Sustainability Initiatives
Sustainability Policy
1. Harmony with the natural environment
We will pursue harmony with the natural environment through our business activities in real estate investment management by seeking to maintain and enhance biodiversity, as well as reduce the energy, greenhouse gas, water, waste and other environmental footprint of the properties under management.
2. Addressing climate change
We will aim to mitigate climate change by monitoring the impact of our business activities on climate change, and through adoption of renewable energy, promotion of energy efficiency and conservation, and other decarbonization initiatives at the properties under management. In addition, placing importance on also climate change adaptation, we will appropriately consider acute and chronic physical risks, such as floods and rising sea levels, and the risks of transitioning to a decarbonized society, and enhance the resilience of the properties under management.
3. Communication with stakeholders
We will aim for the realization of sustainable business activities and a sustainable society by building relationships of trust through two-way communication with not only tenants and suppliers including property management companies of the properties under management but also local communities and other relevant external parties and by possessing the capacity to cooperate with society.
4. Human resources development
Based on our thinking that shaping people into useful members of society is the ultimate contribution to society, we will proactively work on capacity development for executives and employees to further refine their personal and social skills. In addition, so that each and every individual can shine as a lead role, we will break out of our own shell, placing importance on diversity, health and well-being, and respecting the work-life balance of each individual in order to create an environment in which best performance can be delivered.
5. Strengthening compliance and the governance structure
We will conduct business activities with integrity to society in compliance with laws and business ethics as a real estate investment management business operator. In addition, we will work to further strengthen the governance structure in an effort to thoroughly prevent corruption and prevent conflicts of interest for the protection of the interests of investors.
6. Proactive information disclosure
Our company name comes from marimo, a species of green algae that can only live in clean water. Likewise, we will conduct business activities with transparency by making timely and appropriate disclosure of information on ESG, along with disclosing this policy to all stakeholders, and thereby strive to establish trust.
Established on December 26, 2023
Environment
Acquisition of CASBEE Real Estate Certification
CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system that comprehensively assesses the quality of a building, evaluating features such as interior comfort and consideration for the surrounding scenery, as well as its environmental friendliness such as its use of materials and equipment that save energy or achieve low environmental impact.
CASBEE for Real Estate Certification was developed with the aim of making use of the results of the environmental assessment of buildings in real estate evaluation. It scores buildings under each of the evaluation items in five categories, comprising 1. Energy & Greenhouse Gases, 2. Water, 3. Use of Resources & Safety, 4. Biodiversity & Sustainable Site, and 5. Indoor Environment. Based on the scores, the evaluation results are given one of four ranks: Rank S, Rank A, Rank B+, and Rank B.
For details of Certification for CASBEE for Real Estate, please click
https://www.ibec.or.jp/CASBEE/english/index.htm
Rank A
ArtizA Sendai Kakyoin
Rank A
ArtizA Kokura
Examples of initiatives for owned properties
We implement initiatives to promote efficient energy use at owned assets as well as reduce CO2 emissions through energy saving.
■Switching to LED lighting fixtures in common areas
Ceiling lighting
(Installed at16 properties)
Signboard lighting
(Installed at2 properties)
Human sensor
Staircase lighting
(Ikeshita ES Building)
■Introduction of electronic breaker
Electronic breaker installation
(Installed at12 properties)
■Introduction of self-generating automatic faucet
Automatic faucet
installation
(MRR Kumamoto)
■Smart unattended delivery (Tokai area: 6 properties)
Since CO2 emissions are expected to be reduced with the decrease in redeliveries, the effect of ESG initiatives can also be expected
introduction of green lease agreements
An initiative in which building owners and tenants voluntarily decide efforts to reduce environmental impact, such as energy saving of real estate, through contracts and emorandums, etc. by cooperating with each other and realize a win-win relationship in which both building owners and tenants benefit from the reduction of utility costs, etc.
* Excerpt from the Green Lease Guide (Ministry of Land, Infrastructure, Transport and Tourism)
Introduction of green lease agreements *Only for offices (to be proposed each time upon contract renewal in the future)
Examples of other initiatives
In printed materials such as asset management reports for unitholders, environmentally-friendly FSC certified papers and vegetable inks are used.
Social
Initiatives for social contribution activities
We implement social contribution activities through the improvement of convenience in terms of social life, securement of security and safety of tenants and the support of life-saving activities with the provision of medical equipment.
Security camera installation
(ArtizA Awajieki-higashi, etc.)
AED installation
(MRR Delta Building, etc.)
Social contribution
type/disaster support type
Vending machine installation
(Komyoike Act)
Installation of base stations
of mobile phones, etc.
(ArtizA Kawasaki East)
Car sharing installation (ArtizA Kamimaezu II)
Bicycle sharing installation (MRR Delta Building, etc.)
Delivery BOX installation (ArtizA Higashi-Betsuin, etc.)
Initiatives by the Asset Manager
Promotion of regional revitalization through investments in regional income properties (marimo Regional Revitalization REIT, Inc.), business continuity and securement of employment pportunities
■Welfare system - Established welfare programs in an effort to improve employee satisfaction -
Childbirth, childcare, nursing care leave system/refresh leave system/shortened working hours system for childcare and nursing care/remote work system/health examination cost subsidy system/qualification acquisition support program/hourly paid system
■Qualification acquisition system - Marimo Group supports employees in acquiring various qualifications for career advancement -
Marimo Asset Management Co., Ltd. (19 members)
- Real estate transaction agent 15 people
- ARES certified master 7 people
- Real estate consulting master 4 people
■Education and training of human resources - Worked to improve the skills of employees and maintain and improve their expertise -
Decide a theme every month and hold compliance trainings for all officers and employees.
(7 times in the 14th FP: Protection of personal information, prevention of insider trading, etc.)
- Other trainings
Compliance training conducted twice a year by lawyers Real estate market review conducted twice a year by real estate appraisers
Governance
Decision-Making Flow for Transactions with Interested Persons, Etc. in Acquisition and Disposition of Assets
marimo REIT adopts the following prudent decision-making flow in cases where the acquisition and disposition of assets would be a transaction with an interested person, etc. as defined in the rules on transactions with interested persons, etc. specified by the Asset Manager.
Introduction of Asset Management Fee System Linked to EPU
marimo REIT has introduced an asset management fee system linked to EPU in addition to a fee system linked to total assets on the thinking that the Asset Manager sharing in the earnings with the unitholders would serve as an incentive to realize enhanced profitability.
| Management fee I | Total assets on balance sheet at most recent fiscal period end of marimo REIT × 0.4% (maximum) |
|---|---|
| Management fee II | NOI (Note 1) × EPU before deduction of management fee II (Note 2) × 0.0015% (maximum) |
| Acquisition fee | Acquisition price × 1.0% (maximum) (Note 3) |
| Disposition fee | Disposition price × 1.0% (maximum) (Note 4) |
| Merger fee | Total value of opinion as of effective date of merger of successions or holdings by corporation incorporated in consolidation-type merger or corporation surviving absorption-type merger × 1.0% (maximum) (Note 5) |
| (Note 1) | NOI = Amount arrived at when total operating expenses from real estate leasing (excluding depreciation and loss on retirement of non-current assets) is deducted from total operating revenue from real estate leasing for each business period |
|---|---|
| (Note 2) | EPU before deduction of management fee II = Each business period’s net income before income taxes (before deduction of management fee II and non-deductible consumption tax, etc.) ÷ Total number of investment units issued and outstanding at the concerned business period’s fiscal period end |
| (Note 3) | The maximum shall be 0.5% if the acquisition is from an interested person, etc. as defined in the rules on transactions with interested persons, etc. specified by the Asset Manager (excluding cases where acquired and held for warehousing purposes by the concerned interested person, etc. from a party other than an interested person, etc.). |
| (Note 4) | The maximum shall be 0.5% if the disposition is to an interested person, etc. as defined in the rules on transactions with interested persons, etc. specified by the Asset Manager. |
| (Note 5) | The maximum shall be 0.5% if the merger is with an investment corporation falling under the category of interested person, etc. as defined in the rules on transactions with interested persons, etc. specified by the Asset Manager or an investment corporation from which an interested person, etc. is entrusted with the management of its assets. |
Sponsor’s same-boat investments
Number of marimo REIT investment units held by sponsor Marimo Co., Ltd. at end of 14th Fiscal Period: 16,866 units (ownership ratio at end of 14th Fiscal Period: 7.1%)