ESG Initiatives （Environment）
Reduction of environmental load

Enhancing energy efficiency Fukuoka REIT

BeforeMaintenance and enhancement of environmental and construction performance

Green Building certification

GRESB2022

Green Building certification obtained for 80.0%
of entire portfolio

・ Promotion of conversion to LED lighting
Example: Conversion to LED lighting at
some exclusive areas (Higashi Hie Business Center) NEW・ Utilization of renewable energy （solar power generation panels installed, etc.）
・ Reduction in Air Conditioning Load (applied coating film
containing a shading agent)・ Greening of common spaces ・ Arrangement of water areas ・Creation of shaded spaces
・Installation of charging station for electric vehicles
・Installation of electronic circuit breaker・ Water and energy conservation Measures
Renewal of electric water heater with energy saving effects（avoid unnecessary reheating when no one is using) NEW■Ratio of environmental certification acquisition
AfterCASBEE

BELS Evaluation
Certification

Certification●GRESB Real Estate Asssessment:
Received the rating of “ 4 stars” and“Green Star” in the GRESB survey 2022
●Disclosure Assessment:
Received the highest “A Level”

1.6％

14.7％Certificatedproperties

80.0％

DBJ Green
Building
Certification

77.9％＊As of February 28, 2023
（based on total floor space）

Before●CASBEE Certification for Real Estate

After

Waste reduction / resource recycling / water resources, etc. Fukuoka REIT
・ Separate collection of garbage
・ Conversion of raw garbage into animal feed （Canal City Hakata, Park Place Oita）
・ Collection of secondhand clothing（Canal City Hakata, Konoha Mall Hashimoto）●Installation of canal water filtration system, greywater
plant and water-saving toilets （Canal City Hakata）●Canal City Hakata has worked to reduce water consumption

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

・ Canal water filtration system(rainwater reuse system)NEW

CASBEE Certification for Real Estate is a system in whicha third-party organization certifies the accuracy of theassessment of buildings evaluated by CASBEE-Real Estatethrough an assessment of contents. It scores buildings
under each of the evaluation items in five categories,
comprising “1. Energy & Greenhouse Gases”, “2. Water”,“3. Use of Resources & Safety”, “4. Biodiversity &Sustainable Site”, and “5. Indoor Environment”. Based on
the scores, the evaluation results are given one of four
ranks: Rank S, Rank A, Rank B+, and Rank B. Twoproperties owned by FRC were certificated Rank A（February 2023） .

Sanix Hakata Building（Rank A）

Granfore Yakuin Minami（Rank A）

●DBJ Green Building Certification●BELS Evaluation

12 properties owned by FRC were certified
Reacquired certification for 2 properties （March 2023）

5 properties owned by FRC were certified

ESG Initiatives （Society①）

Creation of pleasant workplaces

Fukuoka Realty

Initiatives for employees《Support for flexible working styles》 《Training for employees》《Fukuoka Realty: Numbers of credentialed personnel》●（As of February 28, 2023）■The average number of years of continuous service●of permanent employees: 8 years and 9 months●■Full-time personnel: 46 [Male:20 Female:26] * Gender ratio●●

Employees seconded from sponsors：2
Employees seconded to a sponsor：8■Number of credentialed personnel
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Real estate brokers : 26

ARES Certified Masters : 24

Certified Building Administrators : 4First-class registered architect : 2
Real estate appraisers : 3●

Male : 43.5％
Female : 56.5％●＊The total number of permanent employees,

contract employees and employees seconded
from other companies.

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●Attorney : 1

MBA : 2Administrative Scrivener : 1

SME management consultant : 1

NEW

Certified as a
“Fukuoka‘ Work-Style Reform’
Promotion Company ”（ August 28, 2018）

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

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

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

Sustainability training●

Integrated Report training●

In-house recreation, etc.

《Career development support》
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CMA : 3

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

Licensed Representative of Condominium Management Company : 1

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

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

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Other Initiatives《health management ・Improvement of office environment》

Initiatives to prevent infectious diseases such as influenza（Implementation of influenza vaccination and full coverage of vaccination costs）●●

Mandatory health checkups and comprehensive medical examinations●

Application system to restrict excessive overtime work●

Assistance for use of sports clubs●

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

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Installation of personal lockers

personal booths,meeting booths

plants, etc.

Installation ofpersonal lockers

Create an attractive workplace （tenants） Fukuoka REIT
Training for tenants’ employees
Emergency drills to improve safety and security of tenants
Distribution of sustainability guidelines
Support for tenants’ employees and part-time job recruitment（posted on property websites）
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Improvement of employee lounge
Improved the lounge environment at Konoha Mall Hashimoto with a focus on the health and comfort of tenants’ employees.
Similar arrangement is under study for other facilities.
Implementation of tenant satisfaction surveys

ESG Initiatives （Society②）

Contribute to increased attractiveness and vitalization of Fukuoka and Kyushu area
●Provision of regional information

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

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

Fukuoka Realty●Participation in local sporting events・ Information provision using website and social media
Signboard of Fukuoka Realty Co., Ltd.

Fukuoka REIT

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

Implementation of Corporate Version of Hometown Tax System Fukuoka Realty
Continue to implement the corporate version of the hometown tax payment system

Support for ice skating rink
NEWPress announcement

Support local professional sports

Involvement in local community

Initiatives for local communicaties, etc.
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Fukuoka Realty

Regional cooperation （conducted collaborative
sales and experiential learning with a local elementary schooland Ueki Greengrocer at Konoha Mall Hashimoto） NEW
Participates in Hakata Town Planning Promotion Council（Clean Day, etc.）

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

Child-rearing support
NEW“Seiryo Marche” （learning and sales experience）

Participation in Clean Day

Children's Plaza inHashimoto, Nishi Ward
Tenant moved in

Installed a
wash-basin forhands and feet

Parking lot
dedicated to pregnant
women and stroller users

Fukuoka REIT

Child-rearing support

Preventing the spread of new coronavirus infections
Individual facility initiatives- Safety and security activities（crime prevention patrol, AED installation）- Local contribution （bike share service, EV charging station） , etc.

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Hosted the Real Estate,Finance and EconomicNetworking

Park Place Oita

Canal City Hakata, others

Canal City Hakata, others

Canal City Hakata, others

Crime prevention patrol（Jointly conducted withcommunities and schools）

AED installationbike share service

EV charging station

ESG Initiatives （Governance）
Compliance / Risk management

Governance System

Fukuoka Realty

Fukuoka REIT

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

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

Conjunction with investors' and sponsors' profit
Fukuoka REIT

Fukuoka Realty・Same-boat investment by sponsor
Fukuoka Jisho Co., Ltd., the main sponsor, has 9.18% of FRC’s investment units
・Cumulative investment system for investment units（36.4% of the officers and employees perticipated in the system）
A cumulative investment system for investment units was introduced for theAsset Manager officers and employees in April 2015 in order to enhancetheir mindset for FRC’s investment unit price and better performance aswell as promote their assets formation.

Management Fee Structure Fukuoka Realty
Inspection by Compliance Department general manager

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

Deliberations by the Investment Management Committee

Deliberations/resolution by the Compliance Assessment Committee

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

Management Fee 2

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

Resolution/decision-making report by Board of Directors

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

Fee 3 as of the fiscal period ended February 2021.

Appointment of Outside Directors（other than interested persons）

Fukuoka Realty

Information Security

Fukuoka Realty

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

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

Regular Compliance Training

Fukuoka Realty

We regularly carried out training for all officers and employees toenhance their awareness.
Oct. 2019– Sept. 2020

Oct. 2020– Sept. 2021

6 times

6 times

Oct. 2021– Sept. 2022

6 times（including e-learning）

Information disclosure and dialogue with stakeholders

Secure transparency and fairness of the Board of Directors
NameTitle
President and CEO

Attendance at board meetings at 37th

Zenji Koike
Vice President Board of Directors（Non-Executive）
Hiroshi Shimuta
Vice President Board of Directors（Non-Executive） Noboru Hashimoto
Vice President Board of Directors（Non-Executive）
Yukitaka Ohara
Vice President Board of Directors（Non-Executive） Masanori Tasaka

Information on attendanceat board meetings at 37 th, etc.
Title

Name

Executive director

Zenji Koike

Supervisory director

Takashi Tanabe

Supervisory director

Yasuo Kawasho

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

Total fees（thousand yen） Attendance at board meetings

3,600

100％ attendance
100％ attendance
100％ attendance

Publication ofIntegrated Report
Fukuoka REIT・Published fourth integrated reportin December 2022(aim to expand non-financial information)

Integrated Report 2022 NEW(published in December 2022)

・ESG interview（from December 2022）

Conducted more than ten times