Sustainability Report 2023

Contents■Basic Information Company Profile‥ ‥‥‥‥‥‥‥‥‥‥‥‥‥‥02
Stakeholder Engagement‥ ‥‥‥‥‥‥‥‥‥‥03
Asset Growth and Sustainability History‥ ‥‥‥‥04

JPR works to resolve social issues while
maximizing unitholder value at a higher level,

ESG Highlights‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥05
State of Support for Initiatives and External Evaluations‥ ‥‥06
■Top Message

Top Message‥ ‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥07■Sustainability
Strategy

Value Creation Process‥ ‥‥‥‥‥‥‥‥‥‥‥08

with well-balanced consideration
for all stakeholders.

ESG Materiality (Material Issues) and SDGs Targets‥ ‥‥‥11■Environment

Climate Change‥ ‥‥‥‥‥‥‥‥‥‥‥‥‥‥12
Circular Economy / Renewable Energy‥‥‥‥‥‥18
Consideration in Real Estate Investment‥ ‥‥‥‥19■Society

Editorial Policy
JPR SUSTAINABILITY REPORT (issued July 2023) sets out the policies and initiatives of Japan Prime Realty Investment
Corporation (JPR) and Tokyo Realty Investment Management, Inc. (TRIM) on key Environmental, Social and Governance (ESG)
issues, in order to pursue sustainable business and a sustainable society.This report has been assured by a third party.
Scope of reporting
Period covered by this report: January 1, 2022 to December 31, 2022 (some workforce-related data describes the situationfrom April 2022 to March 2023)
Organizations covered by this report: The report focuses on JPR and TRIM and mentions the activities of the Tokyo TatemonoGroup in some sections.
Timing of reporting: Issued in July each year as an annual report

Business Strategy‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥09
Sustainability Policy and Promotion Structure‥ ‥‥10

Safety and Security Initiatives‥‥‥‥‥‥‥‥‥‥20
Initiatives on Behalf of Tenants‥ ‥‥‥‥‥‥‥‥21
Local Community Initiatives‥‥‥‥‥‥‥‥‥‥‥22
Workforce Initiatives‥‥‥‥‥‥‥‥‥‥‥‥‥‥23
Skills Development‥ ‥‥‥‥‥‥‥‥‥‥‥‥‥24
Diversity & Inclusion‥‥‥‥‥‥‥‥‥‥‥‥‥‥25
Creating a Rewarding Workplace Environment‥ ‥ 26
Work-life Balance and Healthcare‥ ‥‥‥‥‥‥‥27
Initiatives Aimed at Unitholders/Investors‥ ‥‥‥‥28■GovernanceCorporate Governance‥ ‥‥‥‥‥‥‥‥‥‥‥29
JPR’s Corporate Governance‥‥‥‥‥‥‥‥‥‥30
TRIM’s Corporate Governance‥ ‥‥‥‥‥‥‥‥31
Compliance‥ ‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥33
Risk Management‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥35■Data Collection

Data Collection‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥‥36

Contact
Financial and Investor Relation Department, Tokyo Realty Investment Management, Inc. Email: jpr-ir@trim-reit.co.jp* Some environmental and social data contained in this report has been assured by Lloyd’s Register Quality Assurance (LRQA)
to ensure the reliability of the data.Such data is marked with an asterisk (*).The Independent Third Party Assurance Report
can be found at the end of this report.

Basic Information

Sustainability Report 2023

Company Profile

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

JPR exerts its superiority as a developer-sponsored REIT to acquire properties with excellent location characteristics and makes maximum effective use of real estateknow-how, skills, information and other support.
SponsorAsset Management Company

Investment

Tokyo Tatemono Co., Ltd., was founded in 1896 by Zenjiro
Yasuda, founder of the former Yasuda Conglomerate, and isJapan’s oldest general real estate company.Inheriting the“customer-first spirit” and “enterprising spirit” valued by Zenjiro
Yasuda himself, Tokyo Tatemono has taken on the challenges ofvarious pioneering initiatives as a trailblazer of the modern realestate industry since its founding.With a main focus on the officebuilding and housing businesses, Tokyo Tatemono operates awide range of businesses catering to the diverse needs of its
customers, leveraging its strengths and uniqueness as a group in
the real estate fund and real estate distribution businesses.

Tokyo Realty Investment Management, Inc. (“TRIM”) is a J-REIT
asset management company and fully owned subsidiary of Tokyo
Tatemono Co., Ltd.
TRIM has an asset management outsourcing agreement with JPR
and conducts business operations relating to asset management(all decisions regarding the sale, purchase, and lease of realestate properties, etc.), financing, and reporting to JPR, in
accordance with the investment corporation regulations, and theasset management targets and policies stipulated therein.

Investment Corporation

Asset
managementagreement andtrademarklicensingagreement

Japan Prime Realty Investment Corporation (“JPR”) is a J-REITwith a combined portfolio focused primarily on office properties inTokyo. Since its listing on the Real Estate Investment Trust
Section of Tokyo Stock Exchange, Inc. (“Tokyo Stock Exchange”)
on June 14, 2002, JPR has steadily expanded its asset size
through investment activities.Its basic asset management policy is
to demonstrate the advantages of the portfolio through focusedinvestments in office properties in Tokyo, while working to realize
diversification mainly into urban retail properties and properties inmajor regional cities by setting management standards that arefocused on the portfolio quality.

Corporate philosophy
Corporate philosophy“Trust beyond the era”—We aim to grow the company and to createa prosperous society, taking pride in the trust placed in us that
extends over a century.

TRIM provides value to all of its stakeholders—including customers(*1), workforce, society and shareholders—by rendering
professional real estate investment management services withsincerity and a sense of responsibility.

Company Profile

Company Profile

Company Profile

Company name：Tokyo Tatemono Co., Ltd.

Company name：Tokyo Realty Investment Management, Inc.

Company name

：Japan Prime Realty Investment Corporation

Location：Tokyo Tatemono Yaesu Building,
4-16 Yaesu 1-chome, Chuo-ku, Tokyo

Location：Tokyo Tatemono Yaesu Building,
4-16 Yaesu 1-chome, Chuo-ku, Tokyo

Location：Tokyo Tatemono Yaesu Building,
4-16 Yaesu 1-chome, Chuo-ku, Tokyo

Executive Officer：Yoshihiro Jozaki

Established：September 14, 2001

Representative Director ：Hitoshi Nomura

President and CEO ：Yoshihiro Jozaki

Established：October 1, 1896

Established：April 28, 2000

Capital：94.2 billion yen (as of December 31, 2022)

Capital：350 million yen*1 “Customers” refers not only to the investment corporations that entrust asset management to the company, but also a wide range of other people involved in the company’s business, including investment corporation unitholders, tenants occupying managed buildings,
visitors to managed buildings, property managers (PMs), building managers (BMs), and financial institutions. Through its investment management services, TRIM provides value to four key groups of stakeholders: customers, workforce, society and shareholders.

02Sustainability Report 2023

Stakeholder Engagement

Basic Information

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Our main stakeholders are unitholders (investors), tenants, local communities, workforce, and business partners.
Through various initiatives on an everyday basis, we place a key emphasis on stakeholder engagement, engaging in dialogues with stakeholders and utilizing theoutcomes of those dialogues in our business activities.

Unitholders (investors)
Dialogue approach We aim to build long-term, trusting relationships with unitholders and investors, and obtain appropriate evaluations through fair andsincere disclosure of information and proactive communication.
Dialogue methods General meeting of unitholders, financial results briefings, IR meetings (domestic and overseas), and seminars for individual investors

Tenants
Dialogue approach We quickly reflect tenant needs in our activities and work to improve service and tenant satisfaction.
Dialogue methods

Tenant satisfaction surveys / cooperation on energy conservation and disaster readiness

Local communities

Major Stakeholders

Dialogue approach We work to improve regional value and contribute to local communities through community activities, etc.
Dialogue methods

Cooperation on disaster readiness, volunteer participation in cleanup activities, etc., and participation in local community events and festivals

Workforce
Dialogue approach We work to create a rewarding workplace where employees can really feel their growth and strive to train and develop professional
human resources.
Dialogue methods Education and training, evaluation and commendation systems, regular personnel interviews, and workforce satisfaction surveys

Property managers (PMs) and other business partners
Dialogue approach We aim to establish trusting relationships and mutual development through fair and equitable transactions with business partners.
Dialogue methods

Sharing sustainable procurement standards, regular information sharing, and conducting training sessions

03

Basic Information

Sustainability Report 2023

Top Message

Asset Growth and Sustainability History

Sustainability Strategy

JPR

Environment

Society

Governance

Data

TRIM

JPR

In the 21 years since its listing on the Tokyo Stock Exchange, JPR has been one of thefirst in the industry to implement sustainability initiatives and steadily grow its asset scale.

■ Jan. 2022: Welcomed outside advisor to Sustainability Committee.
■ Mar. 2022: Procured first sustainability loan and green loan.
■ Jun. 2022: Revised 2030 target for green certification acquisition rate.
■ Sep. 2022: Acquired ZEB certification for the first time.
■ Nov. 2022: Established GHG emission reduction plan and submitted to SBTi.
■ Jan. 2023: Updated materiality

JPR■ Feb. 2023: Externally recruited special committee member (real estate appraiser) to Investment Committee.

■ Aug. 2011: Acquired DBJ Green Building Certification for the first time.

■ April 2023: Acquired SBTi certification.

■ Sep. 2013: Achieved “Green Star” status for the first time in GRESB Real Estate Assessment.
■ Jun. 2018: Acquired CASBEE for Real Estate Certification for the first time.
■ Mar. 2019: Began issuing Sustainability Report.

JPR■ Jan. 2021: Determined materiality (JPR/TRIM).

■ Jul. 2019: Completed first issuance of Green Bonds.
■ Jul. 2020: Participated in CDP Climate Change Program.
■ Dec. 2020: Acquired BELS certification for the first time.

■ May. 2021: Included in MSCI Japan ESG Select Leaders index.
■ Aug. 2021: Set target of reducing CO2 emissions to net-zero.

Assets exceeded 400
billion yen in twelve
years since listing.

20222021-

JPR■ Aug. 2005: Launched Tenant Satisfaction Survey.
■ Jan. 2006: Formulated brand strategy.
■ Oct. 2006: Launched Best Performance Award.

Assets exceeded
300 billion yen ineight years sincelisting.

We are now aiming
for an asset size of
500 billion yen■ Dec. 2021: Completed first issuance of Sustainability Bonds.

2010TRIM■ Jan. 2021: Determined materiality (JPR/TRIM).

■ Jan. 2021: Established a business unit dedicated to sustainability (Sustainability Group).

2005-■ May 2021: Declared support for TCFD.
■ Jul. 2021: Enacted Human Rights Policy.
■ Jul. 2021: Enacted Sustainable Procurement Standards.

Assets exceeded 200 billion
yen in four years sincelisting.

TRIM■ Apr. 2019: Established Sustainability Committee.

Changes in asset size

■ May 2019: Became a signatory of PRI (Principles of Responsible Investment).

TRIM■ Feb. 2022: Became signatory to the Principles for Financial Action for the 21st Century.

04

Basic Information

Sustainability Report 2023

ESG Highlights

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Sustainability■ Update of materiality■ Signatory to the Principles for Financial Action for the 21st Century

JPR and TRIM identified material issues in 2021, but updated them in January 2023, in response to changes insocial needs and values in recent years.

TRIM has endorsed the Principles for Financial Action for the Formation of a Sustainable Society (commonly known
as the Principles for Financial Action for the 21st Century, PFA21), and became a signatory in February 2022.

■ Acquired SBTi certification for greenhouse gas emission reduction targets

JPR has acquired SBTi certification for its new greenhouse gas emission reduction targets formulated with a view to
the 2050 net-zero target, as being consistent with the levels set by the Paris Agreement.

Other major Initiatives● Procured first sustainability loan and green loan.

Environment

Society

Governance■ ZEB certification acquired for the first time

■ Implementation of a tenant satisfaction survey■ Welcoming of outside advisor to Sustainability Committee

Net Zero Energy Buildings (ZEBs) are buildings that endeavor tosave energy while maintaining a comfortable indoor environment
and aiming to achieve a zero energy balance.JPR Omiya Building
obtained the ZEB Oriented certification in 2022.

JPR has been conducting customer satisfaction surveys periodicallysince 2005, with the aim of creating high-quality buildings that are
comfortable for tenants to use.Based on the results of thesesurveys, we have worked with PMs and local building managers formany years to improve services, and the overall satisfaction scorein the 2022 survey reached a record high.

To ensure the transparency and objectivity of sustainability-related
operations, JPR has invited outside experts to join the Sustainability
Committee as special committee members.In addition toincorporating the specialized knowledge of special committee
members into the company, we are also working to improve theliteracy of officers and other employees in order to solve social
issues and strengthen the foundation for stable growth in themedium to long term.

■ Formulation of reduction targets for each measure basedon the greenhouse gas emission reduction plan
In 2022, JPR reviewed the measures in the JPR portfolio andcreated a roadmap.As a result, we have set targets of 25%
reduction through the purchase of non-fossil fuel certificates, 15%
reduction through energy-saving renovation, 35% reduction throughreduction in emission factors, and 5% reduction in Scope 3
categories 1, 2, and 5 by 2030.

■ Enhancement of training framework

TRIM considers employees to be its greatest management
resources, and provides maximum support for them to take on new
challenges.In response to past requests from employees for greater
support for skills development, we have implemented measures
including the introduction of a new training system and expansion
in the amount of financial support for personal training expenses.

■ External recruitment of special committee member to

TRIM Investment Committee
To engage in fair and transparent investment activities, TRIM’s
Investment Committee—the decision-making body for property
acquisitions, etc.—has invited real estate appraisers with a highlevel of expertise as special outside committee members.

Other major Initiatives● Conversion of waste manifests to electronic manifests(12 properties)● Achieved environmental certification acquisition rate
target (previous) ahead of schedule

Other major Initiatives● Establishment of a new café booth in the office

Other major Initiatives● Conducting continuous compliance training● Diversity training05

Sustainability Report 2023

Basic Information

Top Message

Sustainability Strategy

State of Support for Initiatives and External Evaluations

Environment

JPR

Society

Governance

Data

TRIM

We are signing and supporting various initiatives, and working to acquire and improve the level of external evaluations.

Principles of Responsible Investment (PRI)

Task Force on Climate-related Financial
Disclosures (TCFD)

Became a signatory in May 2019

Declared support in May 2021

(Asset Management Company)(Asset Management Company)

Acquired SBTi certification in April 2023

(Asset Management Company)

CDP Climate Change Program

GRESB Real Estate Assessment

GRESB Public Disclosure Assessment

MSCI Japan ESG Select Leaders Index＊1

Achieved

Upgraded toA-

SBT Initiative (SBTi)

Principles for Financial Action for the
21st Century

Became a signatory in February 2022

Achieved

5 StarsA

for fourthconsecutive year

for fifth
consecutive year

Included for second consecutive year
(Included in May 2021)
この建物のエネルギー消費量

�� ％削減建築物省エネルギー性能表示制度

CASBEE Real Estate Certification

DBJ Green Building Certification

BELS certification and ZEB certification

Certification

Certification

Certification

1 property certified as

37properties

13properties

3properties(JPR Omiya Bldg.)

国土交通省告示に基づく第三者認証
����年�月��日交付

ZEB Oriented

この建物のエネルギー消費量

��％削減

����年�月��日交付 国土交通省告示に基づく第三者認証*1 JPR’s use of data produced by MSCI ESG Research LLC or its affiliates (“MSCI”) and JPR’s use of MSCI logos, trademarks, service marks or index names do not constitute a sponsorship, guarantee, recommendation, or promotion of JPR by MSCI. MSCI’s services anddata are the property of MSCI or the entity providing such information and are provided “AS IS” without warranty of any kind. MSCI’s names and logos are trademarks or service marks of MSCI.

06

Basic Information

Sustainability Report 2023

Top Message

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Resolving social issues while maximizing unitholder value at a higher level

Japan Prime Realty Investment Corporation

Yoshihiro Jozaki, Executive Officer
Japan Prime Realty Investment Corporation (“JPR”) is anurban REIT with a combined portfolio that manages a highquality portfolio of offices and retail facilities.
Since our listing on the Tokyo Stock Exchange in June 2002,
we have steadily built a track record of stable management,

and our asset size has grown to approximately 500 billion
yen.
Together with the asset management company Tokyo Realty
Investment Management, Inc. (“TRIM”), JPR has formulated
the JPR Brand Strategy, focused primarily on the provision oftenant services and environmental considerations, and has
been working to address social issues from an early stage in
the industry.
Going forward, we will continue to balance growth withsustainability initiatives to meet the expectations of our
stakeholders.
Since last year, the market has been shaken by the spread of
geopolitical risks triggered by Russia’s invasion of Ukraine,soaring energy prices, and the failure of US banks due torising interest rates.
While restrictions on socio-economic activities due to the
COVID-19 pandemic have almost disappeared, various
revisions to office strategies as a response to new work styles
are becoming apparent.
Under these conditions, we believe that effective sustainability
initiatives will become increasingly important for our business,
which provides high-quality office environments.
In terms of our most recent sustainability initiatives, in 2021
we set an environmental (E) target of net-zero greenhousegas emissions by 2050. This year, we reviewed our 2030
target (46.2% reduction), and obtained SBTi certification toaccelerate our efforts.
We have also achieved our goal of obtaining environmental
certification for buildings in our possession (originally by 2030)
at an earlier stage, and are also working to create a greener
portfolio, such as by obtaining ZEB Oriented certification for
the JPR Omiya Building.
In terms of social (S) initiatives, we have focused on developing

a comfortable working environment and skills of officers andemployees, such as by holding seminars on women’s health,increasing support for obtaining qualifications, and expanding
business training—based on our belief that human resources
are the greatest source of value for a company.
With regard to governance (G), we are working to introduce
specialized knowledge and enhance the transparency of ourdecision making, such as by inviting outside advisors to join
the Sustainability Committee and external real estateappraisers to join the Investment Committee as special
committee members to discuss property acquisitions.
Tokyo Tatemono Co., Ltd.—the sponsor that plays an importantrole in our growth as a J-REIT—is the oldest comprehensive
real estate company in Japan.
This April, our asset management company, TRIM, became awholly owned subsidiary of Tokyo Tatemono.
JPR’s key strength lies in its ability to make maximum
effective use of its sustainability-related knowledge andnetwork, in addition to various know-how relating to realestate management and asset management, accumulated
over the course of many years by Tokyo Tatemono andTRIM.
By leveraging these strengths, JPR will strive to maximize
unitholder value, with balanced consideration to all
stakeholders.
This report has been prepared with the aim of introducing oursustainability initiatives and approaches to unitholders andother stakeholders.
Going forward, we will seek to enhance, improve, andappropriately disclose our sustainability initiatives, andendeavor to pass on the trust you have given us to future
generations.
We look forward to your continued support.

07

Sustainability Report 2023

Value Creation Process

Basic Information

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

By leveraging the strengths of JPR, which has grown as a developer-sponsored REIT, we aim to resolve social issues and maximize unitholder value at a high level, while responding appropriately to changes over time.

INPUT

OUTCOME

Manufacturing capital

Resilient portfolio with sustainable profit growth

Total acquisition price: 488,784 million yen ■Total leasable floor space: 494,503.72 m2■Offices: 81.2% Retail facilities: 18.8%■Investment ratio: Tokyo: 85.2% Others: 14.8%

Manufacturing capital (December 31, 2022)■t

Total liabilities: 234,051 million yen ■Total net assets: 273,603 million yen
Total assets: 507,655 million yen ■Interest-bearing debt: 202,900 million yen■LTV: 40.0%
Human capitalat e g y

I nte rn

■

S tr

al S

■

te

al

tr a

e

Operating revenue: 18,739 million yen ■Net income: 8,469 million yen
NOI: 11,248 million yen ■Distribution per unit: 7,750 yen■NAV per unit: 394,241 yen■NAV multiple: 1.0 times■Gains on assets: 127,200 million yen■

rnFinancial capital

Ex

gy

■

Number of officers and employees: 58■Qualification holders: Real estate transaction specialist: 37, ARES certified master: 15, Real estate appraiser:3, Certified public accountant: 1, First-class architect: 3, Securities analyst (Securities Analysts Association of Japan): 4

Financial capital
Credit rating: JCR AA, R&I AA■Average maturity: 4.7 years■

Human capital■Intellectual capital
Stable management knowledge accumulated over 20 years since listing on the Tokyo Stock Exchange■Utilization of real estate management know-how from sponsor Tokyo Tatemono■

Employee satisfaction: 71.7% ■Paid annual leave usage rate: 76.6%■Average training hours per employee per year: 29 hours■Average training expenses per employee: 87,023 yen■

Business Strategy

Cooperation with tenants and local communities■Cooperation with property management (PM) companies■IR activities for investors■Intellectual capital
Accumulation of management know-how, etc.

■

Fin

Social capital

Average interest rate on interest-bearing debts: 0.76%■

Social capital

anc i a l St ra t egy

Tenant satisfaction ■Revitalization of local communities■Number of IR interviews with institutional investors: 135 [domestic institutional investors,
48 overseas institutional investors (including remote meetings)]■Participation in events for individual investors: 6■

Natural capital

Natural capital

Portfolio with high environmental performance■Initiatives to reduce environmental impact

Reduction in GHG intensity■Environmental certification acquisition rate: 88.7% (old target), 70.5% (new target)■■

Materiality
Improving tenant satisfaction with safety, security and comfort

E

Countering climate change● Improving satisfaction by providing tangible and intangible services (safety, security and comfort)

Strengthening corporate governance● Reducing GHG emissions

Creating a rewarding workplace environment● Implementation of transparent management through active IR● Promoting acquisition of environmental certification● Efficient use of water resources● Strengthening climate change risk management● Working with tenants to address climate change

S● Strengthening human resources through training and self-development support● Building an efficient business structure● Maintaining and improving physical and mental health● Creating a rewarding workplace environment

G● Maintaining and improving the sustainability promotion framework● Respect for human rights● Enhancing a strong corporate governance● Strengthening risk management● Promoting diversity & inclusion

Note 1) Figures for manufacturing capital, financial capital, social capital, and natural capital are as of December 2022. Figures for human capital are as of March 2023.

08Basic Information

Sustainability Report 2023

Business Strategy

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

JPR

To achieve stable growth in the medium to long term, JPR is engaged in the following three business strategies: external growth strategy, internal growth strategy, and financial strategy.

Realization of internal growth through highlevel of operation

y

er n

● Judging instructions and contract conditions for PM (property management)owcompanies, and exchanging information and negotiating with intermediaries asappropriate

tra tegy

Leasing strategy

In t e r n a l G rservices, formulating improvement plans, and seeking to improve services

th S● Surveying tenants about their satisfaction with building facilities and

al
ow

th

Improving quality based on tenant satisfaction surveys

teg

Carefully selected investments in properties
that can demonstrate stable competitiveness
Gr

S

tr a

E xt

Business Strategy

Appropriate cost control● Appropriate cost control through centralized management in setting

management specifications, carrying out repair work, and implementing
energy-saving measures, etc.

Priority investment in office buildings in Tokyo● Prioritizing investment in offices in Tokyo with expectations for medium tolong-term growth

Carefully selected investments in regional cities and urban
retail properties, etc.
● Supplementing profitability with diversified investments in offices andurban commercial facilities with good locations in major regional cities

Expansion of asset size utilizing sponsor’s pipelineFinanc i a l St ra t egy● Acquiring high-quality properties that demonstrate the advantages of beinga developer-sponsored REIT

Improving asset value through investments for value enhancement● Construction work for value enhancement with the aim of maintaining andimproving the competitiveness and asset value of properties from a medium
to long-term perspective

Establishment of a financial base that is stable over the long term
Conservative financial management

Reducing refinancing risks● LTV is controlled appropriately at 45% or less, in● Flattening repayment amounts for each fiscal period and diversifying lenders

principle● Establishing a commitment line (24 billion yen)

Reducing the risk of rising interest rates

Diversifying funding methods● Lengthening the maturity of debts and borrowing● Issuing investment corporation bonds

funds at fixed interest rates● Utilizing sustainability finance and green finance09

Sustainability Report 2023

Basic Information

Top Message

Sustainability Strategy

Sustainability Policy and Promotion Structure
Establishment of
Sustainability Policy
To achieve stable growth in the medium tolong term, it is essential for JPR to addresssocial demands relating to the environment,social contribution, governance, and othermatters.TRIM has formulated a Sustainability
Policy for initiatives to improve social
sustainability.

JPR

Environment

Governance

Data

TRIM

Sustainability Policy
Based on its corporate philosophy of working with integrity and commitment to responsibilities, TRIM is resolved to contribute to the sustainable developmentof society and the investment management business through discussion and cooperation with its stakeholders (including investors and tenants).

Initiatives on Behalf of
Tenants

Initiatives on Behalf of theEnvironment

Initiatives on Behalf ofLocal Communities

Initiatives on Behalf of
Employees

Initiatives on Behalf ofSociety

We will work with integrity andresponsibility in responding to tenants,
and endeavor to provide them with new
and distinct values as well as
enhancing their satisfaction.

Recognizing the importance ofaddressing environmental issues, wewill aim to reduce the environmentalload by managing the assets wemanage.

We will focus on collaborating withlocal communities through the assets
we manage, in an effort to contribute toenhancing the value of the entire area
in which such assets are located.

We will respect each of our employees
to realize an employee-friendly
workplace, helping them to enhancetheir skills in their specialties.

We will abide by laws and regulations
as well as the rules of society, and willconduct business operations with afocus on transparency and objectivity
while holding on to our high moral
standards.

Sustainability Promotion
Framework
TRIM has established the Sustainability
Committee to continuously promotesustainability initiatives systematically.The
Sustainability Committee is composed ofmanagement class personnel, including thePresident and CEO, who is the chairperson,and has its own secretariat as a subordinate
organization.We also invite outside advisors
to acquire knowledge and ensure objectivity.

Society

Overview of Sustainability Committee

ReportingBoard of Directors

Supervising

Board of Directors

Supervising

Reporting

Chair

President & CEO

Members

President and CEO (chair), General Manager of Investment Management
Division 1, General Manager of Investment Management Division 2, General
Manager of Finance and Administration Division, General Manager ofCompliance Office, Sustainability Committee Secretariat

Frequency of
meetings

At least four times / year
●Setting sustainability targets

Sustainability Committee

Roles●Monitoring activities and evaluating performance to achieve targets●Raising awareness among officers and employees* The Sustainability Committee has invited outside experts with knowledge of sustainability as special committee members.

10Basic Information

Sustainability Report 2023

Top Message

Sustainability Strategy

ESG Materiality (Material Issues) and SDGs Targets

Environment

JPR

Society

Governance

Data

TRIM

We have reviewed our material issues in order to respond appropriately to changes in the external environment.
Materiality

Policies● Promoting acquisition of environmental

certification (Note)

Strategies● 2030 target: Green certification acquisition rate of 80% or more (4-star/”A” rating or higher)● Improving environmental ratings* The previous target was achieved ahead of schedule, and the target green certification rating was raised (to 4-star/”A” rating or higher).

● Achieving reductions by lowering emissions coefficients● Reducing GHG emissions

E● Efficient use of water resources● Strengthening climate change risk management

Improving tenant satisfaction
with safety, security and comfort

Creating a rewarding
workplace environment

security and comfort)●F ostering professionals who support corporate

growth● Building an efficient business structure● Improvement of business efficiency and process● Maintaining and improving physical and mental●R ealization of physical, mental health and work-life

health● Promoting diversity & inclusion NEW● Implementation of transparent management

through active IR● Improving overall strength of sustainability

promotion framework● Respect for human rights NEW

emissions(compared to the 2019 level)● LED lighting ratio● 2050 target: Achieving net zero● 2030 target: Achieving 10% reduction in water use per floor area(compared with the 2017 level)

response capabilities● Improving overall tenant satisfaction (safety,

intangible services (safety, security and comfort)● 2030 target: 46.2% reduction in greenhouse gas●B uilding industry-leading climate change risk

● Improving satisfaction by providing tangible and● Creating a rewarding workplace environment

Strengthening corporate
governance● Implementing water-saving construction work

● Expansion of green lease agreement

and self-development supportG● Achieving reductions by introducing renewable energy● Working with tenants to address climate change● Strengthening human resources through trainingS● Achieving reductions with energy saving renovations● Reducing waste and improving recycling rate

Countering climate change

Targets and KPIs

● Improving green certification acquisition ratebalance●P roviding an environment where each person canplay an active role●P
 romoting the active participation of diverse

human resources● Green lease contract ratio● Average tenant satisfaction score● Training expenses per employee● Training time per employee● Health checkup rate
● Overtime hours per employee● Average paid annual leave usage rate

● Average employee satisfaction● Response rate of employee satisfaction survey● 2030 target: Percentage of female managers 10% or higher● Percentage of female managers / female employees● Number of employees aged 60 and over

● Industry-leading information disclosure● Number of financial results briefings held per year

● Number of meetings with overseas institutional investors● Active dialogue with investors● Number of meetings with institutional investors in Japan● Number of participations in events for individual investors● Obtaining industry-leading ESG valuation● Raising awareness of human right policies both

inside and outside the company● Enhancing a strong corporate governance● Maintaining a strong corporate governance● Strengthening risk management● Building industry-leading management capabilities● GRESB Assessment● MSCI ESG rating● CDP rating● Human rights training (year)● Compliance Committee meetings: 12 times/year● Compliance training participation rate: 100%

● Compliance training sessions: 6 times/year● Implementation of internal audits/year● Risk Management Committee meetings:

4 times/year

Note: As a result of this time’s revision, “promoting acquisition of environmental certification”—which was previously listed as a material issue—has now been incorporated into “countering climate change.”11Basic Information

Sustainability Report 2023

Climate Change

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Approach to climate change

GHG emission reduction targets

With the globalization of economic activities and the effects of population growth, various
environmental issues such as climate change are growing more serious.At the Parties to the United
Nations Framework Convention on Climate Change held in 2015 (COP21), the Paris Agreement
was adopted, representing an agreement to keep the rise in average temperatures since theIndustrial Revolution to well under 2ºC, and to aim for keeping the rise to 1.5ºC.In 2021, theJapanese government declared the goal of reducing greenhouse gas (GHG) emissions by 46%(compared with 2013 levels) by 2030, and announced that it would further endeavor to reduce
GHG emissions by 50%.JPR recognizes that climate change will have a significant impact on its
business, including tenant and supply chain activities, and has adopted a policy of contributing
actively to the reduction of GHG emissions.

2030 target

46.2%
reduction

2050 target

Net zero
2019

2030

2050

Initiatives in 2022

Countering climate change● Formulation of a low-carbon transition plan

In addition to identifying “countering climate change” as a material issue, we have set medium tolong-term targets with a scientific basis, such as “46.2% reduction in total GHG emissions(compared to 2019) by 2030” and “net zero CO2 emissions by 2050.”JPR works to reduce theimpact of its business activities on climate change by reducing GHG emissions through theefficient use of energy in its office buildings, etc., and use of renewable energy.We also believethat the management of real estate with superior energy conservation will lead to the creation ofbusiness opportunities and improve competitiveness, and will therefore continue to engage inthese initiatives.

Organized Scope 1, 2, and 3 data and formulated
a plan based on various reduction measures.
● Acquisition of ZEB certification

JPR Omiya Bldg. achieved ZEB Oriented
certification in September 2022.
● Acquisition of SBTi certification

Applied with GHG emission reduction targets in
November 2022 and obtained certification in April
2023.

● CDP Climate Change Program (A- score)Upgraded CDP rating score from B to A- score in the2022 rating.
● Revision of green certification acquisition rate target

Achieved previous target of “green certificationacquisition coverage rate of 80% or more” (3-star/”B”
rating or higher) in December 2022, ahead of schedule.
We have set a new target raising the standard to “green
certification acquisition rate of 80% or more” (4-star/”A”
rating or higher) and are seeking to achieve a qualitative
improvement in environmental performance.

Support for TCFD
TRIM announced its support for the recommendations of the
TCFD (Task Force on Climate-related Financial Disclosures),established by Financial Stability Board (FSB), in May 2021,
and is engaged in activities as a member of the TCFD
Consortium.

TRIM conducted an analysis of climate change risks andopportunities based on the four core pillars (governance,
strategy, risk management, and metrics and targets) of the
TCFD recommendations, and is actively disclosing details of
those initiatives.

12Basic Information

Sustainability Report 2023

Climate Change
1

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Governance

Details of JPR / TRIM’s corporate governance are described under Sustainability Promotion Framework.

2

Strategies

JPR has conducted multiple scenario-based analyses to understand the risks and opportunities of climate change and to examine their impact on its business.

1. Scenario analysis
1.5°C–2°C scenario worldview

4°C scenario worldview

Demand for properties with strong environmental performance
Increase in responses to environment-related laws and regulations

High demand for resilient properties
Measures against meteorological disasters, responses for facilities

Tenants and investors

Natural and meteorologicalenvironment●S election of properties with strong● Impact is less than under the 4°C

environmental performance● Increase in ESG investment andloan amounts

scenario

Government

Tenants and investors

Natural and meteorologicalenvironment

Government● Carbon tax introduced● Focus on disaster response● Increase in rain and cloudbursts● Improvement of regulations for● Improvement of regulations forcapacity and safety●F ocus on ability to respond tophysical risks● Rising sea levels

disaster control measures(disaster control and mitigation)● Carbon tax not introduced

energy conservation● Increase in tropical days (high is 30°C or higher),decrease in ice days (low is 0°C or lower)

13

Basic Information

Sustainability Report 2023

Climate Change

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

2. Identification of risks and verification of financial impact
In its scenario analysis, JPR identified the following risks and opportunities by utilizing the knowledge of external consultants and quantitatively evaluated the degree of impact, and is responding together
with the relevant departments in charge.

Identification of risks and verification of financial impact
Type of risk

Transition
risks

Risk that was identified

Financial impact

Time span

Policy and regulations

Increase in operation costs resulting fromthe introduction of a carbon tax

Carbon tax imposed under tightened environmental laws and regulations leads
to an increase in the risks surrounding the operations of owned properties.

MarketCost increase resulting from the increaseof energy prices

Reputation

Level of impact

Strategies

1.5/2°C

4°C

Medium to
long

High

High

●

Rising fossil fuel prices lead to an increase in the unit price of electricity, etc.,
leading to an increase in operating costs.

Medium to
long

High

Middle●Loss of tenants due to a delay in taking
green building measures

A delay in taking green building measures results in a failure to cater to theneeds of companies aiming to achieve carbon neutrality. This leads to a loss oftenants and a loss of fixed-amount income, such as rents and CAM charges.

Short,
medium, and
long

High

Low

Reputation

Withdrawal of investors due to a delay intaking green building measures

A delay in taking green building measures leads to financial institutions’withdrawal from loans and investments, resulting in increased funding costs.

Medium to
long

High

Low

Chronic physical risks

Increase in energy consumption attributed
to chronic temperature increase

Rise in summer temperatures due to climate change leads to an increase in
the amount of cooling used, leading to an increase in energy costs.

Medium tolong

MiddleMiddleAcute physical risks

Increase in repair costs associated withwater damage risk

If the risk of water damage due to climate change, such as that caused bytyphoons or flooding, increases owned properties may incur water damage,resulting in the generation of repair costs.

Short,
medium, and
long

High

High

Promoting replacement with LED lighting
Switching to contracts with electric power companies with low emission factors● Acquiring ZEB certification●

Promoting power saving

Increasing the percentage of properties that have acquired
environmental certification●Promoting financial institutions’ understanding by increasing the number ofgreen buildings in the portfolio and disclosing appropriate information●Physicalrisks

Reinforcing the funding base by enhancing relationships with investors whoare interested in ESG●Requesting for tenants to cooperate with “Cool Biz”
Preventing standby power usage by air conditioning, etc.

●● onitoring the latest risks in areas where individual properties are locatedMRegular onsite inspection of each property’s equipment conditions● Improving and repairing equipment as a measures addressing water damage● Increasing resilience by holding disaster drills●●

Transition risks: Risks arising from the transition to a decarbonized society (predictive analysis of carbon taxes and electricity / energy prices)Reference scenario: IEA World Energy Outlook 2019-2020
Physical risks: Physical risks caused by climate change itself (calculation of the frequency of flooding / flood damage)Reference Scenario: WWF Water Risk Factor

Identification of opportunities and verification of financial impact
Type of opportunity
Opportunities

Products and services

Identified opportunities
Increase in rents for green buildings

Financial impact

Time span

Tenants are increasingly demanding properties with high environmental performance due to tougherlaws and regulations, resulting in an increase of asset value and real estate rental revenues.

Medium tolong

Level of impact
1.5/2°C

4°C

High

Low

Strategies●

Increasing the percentage of properties that have acquired
environmental certification

14

Basic Information

Sustainability Report 2023

Climate Change

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

3. Low carbon transition plan
JPR has set a 46.2% reduction in total GHG emissions (compared to 2019) by 2030 based on
scientific basis regarding GHG emission reductions, and has also set the target of net-zeroemissions by 2050.We will formulate specific measures and implement related initiatives toreduce emissions toward achieving these targets.
Specific reduction measures

GHG emission reduction plan

Reductions in categories 1, 2 and 52050 target
Reduction as a result of introduction of renewable energy and purchase of non-fossil certificatesNet zero

2030 target-46.2%
2019 (base year) 74,931 t-CO2

Reduction as a result of energy-saving renovation, etc.

Emissions in Scope 1, 2, and 3

Reduction as a result of lowering emissions factors

Results

Improvement of environmental performance through asset replacement Introduction of new technologies

2021

2030 reduction target
46.2% reduction (compared to 2019)* Takes into consideration annual emission
increase of approx. 3% associated with expansion
in asset size (+33%)

2030

2040

Reduction measures and reduction rate (plan)

2050 reduction target

2050

Reduction measures●

Reductions in categories 1, 2 and 5-5%●

Improvement of environmental performance through asset replacement●

Reduction from non-fossil certificate purchases

-25%

●

Introduction of renewable energy and purchase of non-fossil certificates●

Reduction as a result of energy-saving renovation, etc.

-15%

●

Introduction of new technologies●

Achieving reductions by lowering emissions coefficients

-35%

●

Decrease in emission factor due to progress on energy mix

Net zero* Category 1: emissions through supply chain; Category 2: emissions from capital goods; Category 3: fuel and energy related activities not included in Scope 1 and Scope 2; Category 5: emissions from waste disposal; Category 13: emissions through property owned

15

Basic Information

Sustainability Report 2023

Climate Change

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Measures to achieve the plan
JPR is engaged in environmental and energy-saving measures, such as upgrading to highly
energy-efficient facilities and improving operating methods, while measuring GHG emission figures
to reduce GHG emissions.

3. Operational improvement initiatives
Category

MeasureTurning off the lights when rooms arevacantKey initiatives
Creating standards for turning lighting on and off and promoting
turning lights off when rooms are vacant●Lighting

1. Switch of energy suppliers
Review of power companies
JPR monitors current CO2 emission factors on a regular basis and is working to reduce GHG emissions
by reviewing power supply contracts.We not only make judgments based on CO2 emission factors but
also check the evidence, the mix of energy sources and ways to offset our carbon footprint.
Introducing renewable energy sources
Renewable energy is defined as energy that is produced by natural resources and does not produce
greenhouse gases. Examples include solar energy, wind energy, geothermal energy, small and mediumhydropower, and biomass.JPR is introducing 100% renewable energy contracts while considering
increases in energy costs.

Floor management of common-area
lighting

Airconditioning
equipment

Upgrading to LED lighting
Lighting of exclusive-use areas and common areas are being replaced with LED lighting to reduce
power consumption.
Upgrading to lighting fixtures with motion detectors
Motion detectors respond to the movement of people and changes in brightness to provide illumination
only when needed, which reduces power consumption preventing people from forgetting to turn off thelights.JPR is working to reduce power consumption by installing motion detectors in restrooms, staff
kitchens, and stairways when carrying out common-area renovations so that lights will be turned off
when these areas are not in use.

Managing lighting of common areas according to use by tenants

Changing air-conditioning temperature to
recommended values●

Recommending that tenants adopt appropriate temperature
settings for air-conditioning

Turning off air-conditioning power in
empty rooms●

Turning off air-conditioning equipment power in empty rooms tostop consumption of standby power

Prohibiting entry of outside air during
pre-warming/pre-cooling●Restricting the entry of outside air during pre-warming/
pre-cooling in order to reduce air-conditioning loads●

Reviewing method of operating control equipment for the
purpose of reducing contract demand and turning off equipmentthat is always on standby where appropriate●

Improving power factor through careful control of condensers
and reducing electrical circuit and transformer energy loss

Seasonal adjustment of heated toilet seattemperatures●

Managing toilet seat heating and washing water temperaturesby adjusting the settings according to the season

Seasonal management of times when
outdoor lights are turned on●

Automatically turning off exterior lights and managing the times
when they are lit according to the season

Changing contract demand

2. Equipment improvement initiatives
Upgrading to highly energy-efficient air-conditioning equipment
Power consumed by air-conditioning equipment represents a significant percentage of the power
consumed by the entire building, with power demand increasing sharply during the hot summer months
in particular.Air-conditioning equipment is being systematically upgraded to improve economic efficiency
and comfort and reduce GHG emissions.

●Improving power factor using condensers
Otherequipment

4. Improving building resilience
TRIM conducts onsite inspections of all portfolio properties (except land with leasehold interest)
at least once a year, in principle, to assess whether they are equipped to withstand disaster(including typhoon, heavy rain, flood, and earthquake), checking for any new risks and seeking
to mitigate the risk of damage, loss or degradation of the properties.We are also implementing
resilience measures utilizing disaster forecasts, such as regularly checking for hazard map
updates in the areas where our properties are located.

16

Basic Information

Sustainability Report 2023

Climate Change
3

JPR

Top Message

4

1. Risk management

2. Risk management process

Overview of Risk Management Committee
Chair

Risk Management
Committee

Governance

Data

Metrics and targets

Members

Role inclimatechangeissuesJPR has formulated new GHG emission reduction targets with a view to the 2050 net-zero target,
and acquired SBTi certification for these targets as having a scientific basis and being consistent
with the levels required by the Paris Agreement.JPR has also set a broader target of reducing total
GHG emissions— including Scope 3 emissions—by 46.2% (compared to 2019) by 2030.
TargetBase year

Target year

Scope of GHG

GHG emission reduction targets

Interim target

2019

2030

Scope 1 + 2 + 3

46.2% reduction

Long-term target

2019

2050

Scope 1 + 2 + 3

Net zero

Other targets (2030)

TRIM monitors all risks—including climate change risks—twice a year, and the Risk
Management Committee deliberates on these risks.Details of initiatives taken every year are
summarized and plans for the next year formulated at the end of each year are reported to
TRIM’s Board of Directors.

ReportingSociety

GHG emission reduction targets

Climate change risks are integrated with risks related to operations and management. They aremonitored and managed through multiple verification systems.TRIM has established the Risk
Management Committee to improve the effectiveness of its risk management, in accordancewith its Risk Management Regulations. This committee deliberates on topics including risk
identification, response to assessment, monitoring, and improvement measures.Contents,
progress, and results of the committee’s deliberations are reported to the Board of Directors.
The Sustainability Committee also uses a risk monitoring sheet prepared by the Sustainability
Secretariat for confirmation.

Supervising

Environment

TRIM

Risk management

Board of Directors

Sustainability Strategy

President & CEO
General Manager of Investment Management Division 1/General
Manager of Investment Management Division 2/General Manager
of Finance and Administration Division/General Manager ofCompliance Office
At least four times / year
Deliberations on risk identification, response to assessment,
monitoring, improvement measures, etc.
Deliberation on monitoring twice a year

Acquiring environmental certification in the JPR portfolio

Increasing the percentage of properties rated at specific levels in environmental performance assessments

Certification acquisition rate of 80% or more, with 4-star/”A” rating or higher

Rank S or A in the CASBEE Certification for Real Estate

Water use per floor area

Four or five stars in the DBJ Green Building Certification

10% reduction (compared to 2017)

Four or five stars in the BELS certification

Changes in GHG emissions（t-CO₂）80,000■Scope1 ■Scope2 ■Scope3
71,912

71,50274,931

70,569GHG emissions by Scope 3 category in 2022 (t-CO2)

61,55060,00040,000Category 1*5,946

68,96254,43355,62458,31754,34753,331

48,093Category 2*
Category 13*

9,861

26,58920,000 16,083

14,50915,283

14,92914,41912,224

1,396

1,369

1,331

1,293

1,212

1,233

2017

2018

2019
2020
(Base year)

2021

2022 (year)

0

Category 3*

3,267
Category 5*2,430* Category 1: emissions through supply chain; Category 2: emissions from capital goods; Category 3: fuel and energy related activities not included in
Scope 1 and Scope 2; Category 5: emissions from waste disposal; Category 13: emissions through property owned* 2022 figures for Category 5 in Scope 3 are figures calculated by TRIM and have not received third-party assurance.

17Basic Information

Sustainability Report 2023

Top Message

Circular Economy / Renewable Energy

Sustainability Strategy

JPR

Environment

Society

Governance

Data

TRIM

Approach to the circular economy

Waste data system

As pollution by waste and hazardous substances and the depletion of natural resources
become common issues in society, there is a need to control their occurrence andmake effective use of resources.In our environmental initiatives in our sustainability
policy, we set forth a policy of endeavoring for the effective use of water resources andwork on the “3Rs” (reuse, reduce and recycle) of waste.To address this issue, we areworking to reduce water consumption, and have set a 2030 target of reducing water
use per floor area by 10% (compared to 2017).With regard to waste, we monitor theamount of waste we discharge and our waste recycling rate.We will work to help createa recycling-oriented society while improving the efficiency of water resource utilization,
resource recovery and recycling, and limiting waste output.

Documents regarding waste are submitted to local governments and reported. However, since reporting
items are different for each local government, we have built a unified data system for the whole of JPR.
Document management has been shifted to electronic data to improve operational efficiency and accuracy.
The new system has been in operation since 2023.
New data aggregation workflow

Electronic manifests (12 properties)

1. Unifying the data input format has eliminated the need forindividual processing from documents submitted to local
governments.

Unified format submission (PM→TRIM)

2. For 12 properties in the Kanto region, we have created anelectronic manifest (speeding up aggregation and improving
accuracy).

Submission of recycling / reuse plan (PM→TRIM)

3. Data is input by the person in charge of each property site
(effective in preventing transcription errors and reducing
workload).

Unified format aggregation (TRIM)

4. Third-party verification is performed at the same time asenergy data, by bringing the submission date forward

Third-party verification

Conservation of water resources
JPR is upgrading its restrooms and staff kitchens and switching to highly effective water-saving

Approach to renewable energy

appliances.We appropriately manage and measure water consumption, and strive to reduce water

In order to achieve JPR’s 2050 target of net zero, we recognize that it is important tousage with the cooperation of tenants.

switch to electricity derived from renewable energy (“renewable electric power”) for theSome of our properties are equipped with facilities to reuse rainwater and greywater, as part of ourelectricity used at our properties.We will steadily introduce renewable electric power

efforts to reduce the amount of clean tap water used.

based on financial impact and effectiveness.

As of December 2022, the properties that have introduced renewable electric power are as follows.

Waste output
JPR is working to actively reduce waste output●

Introduction of electronic waste manifests

by separating industrial waste and strengthening●

Setting up a waste data system

recycling efforts, and is implementing the●Thorough waste separation rules●

Activities to strengthen recycling and raise awarenessinitiatives shown on the right in cooperation withtenants and building management companies.

●

Kanematsu Bldg. Annex●

JPR Ningyocho Bldg.

●

JPR Crest Takebashi Bldg.

●

JPR Ichigaya Bldg.

●

Minami Azabu Bldg.

●

Rokubancho Bldg.

●

JPR Harajuku Bldg.

●

JPR Nihonbashi-horidome Bldg.

●

JPR Sendagaya Bldg.

●

Ginza Sanwa Bldg.

●

JPR Chiba Bldg.

●

JPR Yokohama Nihon Odori Bldg.

●

JPR Ueno East Bldg.

●

Sompo Japan Sendai Bldg.

●

Sompo Japan Wakayama Bldg.

●

JPR Dojima Bldg.

●

JPR Nagoya Fushimi Bldg.

●

Grand Front Osaka●JPR Shinsaibashi Bldg.

●

JPR Chayamachi Bldg.

18

Basic Information

Sustainability Report 2023

Top Message

Consideration in Real Estate Investment

Sustainability Strategy

JPR

Environment

Society

Governance

Data

TRIM

Urban revitalization and redevelopment

Approach to environmental consideration in real estate investments

With the international goal of limiting the global average temperature rise to 1.5°C, there isa risk that real estate assets will become stranded assets and depreciate significantly inthe future, due to the tightening of environmental laws and regulations.At the same time,
tenants’ environmental awareness is expected to increase year by year, and the need formore environmentally friendly buildings is expected to increase.In order to shift to agreener portfolio, we are investing in properties with strong environmental performance.

Responding to the risk of soil contamination
When acquiring properties, TRIM checks for the presence of environmental risks such as soil
contamination by conducting site visits, geographical surveys, and other checks.As a general rule, weonly invest in properties that have been properly treated and managed in accordance withenvironmental laws and regulations with regard to soil contamination and related issues.Also note thatTokyo Tatemono, the parent company of TRIM and main transaction partner for properties to JPR,
conducts soil contamination surveys when acquiring the land for development properties, andappropriately handles soil contamination risks, including countermeasures and treatment as required.

JPR does not invest in new development projects.Tokyo Tatemono, the main sponsor, harnesses
natural energy and actively introduces advanced energy-saving technologies in its development
projects, while also focusing on redevelopment projects with a view toward the creation of
employment opportunities and the improvement of convenience.

Development example (Tokyo Square Garden)
The Tokyo Square Garden property owned by JPR is a large-scale office building that was completed in 2013 andis located in Kyobashi, a transportation hub for the Tokyo Station and Nihonbashi and Ginza areas.The Kyobashi
district features many smaller districts and buildings, and there had been slow progress in its functions. By
reorganizing one of its blocks to create a large urban area, one of the largest building complexes in thesurrounding area was successfully developed.To promote environmental measures throughout the community, theKyobashi Environmental Station was established on the sixth floor of the building.Through the operation of facilities
including the Area Energy Management Center that fields consultations from local building owners about measures
to reduce CO2 emissions and conserve energy and then has experts develop optimal proposals, and the Chuo City
Environmental Information Center that provides opportunities to learn about various environmental issues in anaccessible format and facilities to engage in environmental activities, we are working together with the local
community on eco-friendly urban development.

Example of countermeasures (Olinas Tower)
Tokyo Tatemono implemented the integrated development of offices, retailfacilities and residences on the site where the Seikosha factory previously
stood in Kinshicho.Initially, contaminants were detected during a third-party
soil survey, but Tokyo Tatemono responded by excavating and removing thecontaminants from the site and covering the soil.When the property was
acquired by JPR, a third-party survey found that there were almost no
concerns about soil contamination or underground contamination.
Survey(Third party)

RemovalCovering

SurveyAcquisition(Third party)

Olinas Tower

Tokyo Square Garden

19

Sustainability Report 2023

Basic Information

Safety and Security Initiatives

Top Message

JPR

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Approach to ensure safety and security

Natural disasters such as major earthquakes and typhoons are major risks that threaten
safety and security.Among the large-scale earthquakes that have been pointed out aslikely to occur in the near future, a Nankai Trough earthquake, which would cause strong
tremors and high-reaching tsunamis over a wide area, and an earthquake directly under
the Tokyo Metropolitan Area, which would affect the central functions of the capital, areexpected to occur during the next 30 years, with a high probability of 70%.We believethat it is one of our important responsibilities to enhance resilience to disasters during
peaceful times and provide safety and security to stakeholders, including tenants, andwill therefore continue to strengthen measures against natural disasters.

Improving safety and security

Examples of initiatives
Disaster-prevention and business continuity planning (BCP) measures
TRIM has formulated crisis management regulations and business continuity plans (BCPs) to enable an organizedresponse in the event of unforeseen circumstances such as natural disasters.In the event of an emergency, we
also establish a crisis response headquarters to ensure the safety of human life as our top priority, and haveestablished a response system for ensuring asset conservation and prompt recovery.
Conducting disaster prevention drills
JPR conducts regular disaster prevention drills and awareness-raising activities at its buildings in readiness forearthquakes and natural disasters.For properties with many foreign-affiliated tenants, we also take the attributesof building users into account, such as by making emergency announcements in English.TRIM is also striving to
improve its response capabilities and conducts regular drills to increase the speed at which information aboutproperty damage will be collected in the event of an earthquake directly under the Tokyo Metropolitan Area.

We manage our facilities appropriately in accordance with an operation management manual, sothat tenants and customers can use our facilities with peace of mind.For management of parking
lots, which have high risk when it comes to safety, JPR has developed its own in-house safety
standards that are more stringent than the standards required by law, and pursues continuous risk
reduction through regular inspections and reviews at each property.Since human error accounts
for the majority of parking lot accidents, JPR is also seeking to reduce risks further through careful
communication with users.

Earthquake- and disaster-prevention initiatives
Since the Great East Japan Earthquake in 2011, there has been increased concern about theearthquake resistance of buildings.JPR is developing measures to minimize damage and ensure a
rapid recovery, etc., in order to ensure business continuity in the event of contingencies such as
natural disasters.Moreover, JPR considers earthquake risks and does not acquire properties thatfail to meet certain earthquake-proofing standards.

Flood barrier installation
In view of the increase in flood damage in recent years, we requested an external researchorganization to conduct a flood risk analysis of our portfolio in 2021.Although risks have been
suppressed to a certain extent due to the effects of portfolio diversification, we are still taking
appropriate measures suchas stockpiling emergency
supplies and installing flood
barriers, mainly at properties
at relatively high risk.

Olinas Tower 1F north exit passage

Sompo Japan Wakayama Bldg. multistory
parking facility

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Sustainability Report 2023

Initiatives on Behalf of Tenants

Top Message

JPR

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Approach to initiatives on behalf of tenants

Changes in CS survey results

Improving tenant satisfaction (CS) is an important theme for ensuring the stability of
distributions because it leads to long-term stable operation and reduction of tenancy
cancellation risks.We believe that listening directly to the requests and opinions oftenants and other users and reflecting them in our facilities and services is the fastest
way to improve CS, and we are engaged in various initiatives to achieve this.

Initiatives for enhancement of tenant satisfaction(number)❶ CS survey

Number of buildings surveyed (Left axis)

75

50

Since 2005, we have been conducting tenant satisfaction surveys (CS surveys) and working
systematically with property managers (PMs) and local building managers (BMs).The cooperationof PMs and BMs is essential to improve tenant satisfaction, and the results of annual surveys areverified with PMs to facilitate timely and appropriate responses.The accumulation of such efforts
has led to further improvements in tenant satisfaction, and has been effective in preventing tenantsfrom leaving, and increasing the floor space of existing tenants.

❺ Improvement of management issues

In addition to working continuously to improve tenant satisfaction, we are also focused on
expanding the scope of surveys and improving accuracy.

4.00

Overall satisfaction (right axis)

3.48 3.49 3.50 3.51
3.47 3.52
3.39 3.44
3.39 3.43
3.33 3.29 3.35
3.29
3.27
3.24
3.16
45
42
41
40
40
40
39
39
38
37
37
36
32
32
32
31
31

3.50

3.00

25
2.50

0

05

06

07

[Overview of 2022 CS Survey]

08

09

10

11

12

13

14

Overall satisfaction: Average value with 4 points being the highest
Survey period: June 2022

15

16

17

18

19

21

2.00
22 (year)

Survey scope: 39 properties, 444 tenants
Questionnaire item: management and administration, responses to tenants, crime
prevention and safety, emergency responses and environmental preservation, etc.

Note: The CS survey was not conducted in 2020 due to the impact of the COVID-19 pandemic.

❹ Periodical liaison meeting❸ TRIM brand study session❷ Verification (PMs)JPR Best Performance Award❶ CS survey

Tenant surveys are conducted once annually.

❷ Verification (PMs)JPR verifies with PMs every year for each property and reports
to TRIM.

❸ TRIM brand study session

Based on the results of verification and overviews of CS
surveys, a TRIM brand study session is held to check thedegree of brand penetration (and verify issues).

❹ Periodical liaison meeting

Verification is used as an opportunity to hold liaison meetings
for PMs and BMs to confirm management issues and discuss
response measures.

❺ Improvement of management issues

After receiving feedback on management issues and response
measures, PMs and BMs for each building take a central role inworking to improve upon the issues identified.

JPR Best Performance Award scheme
JPR awards the “Best Performance Award” to building
management companies with excellent management
standards each year, based on the results of the CS survey(tenant satisfaction survey) and the recommendations of PM
representatives.The award is based on tenant satisfaction,and therefore serves as a strong incentive to improvesatisfaction.Tenant satisfaction at award-winning buildings ishigh, and sharing their outstanding services and initiatives
with other building managers helps to raise the overall levelof building management across the entire portfolio.

JPR Best PerformanceAward 2022

JPR Yokohama Bldg.

21

Sustainability Report 2023

Basic Information

Top Message

Initiatives on Behalf of Local Communities
Approach to local communities

We believe that the development of surrounding areas is important for improving thevalue of our assets.As a good real estate owner, JPR strives to engage in dialogue withlocal residents, offer the land and facilities of its properties as venues for people tointeract, and establish roots in the community.

Sustainability Strategy

JPR

Environment

Society

Governance

Data

TRIM

Sanno Matsuri
Sanno Matsuri, a festival held at Hie Shrine, was one of the few Tenkamatsuri visited by shoguns
during the Edo period, and is counted as one of Japan’s three great festivals, along with the Osaka
Tenjin and Kyoto Gion festivals.Partly because it is held every other year, Sanno Matsuri is a major
festival. The mikoshi (portable shrine) of Kyobashi 3-chome, where Tokyo Square Garden owned
by JPR is located, also parades through the town during this festival.Officers and employees of

Example property: Tokyo Square GardenTokyo Square Garden—with the 3,000 m² green space Kyobashi Hill, stretching up four floors high—

TRIM, which is a member of the Tokyo Tatemono Group as the sponsor, participate in the festival
and warm it up with people from the local neighborhood association.

is a valuable place of relaxation in its area, where there are few cohesive green spaces, and has beenhighly regarded by third parties as an environmentally friendly
building.We have also established the Kyobashi Environmental
Station, which is working to reduce CO2 emissions in thesurrounding area, along with multilingual medical facilities andchildcare support facilities.

Morning clean-up activities
Example property: Oval Court Ohsaki Mark West

TRIM, together with Tokyo Tatemono Co., Ltd., periodically conducts cleanup activities in the Yaesu,

As part of its interactions with building tenants and local residents, satsuma-imo potatoes have been

Nihonbashi and Kyobashi area, where its head office is located.Recently, more than 200 volunteers

cultivated on the roof of Oval Court Ohsaki, organized mainly by the building’s management

primarily from the Tokyo Tatemono Group have participated in volunteer activities in an effort toassociation.During the height of summer, the plants sprout and cover the roof. Through transpiration

improve the look of the area.TRIM will continue to make contributions to regional communities

and heat-shielding, the leaves help to alleviate the heat island effect.

through exchanges with local residents and town beatification activities.

22Basic Information

Sustainability Report 2023

Workforce Initiatives

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Approach to our workforce

One of the corporate beliefs of TRIM is that “each officer and employee shall act as aprofessional with sincerity and a sense of responsibility.” TRIM believes that if the officers
and employees exercise their advanced expertise through personal growth, it will lead tothe sustainable growth of TRIM.TRIM supports the self-fulfillment of its employees by
advocating the creation of a work environment where each employee will be respected as
an individual and will be able to work in a meaningful and rewarding job and demonstrate
their abilities to the fullest.In addition, TRIM makes efforts for the fair and appropriate
evaluation of the employees by considering both the process and outcomes to boost theirlong-term cultivation, in addition to pursuing their short-term results.

Human capital development system
TRIM has systemized rank-based training in line with the skills necessary for each grade and position from thestandpoint of the medium- and long-term development of employees, and engages in career development according tograde and the development of the future management team.
Grade

Vision for personnel

A

Lead the pursuit ofachievements as aprofessional representing
the company in an areaof responsibility.

Human resource strategy
TRIM newly hires talented human resources from outside the company, and cultivates professionals
who espouse integrity and a sense of responsibility.At the same time, to secure human resources
who are well versed in real estate and finance, we receive highly specialized human resources withexperience and expertise in real estate investment and management on a secondment basis fromour sponsor Tokyo Tatemono.Additionally, to deal with the future risks in securing human resources
due to Japan’s shrinking worker population, we try to engage in hiring in consideration of age andgender composition of our employees.In addition, to ensure that each employee can continue towork while making use of their abilities, we offer a job specific development training program,support the acquisition of new qualifications, and strive to develop a pleasant workplaceenvironment and upgrade our welfare programs. These initiatives contribute to TRIM’s growth, andthe improvement of operational capabilities.

Human capital development
TRIM fully supports employees’ attitudes to take on challenges based on the idea that its workforce
is its greatest management resource.To enable employees to achieve higher added value and newvalue creation as real estate investment management professionals, we engage in human capitaldevelopment, and have established an education and training system as needed to enable
employees to make maximum use of their expertise and improve their self-management skills.

B

C

D

Perform a high level of
duties both qualitatively
and quantitatively as ahighly skilled professional
and play a central role inpursuing achievements inan area of responsibility.
Contribute to theachievements of a teamto which the employee
belongs as a core
member in the executionof operations within acertain range.
Assume responsibility forexecuting operations as aperson in charge of
operations within acertain scope.

Main skills■ Management strategic ability■ Ability to reform business■ Organizational ability■ Ability to cultivate successors

Rank-based training

Individual atraining■ Management strategies■ New businesses■ Labor management■ Human capital development■ Management skills■ Ability to formulate strategies■ Teaching and cultivation skills■ Leadership■ Management skills■ Personnel evaluation■ Formulation of management targets■ Coaching■ Business skills■ Problem-solving ability■ Leadership development■ Basic management skills■ Communication skills■ Informal leadership■ IT/PC■ Logical thinking■ Culture and career■ Critical thinking■ Training to acquire■ Conceptual skills■ Project management

qualifications- Tests■ Specialized courses■ Language training■ Problem finding and solving ability■ Ability to improve operations■ Ability to accomplish operations■ Informal leadership■ Communication skills■ Verbal communication■ Written communication■ Information management■ Career design

E

Support superiors in theexecution of operations
as an assistant.

■ Business processing ability■ Business skills■ Ability to write sentences well
■ Basic actions and attitude23

Basic Information

Sustainability Report 2023

Skills Development

Top Message

Sustainability Strategy

Environment

Society

Governance

TRIM

Job specific development training program (support for gaining qualifications, etc.)

General training

TRIM proactively supports all employees (including contract workers -note that we do not hire parttime workers) in developing skills in order to demonstrate strong expertise.To help employees toimprove their skills, we have introduced a training system with no restrictions on use, with costs
borne by the company.Senior managers provide guidance on the content of courses throughinterviews, which leads to appropriate career development.

TRIM regularly provides the following training for its entire workforce.

Real estatetransaction specialist

ARES Certified Master

37

15

employees●

employees

Real estate appraiserFirst-class architect

33

employees

employees

Certified public
accountant

1

employee

Securities analyst(Securities Analysts
Association of Japan)

4

employees

March 31, 2023.All employees including supervised contract employees (excluding part-time employees and unsupervised contract employees)

Sustainability training●

Information management and literacy training

●

29.0

30
25
20

20.4
16.3

15

18.7

0

TRIM invites outside instructors to provide regular training to help its workforce improve theirpractical capabilities and develop businesspeople who have high-level skills as experts.The main
training programs are as follows.
OutlineDue diligence training

Handling risks associated with property acquisitions, etc.

Real estate market training

Economic environment and leasing markets for each asset type, etc.

Professional training

Real estate development, social conditions, construction techniques, etc.

Timing of implementation
Unspecified (at least once a year)
February and August
Unspecified

Initiatives in 2022
Enhancement of training framework
In response to employee requests for support to improve their skills, we have introduced a new
training system to expand the scope of business training.To strengthen support for employees
to gain qualifications, we have adopted correspondence courses and increased the company
share of training costs, in our efforts to create an environment where employees can learn easily.

Healthcare training

●

(yen)

100,000

87,02480,00060,00015.7

58,56760,96363,94640,00026,96720,0005Professional skills development program

Compliance training●（円）
Training expenses per employee

Training hours per employee(Hours)

10

Name

Data

18

19

20

21

22 (year)

0

18

19

20

21

22 (year)Appropriate and fair evaluation system
TRIM operates an evaluation system designed to ensure fair treatment of employees and humancapital development.To ensure fairness in evaluations, we conduct multi-level evaluations andadjust evaluation levels throughout the company.Employees are notified of their evaluation results
directly, and a system has been established for employees to file objections.
Performance evaluations

Bonus

Performance evaluations based on the goal management system
are used to determine performance evaluation rank (6 levels).

Bonuses are determined based on performance evaluation rank
and company business performance, etc.
Basic salary

Overall rank (8 levels) is determined by adding grade
evaluation rank to performance evaluation rank.

Basic salary is determined based on overall rank, between the upper andlower limits of each grade, based on the pay raise (or reduction) table.

Grade evaluation

Promotion

Grade evaluation rank (6 levels) is determined by evaluating
performance in job activities against grade standards.

Decisions regarding promotions are made based on comprehensive humanresource evaluations, primarily for those with high grade evaluation ranks.

24Basic Information

Sustainability Report 2023

Diversity & Inclusion

Top Message

Structure
The Tokyo Tatemono Group has established a Health Management and Diversity Promotion Group
within the Personnel Department of Tokyo Tatemono.Tokyo Tatemono engages in group-wide
efforts such as coordinating with departments in charge of labor affairs at Group companies toimplement various measures.In the case of TRIM, the President and CEO is the ultimate decision
maker on DEI matters, while the General Manager of the Finance and Administration Division,
which oversees personnel matters, is responsible for execution, and the Human Resources andGeneral Affairs Group implements various measures.The Human Resources and General Affairs
Group and the Sustainability Group collaborate to promote diversity.These initiatives are discussed
by a working group of the Sustainability Committee and reported to TRIM’s Board of Directors and
JPR’s Board of Directors.
TRIM
Representative Director

Health Management
and Diversity Promotion Group

Society

Governance

Data

Measures

Amid the falling birthrate, aging society and declining working age population, theutilization of women and senior generations in the workforce is an important part ofrealizing a sustainable society.Moreover, an organization made up of diverse humanresources is able to provide services based on broad viewpoints and make decisions
from diverse perspectives.The Tokyo Tatemono Group has identified “Diversity &Inclusion” as one of its material issues.TRIM also recognizes the importance of diversity
and inclusion, and respects the individuality of individuals with diverse values, abilities
and lifestyles, while employing a range of measures to enable them to maximize theirpotential.We believe that creating an environment in which a diverse range of humanresources devote themselves to their duties without running up against barriers, and inwhich they can experience job fulfillment and succeed under fair conditions will give riseto new innovations and a variety of services that take the perspective of stakeholders
into account, and lead to the growth of TRIM.

Personnel Department

Environment

TRIM

Policy and approach

Tokyo Tatemono Co., Ltd.

Sustainability Strategy

General Manager, Finance and and Administration Division

TRIM pursues initiatives promoting the success of women so that they can fully demonstrate theirown values, abilities and individuality while feeling motivated in their jobs.To develop a comfortableworkplace environment for our workforce, we have established various programs to support
various life events.In addition to leave systems catering to pregnancy and childbirth, we haveestablished leave systems for childcare and family care that can be used by all employees
regardless of gender.We also reemploy employees aged 60 and over who wish to continue
working, as part of efforts to develop an environment in which senior workers can continue tosucceed by utilizing their work experience, knowledge and skills even after reaching mandatory
retirement age.

TRIM metrics
D issemination of the Human Rights Policy: Annual●

Training and Other Measures● Percentage of Female Managers● Number of New Employees (by gender)●

DEI training
Improving the (DEI) literacy of TRIM officers and employees is essential in enabling diverse
human resources to play an active role, and we believe that the enhancement of DEI training
will lead to a comfortable working environment for diverse employees.TRIM has enhanced its
DEI training by inviting outside instructors and enabling employees to take training courses
from the Tokyo Tatemono Group.Training conducted so far is as follows.
●

TRIM’s Board of Directors

JPR’s Board of Directors

Sustainability Committee

Average Paid Annual Leave Usage Rate
Number of Employees Taking Childcare/Family Care Leave● Number of Employees Using Shorter Working Hours●●

TRIM human rights training
DEI training (inviting outside instructors)●

Tokyo Tatemono Group human rights training
W omen’s health seminar (recommended●for male employees)

Human Resources and General Affairs Group
Working Group
Sustainability Group25

Sustainability Report 2023

Basic Information

Top Message

Sustainability Strategy

Creating a Rewarding Workplace Environment
Approach to creating a rewarding workplace environment

TRIM believes that maintaining employees’ work-life balance leads to increased
productivity and job satisfaction.By paying care and consideration to work-life balance,
we are creating a comfortable working environment that enables each employee tomaximize his or her abilities.

Employee awards program
TRIM has established an awards program to recognize
members of its workforce with notable achievements.By
presenting awards, TRIM fosters a corporate culture that raises
the motivation of each member of the workforce andencourages them to work with an enterprising spirit.

Human capital retention rate measures(Introduction of a long service award system, etc.)
In recent years, Japan’s falling birth rate, aging population, and en masse retirement of the baby
boomer generation have led to a decrease in workers, giving rise to labor shortage risks, and theoutflow of talented human resources is a major risk factor.TRIM is working to prevent employees
from leaving and increase retention, through measures such as the enhancement of welfare
programs and the creation of a comfortable office environment.One such initiative is theestablishment of a long service award system to award members of the workforce for long service
with leave of between 5 and 10 days and financial incentives.

Individual interviews with employees
All employees have an interview with a personnel officer once a year.The interview provides
an opportunity to ask employees about a wide range of topics, including the working
environment, workplace relationships, personal health, the family environment, and future
career aspirations, which helps the company improve subsequent support for employees andthe workplace environment.

Environment

Society

Governance

Data

TRIM

Introduction of Employee Stock Purchase Plan (ESPP)
TRIM introduced an employee stock purchase plan (ESPP) to align the interests of TRIM officers
and employees with those of JPR unitholders and to raise employee awareness of improvement in
JPR’s performance and JPR’s continued stable growth.We provide incentives to employees toencourage them to join the ESPP and use it to build their assets.
* Scope of applicability: all employees including supervised contract employees (TRIM has no part-time employees or unsupervised contract employees)

Employee satisfaction survey
TRIM believes that improving employee satisfaction is essential for sustainable growth.
Accordingly, TRIM conducts annual surveys of all employees on a wide range of matters suchas workplace environment, physical and mental health issues, educational support, treatment
and personnel policies.The results of the survey are reported to the management team andfeedback is provided to employees to improve the workplace environment.
Examples of improvement (2022)
In light of the results of the survey, the following improvements have been made to the work
environment.
Introduction of adviser system
To facilitate the acquisition of practical skills new employees need to do their work andmaintain and raise their motivation, we have introduced an advisor system where senior
employees give guidance on how to do their jobs, and provide support to cover the cost oflunches and social gatherings.
Establishment of new cafe booth space
The importance of communication between officers andemployees alike was reaffirmed by the COVID-19 pandemic,
and we have established a new cafe booth space at therequest of our employees.
Enhancement of training framework
Measures were implemented in response to requests fromquestionnaires for greater support for skills development, including introduction of a new
training system and expansion in the company share of training expenses.

26

Basic Information

Sustainability Report 2023

Top Message

Work-life Balance and Healthcare

Employees’ physical and mental health is the source of productivity, creativity, andsustainable development.We have also identified “creating a rewarding workplaceenvironment” as one of our material issues, and have set a target of increasing healthcheck and reexamination rates to 100% every year, in order to implement proper healthand productivity management.TRIM will strive to develop internal systems, improve theworkplace environment, and actively promote the health of workforce.

Prevention of prolonged working hours
As part of efforts to create a healthy working environment, TRIM works to prevent chronic orcontinuous long hours of work as well as to thoroughly abide by labor-related laws.TRIM implements
measures that include the proper management of the working status of all employees and theprovision of instructions for improvement as needed while reporting to the management team.

It is important for employees to have sufficient rest and gain vitality for work to exert their full
capacity and produce business results.TRIM is working to improve the rate of taking paid leave bycreating a work environment that makes it easy to take leave, by improving work efficiency. We
also encourage employees to take long vacations by granting seasonal leave in addition to regularannual paid leave.We have also introduced a sick leave system to enable employees to take leave

Overtime hours per employee (monthly)

Paid annual leave usage rate

(Hours)

13.8

12.5
10.7

14.4

100

89.1

83.2

80

10.0

10

70.8

68.2

69.5

19

20

21

76.3

60
40

5

20
17

18

GovernanceDatafor hospital visits or medical treatment with peace of mind in the event of injury or illness, and haveestablished a system that can be used even by employees who have just joined the company, or
employees with chronic illnesses.

Welfare programs and other measures
TRIM has adopted the following measures to create an environment which enables every memberof the workforce to continue working with peace of mind.
⃝ Childcare and nursing care leave, short working hour system⃝ Partnerships with companies providing welfare services⃝ Congratulation or condolence payment system⃝ Investment unit accumulative investment system⃝ Internal social events⃝ Provision of satellite offices⃝ Defined contribution pension plan

⃝ Subsidies for health checkups

Recognizing that management of employees’ health is a crucial issue, TRIM fully subsidizes andrecommends health checkups and influenza vaccinations.TRIM is also focusing on improving
health through prevention and early treatment including measures to avoid lifestyle diseases andincrease metabolism, treatment to help employees quit smoking, and dental checkups.In terms ofmental healthcare, TRIM has also established a health helpline giving employees easy access tocounseling at any time.

Certified under the 2023 Certified Health & Productivity
Management Organizations Recognition Program

Related data

0Society

Healthcare

Holiday system

13.2

Environment

TRIM

Approach to health and work-life balance

15

Sustainability Strategy

19

20

21

22 (year)

0

17

18

22(year)

In cooperation with the Tokyo Tatemono Group, TRIM is expanding theestablishment of an environment where its officers and employees cancontinue to work in healthy ways. Recognized for these activities, thecompany was certified under the 2023 Certified Health & Productivity
Management Organizations Recognition Program conducted by the
Ministry of Economy, Trade and Industry.The Certified Health &Productivity Management Organization Recognition Program honors
large-scale and small- and medium-scale companies that are
conducting excellent health management based on the initiatives forregional health problems and the health promotion initiatives noted by
Nippon Kenko Kaigi.

27

Sustainability Report 2023

Basic Information

Top Message

Initiatives Aimed at Unitholders/Investors

Sustainability Strategy

Environment

Society

Governance

Data

JPR

IR activities

Policy and approach

Efforts are made to disclose timely, accurate information that is useful to unitholders
and investors as well as to enhance communication through briefings and active
participation in events.
JPR strives to promptly disclose information through its website, by preparing a variety of content
including statutory disclosure documents, press releases, financial results information (financial
statements, financial results summaries, financial results briefing materials for analysts, financial
results briefing videos, etc.), characteristics of assets under management, performance reports,
and information for individual investors.

Website renewal
JPR’s website was redesigned in March 2023.After 20
years since listing on the Tokyo Stock Exchange, thenumber of properties, news releases, financial
information, and other information has increased. With
this renewal, we have sought to organize and improvevisibility.On the financial results page, in particular,
which is often viewed by investors, in addition to
directly posting financial statements, we have also
included profit indicators and other financial charts.
Going forward, we will continue to improve our website
to enable stakeholders to use it more conveniently andview the information they want to see.

In each financial reporting period, we holdbriefings on the state of investment andearnings forecasts for institutional investors,
analysts, financial institutions, and otherrelated parties, and hold individual meetings
for institutional investors both in Japan andoverseas.For overseas investors, we holdindividual meetings primarily in North
America, Europe, and Asia, and participate
actively in conferences hosted by securities
companies.

Annual scheduleFinancial results briefing video streaming
Briefing for analysts

Financialresults IR

September:Distribution
payments begin

December:
Finalization offinancial results

February:
Announcement offinancial results

IR
activities

August:Announcement offinancial results

June:
Finalization offinancial results

March:
Distribution
payments begin

Financialresults IR

Financial results briefing video streaming
Briefing for analysts

Name

Period ended June 2021 to period ended December 2021 Period ended June 2022 to period ended December 2022
2 times

2 times

Meeting with institutional investors in Japan

145 times

135 times

Meeting with overseas institutional investors

51 times

48 times

Event for individual investors

4 times

6 times

Briefing on financial results

Enhancement of information on the
TRIM website
For the TRIM website, we separated sites that
had been operated together with JPR to improvebrowsability and expand the range of information
displayed.The page has been improved with a
key focus on information related to employees
who are TRIM’s main asset, and focuses onthemes of interest to employee’s relatives andthose considering joining TRIM.

Briefings for individual Investors
JPR actively participates in investment seminars forindividual investors.We participate in briefings andevents hosted by securities companies, and strive toprovide easily understandable explanations so thatinvestors can better understand JPR’s features,
strategies, and growth potential.

28

Basic Information

Sustainability Report 2023

Corporate Governance

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Approach to corporate governanceCorporate governance is an important theme for enhancing corporate value as well as meeting the expectations of all
stakeholders, including unitholders.JPR and TRIM will work to further ensure the soundness of management as an investment
corporation and an asset management company trusted by their stakeholders.

Investment Corporation

Asset Management Company

Assetmanagement
entrustment
General Meeting of Unitholders* Convened at least once two years.

Supervising

Board of Directors

Executive
Officer1

Yoshihiro Jozaki

Male

JPR judged that Mr. Jozaki is qualified for the post of Executive
Officer because of his extensive knowledge and experience and broad
insight in relation to real estate investment management.

President & CEO, Tokyo Realty
Investment Management, Inc.

Supervising
Officer3

Masato Denawa

Male

Current assignment

Nobuhisa Kusanagi

Male

JPR judged that Mr. Denawa is qualified for the post of Supervising
Officer because of his extensive knowledge and experience of law
and his ability to perform appropriate supervision from a legal
perspective.

JPR judged that Mr. Kusanagi is qualified for the post of Supervising
Officer because of his extensive knowledge and experience ofaccounting and tax affairs and his ability to perform appropriate
supervision from an accounting and tax accounting perspective.

Konomi Ikebe

Current assignment

ReportingPartner Attorney, Spring Partners

Group Representative Partner of
Gyosei Certified Public Tax &Accountants’ Co.
Representative Partner of Nobuhisa
Kusanagi Office

Audit corporation
Audit requests

Accounting auditor

FemaleJPR judged that Ms. Ikebe is qualified for the post of Supervising
Officer because of her familiarity with urban planning, her extensive
knowledge of sustainability, and her ability to perform appropriate
supervision.

The asset management of the investment corporation is
entrusted to Tokyo Realty Investment Management Co.,
Ltd. (“TRIM”).
The asset management company has a duty of care andloyalty to the investment corporation, and approaches its
operations accordingly.
Please refer to page 31 for details of the asset managementcompany’s asset management system.

Chiba University Graduate School
grand fellow

None of the supervising officers of JPR are interested parties and are independent of the asset management company and its sponsor.

Ernst & Young ShinNihon LLC
Audit
Tenure: From September 2001 to the present

29Basic Information

Sustainability Report 2023

JPR’s Corporate GovernanceTop Message

JPR

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

JPR’s decision-making bodies

Transactions with interested parties

Remuneration for executive officers and supervising officers is stipulated in the investment
corporation regulations as the amount decided by the Board of Directors (up to a maximum of
500,000 yen per month for each executive officer and 400,000 yen per month for each supervising
officer).With the aim of ensuring transparency, remuneration of officers is disclosed in asset
management reports.
Remuneration for supervising officers and the accounting auditor for the fiscal period ended June30, 2022 and the fiscal period ended December 31, 2022 (January – December 2022) is as follows:

In the asset management of JPR, the interests of JPR may conflict with the interests of TRIM’s
sponsor.To prevent JPR from suffering a loss in such cases, JPR and TRIM have organized a more
rigorous system to prevent conflicts of interest than those provided for by laws and regulations.

Name

Attendance at meetings ofBoard of Directors in 2022

Remuneration Fiscal period ended
June 30, 2022 (thousands of yen)

Remuneration Fiscal period ended
December 31, 2022 (thousands of yen)

Executive
Officer

Yoshihiro Jozaki

14 / 14(100%)— (Note 1)— (Note 1)

Supervising
Officer (Note 2)

Masato Denawa

13 /14(92.9%)

Supervising
Officer (Note 2)

Nobuhisa Kusanagi

13 /14(92.9%)

6,300

6,300

Supervising
Officer (Note 2)

Konomi Ikebe

13 /14(92.9%)

Accounting
auditorErnst & Young
ShinNihon LLC

17,300 (Note 3)

14,700 (Note 4)

Position—(Note 1) Executive Officer Yoshihiro Jozaki does not receive remuneration from JPR.
(Note 2) Supervising officers may be directors of corporations other than those indicated above, but have no conflict of interest with
JPR at those and the above positions.
(Note 3) Remuneration for the accounting auditor includes remuneration for auditing of financial statements written in English andthe preparation of a comfort letter associated with additional issuance for new investment units.
(Note 4) Remuneration for the accounting auditor includes remuneration for auditing of financial statements written in English.

Policy for the ownership of investment units
JPR has established its policy regarding the ownership of investment units by officers in its insider
trading regulations.The major details are as follows.
●Officers are not allowed to engage in the trading of JPR’s securities.However, if it is clear thatthe purpose of this trading is not the pursuit of short-term profits, they may engage in trading
after obtaining the approval of the Board of Directors.
●An officer may continuously trade the investment corporation’s investment securities jointly withother officers or according to the cumulative investment contract by entrusting this trading tofinancial instruments business operators.

●JPR’s system for preventing conflicts of interest

JPR’s Board of Directors’ Regulations include provisions prohibiting executive officers andsupervising officers from taking part in any resolution at a meeting of the Board of Directors inwhich they have an interest.
●TRIM’s system for preventing conflicts of interest

For the transactions described in (1) to (6) below, between JPR and interested parties, theCompliance Committee (with membership consisting of the President & CEO, General
Manager of the Finance and Administration Division, General Manager of the Investment
Management Division 1, General Manager of the Investment Management Division 2, General
Manager of the Compliance Office, and special committee members) meets once a month, inprinciple, to examine and verify the validity and rationality of the transactions in question.An
outside attorney has been appointed as a special member of the Compliance Committee.
In order for a transaction approved by the Compliance Committee to be carried out, the priorconsent of JPR’s Board of Directors is required. Transactions are thus subject to multiple
effective reviews before being carried out.
(1) Acquisition of properties or assets from interested parties(2) Sale of properties or assets to interested parties(3) Consignment of property management to interested parties(4) Brokerage or agency by interested parties for transactions(5) Placement of orders for construction works (costing over 10 million yen) to interested
parties(6) Leasing of properties to interested parties (Note)
Through such internal and external checks such as examination, verification, and priorapproval, we have established a strict monitoring system for transactions with conflicts ofinterest.
Note: Leasing of properties to interested parties refers to cases where the increase or decrease in the amount of revision or fixing ofrent is less than the average rent (excluding interested parties) for the property when (1) a new lease agreement is concluded withan interested party and (2) when the lease agreement is renewed.

30

Basic Information

Sustainability Report 2023

TRIM’s Corporate GovernanceTop Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Approach to corporate governance

TRIM strives to increase management transparency and awareness of corporate ethics while making timely decisions and executing
operations efficiently.TRIM aims to increase JPR’s unitholder value by thoroughly implementing and reinforcing corporate governance.

TRIM’s management
structure

Board of Directors

Shareholder’s Meeting
Auditors

JPR entrusts management of its
assets to TRIM.
TRIM’s organizational framework is
as shown below.

Board of Directors
Representative Director

Investment Committee

Compliance Committee

Sustainability Committee

Risk Management Committee

President & CEO

Director
General Manager of Investment
Management Division 1

Yoshihiro Jozaki

Noboru Kuboniwa

Director
General Manager of Investment
Management Division 2

Director
General Manager, Financeand and Administration Division

Yoshio Goto

Yoshinaga Nomura

Compliance Office

Investment
Management Division 1

Investment
Management Division 2

Investment
Management
Department 1

Investment
Management
Department 2

Investment
Management
Department 3

Investment
Management
Department

Asset
Management
Group

Asset
Management
Group

Asset
Management
Group

Asset
Management
Group

Investment
Strategy
Department❶ Investment Committee

Finance andAdministration Division
Asset
Engineering
Department

Investment
Research
Department

Financial andInvestor Relation
Department

Sustainability
Group

Investor
RelationGroup

Business
Administration
Department

FinancialGroup

Accounting
Group■Members■RolesPresident and CEO, general managers of divisions
responsible for investment management, General
Manager of Finance and Administration Division, andspecial members (certified outside real estateappraisers)

Method of resolution
A resolution is passed by a majority vote of the members* If the other party to the transaction is an interested party
in the acquisition or sale of assets, the resolution is
resolved with the approval of all members.

Business
Administration
Group

Human
Resourcesand General
Affairs Group

Director (non-executive)

Auditor (non-executive)

Auditor (non-executive)

Yutaka Onuma

Masamitsu Kurebayashi

Isao Jinno❷ Compliance Committee■Members■RolesPresident and CEO, general managers of divisions
responsible for investment management, General Manager
of Finance and Administration Division, General Manager ofCompliance Office and special members (independent
outside experts who have attorney’s license)

Method of resolution
Resolutions are passed when a majority of members are inattendance and all members agree by unanimous vote.

* A ll members must be in attendance for resolutions on
interested party transactions and matters concerning
forward commitment projects.

31

Sustainability Report 2023

Basic Information

Top Message

TRIM’s management structure

Board of Directors

Investment
Committee

Method of resolution
A resolution is passed by a majority vote of Directors present
Resolutions are passed by a majority vote of the members (President and CEO, generalmanagers of divisions responsible for investment management, General Manager of Financeand Administration Division, and special members (certified outside real estate appraisers).
However, for matters concerning the acquisition or transfer of an asset where the transaction
involves an interested party, the agreement of all members including special members is
required.
* If the other party to the transaction is an interested party in the acquisition or sale of assets, theresolution is resolved with the approval of all members.

Compliance
Committee

Environment

Society

Governance

Data

Strict decision-making process (at the time of property acquisition)

TRIM has established an Investment Committee to make decisions related to investment
management.The committee consists of the President and CEO, general managers who proposed
the motion, the General Manager of Finance and Administration Division and special members.
Special committee membership is entrusted to third parties with no interest in TRIM or JPR.
Currently, external real estate appraisers are selected.The committee is also attended by theCompliance Officer to enhance checks in view of legal compliance of agenda items.The Investment
Committee decides on matters related to investment management targets and policies of theinvestment corporation, matters related to operational planning and execution, and individual
matters relating to the acquisition, sale or management of individual assets.
With regard to asset acquisition or sale, the procedure of having decisions made by the Investment
Committee with special members in attendance is necessary, and decisions are only made after
rigorous deliberations.Additionally, the Due Diligence Subcommittee—one of the committee’s
subordinate organizations—convenes in advance to enhance the investigation of due diligencematters.Matters concerning transactions with interested parties require the agreement of allcommittee members including special members, reflecting the caution with which the committee
makes its decisions.
The Compliance Subcommittee meets immediately before the meetings of each committee to
examine whether the decisions made by each committee and their decision-making procedures
are in violation of applicable laws and regulations, rules, the Articles of Incorporation of JPR,
internal rules, etc. The Compliance Officer issues a report on the subcommittee’s findings, before
the discussions of each committee.In addition, the Compliance Officer instructs the generalmanagers of each division and department to submit proposals or reports to the Board of
Directors of TRIM and the Board of Directors of JPR, according to the applicable rules andregulations, etc.
Organization

Sustainability Strategy

Resolutions are passed when a majority of members (President and CEO, general managers
of divisions responsible for investment management, General Manager of Finance andAdministration Division, General Manager of Compliance Office and special members[independent outside experts who have attorney’s license]) are in attendance and agree.
* All members must be in attendance for resolutions on interested party transactions and mattersconcerning forward commitment projects.

Proposal, planning

Investment Management Department

Review, screening

Compliance subcommittee

Confirmation of due diligence
results / Verification of solutions/improvement measures

Due diligence subcommittee
Interested party transactions
Deliberation

Compliance Committee

Approval

JPR’s Board of Directors

Other transactions

Deliberation(acquisition decision)

Investment Committee

ReportingBoard of Directors

Conclusion of a contract

Property acquisitions(Note 1) In addition to the above, there may be cases where approval by the Board of Directors and consent by JPR are required,as designated in the Investment Trusts Act.
(Note 2) The chart shows the general decision-making mechanism. Depending on the nature of the proposed acquisition, the orderof the procedures may change or certain meetings may not be held.

TRIM’s asset management fees
Fees for asset management with which TRIM is entrusted by JPR consist of asset management
fees 1 to 5 and an asset management fee structure which aligns TRIM’s interests with those of
JPR’s unitholders is adopted.Moreover, their specific amounts, calculation methods and the timeof payment are clearly defined to enhance transparency.
The breakdown of compensation (fees) for TRIM received from JPR is as follows.
Jun. 2022 Fiscal Period (Jan. – Jun. 2022)

Dec. 2022 Fiscal Period (Jul. – Dec. 2022)

Management fee 1

242 million yen

246 million yen

Management fee 2

204 million yen

208 million yen

Management fee 3

355 million yen

338 million yen

Management fees 4 and 5

82 million yen

64 million yen

Note: For details on the amount of TRIM’s management fees, please refer to the annual securities report (Part 1. Information on
Fund, 4. Fees and Taxes, (3) Management fees, etc.).

32

Basic Information

Sustainability Report 2023

Compliance

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Approach to compliance

Compliance and corporate ethics are indispensable for JPR’s sustainable growth.
Through sound management and operation of JPR based on laws, regulations andother requirements, TRIM will endeavor to merit the trust of JPR, its unitholders, tenants
and a variety of other stakeholders.

Compliance promotion system● Establish, modify or abolish regulations and systems

Board of Directors● Respond to material lawsuits and disputes● Prepare internal audit programs● Report deliberation details and results to the Board of Directors

TRIM’s Basic Policy on Compliance
In an effort to correctly recognize social and public duties within asset management for investment
corporations, and maintain and enhance the trust of investors and society, TRIM will follow the
Basic Policy on Compliance as a code of conduct for its officers and employees in order to ensurethat every member of the company adheres to the utmost professional ethics, abides by laws andregulations, and implements sound business operations with integrity.The Basic Policy on
Compliance is listed on the corporate website.

● Establish and modify basic policy on compliance● Invite independent and outside experts as special members

Compliance Committee●Deliberate on the establishment, modification or abolishment ofcompliance manuals and regulations● Deliberate on transactions with interested parties● Deliberate on internal audit programs● To be held once a month as a rule

Chief Compliance Officer(President & CEO)● Have ultimate responsibility for matters related to compliance● Receive necessary reports from the Compliance Officer● Make necessary reports to the Chief Compliance Officer (President& CEO)●
Coordinate with compliance managers and persons in charge of

Periodic audits by external audit firm
TRIM implements periodic audits every year to maintain and increase stakeholders’ evaluations of
its reliability and improve its internal control system.At the initiative of the Compliance Office, these
periodic audits are carried out by an external audit firm to maintain objectivity and compliance withlaws, regulations, internal regulations and other general rules is checked.
Regarding audit results, internal audit reports are submitted to the Board of Directors and theCompliance Office, the department in charge, provides instructions to the audited business units
for improvements.The audited business units who have received guidance report to the Board of
Directors after taking improvement measures and receive confirmation of improvements.

Compliance Officer(General Manager of Compliance Office)compliance●Discuss compliance-related issues with compliance managers andpersons in charge of compliance and report them to theCompliance Committee● Concurrently serve as Internal Audit Officer●Supervise and execute operations for ensuring compliance in the

Compliance manager

relevant department●
Report to the Compliance Officer immediately after confirming theoccurrence of any issue related to compliance● Verify whether compliance is maintained in the relevant group●
Understand and coordinate matters related to compliance in the

Persons in charge ofcompliance

relevant group●
R eport to the relevant compliance manager immediately after

confirming the occurrence of any issue related to compliance* In order to enhance the compliance system, we receive advice on strengthening internal control from an external auditing firm.

Provision of compliance training
TRIM periodically provides training for all of its officers and employees so that they can beinformed on matters of compliance.TRIM has been taking steps to instill legal compliance, suchas making training compulsory for all officers and employees in principle and giving themquestionnaires and tests after training sessions to ensure their understanding.

2017

2018

2019

2020

2021

2022

Number of times

8

12

8

8

8

11

Participation rate (%)

100

100

99.1

97.7

98.6

98.4

33

Sustainability Report 2023

Basic Information

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

Protection of whistle-blowers

Prevention of transactions with anti-social forces

The Tokyo Tatemono Group has established the Tokyo Tatemono Group Helpline, a common
helpline used by the Group’s employees.It is an external contact desk handling requests for
consultation regarding harassment, as well reports and requests for consultation to prevent
compliance violations such as violations of laws and misconduct and providing solutions to thesematters as quickly as possible.Any employee of the Group may use the helpline and the privacy ofthe consulter is protected.
All accepted reports and consultation requests are conveyed to Tokyo Tatemono’s Internal Legal &Compliance Department. The same department, individual group companies’ internal report desks
or the companies’ harassment help desks conduct inspections and check facts depending on thedetails of the reports and requests.If any act violating compliance is identified as a result of these
inspections, measures for correction or to prevent recurrence are taken as necessary.
Whistleblowers are properly protected according to the spirit of the Whistleblower Protection Act.
TRIM has a framework for receiving and appropriately dealing with whistleblowing reports aboutcompliance violations concerning any workforce member as well as complaints and inquiries.

We will continue to have no relations whatsoever with any anti-social activities or forces thatthreaten the public order and safety of civil society and hinder economic activities.Any unjust
demand from anti-social forces, including the provision of donations and contributions as well as
the provision of money and other articles will be firmly opposed.
Moreover, TRIM has established “rules for facing anti-social forces” with the aim of preventing thecompany from being damaged by anti-social forces and to help it perform its social responsibilities.
Under the rules, TRIM endeavors to eliminate anti-social forces through constant, close coordination
with such external specialized institutions as the police and lawyers.

Prevention of corruption and bribery

Voluntary inspections(Twice a year)

The Tokyo Tatemono Group has established the Tokyo Tatemono Group Bribery Prevention
Guidelines to ensure its practice of fair and sound corporate activities in compliance with laws andregulations as declared in its compliance charter. Based on these guidelines, it has been working
to prevent bribery, corruption and other similar acts.Specific example initiatives include theprovision of necessary training programs to ensure that the guidelines for action specified in the
Compliance Manual and Tokyo Tatemono Group Bribery Prevention Guidelines are fully
understood and implemented.
TRIM’s policy for the prevention of corruption and bribery (Article x and xi of the Basic Policy on
Compliance) is displayed on the corporate website.
In addition, TRIM’s Compliance Manual and other rules stipulate that workforce members shall not
engage in bribery, money laundering or other wrongdoing. Any workforce member engaging inwrongdoing will be severely punished.Accordingly, follow-up checks on entertainment and thereceiving of gifts in dealings with business partners are periodically conducted to make sure that
there are no examples of inappropriate conduct.Any inappropriate conduct is dealt with throughappropriate measures in accordance with regulations.

Compliance check schedule
Jan.

Feb.

Mar.

Apr.

May

* Regular risks

Monitoring* (qualitative/quantitative)

Risk Management
Committee

Jun.

Jul.

Aug.

Monitoring*

Sep.

Oct.

Nov.

Dec.

Monitoring*•Risk management improvement
program progress monitoring

Voluntary Verification throughinspections compliance

Voluntary Verification throughinspections compliance

Reporting*

Reporting** Compliance Committee and Board of Directors

Compliance program

Progress
reportProgress
reportProgramformulation(Jul. to Dec.)

Progress
reportProgress
reportProgramformulation(Jan. to Jun.)

Compliance training

Compliance
Committee

Regular committee meetings (monthly)

Matters to be
examined by theabove committee

Interested party transactions, etc.

Plan

Internal audit•Follow-up report(For audits conducted last
fiscal year)

On-siteauditsAudit
reports•Follow-up report(For audits conducted last
fiscal year)

Note: The above details may be subject to schedule changes due to business reasons, or changes in future plans.

34

Basic Information

Sustainability Report 2023

Risk Management

JPR

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

TRIM

Risk Management

To increase unitholder value, we have established an effective management system andare working to ensure thorough and continuous monitoring to appropriately manage
risks that may affect our operations.Our policy is to endeavor to strengthen risk
management to respond effectively and accurately to recent changes in social
conditions and increasingly diverse and complex risks.

JPR’s risk management system
It is stipulated that JPR’s executive officers shall hold Board of Directors meetings at least once
every three months, and in reality, meetings are held roughly once a month as a rule.In addition tomatters stipulated by laws and regulations, the Board of Directors also makes detailed reports on
certain transactions with interested parties, as well as the state of JPR’s operations and executionof business by TRIM.Through these procedures, the supervising officers, who are in a position thatis independent of JPR and TRIM stakeholders, maintain a system that allows them to accurately
monitor the state of business execution by executive officers.
JPR has the right to receive reports from TRIM and to examine TRIM’s account books and otherdocuments. By exercising these rights, JPR maintains a structure that enables it to monitor TRIM’s
execution of operations.In addition, JPR strives to prevent activities such as insider trading by
officers through the establishment of insider trading regulations.

TRIM’s risk structure
As a rule, TRIM monitors and manages operation- and management-related risks through multiple
verification systems at different levels.

(1) Compliance with operation guidelines
TRIM has established portfolio operation standards and investment standards in its operation
guidelines.It strives to manage risks relating to real estate and real estate trust beneficiary rights byadhering to such guidelines.

(2) Clarification of the decision-making process
In addition to clarifying the decision-making process for important matters related to the investment
corporation’s asset management by establishing the Investment Committee rules, we strive to manage
risks by establishing objective business procedures, such as preparing administrative procedures forreal estate surveys, acquisitions, operation management, and other business processes.

(3) Preventing conflicts of interest
TRIM has established compliance regulations and compliance manuals to help ensure compliance andprevent any conflicts of interest.Prior to the Investment Committee, the Compliance Subcommittee
checks compliance with laws and regulations, and the Compliance Committee confirms whether or notthere are any conflicts of interest in transactions with interested parties, to prevent the risk of legal
violations and conflicts of interest.

(4) Prevention of insider trading and management of forward commitment
TRIM aims to prevent activities such as insider trading by its officers and employees through theestablishment of insider trading regulations.TRIM has established a forward commitment manual, andwhen making forward commitments, it strives in particular to manage risk through a process involving
careful reviews and thorough deliberation.

Information security
To ensure stable and continuous business operations, we endeavor to make appropriate use of
information and prevent unauthorized access, loss and leakage of information.In managing
information, we implement safety measures to address various threats (breakdowns / system
failures, disasters, misprocessing, unauthorized use, destruction, theft, leakage, etc.) and have
prepared contingency plans for recovery measures in case of failures.

TRIM has also made security management preparations and has established a department tooversee information management.
The department promotes to ensure the appropriateness of information management andprotection through periodic surveys, and prepares safety measures and makes preparations incase of failures.

35Basic Information

Sustainability Report 2023

Data Collection

Top Message

Electricity Use*

Gas Use*Heat Consumption*

Energy Consumption*

2021

2022

Total (MWh)89,317

92,071

96,087

Intensity (MWh/m2)

0.132

0.136

0.144

Total (MWh)

16,35215,853

17,142

Intensity (MWh/m2)

0.024

0.023

0.026

Total (MWh)14,043

14,182

14,925Intensity (MWh/m2)

0.021

0.021

0.022

119,712122,106

128,154

0.176

0.180

0.192

Water Use*

Scope1*

Total (MWh)Society

Governance

2020

2021

Data

Social data
2020

Intensity (MWh/m2)

Environment

JPR

Environmental data
Category/Unit

Sustainability Strategy

Item
Number of employees (regular/contract)*
Ratio of regular employees against all employees*

2022

45 employees

48 employees

54 employees

95.6%

90.0%

90.7%

43 employees

43 employees

49 employeesMale

34 employees

32 employees

38 employees

Female9 employees

11 employees

11 employees

2 employees

5 employees

5 employeesMale

1 employee

2 employees

2 employees

Female1 employee

3 employees

3 employees

Number of regular employees*

Number of contract employees*

444,263422,704

480,162

Number of employees seconded from other companies*

9 employees

8 employees

10 employees

Intensity (m3/m2)

0.654

0.624

0.720

Male

8 employees

7 employees

9 employees

Total (t-CO2)

1,293

1,212

1,233

Female1 employee

1 employee

1 employee

Total (m3)Intensity (t-CO2/m2)

0.00190.00180.0018

Ratio of female employees*

22.2%

29.2%

25.9%

Scope2*(Market basis)

Total (t-CO2)

14,92914,41912,224

Ratio of female managers*

0.0%

0.0%

6.3%

Intensity (t-CO2/m2)

0.02200.02130.018

Number of female directors*

Scope 1 + 2*
(Market basis)

Total (t-CO2)

16,222

15,631

13,457

Average length of service*

Intensity (t-CO2/m2)

0.02390.02310.0199

Scope 3* (Note 1)（t-CO₂e）54,34753,32848,093Category 1*（t-CO₂e）

5,857

5,729

5,946

Category 2*（t-CO₂e）

10,383

10,158

9,861

Category 3* (Note 1)（t-CO₂e）

3,279

3,245

3,267

Category 5 (Note 2)（t-CO₂e）

2,001

1,979

2,430

Category 13*(Market basis)（t-CO₂e）32,82732,22026,589* The data shown in the table is based on the data that is available to JPR.
* The energy consumption and scope 1 emissions data does not include relevant data derived from emergency generator fuel.
* The intensity is presented based on the calculation of (Total amount of electric power or CO₂) / (Total floor area of equities (m²) x(Average occupancy rate per year (%))
(Note 1) Figures have been corrected due to changes to the method of calculation.Note that figures may be changed following thirdparty assurance.
(Note 2) Figures for 2022 are pre-third-party-assurance figures.Figures for 2020 and 2021 are covered by the same guarantee.

0

0

0

7 years and 2 months

7 years and 0 months

7 years and 5 monthsMale

6 years and 9 months

7 years and 3 months

7 years and 4 months

Female8 years and 4 months

6 years and 7 months

7 years and 6 months

5 employees

10 employees

4 employeesMale

4 employees

6 employees

3 employees

Female1 employee

4 employees

1 employee

0

6 employees

1 employee

Male

0

6 employees

0

Female00

1 employee

0%

12.5%

1.8%

Number of new hires*

Employee turnover*

Employee turnover rate** Some environmental data contained in this report have been assured by LRQA to ensure the reliability of the data reported.The types and values of applicable data are marked with an asterisk (*).

36

Basic Information

Sustainability Report 2023

Data Collection

Top Message

Sustainability Strategy

Environment

Society

Governance

Data

2020

2021

2022

3 employees

3 employees

3 employees

TRIM

Social data

Governance data
2020

2021

2022

Ratio of paid leave taken*

68.2%

69.5%

76.3%

Ratio of employees receiving health checkups*

100.0%

100.0%

100.0%

Male

3 employees

3 employees

3 employees

Annual total of hours spent on education andtraining*

839.0 hours

755.5 hours

1,518 hours

Female000Hours spent on education and training per
employee*

18.7 hours

15.7 hours

29 hours000

Ratio of officers and employees receiving
education and training*

100.0%

100.0%

100.0%

63,946 yen

26,967 yen

87,024 yen

Ratio of receiving sustainability training*

93.0%

52.0%

94.7%

Overtime hours per employee (monthly)*10.0 hours

13.8 hours

14.4 hours

Male

10.7 hours

15.4 hours

16.7 hours

Female8.0 hours

10.1 hours

9.6 hours

Number of employees taking childcare leave*

0

0

0

Number of employees taking long-term nursing
care leave*

0

0

0

Number of employees working reduced hours*

0

0

0

Average employee satisfaction (ratio of those who
answered “satisfied”)

84.2%

73.2%

71.7%

Response rate of employee satisfaction survey

93.0%

97.6%

92.0%

Item

Training expenses per employee*

Item
Number of full-time directors*

Application of anti-corruption fines* Some environmental data contained in this report have been assured by LRQA to ensure the reliability of the data reported.The types and values of applicable data are marked with an asterisk (*).

37

Sustainability Report 2023

Basic Information

Status of green sustainability financeTop Message

Sustainability Strategy

Environment

Society

Governance

Data

JPR

Outstanding Balance of Green Bonds Issued (As of December 31, 2022: 13,000 million yen)
■ Twenty Forth Series of Unsecured Investment Corporation Bonds■ Twenty Fifth Series of Unsecured Investment Corporation Bonds

Issue Amount (million yen)

5,000

Issue Amount (million yen)

6,000

Issue Date

July 31, 2019

Issue Date

November 26, 2020

Maturity Date

July 31, 2029

Maturity Date

November 26, 2030

Coupon Rate

0.57 %

Coupon Rate

0.51 %

Remarks

Unsecured/Unguaranteed

Remarks

Unsecured/Unguaranteed

Use of Proceeds•The acquisition on May 31, 2010 JPR Sendagaya Bldg. (2 billion yen)
•The acquisition on August 8, 2012 Yakuin Business Garden (3 billion yen)

Use of Proceeds•The acquisition on May 31, 2010 JPR Sendagaya Bldg. (6 billion yen)

■ Twenty Eighth Series of Unsecured Investment Corporation Bonds■ Green loan

Issue Amount (million yen)

1,000

Borrowings (million yen)

600

Issue Date

December 7, 2021

Borrowing date

March 30, 2022

Maturity Date

December 5, 2036

Maturity

March 30, 2032

Coupon Rate

0.67 %

Coupon Rate

0.675%

Remarks

Unsecured/Unguaranteed

Remarks

Unsecured/Unguaranteed

Use of Proceeds•Additional acquisition on October 28, 2021 Rise Arena Bldg. (1 billion yen)

Use of Proceeds•Additional acquisition on October 28, 2021 Rise Arena Bldg. (0.6 billion yen)

Outstanding Balance of Sustainability Finance Issued (As of December 31, 2022: 2,000 million yen)
■ Twenty Seventh Series of Unsecured Investment Corporation Bonds■ Sustainability loan

Issue Amount (million yen)

1,400

Borrowings (million yen)

600

Issue Date

December 7, 2021

Borrowing date

March 30, 2022

Maturity Date

December 5, 2031

Maturity

March 30, 2032

Coupon Rate

0.42 %

Coupon Rate

0.675%

Remarks

Unsecured/Unguaranteed

Remarks

Unsecured/Unguaranteed

Use of Proceeds•The acquisition on December 24, 2020 Otemachi Financial City North Tower (1.4 billion yen)

Use of Proceeds•The acquisition on December 24, 2020 Otemachi Financial City North Tower (0.6 billion yen)38

Basic Information

Sustainability Report 2023

Top Message

Sustainability-certified properties

13

37

properties★ ★ ★ : 8 properties

★★★★★

★★★★

Society

Governance3

properties

Data

Shinjuku Square Tower

Tokyo Tatemono Higashi-Shibuya Bldg.

Rank S

Rank S

properties★ ★ ★ ★ ★ : 1 property (ZEB Oriented)

Rank S : 19 properties
Rank A : 17 properties
Rank B+ : 1 property★ ★ ★ ★ : 4 properties

Olinas Tower

Environment

JPR★ ★ ★ ★ ★ : 1 property

Tokyo Square Garden

Sustainability Strategy★ ★ ★ : 1 property★ ★ : 1 property

この建物のエネルギー消費量

�� ％削減JPR Kojimachi Bldg.

★★★

FUNDES Ueno

建築物省エネルギー性能表示制度★★

国土交通省告示に基づく第三者認証
����年�月��日交付

この建物のエネルギー消費量

��％削減

����年�月��日交付 国土交通省告示に基づく第三者認証

Shinjuku Center Bldg.

★★★★

Otemachi Financial City North Tower★★★★

GRAND FRONT OSAKA(North Building)

JPR Musashikosugi Bldg.

JPR Omiya Bldg.

Rank S

Rank S

Kawasaki DICE Bldg.

★★★★

JPR Sendagaya Bldg.

★★★

Housing Design Center Kobe

JPR Harajuku Bldg.

Rank S

Rank S

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Sustainability Report 2023

Basic Information

Top Message

Independence assurance statement

LRQA Independent Assurance Statement

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Relating to Japan Prime Realty Investment Corporation and Tokyo Realty
Investment Management, Inc.’s Environmental and Social Data within its
Sustainability Report or the calendar year 2022
This Assurance Statement has been prepared for Japan Prime Realty Investment Corporation in accordance with ourcontract.

Terms of Engagement

LRQA Limited (“LRQA”) was commissioned by Japan Prime Realty Investment Corporation (“the Company”) to
provide independent assurance on its environmental data of its investment property and social data of Tokyo Realty
Investment Management, Inc. (“TRIM”) which is entrusted by the Company the asset management work within its
Sustainability Report (“the report”) for the calendar year 2022, that is, from 1 January 2022 to 31 December 2022,
against the assurance criteria below to a “level of assurance and materiality” using ISAE 3000 (Revised) and ISO 14064-3:2019 for greenhouse gas (“GHG”) emissions.
Our assurance engagement covered the Company’s environmental data and TRIM’s social data and specifically thefollowing requirements:• Verifying conformance with the reporting methodologies set by the Company or GRESB for the selected
dataset:• Evaluating the accuracy and reliability of data listed below: 1
Environmental data
• Electricity use (Total [MWh] and Intensity [MWh/m2])• City gas use (Total [MWh] and Intensity [MWh/m2])• Heat consumption (Total [MWh] and Intensity [MWh/m2])• Water use (Total [MWh] and Intensity [m3/m2])• Total GHG emissions data (Total [tCO2] and Intensity [tCO2/m2]) 3 4• Scope 1 GHG emissions 5 6 [tCO2]• Scope 2 GHG emissions (Location-based and Market-based) [tCO2]• Scope 3 GHG emissions (Categories 1/2/3/5/6/7/8/13) [tCO2e]• Annual waste amount [tonnes] 7 8• Recycling rate [%]2

Social data
• Number of full-time directors (excluding CEO)• Number of employees (regular / contract) (Total and gender-segregated)• Ratio of regular employees against all employees [%]9

LRQA undertook a limited assurance engagement of the environmental and social data marked with “ * ” within the Sustainability Report.
As for each energy use, water use and GHG emissions, the verification scope covers the breakdown of Office Property and Retail Property. In
addition, each basic unit is calculated by multiplying the total floor area equivalent to the company's ownership interest by the averageoccupancy rate (rental area/leasable area) for each year.
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GHG quantification is subject to inherent uncertainty.
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Total GHG emissions is calculated as the sum of Scope 1 GHG emissions and Scope 2 GHG emissions.
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Scope 1 GHG emissions cover energy-oriented CO2 emissions.
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Scope 1 GHG emissions don’t cover the fuel usage for emergency generator.
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The data collection period of annual waste amount and recycling rate is the fiscal year 2021 (from 1 April 2021 to 31 March 2022).
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2 small-scale properties of the total 66 investment properties aren’t included in the total because they don’t independently manage the waste.
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The data collection period of social data is the fiscal year 2022 (from 1 April 2022 to 31 March 2023).
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Sustainability Strategy

Environment

Society

Governance

Data

JPR

Number of regular employees (Total and gender-segregated)
Number of contract employees (Total and gender-segregated)
Number of seconded from other companies (Total and gender-segregated)
Ratio of female employees [%]Ratio of female executives [%]Number of female directors
Average length of service (Average and gender-segregated)
Number of new hires (Total and gender-segregated)
Number of employee turnover (Total and gender-segregated) 10
Employee turnover rate 10
Ratio of paid leave taken
Ratio of employees receiving health checkups
Annual total of hours spent for education and training
Hours spent for education and training per employee
Cost of education and training per employee
Ratio of executives and employee receiving the education and training
Ratio of executives and employees receiving sustainability training
Overtime hours per employee (monthly) (Average and gender-segregated)
Number of employees taking childcare leave
Number of employees taking long-term nursing care leave
Number of employees working reduced hours 11

LRQA’s responsibility is only to the Company. LRQA disclaims any liability or responsibility to others as explained in
the end footnote. the Company’s responsibility is for collecting, aggregating, analysing and presenting all the dataand information within the Report and for maintaining effective internal controls over the systems from which theReport is derived. Ultimately, the Report has been approved by, and remains the responsibility of the Company.

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Verifying the historical Environmental data / records for the calendar year 20227 and the historical Social data /records for the fiscal year 2022; andVisiting Tokyo Tatemono Higashi Shibuya Building, JPR Omiya Building and Head Office to whether the data
management systems have been effectively implemented.

Observations

The Company and TRIM should further demonstrate the completeness, accuracy and reliability of its futureenvironmental and social data reporting. Regarding the waste amount, it is hoped that the Company will continue toestablish robust internal data control systems at both the headquarter and each of its investment properties.

LRQA’s Standards, Competence and Independence

LRQA implements and maintains a comprehensive management system that meets accreditation requirements for
ISO 14065 Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use inaccreditation or other forms of recognition and ISO/IEC 17021-1 Conformity assessment – Requirements for bodies
providing audit and certification of management systems – Part1: Requirements that are at least as demanding as
the requirements of the International Standard on Quality Control 1 and comply with the Code of Ethics forProfessional Accountants issued by the International Ethics Standards Board for Accountants.
LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training andexperience. The outcome of all verification and certification assessments is then internally reviewed by senior
management to ensure that the approach applied is rigorous and transparent.
This is the only work undertaken by LRQA for the Company and as such does not compromise our independence or
impartiality.
SignedDated: 19 July 2023

LRQA’s Opinion

Based on LRQA’s approach nothing has come to our attention that would cause us to believe that the Company has
not, in all material respects:• Met the requirements of the criteria listed above• Disclosed accurate and reliable environmental and social data
The opinion expressed is formed on the basis of a limited level of assurance12 and at the materiality of the professional
judgement of the verifier.

Kazuyori Yukinaka
LRQA Lead Verifier
On behalf of LRQA Limited
10th Floor, Queen's Tower A, 2-3-1 Minatomirai, Nishi-ku, Yokohama, JAPANLRQA reference: YKA00000819

LRQA’s Approach

LRQA’s assurance engagements are carried out in accordance with ISAE 3000 (Revised) and ISO 14064-3:2019. The
following tasks were undertaken as part of the evidence gathering process for this assurance engagement:• Auditing the Company’s data management systems to confirm that there were no significant errors, omissions
or misstatements in the report. We did this by reviewing the effectiveness of data handling procedures,instructions and systems, including those for internal verification.
• Interviewing with those key people responsible for compiling the data and drafting the report.
• Sampling datasets and traced activity data back to aggregated levels;

LRQA, its affiliates and subsidiaries, and their respective officers, employees or agents are, individually and collectively, referred to in this clauseas 'LRQA'. LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on theinformation or advice in this document or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for theprovision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that
contract.
The English version of this Assurance Statement is the only valid version. LRQA assumes no responsibility for versions translated into otherlanguages.

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Only voluntary resignation

Copyright © LRQA, 2023.

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Only personal circumstances

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The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance
engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in alimited assurance engagement is lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed.

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This Assurance Statement is only valid when published with the report to which it refers. It may only be reproduced in its entirety.

Page 3 of 340

Sustainability Report 2023

Disclaimer●

The aim of this report is to provide information. Encouraging investment in specific products or recommending the purchase or sale thereof
are not objectives of this report.Please inquire with your securities company about the purchase of JPR’s investment units.Final decisions
regarding investments should be made at the sole responsibility of the investor.

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This report is not a disclosure document or a report on asset management based on the Financial Instruments and Exchange Act, the Act on
Investment Trusts and Investment Corporations, or Tokyo Stock Exchange listing regulations.The data and analyses contained in this reportare based on past results over a certain period, and are not a guarantee of investment performance or fluctuations, etc., in the future.

●No guarantee is made as to the accuracy or integrity of the information provided in this report.Please note that the content may be subject torevision or cancellation without notice.

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JPR and TRIM assume no responsibility whatsoever for the results of investment actions, etc., taken based on this report.

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JPR and TRIM prohibit duplication, diversion or other unauthorized use of the information provided in this report without prior approval.

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