Society

Social Initiatives

1. Communication with stakeholders (Stakeholder engagement)

JLF’s stakeholders encompass a broad range of players, from its unitholders, lenders and bondholders to its tenants, service providers such as property management firms, building management firms and engineers, the communities in which its properties reside and government. JLF continues to build long-term relationships with its diverse range of stakeholders and achieve sustainable management.

Stakeholder	Relationship with JLF	ESG initiatives / Engagement
Employees (Asset Manager)	Form a work environment where a diverse base of talent--the source of a company's competitiveness--can be actively engaged.	・Expand human resource development programs. ・Promote a comfortable work environment and work-life balance. ・Form a corporate culture rooted in mutual respect of human rights and diversity.
Tenants, PM, BM and construction companies, etc.	Secure competitive edge by putting in place an environment that is attractive to tenants, including safety, comfort and convenience. Maintain competitive edge of portfolio properties through collaboration and the sharing of values related to ESG.	・Conserve energy and reduce green-house gas emissions ・Generate energy (introduce solar power systems, etc.) ・Conserve water ・Separate, reduce and recycle waste products ・Hold regular ESG study sessions and opinion exchange forums ・Survey tenant satisfaction
Community	Secure competitive edge by creating an environment that is attractive to the local community.	・Community beautification activities ・Crime prevention ・Contributions to the health and comfort of community residents
Unitholders, Lenders and Bondholders	Stable fund-raising and enhancement of unitholder value over the medium to long term based on relationships of trust	・Activities aimed at building constructive dialogs ・Earnings presentations and IR meetings ・Provision of financial and non-financial information through our website
Government	Collaboration in building communities	・Cooperation with government policies through property development, ownership and management ・Greenification of facilities ・Measures against soil contamination ・Acquisition of CASBEE certifications ・Participation in government-led community building programs

2. Respect for human rights

In accordance with the Mitsui & Co. Human Rights Policy and to help foster a workplace environment in which all officers and employees can play an active role and grow, the asset manager of JLF (MLP) strives to prevent the occurrence of human rights violations, including all forms of harassment, and has registered with the Mitsui & Co. Ltd., hotline, which allows anonymous reporting and consultation to a retained lawyer in the event of any trouble, harassment, or other problems occurring inside or outside the company.
Link to Mitsui & Co. Human Rights Policy

3. Promotion of diversity, equity & inclusion (DEI)

MLP respects the individuality and diversity of each employee and promotes diversity, equity and inclusion (DEI) to preserve and foster a free and vigorous corporate culture. As a member of the Mitsui & Co. Group, MLP aligns with the Mitsui & Co. Group Code of Conduct and promote various initiatives with an awareness of diversity that mutually accepts and respects individuality, equity that pursues fairness in the provision of opportunities, and inclusion that allows employees to demonstrate their individuality and make the most of it as an organization.
Link to Mitsui & Co. Group Conduct Guidelines —With Integrity—

4. An engaged workplace environment

Regarding human resources as the largest asset, MLP makes efforts to create a healthy and pleasant working environment so that individual officers and employees will be able to fully exercise their abilities and advances efforts for the cultivation of human resources through professional education, training and assistance.
In addition, to implement these guidelines, the asset management company will make efforts to raise the awareness of the officers and employees by continuously implementing educational and enlightenment activities with consideration for the environment and society.

(1) Implementation of employee satisfaction survey

JLF's asset manager (MLP) conducts an employee satisfaction survey on an annual basis for all employees (both full-time and part-time employees alike).
MLP fleshes out the thoughts of employees on the substance of their work and the workplace environment (health and welfare) through the survey and the results are leveraged to generate ideas on how best to encourage employees to exhibit their abilities. Furthermore, social activities among employees are organized to facilitate the realization of these ideas. Feedback on the survey results and idea generation is also given annually by the CEO. MLP strive to achieve an average overall satisfaction score of 3.5 or higher each year.

Results of the latest employee satisfaction survey（Third-Party Surveys）

Implementation year	FY2021	FY2022	FY2023
Response rate	100%	100%	100%
Overall Satisfaction*	3.82	3.78	4.00

• Average score for overall satisfaction on a 5-point scale

Feedback based on the results of the 2022 Employee Satisfaction Survey

• Based on the employee satisfaction survey results, MLP confirmed that many employees are focused on how they are evaluated by their supervisor and the personnel evaluation system.
• To maintain areas of high satisfaction and improve areas with insufficient satisfaction, MLP has set KPIs under ESG materialities for　“Respect for Diversity, Employee Motivation and Wellness” and “Employee Performance and Career Development” and will continue to set numerical targets as KPIs for conducting feedback interviews and educational training hours.

Feedback based on the results of the 2023 Employee Satisfaction Survey

• Based on the employee satisfaction survey results, MLP understood that many employees place importance on the items of "communication" and "personnel evaluation system.
• In order to maintain a high level of satisfaction with each content and to improve items that lack satisfaction, with regard to communication, MLP introduced a "buddy system" to promote communication among members with different lengths of company experience and departmental affiliations, and held multiple one-on-one meetings between department managers and department staff. In addition, regarding the personnel evaluation system, "feedback interviews" have been held several times to ensure careful communication regarding annual goals related to performance evaluation.

Development of excellent human resources

(1) Support for acquiring qualifications
Qualification acquisition assistance program is available to all employees and officers (full-time and part-time employees alike) to support those who are willing to brush up their skills.

Overview and Track Record of our Qualification Acquisition Assistance Program

	FY2023
Number of persons eligible for eligibility assistance	20 persons
Eligibility Grant Amount	314,250 JPY

(2) Implementation of In-house Training
MLP regularly conducts training for compliance and employee development, targeting all officers and employees (both full-time and part-time employees alike).
Based on the human resource development program of Mitsui & Co., (sponsor of JLF), all officers and employees (including regular employees and contract employees) are encouraged to participate in compliance and legal training, ESG training, real estate training, business skill improvement training, management and leadership training, training on the promotion of diversity, equity & inclusion (DEI), etc., as well as external seminars, etc., to develop the human resources of officers and employees.

Main contents

Compliance and Legal Training

Compliance Officer holds study sessions and invites outside lecturers (Lawyer) on topics such as information management / transactions with interested parties / understanding and responding to financial regulations / anti-social forces / insider trading regulations / statutory books and documents / major findings in securities inspections of financial instruments business operators, etc.

ESG Training

In addition to holding internal study sessions and exchanges of opinions on the world situation regarding ESG, investor interest, and what JLF should do, MLP also holds study sessions with external lecturers and encourage participation in external seminars.

Real Estate Training (Job-specific development training)

Training on the real estate market is conducted regularly, bringing in outside lecturers, realizing a program that enhances expertise with information on market trends and other knowledge required for real estate investment management.

Business skill improvement training

MLP encourages participation in Mitsui & Co.’s Business skill improvement programs and outside seminars and training and provide opportunities to improve business skills such as logical thinking/finance/presentation.

Management and Leadership Training

This is one of Mitsui & Co.’s human resource development programs, providing employees with opportunities to learn about the roles required of them at their stage in life.

• Training to strengthen team contribution skills
  Training for non-managerial employees to "proactively view work in line with team goals and issues" and to "consider the problem-solving process and effective ways of approaching those around them”
• Leadership Enhancement Training
  Training for current team leaders and potential team leaders with the goal of "developing leadership that leverages one's strengths" and "acquiring the necessary mindset and skills to bring together diverse strengths”
• Training for office managers and section managers
  Training for newly appointed managers with the goals of "learning management from a higher perspective as a manager" and "learning leadership to mobilize diverse individual strengths and encourage members' initiative”
• Training for department managers
  Training for employees in managerial positions to "learn leadership for change and growth" and to "understand the role of managers in strengthening group management”

Training on the promotion of diversity, equity & inclusion (DEI)

MLP understands the importance of promoting diversity, equity & inclusion (DEI). MLP provides training opportunities for employees to create an organization that leverages the individuality and diversity of each employee.
In FY 2023, MLP provided training opportunities conducted by the Mitsui & Co. Group.

Training Achievements

	FY2023
Average training hours per employee	22.2 hours
Number of trainees	35 persons
Training Assistance Expenses	575,850 JPY

	FY2023
	Average training hours	Average number of participants	Number of trainings
Compliance and Legal Training	1.0 hours	35 persons (100%)	6
ESG Training	1.5 hours	24 persons (100%)	4
Real Estate Training	1.3 hours	20 persons (56%)	9
Management and Leadership Training	7.1 hours	4 persons (9%)	8
Training on the promotion of DEI	1.3 hours	20 persons (100%)	2

(3) Appropriate performance evaluations and feedback processes

MLP seeks to make evaluations transparent by having supervisors set goals and hold feedback interviews every year with all employees (including both full-time and part-time workers) and providing opportunities for consensus formation among supervisors and the employees they supervise. Specifically, meetings are conducted at the beginning of the fiscal period to set goals and confirm the direction of work activities. Moreover, mid-period and period-end feedback interviews are held, too. At the meeting at the beginning of the period, all employees (including both full-time and part-time workers) confirm with their supervisor the goals they set out to achieve and activities aimed at overcoming challenges. The mid-period feedback interview is a forum for supervisors to confirm goals and progress and clarify how problems get solved and processes for achieving goals. At the period-end feedback interview, the level of achievement of goals and processes is confirmed, and feedback is provided on the basis for evaluation results and future challenges. The evaluation method comprises evaluations of performance and capabilities. For performance evaluations, quantitative and qualitative targets are set, and the level of achievement is evaluated. Capabilities evaluations are based on the extent to which the employee exhibited capabilities expected of that person's grade. Evaluation studies take place three times for each officer and employee to ensure fairness and impartiality in evaluation.

Personnel evaluation and feedback system

Percentage of personnel interviews conducted

	FY2023
Percentage of feedback interviews conducted	100%
Percentage of goal-setting interviews conducted	100%

• For direct hire employees.

Consideration for work-life balance

(1) Practice work-life balance

MLP believes leveraging support systems will help promote diversity, equity & inclusion (DEI). MLP strives to enhance systems and support with consideration for work-life balance, including the enhancement of the childcare leave and the nursing care leave systems and the flexible working hour system, enabling each office and employee to be able to continue working energetically according to their lifestyles.

• Support for achieving balance between work and raising a family

  All officers and employees (Both full-time and part-time employees alike) are eligible for the family leave program, which has been more fulfilling than legal requirements since FY 2014. The work environment allows any officers and employees, regardless of gender, to actively participate in family responsibilities as part of a program that promotes achieving a work-life balance.

  • Childbirth attendance leave system: Able to take up to three days.
  • Salary during leave before and after childbirth and childcare leave: Salary will be paid for up to eight weeks after the commencement of childcare leave, during the leave, before and after childbirth.
• Special paid leave system

  MLP has introduced a special paid leave system to increase the motivation of officers and employees and fulfill their daily needs.

  • Anniversary (one day a year)
  • Volunteering (five days a year)
  • Recognition of many years of service (10 years, 15 years and 20 years) and the payment of a special bonus
  • Long-term injury and disease holiday (maximum 40 days): Paid leave that lost effect can be accumulated and taken as leave during long-term injury or disease
• Flexible working hour system

  All officers and employees (Both full-time and part-time employees alike) are eligible for flexible workhour and hourly paid leave programs. These programs are designed to help officers and employees achieve harmony between work and life in a way that suits their individual lifestyles. JLF has a work environment where individuals’ work volumes are assessed, and a reasonable working style is achieved in each department. Thus, there was no need to set up no-overtime days; officers and employees can adjust their workloads as necessary and complete their work before the workday is over.

• Introduction of WFH (working from home) system

  A temporary WFH system was introduced following the first declaration of the state of emergency in 2020, and WFH system was subsequently continued as an emergency response to the COVID-19 disaster.
  One and a half years after the introduction of WFH system, the Asset Manager decided that executives and employees would be able to perform their duties to the best of their abilities without any change from normal times, and in December 2021, the system was permanently installed.
  MLP believes that the introduction of the WFH system will enable each and every officer and employee of the MLP to be active as an employee regardless of where they work.

(2) Promoting health and improving benefits

MLP strives to promote health and improve benefits for all officers and employees (Both full-time and part-time employees alike) through the following initiatives:
All officers and employees receive support to maintain good health and safety in the form of health check-ups and partial financial aid for health examinations.
As for benefits, a corporate defined benefit pension fund has been introduced in addition to a complete social insurance system.

Status of Asset Management Company Officers and Staff

Item	FY2023
Total executives and employees	35 persons
Percentage of full-time employees	100%
Male	26 persons
Female	9 persons
Percentage of female executives and employees	26%
Average Number of Years of Attendance	6.2 years
Number of retirees	3 persons
Percentage of retirees	9%
Number of managers	5 persons
Number of male managers	5 persons
Number of female managers	No person
Percentage of employees with disabilities	0%
Percentage of foreign employees	0%
of those who have lived abroad	17.1%
Response rate to health examination	100%
Paid leave acquisition rate	81.3%

Number of childcare leave recipients

	FY2023
male	2 persons
female	No person

Percentage of special paid leave system used

	FY2023
Anniversary day off	82%
Volunteer Leave	0%
Recognition of many years of service leave	3%

• One employee was eligible for Recognition of many years of service leave in FY2023.

(3) Employee hotline

In the event an employee falls victim to harassment or some other problem, either inside or outside the company, he/she can notify and consult an assigned attorney anonymously via a hotline.

(4) Investment unit accumulated investment system

All MLP employees (including full-time and part-time employees) and officers may use a brokerage firm’s cumulative investment system to acquire JLF investment units. The aim is to support benefits and wealth formation over the medium to long term for employees and the like and raise awareness of business performance improvement at JLF.

Human Resources Pipeline Development Strategy

The asset manager of JLF (MLP) formulate recruitment plans in accordance with their medium- to long-term business plans.
Based on the business plan, MLP has a system in place to determine “which departments,” “when,” and “what kind of personnel” are needed and assign the right people at the right time.
In order to maximize the use of our recruiters’ talent pool, MLP has put in place a system that makes it easy to recruit the right people by constantly sharing future recruitment plans with our recruiters.

5. Initiatives for Local Communities and Tenants

Initiatives to contribute to society

1. disaster response and building safety

MLP strives to maintain the safety of buildings during normal times and promotes initiatives to prevent the spread of damage in the event of a disaster and to achieve early recovery in the event of a disaster.

(1) Diagnosis of building safety and earthquake risk

JLF and MLP diagnose the compliance and safety of buildings at the time of acquiring properties by obtaining an engineering report. Furthermore, JLF and MLP quantitatively analyze the risk of collapse due to earthquakes and make acquisition decisions based on risk assumptions, referring to “liquefaction prediction maps” published by various government agencies regarding liquefaction and tsunami in the event of an earthquake.
In addition, the asset management company is working to maintain the safety of buildings held by regularly obtaining an engineering report on an ongoing basis.

(2) Efforts for resilience against disasters

MLP has established the internal structure necessary to prevent damages from expanding, secure business continuation and quickly recover to a normal state of work when a disaster occurs. In addition, to promptly verify the condition of assets held when a disaster occurs, the asset management company has developed a communication and verification system involving the property manager.
On top of that, the asset management company has installed on-site power generators that can used during a power outage and toilets that are available for use even during a disaster by using private power generation and well water at some properties.

2. Initiatives aimed at activating local communities

(1) Urban Development (Local Community Revitalization through property development and redevelopment)

Through the redevelopment of portfolio properties (OBR) and joint development with business partners, JLF contributes to enhanced logistics activity and the revitalization of urban areas. Some of the tenants who occupy space in JLF facilities handle consumer staples. As such, JLF’s ownership of logistics facilities supports the provision of lifestyle and infrastructure services in communities. Moreover, in recent years, welcoming e-commerce players as tenants has enabled JLF to contribute to the provision of convenient services. Within logistics facilities, products are stored, sorted, packed and shipped. By building and providing modern large-scale logistics facilities, JLF contributes to a more vibrant local economy through job creation and the like.
JLF has a track record of redevelopment (OBR) of five of its properties, including the Urayasu Logistics Center.
JLF also has a track record of joint development with partner companies.
For example, for the Aisai Logistics Center, Enterprise Agency of Aichi Prefecture approached JLF about participating in a proposal-based bidding process to revitalize the city by using land for sale in the prefecture.
The partner company actually constructed Aisai Logistics Center, which JLF acquired and operated, thereby contributing to the creation of local employment and the revitalization of the local economy.
When developing underutilized land or greenfield sites such as the Aisai Logistics Center, JLF will consider acquiring green building certification after the acquisition by also taking the environment into consideration.

Aisai Logistics Center

(2) Provision of lifestyle infrastructure to the community

JLF recruits mobile phone companies to install their antennas on portfolio properties, which has contributed to improved cellular coverage in the community.

(3) Building Versatility

JLF owns highly versatile facilities, with space that can be converted to office or manufacturing applications. This enables a wide variety of tenants to make continuous use of the facilities over the long term, thereby contributing to regional revitalization.
For example, the Itabashi Logistics Center is located in Tokyo’s 23 wards, which is convenient to transportation and attracts office space needs, and while the tenants primarily use the space for storage, they also have an office to serve as their “headquarters base.
The company has an office as its “headquarter base” and also offers “photography use of available space. The facility can be used for either storage or office space after tenants vacate.
In addition, JLF also owns many other properties in the 23 wards of Tokyo and close to the city center, which can be used not only as logistics facilities but also as office and exhibition space.

Itabashi Logistics Center

(4) Regional revitalization through collaboration with local businesses

JLF cooperates with local companies in projects to revitalize the local communities of the properties it owns and to promote environmental conservation activities.
Sendaiko-kita Logistics Center is participating in a plant factory project using carbon-free electricity promoted by Tohoku Electric Power Co., Inc., PLANTS LABORATORY INC., York-Benimaru Co.
The plant factory is operated by Plants Laboratory, together with local farmers, on a plot of land adjacent to the SendaiKo-kita Logistics Center, and uses renewable energy obtained from solar panels installed on the roof of the SendaiKo-kita Logistics Center.
Since April 2022, vegetables have been shipped to YORK BENIMARU CO., LTD.
https://solution-next.tohoku-epco.co.jp/news/detail/id=192(Japanese only)

(5) Technical Evaluation of Environmental and Social Risks at Portfolio Assets

JLF regularly conducts technical evaluations of environmental and social risks of portfolio assets. Aside from conducting risk management, JLF also evaluates environmental initiatives.
More specifically, based on a building condition evaluation report acquired once every 5 years, JLF drafts maintenance plans aimed at facilitating the long-term use of the building. Additionally, a portfolio PML is calculated every fiscal period, and the potential impact in the event of an earthquake is evaluated.
As part of the appraisal of portfolio assets that takes place each fiscal period, property access and public transportation availability are also reviewed in calculating an appraisal value.

3. Connection with the local community

(1) Contribution to the local community

JLF works to vitalize communication with tenants and local residents through cleaning activities in cooperation with the property managers, the building management companies and tenants.

(2) Contribution to the safety of the local community

JLF works to contribute to the safety of tenants and local residents by installing security cameras that are able to monitor areas surrounding the property, on vending machines at the facility for some properties.

(3) Contributing to communities through natural disaster agreements with municipalities

JLF executed the Agreement on Storage of Goods in the Event of a Disaster with Kanagawa Prefecture and the Agreement on Cooperation in Providing Facilities, etc. in the Event of a Disaster, etc. with the Soka Yashio Fire Fighting Union as part of our efforts to contribute to communities through natural disaster agreements.

Initiatives aimed at enhancing tenant satisfaction

(1) Implementation of a tenant satisfaction survey

JLF implements a tenant satisfaction survey to obtain the requests and opinions of tenants. JLF shares survey results with the property manager and the building management company, which leads to improvements in building specifications, equipment and services.

(2) Consideration for the safety, amenity and health of users

JLF checks the compliance of properties when it acquires them and the compliance and safety of properties after acquiring them by regularly obtaining an ER to enable users to be able to safely use the properties.
In addition, to create a pleasant working environment for the users, JLF considers the health of the users and enhances amenities by setting up a cafeteria, break room and a kiosk at some properties and regularly assessing the air-conditioning.

ESG efforts with property managers

When JLF implements ESG efforts for its properties, JLF asks property managers for cooperation. JLF also sets requirements for corporate ethics, human rights and industrial health and safety for the property managers and monitors whether those requirements are practiced.

Additionally, to enhance ties with third-party property managers, JLF holds training sessions with these property management companies on sustainability and ESG. JLF also shares with them the results and targets on energy consumption for the properties they manage as part of its efforts to engage their cooperation in achieving these targets.

Percentage of ESG training sessions held for property managers (FY2023)

Number of properties	Percentage of portfolio
52	100.0%

Percentage of property managers receiving energy consumption reports (FY2023)

Number of properties	Percentage of portfolio
52	100.0%