Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Rise in long-term US interest rates causing slight fluctuations in the robust real estate market trend. Changes in regional bank lending attitudes stemming from the Suruga Bank issue and increased scrutiny from the Financial Services Agency.
• Not disclosed

Mitigation Strategies

• Monitoring market conditions and believing that the impact on the company's focus on highly liquid central urban areas will be limited in the medium to long term. Monitoring the Financial Services Agency's actions and financial market trends; currently no changes in lending attitudes towards office real estate are observed.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Changes in lending attitudes towards mid-sized office properties; monitoring of Bank of Japan and Financial Services Agency trends.
• Potential adjustments in real estate prices; however, the impact on the highly liquid central Tokyo area is considered limited in the medium to long term.

Mitigation Strategies

• Monitoring financial market trends.
• Focusing on highly liquid properties in central Tokyo.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance

Social Achievements

• Actively promoting the appointment of women to management positions.

Governance Achievements

• Established a risk management committee.
• Implemented stock options and performance-based compensation for directors.
• Established internal audit procedures and a system for reporting to the board of auditors.
• Adopted a code of conduct to prevent anti-social forces.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• SDGs
• Diversity, Equity, and Inclusion

Environmental Achievements

• Working to reduce CO2 emissions by switching to renewable energy sources at some properties.

Social Achievements

• Revised internal rules and regulations to advance diversity, equity, and inclusion in the workplace; providing flexible working environments.

Governance Achievements

• Established a Nomination and Compensation Committee with independent directors comprising the majority of members to ensure fairness and transparency of management decisions.
• Designated independent officers in accordance with the provisions of the Tokyo Stock Exchange.

Climate Goals & Targets

Environmental Challenges

• Sustainable growth of the corporate funding business.
• Strengthening Asset Management Business.
• Increasing the number of projects originated and investors in the Crowdfunding Business.
• Securing and Developing Human Resources.
• Strengthening the Internal Control System.
• Impact of COVID-19.
• Potential for competitor misconduct or unfavorable regulatory changes in the Crowdfunding Business.

Mitigation Strategies

• Increasing the balance of real estate owned; accumulating investment know-how; improving profit margin; acquiring properties that meet standards; strengthening the purchasing system; increasing added value of properties.
• Targeting domestic investors with robust demand; leveraging strengths in real estate-related services for overseas investors.
• Increasing sales personnel and project acquisitions; promoting digital transformation (DX); improving UI/UX; raising awareness of the crowdfunding market.
• Strengthening recruitment of excellent human resources; fostering an open corporate culture; providing a workplace environment for individual growth.
• Recruiting human resources with high expertise and experience; enhancing corporate governance; strengthening internal management system.
• Extending the term of borrowings; managing cash and deposits and real estate portfolio appropriately; paying close attention to trends in COVID-19-related financing.
• Working with Public Relations and Board of Directors to respond to misconduct and keep up to date with regulatory changes.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion

Environmental Achievements

• Actively promoting the shift to renewable energy for electricity used in owned real estate.

Social Achievements

• Actively promoting the appointment of women to management positions.

Governance Achievements

• Established a Nomination and Remuneration Committee composed of a majority of independent outside directors.
• Implemented a stock option system to incentivize performance and enhance corporate value.

Climate Goals & Targets

Environmental Challenges

• Need to deepen discussions with outside directors regarding long-term strategy formulation.
• Need to allocate more time to discussions on succession planning.

Mitigation Strategies

• Utilizing evaluation results to further enhance the effectiveness of the board of directors.

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Listed on the Prime Market of the Tokyo Stock Exchange in April 2022.

Climate Goals & Targets

Environmental Challenges

• Slightly sluggish leasing market due to lingering effects of the coronavirus pandemic.
• Decreased rental income due to renovations of high vacancy rate properties and rebranding of a hotel in Yokohama.
• Challenges in arranging deals for the crowdfunding business in the first half of the year due to active lending by financial institutions.
• Market uncertainty in the latter half of the year due to overseas interest rate trends.

Mitigation Strategies

• Active tenant acquisition and rent negotiations to increase property value.
• Focusing on securing better conditions for the sale of properties after lease-up.
• Expecting increased occupancy and revenue contribution from hotels after the lifting of inbound travel restrictions.
• Increasing the number of lottery-style offerings and lowering investment caps to make it easier for beginners to participate in crowdfunding.
• Exploring new approaches for crowdfunding products, such as individual-oriented funds and STOs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Diversity, Equity & Inclusion (DE&I)
• Human Capital Investment
• Climate Change (TCFD consideration)
• Sustainable Development
• Renewable Energy

Environmental Achievements

• Actively promoting switching to renewable energy for the electricity used by our properties

Social Achievements

• Revised internal rules and regulations to advance DE&I in the workplace; striving to foster an open corporate culture and provide a workplace environment where each employee can grow; preventing the outflow of excellent human resources

Governance Achievements

• Established the Nomination and Compensation Committee; Established the SDGs Promotion Committee; Introduced a restricted stock compensation plan; Granted share acquisition rights and stock acquisition rights as stock options to internal officers, employees, and contractors

Climate Goals & Targets

Environmental Challenges

• Relatively few institutional or foreign investors (limiting the need for electronic voting)
• Fewer opportunities to invest in intellectual property due to business nature
• Climate change risk

Mitigation Strategies

• Will consider using an electronic voting platform if the ratio of institutional investors and foreign investors increases
• Will consider investment policy in intellectual property if IT, such as STO, becomes more important
• Actively promoting switching to renewable energy for the electricity used by our properties

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Switched to electricity generated from renewable energy sources at 20 of 26 properties (as of June 30, 2023). Plan to switch all company-held properties to green electricity by the end of 2024.
• Aiming for zero electricity-related CO2 emissions.

Social Achievements

• Launched donation-type Crowdfunding Business.
• 98% of employees took annual health checkups in 2022.
• Increased workforce diversity.

Governance Achievements

• Maintained 1/3 outside officer ratio.
• Evaluated board of directors effectiveness at least twice per year.
• Compliance training at least 4 times per year.

Climate Goals & Targets

Environmental Challenges

• Costs, such as financing charges, weighed on profits in advance due to aggressive real estate acquisitions.
• Recorded a market valuation loss as non-operating expenses due to new interest rate swap contracts to prepare for interest rate hikes in Japan.

Mitigation Strategies

• Entered into new interest rate swap contracts to prepare for interest rate hikes in Japan.
• Aggressively investing in future business foundation (real estate).

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Interest rate hikes

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Sustainability
• Human Capital
• Climate Change Risks
• Diversity and Inclusion

Environmental Achievements

• Proactively working to switch to renewable energy for electricity used at owned properties

Social Achievements

• Efforts to foster an open corporate culture and create a work environment in which all employees can pursue their own career goals
• Offers seminars on asset management to employees

Governance Achievements

• Established the Sustainability Committee
• Established the Risk Management Committee
• Established the Nomination and Compensation Committee
• Introduced a restricted stock compensation plan
• Introduced a corporate defined contribution pension plan
• Established the “Compliance Rules” and “Compliance Manual”

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• CO2 Reduction
• Health Management
• Diversity Promotion
• Compliance System Strengthening

Environmental Achievements

• 13 out of 19 self-owned properties using renewable energy as of June 30, 2024

Social Achievements

• 98% health checkup participation rate in 2023
• Donation to the Japanese Red Cross Society planned for 2024

Governance Achievements

• Maintaining a 1/3 ratio of outside directors
• Conducting board effectiveness evaluations twice a year or more
• Conducting compliance training four times a year or more

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• Maintaining 100% renewable energy for self-owned properties (excluding properties where the switch is not under Loadstar's control due to tenant circumstances etc.)

Social Achievements

• Achieved certification as a Health and Productivity Management Outstanding Enterprise
• Implemented human capital investment practices
• Made disaster relief donations

Governance Achievements

• Established a Nomination and Remuneration Committee
• Implemented a director evaluation system
• Introduced an equity-based compensation system
• Introduced a skills matrix

Climate Goals & Targets

Environmental Challenges

• Market fluctuations affecting performance
• Securing and retaining talented personnel
• Legal and regulatory changes impacting business operations
• Natural disasters potentially damaging property value

Mitigation Strategies

• Focusing on Tokyo's highly liquid market to mitigate risk, monitoring interest rate trends and economic conditions
• Strengthening recruitment, fostering a positive work environment to prevent talent loss
• Monitoring legal and regulatory changes and adapting accordingly with the help of compliance officers and legal counsel
• Selecting properties meeting high seismic standards, obtaining high-level seismic risk assessments, and securing earthquake insurance

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes)