PROMOTION OF ENVIRONMENTAL AND/OR SOCIAL CHARACTERISTICS(SUMMARY OF SFDR ARTICLE 8 PRE-CONTRACTUAL DISCLOSURE)
What environmental and/or social (“E/S”) characteristics are promoted by Activia PropertiesInc.?
As members of Tokyu Fudosan Holdings Group, the Asset Manager and we share the Group’s“Sustainability Vision” and “Sustainability Policy”, working together to promote sustainability inour businesses, and aim to integrate sustainability into the heart of our business practices. For theexisting retail and office properties in our portfolio, we promote E/S characteristics through a hostof environmental, social and governance (“ESG”) enhancement initiatives, aligned with the United
Nations’ 17 Sustainability Development Goals (“SDGs”). Specifically, we implement various
environmental initiatives at our properties including those against climate change, in water
resources, in recycling of waste and materials, and in reducing harmful substances. For social
characteristics, we aim to coexist with local communities where our properties are located while
supporting work environment that encourages diverse work styles and human resource
development, promoting the health and well-being of tenants and business partners, enhancing
engagement with local communities and our supplies, and contributing to solving social issues.
Specifically, our social initiatives include supporting local communities, tenants and theiremployees, employees, and business-continuity-planning and public health measures.
What sustainability indicators are used to measure the attainment of the E/S characteristics
promoted by the investment units of Activia Properties Inc. and how are such E/S characteristics
met?
We use the following indicators to measure the attainment of the E/S characteristics we promote:•Overall ESG performance. To independently assess the overall ESG performance of ourportfolio, we participate in the annual review by the GRESB.

•Climate change initiatives – energy consumption and efficiency: We track and monitor
energy use and energy use intensity at our properties, with a particular focus on thecommon areas controlled by ourselves.

•

Climate change initiatives – CO2 / greenhouse gas (“GHG”) emissions: We track andmonitor CO2 emissions, calculated in accordance with the “GHG Emissions Accounting,Reporting and Disclosure System“ of the Ministry of the Environment.

•Water management initiatives: We monitor and track water consumption and recycling atour properties.

•Waste management initiatives: We monitor and track waste generated by tenants at ourproperties.

•Social initiatives – local community: We donate to and participate in various programs andevents in local communities where our properties are located, and offer at least one property

in our portfolio as disaster prevention or temporary gathering center for nearby localcommunities.
•Social initiatives – tenants: We conduct tenant satisfaction surveys to obtain requests andopinions from our tenants using an independent research agency.

What investment strategy does Activia Properties Inc. follow?
The Asset Manager’s President & CEO is the Chief Sustainability Officer as well as the Chairmanof the Sustainability Promotion Council that meets regularly. A Sustainability Department wasalso established as of April 1, 2021 to expand the functionality of the Sustainability Promotion
System, which prescribes the organizations structure under which relevant committees,
departments, and the board of directors interact to promote sustainability initiatives and programs.
The review and assessment of material ESG risks and opportunities are built into our investment
decision process.
From time to time, we issue investment corporation bonds earmarked for use in certain projects
serving as countermeasures against global warming or providing environmental benefits under ourgreen bond framework.
What is the asset allocation planned for Activia Properties Inc.?
•Environmental certification. As of May 31, 2021, approximately 66% of the buildings in ourportfolio based on gross floor area are green-certified.

•Green Procurement Standard and Green Clauses in lease contracts. As of March 31, 2021,
41.4% of our properties based on gross floor area have one or more tenants with whom wehave entered into lease agreement containing such Green Clauses.

•ESG data coverage. We monitored, tracked, and disclosed ESG data on the categories aboveof approximately 95% (43 out of 44) and 93% (41 out of 44) of the properties in our portfolio
based on gross floor area in the twelve-month period ended March 31, 2019 and the twelvemonth period ended March 31, 2020, respectively.

What is the policy to assess good governance practices of Activia Properties Inc.?
•Adoption of performance-linked asset management fees.

•Alignment of interests of our unitholders and the Sponsor, Tokyu Land Corporation.

•Acquisition process ensuring fairness and guarding unitholder interests.

•Measures to enhance compliance.

•Transparent and appropriate information disclosure.

INTEGRATION OF SUSTAINABILITY RISKS IN THE INVESTMENT DECISIONS,AND THE IMPACT OF SUCH RISKS ON THE RETURNS OF ACTIVIA PROPERTIES
INC. (SFDR ARTICLE 6 DISCLOSURE)
We have established the Sustainability Promotion Council, which holds quarterly meetings todeliberate and decide upon matters concerning the promotion of ESG such as passing resolutions
for basic ESG policies, annual plans for ESG promotion, annual activities planning and reporting,and initiatives for various ESG measures under our portfolio management strategy. At thesemeetings, the Sustainability Department will make proposals on specific steps toward
implementing and achieving ESG goals to the members of the Council, which includes directors(excluding part-time directors), chief division officers of all of the divisions, general managers ofthe Environmental Engineering Department and Sustainability Department, and the complianceofficer. President & CEO of the Asset Manager serves as the Chief Sustainability Officer as wellas the Chairman of the Sustainability Promotion Council, and has the authority to make final
decisions on such proposals.
In order to realize sustainability in our asset management and to maximize the value of ourportfolio assets, we have emphasized taking ESG factors into consideration concerning ourinvestment and asset management processes. The Asset Manager has established the green bondframework in order to expand financing methods and to enhance the development of green finance.
Specifically, we have committed to use the green bonds exclusively for the properties that qualifies
under one of the green qualification criteria or sustainability qualification criteria that we have.
Under this organizational structure, we have instituted a number of initiatives, at both the portfolio
level and the property level, to promote E/S characteristics. Such initiatives include climate change
initiatives, water resources and waste management initiatives, local community initiatives, andtenant and employee initiatives.
We believe that integrating sustainability factors alongside traditional financial and operational
metrics in our investment decision process helps us make a more holistic assessment of aproperty’s risks and opportunities and is commensurate with the pursuit of superior risk-adjusted
returns.
REMUNERATION AND SUSTAINABILITY RISKS (SFDR ARTICLE 5 DISCLOSURE)
The Asset Manager has a remuneration policy in place which aims to support its strategy, values
and long-term interests, including its interests in the field of sustainability. The Asset Manager’s
remuneration policy is consistent with the integration of sustainability risks as follows.
•Non-supervisor employees receive monthly remuneration composed of base salary andadditional salary based on merit. Such employees also received bonuses and various
allowances such as overtime pay (including late-night overtime pay), holiday allowancesand commuter allowances.

•Supervisors, as defined under the Labor Standard Law of Japan, receive monthly
remuneration composed of base salary only. These employees also receive bonuses andlate-night overtime pay.

•Base salary is determined based on separately established standards that take into
consideration market standards, individual abilities and work responsibilities and theability of the Asset Manager to pay salary. Bonuses are based on each employee’sevaluation and attendance record, and the Asset Manager’s profitability. Employees may
be promoted and receive increased base salary and bonuses based on annual personnelevaluations of the previous fiscal year, which includes their relative contribution to andexpectations for the achievement of performance targets, including sustainability targets.

•Remuneration, methods of calculation and payment, timing of payment, and increases inremuneration are determined according to the Asset Manager’s compensation rules, which
are established based on statutory requirements. Remuneration of secondees is separately
agreed upon between the Asset Manager and the companies that employ the secondees.