Setting Targets (KPI) for Energy Consumption and Greenhouse Gas (GHG) Emissions

Hulic Reit, Inc. (Hulic Reit) and Hulic REIT Management Co., Ltd. (Hulic REIT Management) are working to reduce the carbon footprint for the entire portfolio to promote energy conservation and measures for prevention of climate change.
Environmental measures are promoted through investment and management operations by implementing a PDCA cycle of regular performance tracking, analysis and execution of measures to achieve reduction targets (KPI) for energy consumption and GHG emissions. Specifically, activities to raise awareness among tenants, utilization of renewable energy, introduction of energy-efficient facilities and equipment, and other efforts are made to reduce GHG emissions.
We have set targets (KPI) for and monitor the performance of the following key indicators.

（1）GHG Emissions

• The following is the scope of subject properties for each year in the calculation of actual figures. The same applies hereinafter.
  ・Subject properties are those held throughout the year (limited to properties for which data is available).
  ・For the properties that Hulic Reit holds under co-ownership, calculations are based on the figures equivalent to the co-ownership interest held by Hulic Reit at the beginning of each year.
  ・The following properties are not included in the aggregation in 2023 as they were acquired or sold during the period. The reason for not including them in the aggregation is to facilitate the comparison of the status of reduction of GHG emissions from fiscal 2018, and the impact of the exclusion of the actual figures for the following properties from the 2023 actual figures is minimal.
  　Properties acquired during the period：Hulic Oji Building, Hulic Kobunacho Building, Hulic Komagome Building, Charm Premier
  　　　　　　　　　　　　　　　　　　　　 Den-en-Chofu, Sonare Shakujii, Hulic Kaminarimon Building
  　Properties sold during the period: Hulic Ginza 7 Chome Building
• For the actual figures in 2023 (✓), limited assurance has been received from Ernst & Young ShinNihon LLC.
• Due to the additional acquisition of the past data, etc., we have revised the GHG emission from 2018. Going forward, the past actual figures may be retroactively revised due to the revision of the scope of aggregation.
• GHG emissions are calculated by multiplying energy consumption by the factor, etc. in accordance with the Ministry of the Environment’s “GHG Emissions Accounting, Reporting and Disclosure System.”

（２）Energy Consumption

• The following is the scope of subject properties for each year in the calculation of actual figures. The same applies hereinafter.
  ・Subject properties are those held throughout the year (limited to properties for which data is available).
  ・For the properties that Hulic Reit holds under co-ownership, calculations are based on the figures equivalent to the co-ownership interest held by Hulic Reit at the beginning of each year.
  ・The following properties are not included in the aggregation in 2023 as they were acquired or sold during the period. The reason for not including them in the aggregation is to facilitate the comparison of the status of reduction of energy consumption from fiscal 2018, and the impact of the exclusion of the actual figures for the following properties from the 2023 actual figures is minimal.
  　Properties acquired during the period：Hulic Oji Building, Hulic Kobunacho Building, Hulic Komagome Building, Charm Premier
  　　　　　　　　　　　　　　　　　　　　 Den-en-Chofu, Sonare Shakujii, Hulic Kaminarimon Building
  　Properties sold during the period: Hulic Ginza 7 Chome Building
• For the actual figures in 2023 (✓), limited assurance has been received from Ernst & Young ShinNihon LLC.
• Due to the additional acquisition of the past data, etc., we have revised the energy consumption from 2018. Going forward, the past actual figures may be retroactively revised due to the revision of the scope of aggregation.

Setting targets (KPI) for the percentage of properties that will have acquired green building certification

Hulic Reit and Hulic REIT Management are promoting proactive acquisition of third-party green building certification (Note) with the intention of raising the reliability and objectivity of the achievements of initiatives for reducing environmental footprint and, at the same time, enhancing building value over the medium to long term.

• One in which a third party certifies the initiatives, performance, etc. of a building in reducing environmental footprint, enhancing comfort for users, etc.

（1）Targets (KPI)

We have set targets (KPI) and keep up efforts for acquisition of green building certification for portfolio properties.

Green Building Certification Acquisition Rate

• Refers to certification by a third-party certification body, such as DBJ Green Building Certification, CASBEE, BELS, and JHEP Certification. The same applies hereinafter.
• In the calculation of the percentage of properties that will have acquired green building certification, the properties subject to calculation do not include properties for which ownership is of the land interest only. The same applies hereinafter.
• In the case of properties which Hulic Reit holds under partial ownership or quasi co-ownership, the calculation is based on the floor area corresponding to its partial ownership or quasi co-ownership interest.

（2）Performance

Of the properties held by Hulic Reit, the actual percentage of properties that have acquired green building certification (based on gross floor area) is as follows:

• Entire portfolio
• Office properties and Retail properties