ESG （Environment）
Environment Initiatives of owned properties■RetailCertification from external organizations

At commercial premises, we aim to create environment-friendly facilities andare implementing initiatives for energy and resource saving.

◎Canal Water Filtration System
Canal Cit y Hakata’ s symbolic canal has both arecreational function and as a source of water tofight fires in the case of an emergency. At all times,
this canal holds roughly 1,200 tons of water, and thiswater uses rainwater in order to conserve resources.
Ramen noodles,
meals

Pork bonewasteRamen noodle shops
inside Ramen Stadium◎Recycling of pork bones at Ramen Stadium

Ramen Stadium at Canal City Hakata is a memberof the group of shops collaborating on promoting thePork bone recycling
recycling of pork bones, which is promoted by theinitiative
Fukuoka Research Commercialization Center for
Customers
Recycled at
fertilizer companies Recycling Systems, and the pork bones used tomake ramen broth at Ramen Stadium are being
Sales of
Sales of fertilizer
Production ofrecycled thereby contributing to the creation of a“Fukuoka pork bone
“Fukuoka pork bone
at homecircular economy.
meal” fertilizer improvement storesmeal” fertilizer■Office buildings■Others （Logistics）◎Progress with switch to LED lighting◎Utilization of renewable energy

Switch to LED lighting● Gofukumachi Business Center

Solar panels have been installed on the roofs ofLOGICITY Minato Kashii and LOGICITY Hisayama.

● Sanix Hakata Building

Solar panels（Interior shared spaces, some external areas, etc.）◎DBJ Green Building Certification
Fukuoka REIT has obtained DBJ Green Building Certification, a system by Development
Bank of Japan Inc.（DBJ）to certify real estate properties evincing high environmental andsocial awareness, for the following nine properties it owns as "Properties with the bestclass（or exceptionally high）environmental & social awareness.

2018●Canal City Hakata●Canal City Hakata ・ B

2018●Park Place Oita
●Canal City Business Center Building

2018●Gofukumachi Business Center●Higashi Hie Business Center

2017●Konoha Mall Hashimoto

2017●Higashi Hie Business Center Ⅱ●LOGICITY Hisayama◎BELS （Building-Housing Energy-efficiency Labeling System） Evaluation
This is a system in which a third party evaluates andannounces the energy-conser vation per formance of
non-residential buildings based on the “Guidelines for
Evaluation of Ener gy Conser vation Per f ormance ofNon-residential Buildings（2013）.” Four properties owned by
the Fukuoka REIT corporation were certified.

（Interior recessed lighting）
Higashi Hie Business Center Ⅱ Higashi Hie Business Center● Taihaku Street Business Center（Entrance, interior shared spaces, etc.）

Example of Sanix Hakata Building

LOGICITY Hisayama

LOGICITY Minato Kashii

LOGICITY Hisayama

ESG （Society）
Initiatives for employees and tenants◎Initiatives for employees◎Initiatives for tenants《Fukuoka Realty: Numbers of credentialed personnel》＊August 31, 2019the average number of years of continuous serviceof permanent employees: 8 years and 1 month■Full-time personnel: 41 [Male:22 Female:19]＊46.3％ Female
・Employees seconded from sponsors：2
・Employees seconded to a sponsor：3《Support for flexible working styles》《Training for employees》

・Child-rearing support（maternity leave,childcare leave system）
・Nursing care leave
・Leave for voluntary work
・No overtime days
・Employee welfare（401K, cumulative
investment system, etc.）
・Encouraging use of paid holidays etc.

・Regular lectures by Kyushu
Economic Research Center・Compliance training
・ESG training
・Nursing care training
・Overseas inspection tour（Shenzhen）etc.

・MBA：1
・Real estate brokers：28
・Certified Building Administrators：4 ・Administrative Scrivener：1
・First-class registered architect：2 ・SME management consultant：1
・Real estate appraisers：2
・Attorneys：2
・ARES Certified Masters：19

Employee
restingarea

Before《Career development support》■Number of credentialed personnel

Improved the employee lounge environment at Company-owned
Konoha Mall Hashimoto with focus on health and comfort of tenants’employees.

・Employee satisfaction survey
・Self-assessment system
・Career interview
・Secondment system（dispatching of employees to sponsor companies）
・Promotion from contract employee to permanent employee status, etc.
・Offering of training programs tailored to each management level
・System for supporting acquisition of qualifications（Real Estate Securitization Master, Real Estate Transaction Agent, etc.）
・Support for language learning etc.

After

Fukuoka REIT engages in a variety of initiatives for tenants topromote their understanding on sustainability.
・Emergency drills intended to improve tenant safety and security
・Conduct tenant satisfaction surveys
・Distribute sustainability guidebooks
・Hold events to improve sustainability awareness・Conduct sustainability training, etc.

Initiatives to local communities
Environment promotion event

Safety Town Council

Clean-up days

Participation of local communities’ events

Supporting local vitalization

At Canal Cit y Hakata,Employees par ticipate insprinkling water events to cool down sidewalks andstreets to promote well-being.

At Park Place Oita, we established a “Safety TownCouncil” that partners with related institutions andgroups to conduct crime-prevention patrols andproactively strives to prevent youth misconduct.

Employees ac tively par tic ipat e in c ommunit yclean-up activities.

Ever y year, male employees of the C ompany
par ticipate in the Hakata Gion Yamakasa festival（Hachiban Yamakasa, Kazariyama, Kamikawabata-dori;
CEO Etsuo Matsuyuki rode on a float in 2018）

OnRAMP was established by DOGAN Advisors, Inc.
and Fukuoka Realty Corporation and is operated byGeneral Incorporated Association OnRAMP.

ESG （Governance）
Governance System

Governance structure

Fukuoka Realty has established a Basic Policy on Compliance, as well as compliance regulations
and other internal rules to prevent c onf licts of interest. We c onduct c onf lict of interest risk
management pertaining to our dealings with stakeholders in an appropriate manner based on theabovementioned rules and regulations with preliminary assessment carried out by the ComplianceDepar tment general manager and deliberations c onduc ted by the Complianc e Assessment
Committee (consisting of the Compliance Department general manager and three outside experts).

◎Decision-making process
Proposals by responsible department

Third-party assessmentby external experts［Real estate appraisals］

Inspection by Compliance Department
general manager

Deliberations by the Investment
Management Committee■ Japan Real Estate Institute■ The Tanizawa Sogo Appraisal Co., Ltd.

■ Daiwa Real Estate Appraisal Co., Ltd.

［Market reports］■ Analysis on trade areas andcompetition situation■ Adequate rent levels, etc.

Deliberations/resolution
by the Compliance Assessment Committee[Engineering reports]

Supervisory Director

Yasuo Kawasho

CEO and Representative Director

Etsuo Matsuyuki

Supervisory Director

Hiroyasu Shindo

Risk management
Fukuoka Realty has established a system for comprehensively managing risks by setting up theRisk Management Committee as the organization to manage various risks. In terms of the basic
policy on risk management and the risk items to be managed, the Company has established theRisk Management Regulations and the Risk Management Committee monitors whether the risks areunder control.

Compliance training
We carr y out periodic compliance training to improve awareness within the company
and to maintain the compliance system■ Law abidance andearthquake resistance

Resolution/decision-making report
by Board of Directors

Fukuoka REIT Corporation Boardof Executive Officers■ Check of soil contamination,
toxic substance and use status■ Replacement market price,
expenses for long-term maintenanceand repairs, etc.

（＊） The prior consent of the investment corporation’ s Board of Directors is obtained in cases falling under the provisions of Article 201-2 (1)of the Act on Investment Trusts and Investment Corporations.

Joint training with sponsor

In-house training （Group discussion）