ADR’s properties will be managed with environmental consideration through the following measures.

a. Extending the lifespan of properties through large-scale repairs and value-enhancement renovations

f. Setting of green-lease clauses.

g. Including a criterion concerning initiatives taken on environment in selecting a property manager.

h. Working together with building managers towards shared goals on environmental concerns.

i. Introducing car sharing in parking lots of properties
As of January 2020, 3 properties (1% of portfolio) have parking lots for car sharing.

1. Extending the Economic Life of Building Structures through Large-scale Repairs and Value Enhancement Renovations

ADR aims to raise unitholders’ value while contributing to the environment (e.g. reducing life cycle CO2 emissions) by extending the economic life and maintaining the value of building structures through large-scale repairs and value enhancement renovations.

2. Environmental Targets and Results (energy consumption, CO2 emissions, water usage and waste volume)

Establishing Policies

ADIM has established policies on “energy conservation,” “greenhouse gas emission reduction,” “water conservation” and “waste management” to improve energy efficiency of ADR’s properties and making effort to reduce the properties’ energy consumption and greenhouse gas emission.

Environmental Targets

1% average annual reduction is the medium to long-term target on reducing energy consumption and greenhouse gas emission for the whole property portfolio.

Note : The reduction target is the same for both Scope1 and Scope2.

Note: Calculated by multiplying the amount of garbage discharged at the property by incinerator emission factor.

Notes:

1. Review period
   The fiscal year starts on April and end on March of the following year.
2. Calculation method
   1. “Intensity” is calculated as follows.
      Total Usage or Emission (MWh) ÷ Total Property Floor Space (m2)
   2. ”Same Store” only compares properties that have annual data for both 2017 and 2018 on energy consumption / GHG emissions / water usage / waste volume. Properties were excluded if they have been newly acquired, disposed, developed,  renovated, or if the properties’ data acquisition rate vary between the reporting period.
   3. “Coverage” is calculated as follows.
      Total Floor Space of Data Collected (m2) ÷ Total Property Floor Space (m2)

3. Setting Green-lease Contract Clauses

51.7% of tenants are under leasing contract with clauses concerning energy and water conservation (green-lease contract) as of January 2020

Also ADR will insert green lease clause in the management consignment contract with property manager at the time of future consignments and contract renewals.

And based on the contract, ADR has received proposals concerning LED installation once a year from the building managers.

By investing in various kinds of urban properties, ADR promotes the reduction of environmental burden and contribute to the revitalization of cities and communities.

1. Investments in Flexible / Mixed Use Properties

ADR invests in flexible/mixed use properties (as of January 2019, 76 properties, 28% of the portfolio), thereby contributing in reducing environmental impact, revitalizing the area and providing convenient facilities to tenants and local residents. In addition, those flexible /mixed use properties have stores and squares open to public which contributes to the revitalization of the cities and the communities, by providing places for people gather.

The flexible / mixed use properties that ADR invests in are;

1. Properties close to train stations which promote the use of public transportations thereby reducing CO2 emissions
   93% (on acquisition price) of properties are located within 10 minute walk from the nearest train station.
2. Properties with convenient facilities such as a supermarkets or convenient stores attached.
3. Properties with open space which are publicly accessible. (As of January 2019, 7 properties (3% of portfolio))
4. Universal design properties that are accessible to senior citizens.

2. Investments Towards Urban Revitalization and Redevelopment Properties

ADR contributes in promoting urban revitalization and redevelopment through investments in the revitalization and redeveloped properties.

In revitalization projects, block districts are re-zoned, lands are more highly utilized and properties within the redevelopment will draw in people to the community thereby revitalizatizing the area.

(There are legal restrictions to the amount of development that J-REITs are allowed to do.)

Urban redevelopment properties acquired by ADR.

1. Pianetta Shiodome
2. RESIDIA Minami-Senjyu
3. RESIDIA TOWER Kami-Ikebukuro
4. Pacific Royal Court Minato Mirai Ocean Tower
5. RESIDIA Tsutsujigaoka