Our Management Policies

We, Japan Real Estate Asset Management (“JRE-AM”), as an asset management company of Japan Real Estate Investment Corporation, uphold the following four management policies:

Our Sustainability & HR Policies

In our Sustainability Policy (http://www.j-rea.co.jp/en/sustainability/index.html), we stipulate “initiatives aimed at officers and employees” as one of the most important issues to undertake.
In order to achieve quality asset management under these policies, we believe it is essential to recruit talented personnel, develop each member's ability and promote a healthy working environment. We will continually work on human capital development, as well as employee health and well-being to foster talent as the industry front-runner.

Human Capital Development

■Talent Pipeline & Development Strategy

We have access to professionals with extensive experience and expertise in real estate investment and asset management as seconded staff from our shareholder, Mitsubishi Estate Co., Ltd., as well as recruit experienced, talented individuals, to acquire competent personnel on a timely basis.

As part of our human resources development strategies, we provide support for employees to obtain professional qualifications and offer a wide range of specialized training programs. We also uniquely provide strategic job rotation opportunities to ensure that each individual is appointed to the right position to help them develop and enhance their skills.

Further, we strive to provide a healthier and more comfortable working environment and more generous employee benefits, enabling competent personnel to demonstrate their capabilities fully and to motivate them to stay with the company for a long time.

We continually host junior employees (with fewer than ten yearsʼ experience) seconded from our sponsor who regularly recruits new graduates. By creating a well-balanced, diverse workforce consisting of both young and experienced professionals, we ensure that our specialized knowledge and skills in real estate asset management are shared and passed on within the company, thereby enhancing the sustainability of the organization as a whole.

The staff members including new graduates seconded from our sponsor are eligible for highly specialized training opportunities provided by each personʼs originalemployer (sponsor) under its position-based, systematic human resources development programs. As some of these programs are alsoavailable to our employees; we encourage all of them to take advantage of such educational opportunities.

For more details on our sponsor's training programs, please refer to the following website:
Mitsubishi Estate: https://mec.disclosure.site/e/sustainability/activities/social/human-resource/

■Promote Diverse Workforce

JRE-AM believes that the diversity of our workforce leads to business innovations, sophisticated risk management and a more efficient and vibrant organizational culture. It also helps us attract competent personnel. Based on this idea, we continuously monitor the diversity of our employees and officers.

We have seen some success, particularly by promoting the participation of women in our workforce, significantly exceeding the average percentage of women in Japanese companies (26.5%*).

* Source: “Corporate awareness survey on promoting the participation of women in their workforce” conducted in July 2021 and released by Teikoku Databank Ltd.
https://www.tdb.co.jp/report/watching/press/pdf/p210805.pdf(available only in Japanese)

* Includes part-time director.

■Learning and Development for All Employees

We encourage all employees, including permanent, seconded, contract and temporary staff, to pursue self-development and professional development. We conduct our own training programs that increase knowledge of the REIT industry and awareness of compliance issues. Further, we encourage employees to actively participate in a variety of training programs offered by our sponsor. By participating in such programs, we expect each employee to develop as both a business person and an industry professional.

・General training for all employees

We provide all employees including temporary and contract staffs with compliance training programs to promote a high degree of awareness of business ethics throughout the company and to ensure that all employees have the necessary skills and information available to them to ensure that work practices remain in compliance.
We also provide various training programs to raise awareness and increase knowledge on critical issues that need to be addressed at all levels of the company, such as human rights, ESG, and health promotion.
All (100%) of our employees participated in these training programs in FY2022.

≪General Training for All Employees conducted in FY2022≫
・ESG/Sustainability Training（2）
・Compliance Training（16）
・Human Rights/Anti-Harassment/Diversity Training（2）

・Human resources development programs of sponsor

The staff members seconded from our sponsor are eligible for highly specialized training opportunities provided by each personʼs original employer (sponsor) under its position-based, systematic human resources development programs. As some of these programs are also available to our employees; we encourage all of them to take advantage of such educational opportunities.

≪Global Human Resource Development Initiatives≫

As part of the Global Basic Skill Strengthening options to develop human resources capable of thriving on the global stage, Our sponsor, Mitsubishi Estate provides programs such as short-term overseas language training and has introduced a system to subsidize second-language studies. Additionally, under the Global Business Skills Strengthening option, employees can take part in a training system where they gain practical experience at Group companies in the U.S., the U.K. and Asia. There are also study-abroad and business school programs available so they can develop the capabilities needed to perform in a global environment.
In addition to medium and long-term dispatch programs, there is also a lineup of short-term programs lasting approximately one month, making it easy for employees who are unable to leave the workplace for long periods of time to participate. Moreover, internal debriefing sessions are held after the training so that results and lessons can be shared widely with other employees, helping everyone see how a global mindset is relevant to their own work.
Our sponsor, Mitsubishi Estate will continue to augment its training programs in and outside of Japan to ensure that they are useful to and available to employees in a wide range of positions.

For more details on our sponsor's training programs, please refer to the following websites:
Mitsubishi Estate:　https://mec.disclosure.site/e/sustainability/activities/social/human-resource/

・Specialized skills training

We offer training programs led by external lecturers and experts that improve employeesʼ professional and practical skills, helping them become professionals in the fields of REITs and real estate asset management. Further, we encourage all employees and officers to pursue educational opportunities outside the company by subsidizing relevant educational expenses such as the costs of attending seminars and training programs offered by external organizations.

Examples of previous training topics:
Fund management, logical thinking, financial accounting, organizational management, practical coaching, compliance, green renovation (LED) seminar, etc.

Examples of training programs by external lecturers in FY2022 (23 programs were conducted in total):
(1) Compliance training for those engaged in investment management business (June 2022 and January 2023)
(2) Internal Audit Training (June 2022)
(3) Anti-Money Laundering Training (July 2022)
(4) Sustainability Training (December 2022 and January 2023)
(5) DEI（Diversity, Equity & Inclusion）Training (February 2023)

・Training Program by External Institution

Association for Real Estate Securitization (ARES) is one of the most significant institution for J-REIT and the certification by ARES is highly useful in REIT operation. Therefore, JRE-AM is encouraging its employees to acquire ARES Certified Master and to participate to the special seminars provided to those certified and compensating all the costs related.

・Advanced Leadership Development

We support employees who have the strong motivation and willingness to expand their overall managerial capacity. Some managers participate in management training provided by the sponsor such as Next Generation Foresight Seminars, Management Seminars, Legal Seminars for Affiliatesʼ Officers, Compliance Seminars for Supervisors, etc. For senior management and all board members, including external directors and auditing officers, we periodically invite external experts to lecture on up-to-date knowledge of laws, such as the Financial Instruments and Exchange Act and the Act on Investment Trusts and Investment Corporations.

・Support and incentives for career enrichment, qualifications, and licenses

We encourage all employees to boost their professional knowledge and skills. Based on this policy, we subsidize the costs required to obtain and maintain professional qualifications that assist employees in improving their real estate asset management practices. Examples of such qualifications include the Association for Real Estate Securitization (ARES) Certified Master, Certified Building Administrator, and Real Estate Notary. Furthermore, we provide a qualification allowance twice a year for each qualification held by each employee. We encourage the improvement of professional knowledge and skills through subsidy and incentive system for qualifications, and licenses.

■The number of employees with qualifications 　 （As of the end of March, 2023）

* Total number of qualifications acquired by the subsidy program since FY2019 is 117.

・Training hours and training expenses

■Human Rights Initiatives

As a member of society, the Mitsubishi Estate Group is keenly aware of the importance of respect for human rights. To fulfill our responsibility to respect the basic human rights of all stakeholders, not only those involved in Group businesses, we set up the Mitsubishi Estate Group Human Rights Policy on April 1, 2018. Respect for human rights is part of the Mitsubishi Estate Group Guidelines for Conduct, which all employees are expected to follow on a daily basis. These Guidelines stress the importance of respect for human rights and diversity, which means that employees show concern for human rights and the environment in the course of their business activities. The Human Rights Policy is intended to ensure that we, as a good corporation, understand that internationally mandated human rights are a bare minimum that we must go beyond, that we reaffirm the importance of supporting, protecting and respecting human rights and that we work to respect the fundamental human rights of every single person involved in the Group's businesses.

・Mitsubishi Estate Group Code of Corporate Conduct (excerpt)

・Mitsubishi Estate Group Human Rights Policy (excerpt)

We uphold and respect international standards related to human rights. These include the International Bill of Human Rights, which sets out the fundamental human rights possessed by all the people of the world, and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, which contains requirements concerning fundamental rights in the workplace.
We help ensure that respect for human rights is actively practiced in all business activities, and that such activities do not infringe on the human rights of other people. If such activities nevertheless result in a violation of the human rights of others, efforts shall be made to minimize the negative impact.
We carry out human rights due diligence in order to minimize any negative impact caused by human rights violations occurring as a result of the Group's business activities. We maintain a framework for human rights due diligence and make improvements to the framework on an ongoing basis or if problems arise in order to improve its efficacy.
Furthermore, in the event that the activities of a business partner or any other individual or organization affiliated with the Mitsubishi Estate Group directly have a negative impact on the human rights of others, even if we were not directly involved in fostering such a negative impact, we shall endeavor to make improvements together with stakeholders to ensure respect for human rights and eliminate all violations.

Based on our human rights policy, JRE-AM understands and respects human rights that are internationally proclaimed based on our human rights policies as a minimum, and supports and respects their protection, are committed to respecting the human rights of all parties involved, including those derived from our businesses. In order to become aware of discrimination and to foster awareness of human rights, we conduct training on human rights, focusing on the prevention of harassment, which is also a human rights issue in the workplace.

※For Mitsubishi Estate Group Human Rights Initiatives, please click here.
※For JRE-AM's participation in UNGC, please click here.

■Fair Performance Evaluation and Remuneration

The goals of conducting the appraisal process are not limited to meeting management objectives but also to promote talent development through the appraisal process.
At the beginning of the fiscal year, each employee set their own targets with advice from their managers, and bonuses are paid based on the degree of achievement of those targets.
Employees receive comprehensive feedback on their performance and specific contributions through the Semi- annual Follow-up Meeting and the Final Appraisal Meeting.

Employee Health and Well-being

We believe that the physical and mental health of employees is essential for the sustainable growth of our corporate value. Based on this understanding, we implement various measures to promote the physical and mental health of employees and help them achieve a good work-life balance.

■Creating Productive and Employee-friendly Workplace

・Office relocation to Otemachi Park Building

We moved to our new office at Otemachi Park Building in December 2017. Otemachi Park Building is a state-of- the-art building aiming to offer an employee-friendly workplace that reforms working styles and improves creativity and productivity of workers featuring advanced energy efficient facilities, BCP functions, and facilities focused on coexistence with the environment. Equipped with a designated lounge space for tenants with a fitness room, nap room, shower room, etc., in addition to a nursery and a community plaza with natural greenery that is designed with consideration for biodiversity.

・Office Design Promoting Internal Communication

Coinciding with its office relocation, we have shifted to a free-address work environment. The new office features a spacious communal area, where healthy drinks such as vegetable juices and yogurt drinks are available for free to promote employee well-being. The space is also equipped with balance chairs and standing desks to encourage physical activities, adding a playful touch to our office. We aim to create an environment that facilitates communications and work-style reforms as we believe they are keys to improving productivity.

* Our office was selected for the “DSA Design Space Award 2018” by the Japan Design Space Association. For more details on DSA Design Space Award, please refer to the following web site.
http://www.dsa.or.jp/design/english/award/index_en.html

・Provision of access to healthy foods and beverages

As a member of the Mitsubishi Estate Group, all employees can use the employee cafeteria of Mitsubishi Estate which provides nutritional food choices. In addition, in our office, we serve healthy drinks free of charge to all employees.

・Health Consultation Desk

We have made a contract with an industrial physician out of consideration for our employees' mental and physical health. The industrial physician provides health consultations and stress checks for employees who have concerns about their health or the amount of overtime they are working beyond certain standards set by law. The industrial physician also judges whether an employee needs a leave of absence or is able to return to work. Also, as a member of Mitsubishi Estate Group, all employees can access the health consultation desk of Mitsubishi Estate for not only work-related problems but also concerning issues that they are hesitant to discuss with other people, such as family or human relationship problems.

・Subsidies for medical checkups and influenza vaccinations

With the aim of maintaining and improving each employee's health, we subsidize the expenses of influenza vaccinations, etc. besides annual check-ups.

・Other employee welfare and benefits

JRE-AM has established a wide range of employee benefit programs for all employees.

Examples:

・Childcare leave
・Familycare leave
・Nursing care leave of absence for children (few days leave permitted per year to nurse sick children)
・Nursing care leave of absence for family (few days leave permitted per year to nurse elderly)
・Shortened work hours for childcare
・Shortened work hours for nursing care
・Long-service leave system (special leave/monetary award is given in recognition of long service)
・Employee award system
・Monetary gifts for congratulations, condolences, etc.
・Service provided by an employee benefits services company

・Employee Initiatives During COVID-19

・Clarifying work priorities and promoting the use of informational technology such as online meetings
・Ensuring physical distancing in work areas
・Installing disinfectant solution dispensers and rigorously ensuring the wearing of hygienic masks
・Promoting the mental health of employees by providing online health consultations with industrial physician

＜Other Initiatives＞

Contact avoidance

・Free-address work environment
・Introduction of completely flexible work hours with no core hours, etc.

Benefits package

・Full payment of polymerase chain reaction (PCR) test expenses by the company

Promotion of digitization

・Promotion of paperless operations (makes working from home simpler)
・Introduction of electronic approval systems
・Introduction of high-spec PCs that also support jobs from home
・Migration of in-house servers to cloud computing and the introduction of business chat capabilities

	FY2020	FY2021	FY2022
Health check participation	100%	100%	100%
Stress check participation	100%	100%	98%
Annual paid leave per person	11.3	12.1	11.9
Monthly average overtime	8.5	11.3	10.0
Number of workers' injuries/death incident	0	0	0
Absentee rate	0%	0%	0%
Ratio of employees on leave	0%	0%	0%

■Promote Diverse Work Styles

We endeavor to provide a comfortable working environment by offering various employee benefit programs and promoting a better work-life balance so that no employee has to give up their employment for childbirth, childcare, nursing care, or other life events.

	FY2020	FY2021	FY2022
Number of employees who took childcare leave	Male 1	Male 0	Male 2
	Female 2	Female 0	Female 2
Return after leave ratio（%）	100%	- （No employee was scheduled to return to work in FY2021）	100%
Number of employees who took nursing care leave	Male 0	Male 0	Male 0
	Female 0	Female 0	Female 0

* 100% of employees who have taken childcare leave returned to work and remained at work for 12 months thereafter.

・Introduction of flex-time working hours for all employees

Each employee can schedule their daily working hours, subject to working the monthly total working hours as determined by the company. With this working system, we support each employee in achieving a better work-life balance so that each employee can fulfill their responsibilities in their personal lives and maximize their potential, as well as play a greater role in their work.

・Introduction of working from home

Each employee can use working from home system. Together with the above-mentioned flex-time working system, each employee can practice a work style that considers work-life balance.