Social Initiatives

Policy Concerning Respect for Human Rights

We stipulate the following human rights policies based on Mitsui Fudosan’s “Mitsui Fudosan Group Human Rights Policy” and “Mitsui Fudosan Group Sustainable Procurement Standards.”

1. Respect for human rights
   We respect human rights without discriminating based on gender, age, birthplace, nationality, ethnicity, race, creed, religion, health, disability or any other reason, and promote initiatives, such as the formation of internal systems and a work environment where diverse personnel can play active roles.
2. Prevention of child labor and forced labor
   We will observe laws and regulations and internal rules, and thoroughly eliminate and prevent child labor and forced labor.
3. Prevention of overwork
   We will work to suppress overwork and reduce overtime work, taking into consideration the maintenance and improvement of employees’ health and work-life balance.
4. Respect of the freedom of association and right to collective bargaining
   We recognize that employees have the right to organize, the right to collective bargaining and the right to strike.
5. Payment of wages higher than the minimum wage
   Our basic policy is to not only observe minimum wage rules in the labor laws, but to pay a wage that exceeds those requirements.

Initiatives for Respecting Human Rights

The status of our initiatives is as follows.

1. Respect for human rights
   None of the various types of harassment, such as sexual harassment or power harassment, or discrimination have occurred thus far.
   We are advancing enhancement activities, such as by continuing to regularly carry out training related to the various types of harassment, discrimination and LGBT awareness going forward.

（Training examples）

January 2025

Human rights enlightenment training

March 2025

Business and human rights

2. Prevention of child labor and forced labor
   We have never used child or forced labor.
   We will thoroughly observe laws and regulations so that child labor and forced labor continue to not occur.
3. Prevention of overwork
   There have been no cases of long overtime work that violates the Article 36 agreement.
   We will observe the “Article 36 agreement” by monitoring working hours to reduce unreasonably long working hours and overtime work.
   In addition to the Article 36 agreement, we internally communicate the various labor agreements, work regulations, etc. posted on our internal portal site.
4. Appropriate wage payment
   We clearly indicate internal regulations, such as salary regulations, the composition and breakdown of salary in labor contracts, the calculation method and the wage table, which is based on job grade, and pay appropriate wages.

Initiatives for Executives and Employees

We regard the further promotion of diversity, equity, and inclusion (DEI), as well as the development of professionals with sophisticated and specialized skills, broad knowledge, and a firm sense of ethics, as a key priority. Accordingly, the Asset Management Company carries out a range of initiatives related to developing employees’ abilities, ensuring employee health and safety, and creating rewarding workplaces.

Human Resources Management

Strategy for the development and securing of human resources

At our company, in order to be able to secure the appropriate human resources at the appropriate times and in line with changes in the business situation, environment, etc., in addition to undertaking new recruitment on an ongoing basis, we are promoting the development of various skills for employees via the education and training programs mentioned below.
Furthermore, in order for employees to continue working with peace of mind, we are advancing the enhancement of employee welfare and the provision of employee-friendly workplace environments, and we are aiming to improve labor efficiency through longer retention and increased motivation of employees.

At our company, as a part of improvements to levels of operational execution, we are accepting personnel with specialized skills as employees on secondment, where appropriate and in addition to those from our sponsor.

Furthermore, employees at a managerial level on secondment from our sponsor possess both specialized knowledge and organizational management skills due to the human resources development system at the assignor company, and are contributing to asset management and organizational revitalization at our company.

Officers of our company are under the jurisdiction of the Board of Directors and the General Meeting of Shareholders, and personnel in other managerial positions are determined based on the approval of the Director and President. When personnel are relocated, we select the appropriate managerial candidates from direct-hire employees and our sponsor’s human resources pipeline, and we plan for the inheritance of business and executive positions to be undertaken smoothly.

Furthermore, while the recruitment of new graduates is not being undertaken at our company at present, it is being undertaken periodically at our sponsor, and we are also accepting the secondment of junior employees who have completed training programs for developing human resources at our sponsor and who entered the company less than ten years ago.

For details of new graduate recruitment, please refer to the following:(in Japanese)

The situation regarding employees on secondment from our sponsor, etc. (as of April 1, 2025)

Education and Training Program

Training programs

To develop the abilities of employees, we provide all employees (including full-time employees, contractors, and temporary staff) with shared company-wide training and job ranking-based training utilizing outside training programs. We also encourage employees to attend various seminars and courses and supports them in doing so.

Job ranking-based training

We are endeavoring to improve the skills of employees through their attendance at external seminars, the content of which is appropriate to each stage, from managers to mid-level and junior employees.

Image of job ranking-based training program

Implementation examples

1. Management training(upon promotion to a management-level position)

Training for new graduate

After graduating and entering the company, employees on secondment from our sponsor complete a training program for the development of human resources.
Please refer to the following for details. (in Japanese)

Training in specialized fields

With the purpose of periodically updating the fundamental knowledge necessary for asset management for all employees (including full-time employees, contractors, and temporary staff), we are using external seminars and the appointment of external lecturers to periodically implement training in sustainability, changes to laws and regulations relating to asset management, and so on.

Implementation examples

1. Audit corporations/securities monitoring
2. Industry bodies/sustainability training

Field-based human resource development business seminars (occupational specialisms)

To develop the abilities of all executives and employees, we recommend and provide support for outside training programs as well as various seminars and courses.

• SMBC Business Seminar (general business topics and education)
• Japan Knowledge Center Seminar and Dynamic Marketing Co., Ltd. (retail facilities and real estate)
• The Association for Real Estate Securitization and the Investment Trusts Association, Japan Seminar (Investment Trust Act, Financial Instruments and Exchange Act, etc.)

Compliance Training

• We continue to provide compliance training for all executives and employees (including contractors and temporary staff) with the aim of improving compliance awareness and forming an organizational culture that emphasizes compliance.

（Training track details）

Fiscal 2024 Training and Seminar Attendance

• Total number of hours and amount of fees for training attended by all executives and employees
• Calculated by dividing the annual totals by the number of all executives and employees as of March 31, 2025

Support for acquiring qualifications

To support all executives and employees in acquiring qualifications needed to enhance their specialized knowledge or further develop their abilities, we have established an internal system that offers subsidies and other forms of aid.

The major qualifications we have supported are as follows.

* All executives and employees who have obtained the qualification as of April 1, 2025

Personnel evaluations

Regarding the execution of business by employees, we introduced a personnel evaluation system that assesses employees' abilities and performance from multiple perspectives, including those related to sustainability-related initiatives. In addition, supervisors hold meetings with their subordinates at the beginning, middle, and end of each fiscal year to give advice that helps them hone their abilities, to identify issues, and to check progress and results.

Promotion of Diversity, equity,
and inclusion(DEI)

We have set "diversity, equity, and inclusion (DEI)" as one of the issues to be addressed in the Sustainability Policy and established the "DEI promotion Policy" in January 2024.

Initiative direction and approach

In order to create a work environment in which motivated and capable employees with diverse skills, experiences, and values are evaluated fairly regardless of race, nationality, religion, gender, age, disability, gender identity, sexual orientation, etc., and in which each and every employee mutually respects one another and can demonstrate their individual abilities to the maximum, we strive to improve organizational productivity and support employees' work-life balance by promoting work-style reform and enhancing personnel systems.

Framework

At our company, the final decision-maker regarding DEI is the Representative Director, and the General Manager of the Planning and Administration Division, who oversees personnel affairs, is the operating officer for DEI. The department in charge reports the status of DEI promotion and aggregate data, etc. to the Sustainability Committee to confirm progress.

Target, KPIs and Actual results

We have established the following quantitative targets for DEI promotion and are engaging in initiatives to achieve them.

Initiative examples

1. Introduction of recommend days for employees to take paid leave, and promotion of the planned use of leave
2. Promotion of participation in various training and events related to DEI through the Mitsui Fudosan Group's joint training and exchange program "Get Connected and Grow Project"

HR Date

There have been no mergers or acquisitions that necessitated layoffs and there have been no large-scale layoffs.

• Figurers are as of April 1 of each fiscal year.
• The percentage of women among the total number of executives and employees.
• The average was calculated by dividing the total number of months worked as of March 31 of each fiscal year by the number of employees.
• For previous fiscal year (regular employees and contract employees).
• The employees who reached the retirement age are not included.

Employee-friendly working environments
and work-life balance

Employee satisfaction survey

We undertake an annual survey (employee satisfaction survey) regarding the present state of awareness and behavior, to understand the reality and the requirements of employees with the aim of understanding the issues and considering the appropriate policies and measures. With reference to the relevant survey results, we are striving to improve internal systems, working environments, and so on.

Implementation status of satisfaction survey

Improvement examples

Baced on the results of the survey, we have made the following improvements to the work environment.

1. Improvement of network environment (network bandwidth increases, etc.)
2. Realization of flexible work styles (introduction of remote work system, expansion of flextime system eligibility)
3. Promotion of the use of remote work (introduction of an electronic approval system, etc., and provision of smartphones and mobile laptops to all employees, including office staff)

Employee Benefits

As a part of creating a working environment that enables employees to continue working with peace of mind, we are establishing various types of employee benefit systems.

Childcare support (directed-hire employees)

childcare leave system, sick child leave system, childcare reduced working hour system

Caregiving support (directed-hire employees)

caregiving leave system, caregiving reduced working hour system

Special leave system (directed-hire employees)

refreshment leave (five days), leave for comprehensive health checks, leave for special occasions or bereavement, menstrual leave, leave for pregnancy-related hospitalization or impairment, pre- and post-childbirth leave.

Other employee benefit systems

• Collaboration with companies providing employee benefit services (direct-hire employees)
• Introduction of flextime system and staggered work hours system (all employees)
• Remote work system (all employees)
• Provision of satellite offices (all employees)
• Provision of smartphones and portable laptops (all employees)
• Introduction of defined contribution pension plan (DC) system (direct-hire employees)
• System for subsidizing the cost of influenza vaccinations (all employees)

Introduction of cumulative unit investment program

We have introduced a cumulative unit investment program that enables the acquisition of unit investments in Frontier Real Estate Investment Corporation (“FRI”), and for which direct-hire employees (full-time employees and contractors) of our company are eligible. Furthermore, officers, etc. of our company can also use the cumulative unit investment program of the assignor company, Mitsui Fudosan, to acquire unit investments in FRI. It is expected that this system will further increase awareness of improvements to the performance of all employees, and as a consequence, we believe this will contribute to ongoing growth of FRI and to increased value for investors. We are also granting financial incentives to employees who utilize the system and aiming to improve employee welfare.

Employee health and well-being

We declare health management, and we are actively promoting preventive support with consideration for prioritizing the health and well-being of all employees and in order to maintain and improve their health.

Furthermore, we have acquired Silver Certification from the National Federation of Health Insurance Societies (Tokyo Federation), which maintains a system for certifying companies with excellent health practices.

We were recognized as the 2025 Certified Health & Productivity Management Organization Recognition Program under the SME category by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi .(March 10, 2025)

Periodic ordinary health checks

We put the health of executives and employees first and mandate they get health checks. Regarding periodic ordinary health checks or comprehensive health checks, we have set up a system for taking leave to receive a comprehensive health check and provide subsidies for examination fees as we actively support and promote the improvement of executive and employee health. In addition, we provide subsidies for influenza vaccination fees.

Sharing of health-related information and use of industrial physicians

We disseminate a wide range of health-related information internally and periodically holds meetings on how to improve one’s health. In addition, we use platforms like this to provide opportunities for getting advice from industrial physicians.

Stress checks

We conduct stress checks as part of our efforts to prompt executives and employees to practice self-care and to prevent mental health problems.