Takashi Tanabe

100％ attendance
100％ attendance
100％ attendance
100％ attendance
100％ attendance
Fukuoka REIT

Total fees（thousand yen） Attendance at board meetings

3,600

100％ attendance
100％ attendance
100％ attendance

Publication ofIntegrated Report
Fukuoka REIT・Published fifth integrated reportin December 2023

(aim to expand non-financial information)

Integrated Report 2022
(published in December 2022)

・ESG interview（from December 2022）

Conducted more than ten times