Sustainability Policies -Contribution to a sustainable environment-

Certifications

Certifications

As a pioneer in the sustainability field in the REIT industry, each REIT will continue to advance environmental and energy conservation measures as well as efficient energy use for their portfolio and proactively acquired the following certifications and assessment to promote initiatives for sustainability.

Overview of Environmental certifications

Overview of environmental certifications (KDX Realty Investment Corporation)

(as of December 31, 2025)

Note 1: If a property has multiple environmental certifications, it is counted as one property. Subtotals and total are calculated by consolidating properties based on their names to avoid duplication.

Note 2: The ratio of each floor area to the total floor area of properties owned by KDXR (2,335,817.53 m², calculated on a pro-rata basis of ownership ratio for compartmentalized ownership).

Overview of environmental certifications and evaluations
(Kenedix Private Investment Corporation)

(as of December 31, 2025)

Note: The ratio is the percentage of certified floor area to the gross floor area of properties owned by KPI (calculated on a pro-rata basis of ownership ratio for compartmentalized ownership).

CASBEE Certification

CASBEE Certification for Buildings

CASBEE Certification for Buildings uses one of the tools, CASBEE for Buildings (New Construction), CASBEE for Buildings (Existing Buildings) or CASBEE for Buildings (Renovation), and is rated in five scales: rank S, rank A, rank B+, rank B- and rank C for buildings with a total floor area of 300 m2 or more.

• For more details concerning CASBEE Certification for Buildings

CASBEE Certification for Real Estate

CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is an evaluation system provided by the Institute for Building Environment and Energy Conservation (IBEC), to assess and evaluate the environmental performance of buildings, developed under the auspices of the Ministry of Land, Infrastructure, Transport and Tourism.
CASBEE Certification for Real Estate is rated in four scales: rank S, rank A, rank B+ and rank B for buildings with one or more years old after completion.

• For more details concerning CASBEE Certification for Real Estate

CASBEE Certification for Wellness Office

CASBEE Certification for Wellness Office is mainly for office buildings, which are evaluated for their environmental performance for healthy and productive work by building workers.
CASBEE Certification for Wellness Office is rated in five scales: rank S, rank A, rank B+, rank B-, and rank C that assesses the environmental performance of office buildings, with the aim of creating healthy and productive working environments for the people who work in them.

• For more details concerning CASBEE Certification for Wellness Office

BELS Certification

BELS (Building-Housing Energy-efficiency Labeling System) is the third-party evaluation system to rate houses and buildings in accordance with duty to make effort to label energy saving performance in the Act on Improving of Energy Consumption Performance for Architectural Structures. Houses and buildings are evaluated based on the value of BEI (Building Energy Index) derived from the primary energy consumption based on the building energy consumption performance standard set by the government.　 The evaluation result is represented by a number of stars (one star “★” to six stars “★★★★★★”).
KDX Realty Investment Corporation was the first J-REIT to acquire this certification in 2014.
ZEB refers to buildings that achieve significant energy savings while maintaining indoor environmental quality through advanced architectural design to reduce energy loads, active utilization of natural energy via passive technologies, and introduction of high-efficiency equipment systems. By incorporating renewable energy, they maximize energy self-sufficiency and aim to achieve net-zero annual primary energy consumption. ZEB evaluation uses the BEI metric employed in BELS assessment, certifying buildings in four tiers based on achievement: “Nearly ZEB,” “Nearly ZEB,” “ZEB Ready,” and “ZEB Oriented.”

• For more details concerning BELS certification

ZEB is a building that aims to achieve a net zero annual primary energy balance. It is pursued by significantly reducing energy consumption through advanced architectural design to minimize energy loads, actively utilizing energy sourced from nature through passive technologies, and introducing highly efficient equipment systems, while maintaining indoor environmental quality. Furthermore, by incorporating renewable energy, ZEB strives to maximize energy self-sufficiency. The evaluation of ZEB uses the BEI applied in BELS assessments, and certification is granted in four stages according to the achievement level: “ZEB,” “Nearly ZEB,” “ZEB Ready,” and “ZEB Oriented.”

• For more details concerning ZEB

DBJ Green Building Certification

DBJ Green Building Certification Program was launched by Development Bank of Japan Inc. (DBJ) to support real estate that meets environmental and social considerations.
The program evaluates and certifies real estate with environmental and social considerations, taking into account each property's environmental features and measures taken for various stakeholders, such as disaster and community-conscious measures.

Furthermore, there are 5 levels, “five stars”, “four stars”, “three stars”, “two stars”, “one star” as the certification ranks.

KDX Realty Investment Corporation was the first J-REIT to acquire this certification in 2011.

• For more details concerning the DBJ Green Building Certification

ResReal Real Estate Resilience Certification

ResReal, is the first certification program in Japan to evaluate the “Robustness (location and building)”, “Redundancy”, “Readiness” and “Substitutability” of properties to quantify and visualize the resilience (strength, flexibility, resilience and resistance) of real estate against natural disasters, certified by the Japan Real Estate Institute.
ResReal Flood Damage Edition quantifies the resilience of the subject property to flood damage on a 100-point scale, with five grade ranging from Platinum (extremely resilient) to Standard (generally resilient) depending on the score.
KDX Realty Investment Corporation was the first J-REIT to acquire this certification in 2023.

• For more details concerning ResReal Certification

Reduction of Energy Consumption and CO₂ Emissions (Climate Change Initiatives)

Basic views

Global warming, as the main factor for a climate change, has been the primal topic at international meetings, and in 2015 Paris Agreement has adopted a new framework. In this agreement, one of the goals is to keep the increase in global average temperature to well below 2℃, preferably to 1.5℃, compared to pre-industrial levels. In addition, at COP26 in 2021, the Glasgow Climate Pact was agreed that the 1.5℃ target remains in sight and scales up action on dealing with climate impacts., Each Investment Corporation and the Asset Manager recognize that mitigation and adaption of climate change, and introduction of renewable energy is the most important issue for our business activities and properties under management.

Reduction of energy consumption and CO₂ emissions is one of our material issues. We are making a contribution to environmental sustainability by using our business activities and property management operations for continuously cutting energy consumption and CO₂ emissions in order to lower our environmental impact.

Support for TCFD recommendations

Kenedix Real Estate Fund Management, Inc. expressed support for the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) and also joined the TCFD consortium, a group of domestic companies that support TCFD recommendations in October 2021.
TCFD is an international initiative established by the Financial Stability Board (“FSB”) at the request of the G20 for the purpose of discussing the disclosures of Climate-related financial information and the responses by financial institutions. TCFD publishes recommendations for companies to disclose their governance, strategy, risk management, and metrics and targets for Climate-related risk and opportunities.
Also, TCFD Consortium is a group of companies and financial institutions that support the TCFD recommendations. The consortium was established with a view to further discussion on effective corporate disclosures of Climate-related information and initiatives to link disclosed information to appropriate investment decisions on the part of financial institutions and other organizations.
KDX Realty Investment Corporation, Kenedix Private Investment Corporation, and Kenedix Real Estate Fund Management, Inc. will work to expand information disclosure based on TCFD and continue to actively promote ESG (Environment, Social and Governance) initiatives based on “Sustainability Policies” established by the Asset Management Company.

Metrics and Targets

Each of two REITs where Kenedix is the main sponsor has set GHG emission reduction goal (KPI) as follows in order to actively promote the reduction of environmental impact and contribute to sustainability of environment through the mid- to long-term reduction of GHG emission in our portfolio.

• KDX Realty Investment Corporation
• Kenedix Private Investment Corporation (only in Japanese)

Reduction of Environmental Burden

Kenedix will address the issue of climate change through the reduction of energy consumption and CO₂ emissions of the properties under management. Although the range of efforts differs depending on the use of the properties under management, the management period of the funds, investors, etc., each Investment Corporation has taken various approaches.

Initiatives by KDX Realty Investment Corporation

Installation of LED Lightings

We promote to convert lightings in common area, tenant area, etc. and emergency lights (including emergency guide lights) to LED to actively promote reduction of electricity consumption.
We will continue to convert lightings in tenant area by promoting Green Lease based on discussions with tenants in a planned way as well as in common area.

Solar panel installation

We installed solar panels at our properties to decrease GHG emissions.

Remote surveillance of road heating

We have installed remote surveillance systems for snow melting equipment at four residential properties in Sapporo. Remote surveillance has significantly reduced the cost of fuel for keeping outdoor areas free of snow.

Installing secure lockers for deliveries

Secure lockers for parcels eliminate the need for delivery companies to return to a property when a resident is not home the first time. This reduces transportation GHG emissions and wasted working time for drivers.

Introduction of Recycled Soap

We have adopted recycled soap made from used cooking oil generated at one of our retail facilities, and it is used as hand soap in restrooms throughout the facility.

Initiatives by Kenedix Private Investment Corporation

Installation of LED lights

Kenedix Private Investment Corporation (KPI) uses LED lights to reduce bulb replacement expenses and conserve energy. KPI also reduces its environmental impact by reducing greenhouse gases.

Education to employees on green building and sustainability

WeKenedix Real Estate Fund Management, Inc. provides annual sustainability training by external specialist to improve awareness and knowledge on sustainability for our employees. Furthermore, it introduced the video streaming service “PivottA Sustaina” to enhance employees’ sustainability awareness.

Green finance

Kenedix, Inc., KDX Realty Investment Corporation and Kenedix Private Investment Corporation believe that they will contribute to enhancement of green finance by providing investment and financing opportunities to investors and lenders, and by expanding the number of investors and lenders that are eligible for green finance.

Switching to renewable energy sources for electricity

Kenedix has established a fund, which it also manages, that invests in solar and other renewable energy projects in Japan that generate electricity. Our asset management services for this fund are backed by our many years of experience involving private funds, the arrangement of financing and other activities.

Note: The number of renewable energy power plants and output of renewable energy facilities at the Kenedix renewable energy fund are as of the end of each year and include locations that are operating or under development by Kenedix Investment Partners, Inc.

Renewable-energization

Ｗe established Kenedix Green Energy, Inc. (KGE) on June 5, 2023, with the aim of contributing to the reduction of CO2 emissions by switching to 100% renewable energy for the electricity consumed by the properties managed by Kenedix group.

As a first step, KGE had set a target of 100% renewable energy conversion of properties owned by our group REITs by the end of FY2025, and the target was achieved in September 2025. KGE will continue to advance the transition to renewable energy for properties managed by KDX group. Going forward, KGE will also sell renewable energy power to companies outside the Kenedix Group, making use of the renewable energy power it has secured and its knowledge of renewable energy use.

By promoting this business, KGE will contribute to the realization of GHG emission reduction target of “Net Zero” for the Group REITs, as well as to the Kenedix Group’s key material issue of “Contributing to a Sustainable Environment.”

Note: PPA is the abbreviations for the Power Purchase Agreement. PPA is contract in which corporations, such as companies and local governments, purchase the electricity derived from renewable energy sources.

Installation of solar power generation system on the roof of “Kolet,” Single-Family Rental

Kenedix has installed solar power generation system on the roof of “Kolet,” Single-Family Rental operated by Kenedix, together with TEPCO Energy Partners, Inc. (“TEPCO EP”) and PinT, Inc. (“PinT”), and started operating a scheme to directly supply renewable energy-derived electricity using an on-site PPA/TPO* model in which power generators install power generation facilities on the premises of customers.

Under the Scheme, TEPCO EP will build a solar power generation system on the roof of the "Kolet" and operate the power generation business. For home use by "Kolet" residents, power from renewable energy will be supplied directly from solar power generation systems, and surplus power exceeding the demand from "Kolet" residents will be sold through commercial systems.

PinT has been commissioned by TEPCO EP to provide electricity billing services for the in-house use of "Kolet" residents. PinT will provide a unified operation service of the electricity supply scheme in the "Kolet" business by establishing billing structure for "Kolet" residents together with the virtually renewable energy 100% that the company has already supplied to all "Kolet" homes.

Note: PPA/TPO is a system whereby a solar power generation company collects its own funds or investors to set up a solar power plant, and then concludes a Power Purchase Agreement (PPA) with a user who wants to purchase electricity from renewable energy.

Reduction of Water Consumption and Waste Materials

Basic views

Although there is no imminent water supply crisis in Japan, climate change and population growth threaten the viability of water supplies worldwide. We recognize that ensuring water sources is critical to our business as well considering the steady increase in global water consumption.

Progress concerning the proper treatment of waste materials and the effective use of natural resources in Japan is continuing as people become increasingly aware of the importance of 3R (reduce, reuse and recycle) activities. Japan is focusing more and more on recycling resources as much as possible rather than mass consumption. Due to growing limitations on natural resources worldwide, there is a need for even more qualitative initiatives to go along with quantitative measures for lowering the volume of waste materials.

As an organization that provides asset management services for many types of properties which are used as a place to work or live, Kenedix has significant obligations to use a diverse array of activities for using real estate to cut water consumption and the generation of waste materials.

The reduction of water consumption and waste materials is one of our material issues. We are constantly seeking ways to use our business activities and properties to cut water use and the amount of waste materials produced. We are also lowering our environmental impact and contributing to environmental sustainability by properly managing hazardous substances and eliminating their use wherever possible.

Initiatives to reduce water consumption

Water Conservation Initiatives

We are working to reduce water consumption by introducing toilets with water-saving functions and installing rainwater tanks in our properties.

Rain garden at Yokohama Connect Square

Kenedix has completed a large-scale development project in the 37th district of the Yokohama Minato Mirai Central District in collaboration with partner companies. In this project, rainwater is first stored during rainfall and gradually infiltrated to recharge groundwater. The landscape changes with the weather and seasons.

Initiatives for reduction of waste materials

Waste material reduction and sorting

By cooperating with property management companies used for portfolio properties, we contact tenants of office buildings, retail facilities, residential properties and other properties to urge them to reduce the amount of waste materials and dispose of items properly for each category of waste materials.

Proper measures for hazardous substances, soil contamination and other materials requiring special handling

Before acquiring a property and in conjunction with other transactions, we thoroughly examine properties by receiving an engineering report that covers the building's structure and facilities, including environmental items. We also receive an earthquake probable maximum loss assessment, a soil contamination survey and other information. These activities ensure that the building complies with laws and regulations.

The engineering report includes a confirmation that a building is free of asbestos, PCBs and fluorocarbons. If any hazardous substances are discovered, appropriate actions are taken, such as by establishing counter-measures, managing or disposing of these substances, in accordance with laws and regulations.

If a property we plan to acquire has soil contamination, we make the investment only after the completion of soil contamination counter-measures.

Brownfield Development at Yokohama Connect Square

Kenedix has completed a large-scale development project in the 37th district of Yokohama Minato Mirai Central District in collaboration with our partner companies. For this project, we are contributing approximately 1 billion yen to take appropriate measures to deal with soil contamination such as removal of contaminated soil and installation of water shielding walls, etc.

Collaboration with Tenants for Environmental Initiatives

Basic views

As we are continuously making effort to realize sustainable environment, we think it is crucial to cooperate with our tenants who constantly use our properties. We are aiming to cooperate by taking initiatives to raise awareness and promoting green lease that allow both owner and tenant to share economic merit to achieve sustainable environment.

Collaboration with environmental initiatives is one of our material issues. We have been making contribution through promoting tenant cooperation and cooperating with other stakeholders such as property management companies who actually manage the building and employees of Kenedix Group who manage the properties.

Initiatives for collaboration with tenant

Green Lease

KDX Realty Investment Corporation and Kenedix Private Investment Corporation conducted LED lighting installation works for a part of a tenant office space at the expense of them based on the agreement. A certain ratio of the highly reduced amount of electricity charges and maintenance costs (costs for exchanging fluorescent bulbs) has been paid from the tenants in return as Green Lease fee.

Introducing green lease with clause for environmental cooperation

KDX Realty Investment Corporation and Kenedix Private Investment Corporation have promoted including clause to cooperate to improve environmental performance of the property, comfort and productivity of tenant into its based contract.

Tenant awareness activities

KDX Realty Investment Corporation and Kenedix Private Investment Corporation have introduced EaSyGo, an ESG service, in an office building jointly operated by them, with the aim of creating a better living and business environment by visualizing and improving ESG for employees and the local community.
By encouraging employees to participate in ESG-related actions, it is expected not only to raise awareness of environmental issues, but also to visualize social and economic effects, thereby increasing the value of the building itself.
Recently, through EaSyGo, we introduced employees to Toyosu Children's Cafeteria, a voluntary local organization, and offered them the opportunity to make donations.

Cooperation with property management companies

KDX Realty Investment Corporation and Kenedix Real Estate Fund Management, Inc. are engaging with property management companies to share their vision, policies of sustainability and when making contract with a new tenant, property management companies explain these ideas to tenants to achieve their cooperation.

Biodiversity

Basic views

Protecting biodiversity and using real estate projects to create urban areas are normally conflicting activities that involve trade-offs. Kenedix has a commitment to managing real estate while giving substantial considerations for protecting biodiversity, which is critical to combating climate change. Biodiversity also plays a key role in the creation of pleasant environments for the tenants and residents of our buildings as well as everyone living in the surrounding areas.

Promotion of greening

We plant bushes, flowering plants and other greening at building entrances, open areas of building sites, rooftops and other locations. Rooftop greening at retail facilities creates a relaxing space for people and has the added benefit of preventing the reflection of sunshine, which helps hold down summer heat in large cities.

Contribution to Biodiversity Conservation

JHEP Certification ^(Note)

KDX Residence Tsudanuma and KDX Residence Tsudanuma Ⅱacquired AA certification.

Note: The JHEP certification is a system for quantitatively evaluating and certifying activities that contribute to the conservation and restoration of biodiversity based on the Habitat Evaluation Procedures (HEP).

• For more details Concerning JHEP

Birdbath at Yokohama Connect Square

Yokohama Connect Square, which Kenedix was engaged in the development and which was completed in January 2023, has birdbaths that serve as watering and bathing areas for wild birds.

ABINC certification

Hibiya Parkfront, which is where our head office is located, has received ABINC certification (urban/SC version) from the Association for Business Innovation in Harmony with Nature and Community (ABINC). This building, which we developed as a joint venture, was received this recognition due to its measures to protect biodiversity.

Relevant Data

Note: The number of renewable energy power plants and output of renewable energy facilities at the Kenedix renewable energy fund are as of the end of each year and include locations that are operating or under development by Kenedix Investment Partners, Inc.