Sustainability

Ⅳ. Social Contributions

ADR conducts the following initiatives to increase tenants’ satisfaction which will stabilize and improve profitability of its properties.

A. Increasing tenants’ satisfaction

1.Tenant Satisfaction Surveys

ADR triennially conducts satisfaction surveys for tenants residing at RESIDIA branded properties.

  Date of
the survey
No. of
Respondents

Total No. of
People Surveyed

Response
Rate

Total No. of
Leasable
Units
Survey
Coverage
1 Between April
to July 2014
3,106 14,155 21.9% 19,078 74.2%
2 Between Sept.
to Nov. 2017
3,945 16,445 24.0% 20,842 79.0%

Tenants showed high satisfaction towards the location (for commuting ease, good local environment) and the quality (units’ atmosphere and design) of properties.

2. Tenant Services*

ADR offers a variety of services toward tenants residing in ADR’s properties to enhance tenant’s satisfaction to improve tenant retention rate. Examples of the services include “RESIDIA Customer Support” which is a support desk exclusively for tenants and “Moving Style,” offers discounts for tenants who are moving from one RESIDIA apartment to another.

* Please visit the RESIDIA website[Japanese only] for details.

3.Emergency Maps and Emergency Kits

On common area walls of properties, ADR puts up emergency maps (as of end of January 2019, in 100% of its 264 properties). indicating evacuation routes to evacuation sites which help to ensure safety during the occurrence of a disaster as well as to raise disaster prevention awareness (as of end of January 2017, 100% of 257 properties and as of end of January 2018, 260 properties, 99.6% of 261 properties were equipped with the maps.
 
 Also, in many of its “RESIDIA” branded residence, ADR distribute emergency kits free of charge to any tenant who wishes for such kits.
 

B.Contributing to Local Communities

In many ADR’s properties, AEDs are available for public use and vending machines that make charitable donation to a pediatric cancer treatment facility using part of the proceeds from the sales of its merchandise are installed.

C. Sponsoring College Student Investment Presentation Contest

 Sponsored and participated in “The Third University Student Investment Presentation Contest” organized by the Student Investment Union (USIC) held in February 2019. In this contest, 13 investment clubs of universities belonging to USIC were each assigned to one of the 12 listed companies participating. The clubs were to evaluate the assigned company with an investor’s perspective through interviews with the target company’s personnels and by researching the company’s disclosure materials, and make a presentation on what they have discovered.

Coincidently, Kokugakuin University team who was assigned ADR, won the contest.

By sponsoring such events, we believe that we were able to contribute in promoting investment literacy among students.

D. Human Resource / Talent Development

Stable growth of ADR is dependent on the talents of ADIM’s personnel. The human resource and talent development strategy at ADIM is aimed at realizing their potential to the fullest.
 Specifically, ADIM defines all the required technical and social skills for each level of work on which each employee will be evaluated and use the evaluations to hire, train and promote employees.
To help employees realize their potential and develop their career, they are able to declare their career path wishes. The declaration will be used to consider optimal assignment of positions.
Additionally, ADIM is the only J-REIT asset management company to consistently hire new graduates every year.

*In accordance to the “Act on Investment Trusts and Investment Corporations” ADR outsources its asset management, custody, administration and prohibited to hire employees, other than executive directors and supervisory directors.

1.Human Resource / Talent Development Statistics

Coverage – Full-time employees and contract employees
  FY2014 FY2015 FY2016 FY2017 FY2018
Total No. of Employee *1 56 60 63 67 61
Male 46 48 50 53 50
Female 10 12 13 14 11
Female Ratio to Total 17.9% 20.0% 20.6% 20.9% 18.0%
Average Years of Service 5 yrs 12 mths 6 yrs 3 mths 6 yrs 10 mths 7 yrs 5 mths 8 yrs 1 mth
Male 5 yrs 10 mths 6 yrs 2 mths 6 yrs 10 mths 7 yrs 7 mths 8 yrs 3 mths
Female 7 yrs 2 mths 6 yrs 4 mths 6 yrs 8 mths 6 yrs 11 mths 7 yrs 6 mths
Total No. of New Hires 8 5 4 5 2
Male 6 3 3 3 2
Female 2 2 1 2 0
Turnover Rate *2 5.4% 3.3% 4.8% 9.0% 4.9%

*1 Number of employees at the start of the fiscal year.

*2 Turnover rate is calculated by dividing the number of employees leaving the company by the initial number of employees at the start of the fiscal year.

*2 Additionally, there were no employment terminated due to corporate merger, acquisition or restructuring or other reasons.

Workstyle Reforms Diversity

FY2014 FY2015 FY2016 FY2017 FY2018
Ave. Over-time Hours 25:36 23:46 18:47 16:29 17:31
Paid Vacation Acquisition Rate 67.3% 68.2% 78.0% 77.2% 79.9%
Female Executive Ratio 9.1% 10.0% 12.5% 0.0% 0.0%
Female Manager Ratio 0.0% 0.0% 0.0% 0.0% 0.0%
Childcare Leave System User 1 4 2 1 1
Childcare Short Work-hr. User 1 1 3 2 1
Employee health and safety FY2014 FY2015 FY2016 FY2017 FY2018
Annual Medical Exam Rate 100% 100% 100% 100% 100%
Occupational accident frequency rate *3 0.00 0.00 0.00 0.00 0.00

*3 Occupational accident frequency rate = number of casualties caused by disasters ÷ total working x 1 million hours.
For details, please refer to here.

2. Human Resource / Talent Developmen

At ADIM, the company offers its employees various career development, help for attaining degrees and certifications, and other trainings.

Only full-time employees are eligible for help in career development, regular performance appraisals and feedback. On the other hand, both full-time employees and contract employees are eligible for support programs on attaining degrees and certifications.

3. Career Development

At ADIM, the company offers to its employees various programs to develop their talent and career.
For an example, the company provides courses or subsidies to attend classes offered at Keio Marunouchi City Campus, Globis University Graduate School of Management or English language classes to develop business and language skills.
Also, employees in a non-managerial position are asked annually to declare their desired career path and discuss with their superior.
New graduates will be rotated through departments for the first five years or so and will be able to accumulate various work experiences. Moreover, new graduates will have, in addition to a senior colleague instructor, a colleague that will act as a mentor who the new graduates may consult on various subjects.

4.Regular Performance Appraisals and Feedback Processes

Full-time employees are under subject of annual performance review.
Each individual employee will discuss with his/her reporting superior and agree on a performance goal at the beginning of the fiscal year. Progress will be reviewed and advises will be given at the mid-term review. At the end of the fiscal year, performances will be evaluated and evaluation fed back.
Salaries and bonuses will be decided based on the evaluation. In addition to individual performance, bonuses will partly be linked to the fiscal performance of ADR.
These Individual performance review sessions are not only used to feed back evaluations and discuss future career development plans but used to devise human resource allocation strategies.

5.Support for Attaining Degrees and Certifications

ADIM provides courses offered at Keio Marunouchi City Campus, Globis Excecutive School or language schools to help employees develop business and language skills.

Also ADIM recommends employees to acquire certifications to improve business execution ability and acquire expertise.
ADIM provides subsides for expenses to assist to obtain the certifications.

No. of Employees with Certifications

Certification No. of Persons
Real Estate Broker License 30
ARES Certified Master 43
Certified Building Administrator 3
First-Class Architect 4
Securities Analysts 4
Certified Public Accountant 2
U.S. CPA 1
Labor and Social Security Attorney 1
Certified Internal Auditor 1
CASBEE Architecture Evaluation Member 1

6.Subsidizing Acquisition of Certification

ADIM recommends employees to acquire certifications to improve business execution abilities and gain expertise and give assistance to the effort by subsidizing the expense of obtaining the certifications.

Examples of subsidized certifications;

Real Estate Broker License, ARES Certified Master, Securities Analyst, Authorized Real Estate Consulting Master, Certified Building Administrator, etc.

7.Job-Specific Development Training Programs

ADIM has in place a wide range of training programs and self-development support systems according to the employee’s position.

Position

Category Overview

Managers

General

Staff

Non-regular employees

Time/No.

Managers

Training for Newly Appointed Officer

Responsibility and Role Recognition Required for Executives

1

6

Training for Newly Appointed Managers

Program to train Newly Appointed Managers

4

36

General Staff

Next Manager Training

Management training

2

8

Next Generation Business Leader Training

Leadership trainin

2

16

4th Year Training

Training for employees who work for the fourth year since joining the company

3

8

Instructor Training

Instructor training for employees designated as instructor of new grad employees

3

16

New Employee Training

Basic training for new employee (ITOCHU Group)

3

48

Accounting Training

Training for basic understanding of accounting for new employees

3

OA Training

New employee training, some young employee

4

16

Mentor Employee System

Support system by senior employees (company bears expenses)

6

Carrier Path Declaration System

System that can declare desired career

39

Overall Training / Self- Development

Compliance Training and Testing

Training on overall compliance ( including human right )

All executives and employees must attend the training.

Apart from the training, compliance tests are conducted once a month, in principle.
Total 437

   

Sustainability Training and Testing

Training aimed at raising the awareness of executives and employees

31 27 6

Business Productivity Improvement Training

Excel macro · VBA training

7 20 16

Internal Study Group

In-house seminars held by each department (inviting lectures that are experts in the field, ie. tax law, interest rate market, etc.)

Held constantly

Aiding Self-Development by Commuting to Business School

Aiding the cost of attending adult education provided by Keio University

1 1 18

Cafeteria Style Training

Business professional e-learning course provided by ITOCHU.

(freely select from over 200 courses such as management, business skills, language, qualification, communication, PC skills, etc.)

4 26 4

Training for examinations of Real Estate Broker License

Internal training for applicants

0 7 1 15

Qualification Acquisition Support

ADIM subsidizes expenses related to acquisition of specified qualifications.

2 10

Language Learning Support

ADIM subsidizes expenses for language classes for the purpose of improving the language skills necessary for business.

2 2 65

E. Employee Welfare Programs

Of the following programs, all employees are eligible to take part in grievance reporting and escalation procedures, company trips, and other employee benefits.
In addition, full-time employees and contract employees are eligible for paid holidays, other leaves and shortened work hour schemes.
Rest of the than that programs are for, regular full-time  employees are eligible.

1. Employee Investment Unit Ownership Program

ADIM has started an employee investment unit ownership program. It was the first J-REIT asset management company to align ADIM employees’ interest to ADR’s unit-holders’ interest using the ownership program and also be financially beneficial for ADIM employees.

For details, please refer here.

2.Formal Grievance Reporting and Escalation Procedures

ADIM believes Formal grievance reporting and escalation procedures is essential to encourage the reporting of misconduct, fraud and corruption. Therefore ADIM has established whistleblowing system with three internal and three external third-party hotlines.

3.Labor Relations

ADIM respects the basic rights of our employees regarding the freedom of association and collective bargaining.
ADIM continuously holds appropriate and sound labor-related discussions with worker representatives.

4.Welfare Programs

Membership to Cafeteria-style Benefit Package

The cafeteria-style benefit package offer employees preferential rates on various activities, for example hotel rates, local fitness facility fee, movie tickets, supporting employees’ leisure time activities and promoting physical and mental health.

Congratulatory and Condolence Payments

We congratulate our employees on their joyful events and offer condolences on their sad occasions.

Extended Employment

Although retirement age is set at sixty years old, eligible employees may be re-employed on yearly renewable contract bases.

Company Trips

To promote collegiality among our employees, we organize annual company trips to resorts for one to two night stay.

Other Employee Benefits
・Recreational Clubs

The company provides financial support to recreational clubs which employees have formed. The clubs are actively participated by employees.

・Company Gatherings

We organize fiscal year end party to celebrate on everybody’s hard work.

There is also a monthly in-house gathering held during work hours where snacks, meals and drinks including alcoholic beverages are served. It is intended to promote closer ties between employees in different section of the company.

5.Work-life Balance Initiatives

ADIM has been introducing the following measures to improve employee’s work-life balance.

To enable employees to flexibly accommodate with their responsibilities to their family depending on their life stage or the way they want to relate to their community, ADIM has introduced paid-leaves and other employment schemes.

There are childcare leave and shortened work hours for employees with small children, nursing leave for employees with dependents in need of nursing, volunteering leaves for employees who wants to individually contribute to their community and hourly based paid vacation to promote the usage of paid vacation.

Additionally, in 2013, to promote productive work routines we have designated every Wednesday as “no-overtime day” and make every employee leave work on time. As a result, the average over-time hours per month have drastically decreased.

Based on these measures, ADIM has applied to the Tokyo Metropolitan Government to be approved as “TOKYO Working Style Reform Declaration Company” in March 2018 and has become the first J-REIT asset management company to be approved.

6. Periodical Monitoring of Employee Satisfaction

ADIM periodically conduct employee satisfaction survey to improve the workplace environment so that each employ can feel pride and pleasure working for the company.

F. Human Resource / Talent Development at the Sponsor Company

Itochu Corporation, the sponsor of ADIM, acknowledges that human resources are its greatest company asset to the growth of the company and addresses aggressively on talent development. Please refer to details here.

Also at Itochu Corporation, there is a four-days internship program in  the new graduate hiring procedure in which prospective new hires are expected to participate before official employment.

Itochu Corporation also carries out initiatives to ensure the health and safety of employees at workplaces, which are open for participation to the group companies such as ADIM. Please refer to details here.