ESG Initiatives （Environment）
Reduction of environmental load

Maintenance and enhancement of environmental and construction performance

Enhancing energy efficiency Fukuoka REIT
・Installation of electromagnetic water meter NEW
・Utilization of renewable energy（common areas, etc.）
・ Reduction in Air Conditioning Load (applied
coating film containing a shading agent)・ Greening of common spaces / Arrangement ofwater areas / Creation of shaded spaces
・Installation of electronic circuit breaker

Green Building certification

BeforeGreen Building certification obtained for 84.6％of entire portfolio

After■Ratio of environmental certification acquisition【Newly acquired in Sept. 2023】【Re-certified in Dec. 2023】

Certification

14.2％

5.6％

0.5％

Hakata FD Business Center LOGICITY Minato Kashii＜Upgrading of emergency power generator＞ NEW・DC power supply device （Canal City Hakata）
Power supply for starting emergency power generator in the event of emergencies.

Upgrade work

13 properties owned by FRC were certified（One property has been newly acquired, andtwo properties have been recertified.）

CASBEE

BELS Evaluation
Certification
Park Place Oita

・ DBJ Green Building Certification

Certificatedproperties

84.6％After upgrade【Re-certified in Dec. 2023】

DBJ Green
Building
Certification

78.5％

LOGICITY Hisayama＊As of February 29, 2024 （based on total floor space）

・ CASBEE Certification for Real Estate
4 properties owned by FRC were certified （ 2 properties have been newly acquired （February 2024））.

Waste reduction / resource recycling /water resources, etc.
Fukuoka REIT
・ 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）

Taihaku Street
Business Center

Rank A（residence）

Hakata Chikushi-Dori
Center Building

Rank S・ BELS Evaluation
5 properties owned by FRC were certified●Addition of plants （Konoha Mall Hashimoto） NEWBefore●Canal City Hakata has worked to reduce water consumption througha canal water filtration system (rainwater reuse system), a greywater
plant (kitchen drainage reuse system), water-saving toilets, etc.

Rank S（office building）

After

Higashi Hie
Higashi Hie
Business Center Business CenterⅡ

LOGICITY
Minato Kashii

LOGICITY
Hisayama

Tissage HotelNahaESG Initiatives （Society①）

Creation of pleasant workplaces

Initiatives for employees《Fukuoka Realty: Numbers of credentialed personnel》（As of February 29, 2024）《Support for flexible working styles》 《Training for employees》●■The average number of years of continuous serviceof permanent employees: 8 years and 0 months■Full-time personnel: 48 [Male:24 Female:24] * Gender ratio●●

Employees seconded from sponsors：3
Employees seconded to a sponsor：8■Number of credentialed personnel
●

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●Real estate brokers : 23

ARES Certified Masters : 21Certified Building Administrators : 5●

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

Male : 50.0％
Female : 50.0％

Attorney : 1

MBA : 2

CMA : 2

Licensed Representative of Condominium
Management Company : 1
Information Technology Passport Examination : 3＊The total number of permanent employees, contract employees and employees seconded

from other companies.

Fukuoka Realty

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Child-rearing support（maternity leave,
childcare leave system,childcare support system）
Nursing care leave
Leave for voluntary work
Employee welfare（401K, cumulativeinvestment system, etc.）
Encouraging use of paid holidays, etc.

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

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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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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●

Integrated Report training●

Assistance for use of sports clubs●

In-house recreation, etc.

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

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Installation of personal lockers《Career development support》●

Other Initiatives《health management・Improvement of office environment》

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.

《Certification and registration, etc.》

Certified as a “Fukuoka ‘Work-Style Reform’ Promotion Company”（August 2018）●●Registration with Fukuoka City Well-Being & SDGs Registration
System（July 2022）

SDGs in Fukuoka Prefecture Entry into registration system（February 2023）●

Create an attractive workplace （tenants） Fukuoka REIT●

Training for tenants’ employees●

Emergency drills to improve safety and security of tenants●

Distribution of sustainability guidelines●●

Support for tenants’ employees and part-time job recruitment（posted on property websites）

Training aimed at improving skills（inbound customer service training ＊Korea, China） NEW●

Thank-you party for tenant staff（Canal City Hakata, Park Place Oita）NEW●

Improvement of employee lounge●Implementation of tenant satisfaction surveys●Park Place Oita and Konoha Mall Hashimoto introduced "Flexible Business Hours System （＊）"
for tenants on a trial basis.

＊System in which opening and closing hours are set at the discretion of the store

Inbound customer service training

Thank-you party for staff

ESG Initiatives （Society②）

Contribute to increased attractiveness and vitalization of Fukuoka and Kyushu area
●O-Vision Ice Arena Fukuoka

Provision of regional information Fukuoka Realty●Support for locally based professional sports

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（Kumamoto City and Nagasaki City）

NEW

Held an ice skating class for adults and children
as part of the welfare program
NEWfor all officers and employees

Endorsed urban development through sports throughthe “season seat sponsor” of Avispa Fukuoka

Involvement in local communityInitiatives for
local communicaties, etc. Fukuoka Realty●●Initiatives at each facility in collaboration with local communities（Canal City Hakata and Konoha Mall Hashimoto） NEW
Participates in Hakata Town Planning Promotion Council（Clean Day, etc.）
Participates in Fukuoka Directive Council
Hosts the Kyushu IR Workshop
Hosted the Real Estate, Finance and Economic Networking●●●Others●Fukuoka Realty

Canal City Hakata

Konoha Mall Hashimoto

Gospel illumination event held Tie-up with a local elementary school“Seiryo Marche”
by a local high school
NEWNEWKonoha Mall Hashimoto
SDGs plastic bottle cap art
NEWParticipation 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 9.81% 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 the
Asset 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

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）

NameZenji Koike
Hiroshi ShimutaYukitaka Ohara
Masanori Kozuma
Kazuomi Kamikawa

Attendance at board meetings at 39th

Information on attendanceat board meetings at 39th, 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

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 on
March 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.
Apr. 2021– Mar. 2022

Apr. 2022– Mar. 2023

6 times

6 times

Apr. 2023– Mar. 2024

7 times（including e-learning）

Information disclosure and dialogue with stakeholders

Publication ofIntegrated Report
Fukuoka REIT・Published f if th integrated
report in December 2023
(aim t o ex pand non - f inanc ialinformation)

Integrated Report 2023
(published in December 2023)

・ESG interview

Conducted 8 times（February 2024）