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Stakeholder engagement

Sustainability policies
– Stakeholder engagement –

We manage our properties as a responsible real estate asset management company by stressing the importance of engagement with our stakeholders such as investors, tenants, business partners, communities and property management companies.

Stakeholder engagement

Basic views

The stakeholders of Kenedix are the customers of properties we manage, the client investors of funds we manage, business partners, communities, employees, and shareholders and other investors. Constant interaction with stakeholders is essential for establishing sound relationships. We are dedicated to using these relationships for even better asset management activities that can in turn help make society better.

Stakeholder engagement

Continuous improvement of customer satisfaction

Basic views

The continuous improvement of customer satisfaction is one of our material issues. One key customer category is the tenants and residents of the properties we manage. We are also dedicated to increasing the satisfaction of Kenedix private fund, private REIT and listed REIT investors. Most important to achieving customer satisfaction are the quality of the properties we acquire and the performance of our funds. We work closely with property management companies and other business partners in order to improve property quality and fund returns.

Portfolio property customer satisfaction

Initiatives at office buildings managed by Kenedix Office Investment Corporation

Customer satisfaction survey

Kenedix Office Investment Corporation conducts satisfaction survey for tenants in office building, i.e. the person in charge of general affairs and employees, about building facilities and operational services, which is undertaken by a third party is conducted in every two years. Consecutive survey enables us to capture the tenant needs and quickly respond by renewal of facilities or implement refurbishment and receive strong intention to stay in the same building from tenants.

Customer satisfaction survey
Renovations for greater convenience and value

Replacing equipment and renovating buildings in other ways in response to information received from the customer satisfaction surveys are critical to maintaining a high level of tenant satisfaction.
Some projects are complete renovations and others involve upgrades of entrances, rest rooms and other locations. Performing renovations as needed at every property keeps every building looking its best and ensures the greatest possible convenience for tenants.

Customer satisfaction survey

Initiatives at residential properties managed by Kenedix Residential Next Investment Corporation

Secure parcel delivery lockers
Secure parcel delivery lockers

For the convenience of residents, Kenedix Residential Next Investment Corporation (KDR) places secure lockers for parcel deliveries in the buildings it owns. In addition, secure lockers eliminate the need for delivery companies to return to a property when a resident is not home the first time. This reduces transportation CO2 emissions and wasted working time for drivers.

Electric car recharging outlets and car sharing
Electric car recharging outlets and car sharing

Parking areas have outlets so that residents can easily recharge electric cars. In addition, KDR improves the convenience of residents by using vacant parking spaces for car sharing.

Tenant satisfaction survey

Kenedix Residential Next Investment Corporation conducts questionnaire surveys for residents in some properties on their level of satisfaction with management and operation.

Neighborhood maps for KDR properties as a tool for introducing properties
Neighborhood maps for KDR properties as a tool for introducing properties

KDR produces maps for its properties that give directions to the property and include information about nearby points of interest. These maps are useful for residents as well as for real estate agents and people thinking about living in a KDR owned property.

Initiatives at retail facilities managed by Kenedix Retail REIT Corporation

Renovations for greater convenience and value
Renovations for greater convenience and value

To keep facilities looking their best and offering the greatest possible convenience for customers, Kenedix Retail REIT Corporation (KRR) conducts renovations that reflect the requirements of each location. Projects range from complete renovations to smaller expenditures for rest rooms or other facilities.

Parcel delivery boxes (PUDO stations)
Parcel delivery boxes (PUDO stations)

A PUDO (Pick Up & Drop Off) station is a parcel delivery box available to anyone and any delivery company. People can conveniently pick up parcels at retail facilities where they often use. PUDO station improves the convenience of customers as they can do shopping at the same time. KRR plans to install PUDO stations at more shopping centers, mainly multi-tenant locations, after completing compliance reviews and other required procedures.

Tenant satisfaction surveys

KRR is performing tenant satisfaction survey in some of the properties.

Fund customer satisfaction

We hold regular meetings with the broad range of institutional investors all over Japan and overseas that have funds managed by Kenedix. Direct dialogues with these investors give them a better understanding of our funds and allow us to hear suggestions, requests and other thoughts of these investors.

The listed REITs sponsored by Kenedix hold earnings announcement information meetings for securities analysts in each fiscal period. These REITs also participate in information meetings for individual investors as needed in order to maintain direct lines of communication with these investors.

Engagement with business partners

To properly share information such as the status of properties and improvements, we meet on a regular basis with the property and building management companies that oversee our real estate holdings. When there is a natural disaster or other emergency, we use our close ties with these companies for quickly determining building damage and performing on-site management.

The listed REITs periodically evaluate the performance of the property management companies they use and hold discussions about their performance. This creates an appropriate level of pressure on both parties to do their best at all times. As an independent real estate asset management company with no obligations or restrictions involving affiliations with other companies or groups, Kenedix has the flexibility to make investments and manage every property in the best possible way.

Topics: Unified Asset and Property Management by the Kenedix Group
Kenedix Real Estate Fund Management, Inc. and Kenedix Property Management, Inc. provide unified asset management and property management services to Kenedix Office Investment Corporation. Using this coordinated framework creates a sound base for providing high-quality office services that precisely match the needs of tenants while taking actions aimed at improving the profitability and value of portfolio properties.
Kenedix Property Management, Inc. established Kenedix Engineering, Inc. for the purpose of providing high-quality total management services by handling renovation and construction projects at managed properties. Adding this company gives Kenedix Property Management the ability to cover a broad range of property management activities extending from know-how to building facilities.

Contact for formal grievance complaint

Kenedix provides convenient channels for customers to submit complaints and consultations and is committed to resolving every issue in a speedy and suitable manner that earns the understanding of customers.

Complaint window

Community engagement

Basic views

We have identified "Community engagement" as material topic and taking various unique initiatives to make positive contribution to the local communities.

Community engagement through managed properties

Local events at retail facilities

Kenedix Retail REIT Corporation mainly invests in neighborhood, community and other shopping centers for daily needs and helps invigorate communities by using these shopping centers to host a variety of events.

  • Roseo Festival
    Roseo Festival
    Roseo Mito
  • Summer Festival
    Summer Festival
    Unicus Ina
  • Kamisato Farmers Market
    Kamisato Farmers Market
    Unicus Kamisato

Cooperating with communities for bicycle sharing

Cooperating with communities for bicycle sharing

Kenedix Office Investment Corporation has agreements with municipalities and the vendors to allow the use of part of an office building's open area as a port for bicycle sharing.
Supporting bicycle sharing makes a community more appealing due to easier mobility and can contribute to vitalize communities and boost tourism. Other benefits are a reduction in discarded bicycles, lower CO2 emissions due to a shift from automobile to bicycle, greater public awareness about protecting the environment, and more opportunities for people to stay healthy by exercising. Kenedix Office Investment Corporation continuously monitors monthly operation status and bicycle utilization by receiving reports and other information.

Supporting Japan for UNHCR

Supporting Japan for UNHCR

Kenedix Office Investment Corporation and Kenedix Retail REIT Corporation support the activities of Japan for UNHCR (United Nations High Commissioner for Refugees), which is the official contact for UNHCR, by providing free space such as common areas of their properties for UNHCR’s campaign to support refugee. In addition, Kenedix Office Investment Corporation also provides refugee support videos on “Digital signage” installed in its properties for free. As a result of these support activities, letters of appreciation were given by Japan for UNHCR.

Japan for UNHCR
Japan for UNHCR

Kenedix community engagement activities

Community participation activities

Calendar recycling campaign

The Kenedix calendar recycling campaign collects unneeded calendars for distribution by social welfare service organizations to senior care and other welfare facilities where the calendars will be used.

Collaboration with local communities
Collaboration with local communities

Kenedix Retail REIT Corporation entered into agreements with Yoshikawa City and Ina Town under which a part of Unicus Yoshikawa and Unicus Ina, respectively, can be used as a temporary shelter at times of emergency.

Education and academic support activities

High school student work experience
High school student work experience

We provided work experience opportunities for high school students. In addition to the tour of our office, they learned about the structure of real estate, real estate funds, and the current status of women’s empowerment.

Donation to orphanage

As a part of our social contribution activities, we donate to children’s homes.

Lecture at SC academy

At the SC (Shopping Center) academy sponsored by the Japan shopping center association, we offer a course on SC management and SC development from a REIT perspective. Students involved in the SC industry have learned about SC management from perspective of REIT funds.

Culture, art and sports support activities

Sponsorship of Hibiya Music Festival
Sponsorship of Hibiya Music Festival

The Hibiya Music Festival is a “borderless music festival that anyone can join for free,” held at Hibiya Park where is a central park in Tokyo. We co-sponsor the Hibiya Music Festival, which is held in the Hibiya Park next to our office.

Donations and support for sports

Activities for the support of sports include donations to the Japan Rowing Association and, through the Used Book Power Project, the Japan Blind Football Association, and support for the Century 21 Ladies Golf Tournament.

International exchange activities

Support for the Mindanao Children's Library
Support for the Mindanao Children's Library

The Kenedix Group donates supplies to the Mindanao Children’s Library in the Philippines on a regular basis. Employees of group companies donate shoes, apparel, stationery supplies and other items that they no longer need. Children who receive these recycled items send a message of thanks to Kenedix every year.

Information and exchange promotion for foreign tourists and long-term residents

Space Design Inc., which is our group company and operates service offices and serviced apartments, publishes monthly What’s on in Tokyo that summarizes event information near Tokyo for foreign tourists and long-term residents.
Also, networking parties are held at the operating facilities to exchange foreign residents and tenants and deepen their understanding of Japan. In addition, there are some cases that they support exchange parties in cooperation with foreign embassies and their tenant restaurants.

SPACE DESIGN STAFF BLOG

Support for overseas student internships

Space Design Inc. provides a place for international students to stay during their internship in Japan through their serviced apartments. In addition, in foreign student exchange programs conducted by universities, etc., there are cases that they provide a place to stay for overseas students, professors, lead staff etc., and a shared lounge is provided as a place for presentations and meetings.

Reconstruction support activities

Matching donations
Matching donations

In the event of a disaster such as earthquake, heavy rain or typhoon, etc., Kenedix conducts a matching donation program to support reconstrucution activities. With this program, Kenedix adds a certain amount to every donation that employees made to an eligible disaster relief charity.

Managing conflicts of interests

Basic views

The real estate operations of Kenedix encompass a broad spectrum of stakeholders as well as a large number and variety of properties owned by various investment funds. The immense scale of these activities creates the risk of conflicts of interest. Preventing this problem requires managing assets while exercising care to prevent conflicts involving transactions between Kenedix funds and other activities.

Managing conflicts of interests is one of our material issues. The Kenedix Compliance Manual has policies for specific measures aimed at preventing these conflicts and protecting the assets of the Kenedix Group. We have compliance and other training programs for reinforcing the commitment of employees to prevent conflicts of interests.

Compliance

Initiatives for our shareholders and investors

Basic views

To establish sound relationships with shareholders and other investors, Kenedix discloses information in a fair and timely manner. Disclosure includes the mission statement, corporate mission, long-term vision, management plans, and other financial and non-financial information. Thorough information is provided in a format that is easy to understand. In addition, there are earnings announcement information meetings and frequent meetings for a continuous dialogue with shareholders and other investors.

Disclosure policy

We have a disclosure policy and disseminate information with substantial added value in a fair and timely manner. We are dedicated to conducting constructive dialogues with shareholders and other investors while giving consideration to "dialogues and feedback," "handling of information to be disclosed" and "silent period."

Disclosure policy

Disclosure on the website

Kenedix distributes business reports twice every year and posts a large volume of information for investors on its website. Investors have access to quarterly earnings announcements and other information disclosed in a timely manner concerning results of operations, strategies, goals and other subjects.

IR information

Dialogue with shareholders and investors

Kenedix holds earnings announcements information meetings twice every year and meets with shareholders and other investors in Japan and overseas frequently at other times. All suggestions, opinions and other information received at these dialogues are seriously considered and reflected as needed in the management of business operations.

For a dialogue with shareholders, we use shareholders meetings to receive shareholder feedback and hold a strategy explanation meeting afterward on the same day to provide results and progress of our business plans and the current policies and goals.

Relevant data

2016 2017 2018 2019
ROE 11.9% 11.7% 13.4% 11.2%
Total return ratio 59.1% 61.2% 93.8% 56.5%