Initiatives for Employees of the Asset Management Company

Initiatives for human rights

The Asset Management Company has established a human rights policy based on the Mitsui Fudosan Group Human Rights Policy and the Mitsui Fudosan Group Sustainable Procurement Standards of Mitsui Fudosan. MFLP-REIT and the Asset Management Company support and respect international norms regarding human rights, such as the core labor standards set out in the ILO Declaration on Fundamental Principles and Rights at Work (freedom of association, recognition of the right to collective bargaining, elimination of forced labor, abolition of child labor, and elimination of discrimination) in light of the Universal Declaration of Human Rights and the International Bill of Human Rights. In addition, the Sustainable Procurement Policy established by the Asset Management Company incorporates respect for human rights into the selection and evaluation standards used to choose the content of work and business partners for the portfolio value chain.

Based on the above, the Asset Management Company has defined the initiatives for respect of human rights in the Compliance Manual as described in the table below and is working to instill its policy on respecting human rights in all employees.

This table can be scrolled sideways.
Details Policy and initiatives
Prohibition of discrimination
and harassment
The Asset Management Company shall prohibit discrimination or unfair treatment based on nationality, social status, race, belief, gender, age, disability, sexual orientation, gender identity, education, marriage status, employment type or any other reason not related to business roles. In addition, no harassment in any form is allowed in the workplace.
Policy to prevent child labor or
forced labor
The Asset Management Company shall not permit child labor or forced labor. The Asset Management Company has never used child or forced labor. To ensure that none is used in the future, the Asset Management Company complies thoroughly with the laws and regulations of each country.
Freedom of association and the
right to collective bargaining

The Asset Management Company shall support and respect the freedom of association and the right to collective bargaining.
Up to the present, no labor unions have been formed, but labor-management relations at the Asset Management Company have been harmonious, and there have been no large-scale mergers, acquisitions, or layoffs in the past.
In addition, the Asset Management Company has entered into a labormanagement agreement on overtime work (36 Agreement) with its employees, and is striving to maintain the health of its employees and improve labor productivity by appropriately managing working hours.
The Asset Management Company is making the following efforts to reduce excessive working hours and overtime.

  • Monitoring working hours
  • Periodic interviews with supervisor
  • Notifying both employees and their direct supervisors when they are in danger of overwork
  • Implementing stress checks
Policy supporting rights to a
minimum wage and living wage
The Asset Management Company conducts labor management while abiding by the labor laws and regulations. In terms of wages, the Asset Management Company has adopted a basic policy of following the rules on minimum wages.

There were no serious violations of labor-related laws and regulations during the period from April 1, 2023 to March 31, 2024.

DEI (Diversity,Equity, and Inclusion) of the Asset Management Company

The Asset Management Company will strive to build an organization that recognizes diversity,equity, and inclusion.
Specifically, in accordance with the philosophy of the Mitsui Fudosan Group that based on the idea that “to generate new value through cooperation, coexistence and co-creation, we forge ahead, innovating.” in response to the dramatically changing needs of society, we are working to realize new value creation based on work style reforms, with the management ranks overseeing the diversity of employees, working to build an organization in which human resources of diverse values, talents, and lifestyles can realize their full individual potential and comfortable workplace.

Based on the above, the Asset Management Company has defined the "DEI Promotion Policy". Under this policy, the Asset Management Company has set KPIs as shown in the table below and promote DEI initiatives.

This table can be scrolled sideways.
Item FY2021 FY2022 FY2023 KPI
Total number of officers and employees(Note 1) 25 24 28 -
(Number of seconded employees accepted) 10 10 9 -
(Number of direct employees) 15 14 19 -
Male: 8 Female: 7 Male: 8 Female: 6 Male: 7 Female: 12 -
Percentage of female employees* 47% 43% 63% -
Percentage of female managers 0% 0% 14% 40%
by FY2030
Percentage of female executives 0% 0% 0% -
Average employment period*(Note 2) 3.0 years 3.6 years 3.2 years -
Rate of used portion of paid vacation*(Note 3) 75% 89% 81% 70%
Rate of employees taking 10 or more days of paid vacation*(Note 3) 86% 100% 91% 100%
Number of employees using childcare leave* 0 0 1 -
Number of employees using the shorter hours system for childcare* 0 0 0 -
Percentage of employees using child nursing care leave* N/A N/A 33% -
Rate of health checks received 100% 100% 100% -
Employment of people with disabilities 0 0 0 -
Number of new hires* 1 2 8 -
Number of retired employees* 1 2 3 -
Employee turnover rate in the fiscal year* 7% 14% 20% -
Rate of employees participation in training on DEI 100% 100% 100% 100%

(Note 1)Indication of “officers and employees” means the total officers and employees including direct employees and seconded employees mentioned above.
An asterisk (*) indicates data for direct employees, including contract employees.

(Note 2)The average employment period is the average of figures calculated by dividing the total number of days enrolled as an employee up to each day by 365, as the number of days in one year.

(Note 3)Calculated using data on enrolled employees as of the fiscal year-end, but excluding those mid-career hires who joined during the fiscal year.

[Examples of initiatives]
  • Training by viewing a DVD that promotes understanding of human rights and diversity (promoting active participation of women, employment of senior employees, training on LGBT issues)
  • Training on DEI

Initiatives for human resource development

The Asset Management Company is taking steps to secure and develop specialists with high-level expertise in real estate finance and potential leaders who have the management ability to increase the productivity of the organization. Furthermore, it aims to develop human resources who will contribute to society and to increasing corporate earnings, aiming not only to build knowledge, comprehension, and communication skills through short-term education and training, but also the ability to grasp the big picture of a situation or incident from a broad perspective and envisage the future course of events.

1 Support for acquiring qualifications

1-(1) Support for acquisition and maintenance of specialized qualifications

The Asset Management Company supports all employees (including both regular and contract employees, etc.) in their efforts to obtain degree programs and certifications, such as ARES (Association for Real Estate Securitization) Certified Master, and all officers and employees (including both regular and contract employees, etc.) may utilize a system whereby such expenses are borne by the Asset Management Company. Furthermore, to encourage the acquisition of difficult certifications, a certification allowance is paid to all employees (including both regular and contract employees, etc.) who hold certifications in Japan as a real estate appraiser, lawyer, tax accountant, or certified public accountant.

The number of employees with specialized certificates is as shown below (including seconded employees accepted).

This table can be scrolled sideways.
Qualification Number of
employees with
qualifications
ARES (Association for Real Estate
Securitization) Certified Master
11
Real estate transaction agent 21
Real estate appraiser 1
First-class architect 1
Real Estate Consulting Master 2
Certificate-holder Member of the
Securities Analysts Association of Japan
1
Eco Test (Certification Test for
Environmental Specialists)
11
Care fitter 1
Bookkeeping, 1st grade 1

(Note 1)As of May 31, 2024.

(Note 2)Includes personnel who have passed the credentialing exam but are not yet credentialed.

This table can be scrolled sideways.
Fiscal year Number of cases using the
qualification support system
Officers and employees
using the system
Amount of support funds
(excl. tax)
FY2021 14 11(46%) ¥517,243
FY2022 25 16(63%) ¥1,076,249
FY2023 26 17(63%) ¥592,709

1-(2) Others

Since MFLP-REIT conducts public offerings in overseas markets, we make efforts to improve the English language abilities of all employees (including both regular and contract employees, etc.) of the Asset Management Company in order to develop human resources able to operate globally, and have also established an English conversation school course fee support system.

2 Various training programs

One of the pillars of the Asset Management Company’s human resource development efforts is the various training programs listed below under “2-(1) to 2-(3).” In FY2023, the Asset Management Company has revised its training system.

This table can be scrolled sideways.
Training for all officers and employees Selective training programs
Compliance training Job-specific development training Level-specific and leadership training Individual skill training Department-specific skills training
Executives
  • ・Training on fundamentals of securities monitoring
  • ・Training on overview of FSA’s supervisory guidelines flor investment business
  • ・Training on general theory of compliance
  • ・Training on conflicts of interest
  • ・CBRE real estate market study group
  • ・Logistics field study group
  • ・Data center-related study group
  • ・Real estate market research explanation meeting
  • ・ESG training
  • ・Stamp tax study group
Training for executives
Business skills、IT skills、English
Corporate planning, Human resources, General affairs, Legal, General accounting, Finance, Sales, Marketing, Production
Top management
Training for top
management
Middle management
Training for middle
management
New employees
Training for new employees
This table can be scrolled sideways.
Fiscal
year
Training
expenses
Training expenses
per person
Total hours Total hours per person
FY2021
Compliance training ¥618,000 ¥25,750 174 hours 7 hours and
15 minutes
Specialized field training ¥930,000 ¥38,750 144 hours 6 hours
Level-specific and leadership training,
Individual skill training,
Department-specific skills training
¥427,200 ¥17,800 324 hours and
24 minutes
13 hours and
31 minutes
Total ¥1,975,200 ¥82,300 642 hours and
24 minutes
26 hours and
46 minutes
FY2022
Compliance training ¥768,000 ¥32,000 174 hours 7 hours and
15 minutes
Specialized field training ¥900,000 ¥37,762 390 hours and
47 minutes
16 hours and
23 minutes
Level-specific and leadership training,
Individual skill training,
Department-specific skills training
¥475,200 ¥19,938 312 hours and
53 minutes
13 hours and
7 minutes
Total ¥2,143,200 ¥89,700 877 hours and
40 minutes
36 hours and
46 minutes
FY2023
Compliance training ¥927,000 ¥34,435 138 hours 5 hours and
7 minutes
Specialized field training ¥1,200,000 ¥44,577 391 hours and
50 minutes
14 hours and
33 minutes
Level-specific and leadership training,
Individual skill training,
Department-specific skills training
¥475,200 ¥17,652 155 hours and
34 minutes
5 hours and
46 minutes
Total ¥2,602,200 ¥96,664 685 hours and
24 minutes
25 hours and
27 minutes

(Note)After close examination of the date, the figure for 2022 have been renewed and adjusted.

2-(1) Compliance training

We strive to enhance not only individual capabilities but also organizational capabilities by implementing compliance training programs for all officers and employees (including both regular and contract employees, etc.).

[Examples of initiatives]
  • Training on fundamentals of securities monitoring
  • Training on overview of FSA’s supervisory guidelines flor investment business
  • Training on general theory of compliance
  • Training on conflicts of interest

2-(2) Job-specific development training

For the purpose of periodically updating fundamental knowledge necessary for asset management of all officers and employees (including both regular and contract employees, etc.), we regularly conduct training programs led by external lecturers to study the circumstances of the economic environment and real estate market and the REIT market, etc.

[Examples of trainings]
  • Real Estate Market Training
    We regularly invite several external lecturers to provide training on real estate market trends.10 training sessions were held for all employees in FY2023.
  • ESG Training
    We invite several external lecturers to provide training on ESG-related situations and issues to be addressed by MFLP-REIT and the Asset Management Company. In FY2022 and FY2023, training on DEI and TNFD (Task Force on Nature-related Financial Disclosure) was conducted, and all employees participated in both trainings.

2-(3) Level-specific and leadership training, Individual skill training, Department-specific skills training

We provide a system that enables all officers and employees (including both regular and contract employees, etc.) to choose from around 1,700 level- and field-specific courses offered by external specialist institutions per year. Level-specific and leadership training, Individual skill training and Department-specific skill training is taken by the relevant officers and employees depending on their level, skill, situation, and department. The primary objective is to provide an environment that assists the development of executive candidates by improving their management and leadership skills and encourages the active development of a career vision by each employee.

3 Periodic career interviews

At the Asset Management Company, regular career interviews are held for direct employees (including contract employees) with directors at least once every six months. By providing employees with opportunities to discuss their own career development, feedback on their performance, and requests to the company, we encourage employees to increase their motivation and broaden their skill sets.

4 Performance appraisal

For performance appraisals, we hold a start-of-year interview (goal setting), interim interview (progress check and advice), and end-of-year interview (appraisal feedback) for direct employees (excluding contract employees), as part of building a transparent goal-setting and appraisal feedback system that ensures mutual understanding of intentions between supervisors and subordinates.

5 Personnel appraisal and Compensation

Direct employees (excluding contract employees) are interviewed by their supervisors at least once every six months using a behavioral appraisal sheet tailored to their position each year and are promoted and their base compensation is renewed once a year according to the appraisal. The behavioral appraisal is an objective, numerical assessment of how well the employee has demonstrated the behavioral characteristics required for the job grade and is reflected in the amount of the employee's compensation.

6 Goal Setting and Compensation

Direct employees (excluding contract employees) hold goal-setting meetings with their supervisors in April and October of each year, using a goal-setting sheet.
Twice a year, in September and March, performance against the set goals is evaluated at the end-of-term interviews (feedback of evaluation results). The performance appraisal is based on an objective, numerical assessment of the degree of achievement of individual performance goals directly related to divisional goals, and the amount of the employee's contingent remuneration is reflected according to the degree of achievement.

This table can be scrolled sideways.
Fiscal year Ratio of interviews held (direct employees)
FY2021 100% (14 out of 14 employees)
FY2022 100% (14 out of 14 employees)
FY2023 100% (19 out of 19 employees)

Talent pipeline development strategy

The Asset Management Company has established a recruitment plan for the image of human resources required for each department and the necessary timeframe, in line with the business execution structure of the medium- to long-term business plan and has built a system that enables the timely and appropriate assignment of human resources. For example, we are increasing the number of Operations Team members as the scale of assets under management increases, Investment Team member to gather information on a wide range of properties, not limited to those from our sponsors, and members to expand our investor base and address ESG issues. Therefore, the Asset Management Company make maximum use of the talent pool of recruiters for mid-career hiring, such as multiple staffing agencies, and constantly provide information on future hiring plans to recruiters, so that we can attract highly specialized personnel and hire the people we need in the execution of the asset management company's operations. Similarly, the Asset Management Company accepts secondees from our sponsor, Mitsui Fudosan, in line with its strategic workforce plan and utilizes them as a pool of highly specialized personnel with diverse backgrounds. For mid-career hires, the Asset Management Company promote various skill development programs through the aforementioned education and training programs. In addition, the Asset Management Company has a full benefit program and is promoting the establishment of comfortable working environments to enable employees to continue working with confidence. We are also promoting efforts to increase work efficiency by encouraging long-term employment and increasing the motivation of employees.
At the same time, we are making use of the secondees‘ expert capabilities to make qualitative improvements in operational expertise, aiming to realize advanced asset management operations.

Employees in managerial positions seconded from Mitsui Fudosan possess expert know-how as well as organization management skills, thus they have contributed to asset management and vitalization of the Asset Management Company.

[Number of persons seconded from Mitsui Fudosan and other companies] As of March 31, 2024
  • Mitsui Fudosan: 8
  • Sumitomo Mitsui Banking Corporation: 1

Reference: Career Programs of Mitsui Fudosan, Human Resources Management/ESG Report 2023

At the Asset Management Company, the Board of Directors and General Meeting of Shareholders oversee the appointments of officers. Other managerial appointments are determined by the President & CEO. When making changes to personnel appointments, an appropriate management candidate is selected from among direct employees and the Mitsui Fudosan human resource pipeline, and the change is planned to ensure smooth continuation of business and duties.

Furthermore, Mitsui Fudosan regularly conducts new graduate recruitment, and the Asset Management Company also accepts secondments of young employees with less than 10 years of experience at Mitsui Fudosan who have completed human resource development training programs at Mitsui Fudosan.

For detailed information on recruitment of new graduates, please refer to Human Resources Management described in ESG Report 2023 of Mitsui Fudosan as stated above.

Creation of working environments conducive to work and work-life balance

Human resources are recognized as the most important asset of the Asset Management Company, which not only meets the legal standards for health and safety, such as work-life balance, employee health, labor management, and risk management, but also works to create working environments where all employees can continue to work with confidence through the various initiatives described later. In addition, the Asset Management Company introduce Activity Based Working through office renewal to further improve the level of comfort for working environment.

(1) Employee engagement survey

In FY2020, the Asset Management Company started conducting an employee satisfaction survey to ascertain the current status and hopes of all employees (including both regular and contract employees, etc.) for use in improving the working environment. Since then, the Asset Management Company has confirmed employee satisfaction regarding the degree of fulfillment of their current assignments and satisfaction with their work environment at least once a year. Based on the results of this survey, the Asset Management Company is striving to build better working environments.

This table can be scrolled sideways.
Fiscal year Employee Satisfaction Survey Average (five-point scale)
FY2021 3.54
FY2022 3.53
FY2023 3.62
[Examples of improvements in response to the employee satisfaction survey]
  • Implementation of billing management system
  • Introduction of office-based provision of side dishes, etc.
  • Installed monitors in all meeting rooms
  • Introduction of meal management application to company cell phones (health management)

(2) Structure for collecting requests and grievances of employees

During interviews with directors, all employees (including both regular and contract employees, etc.) are provided with an opportunity to air their various hopes for the Asset Management Company and to confirm their own career options.

In addition, the Asset Management Company has established internal and external contact points for consultation based on the internal consultation and whistleblowing regulations. The system enables all employees (including both regular and contract employees, etc.) to anonymously report organizational or individual behavior that violates laws and regulations (behavior that violates or is suspected of violating laws, corporate ethics, and internal rules such as the compliance manual) or harassment to the Chief Compliance Officer (or for matters concerning the Chief Compliance Officer, the President & CEO) or an external law office. The same regulations protect whistleblowers and prohibit any disadvantage to whistleblowers, including retaliatory measures by the Asset Management Company such as dismissal. The regulations also oblige the Asset Management Company to determine and take appropriate measures regarding the reported matters.

(3) Cumulative investment unit investment program

The Asset Management Company has introduced a “cumulative investment unit investment program” targeting all employees (including both regular and contract employees, etc.) of the Asset Management Company, through which they can acquire investment units of MFLP-REIT. Officers, etc. of the Asset Management Company who have been seconded from Mitsui Fudosan, our sponsor, can also use their company’s “cumulative investment unit investment program” to acquire investment units in MFLP-REIT. It is anticipated that this system will result in all officers and employees (including both regular and contract employees, etc.) being more focused on improving the performance of MFLP-REIT, and that this in turn will contribute to the continuous growth of MFLP-REIT and enhancement of unitholder value. Furthermore, the Asset Management Company provides financial incentives to all employees (including both regular and contract employees, etc.) utilizing the program in an endeavor to further enhance their benefit and welfare programs.

(4) Benefit and welfare

The various benefit and welfare (incentive) programs listed below have been established to create a working environment in which all employees (including both regular and contract employees, etc.) can continue to work in comfort and with peace of mind.

  • Defined contribution pension plan(Note 1)
  • Pre- and post-natal leave system
  • Childcare leave(Note 2)
  • Nursing care leave
  • Child nursing leave(Note 2)
  • childcare allowance
  • Congratulation and condolence leave/money
  • Term-end bonuses
  • Flex-time system
  • Remote work system
  • Loan of PC and printer for working from home
  • Shared-office expenses borne by the company
  • Loan of smartphone
  • Subsidization of fees for club activities
  • Cafeteria plan
  • Award of prizes and bonuses under a reward system

(Note 1)From May 2024, eligibility for membership in the defined contribution pension plan, which had been limited to full-time employees and those up to age 60, has been expanded to full-time and contract employees and those up to age 65.

(Note 2)In order to support the balance between work and child rearing, a childcare leave system is available until the child turns one year old (two years old if certain conditions are met), a childcare shortened working hour system is available until the child turns three years old, and a nursing care leave system or nursing care shortened working hour system is available for those with family members requiring nursing care. In addition, employees can take paid leave to care for a child before the child enters elementary school and paid leave to care for a family member who requires nursing care.

(5) Office Renewal

The Asset Management Company’s was renovated with employee comfort in mind. The Asset Management Company created a comfortable work environment for employees by incorporating plenty of plants in the office, installing aroma diffusers, and paying attention to lighting and sound environment. In addition, a TEL booth and solo seats have been arranger as a concentration area, more meeting space has been enhanced, and DXing has been enhanced by adding monitors for videoconferencing, etc. In the library space, an office bookstore (subscription for self-help and business books) has been introduced to provide employees with opportunities to come into contact with books of various genres.

画像
画像
画像
画像
画像
画像

Promotion of Health Management

Human resources are recognized as the most important asset of the Management Company. We will not only comply with the legal standards for health and safety, such as work-life balance, health of employees, labor management, and risk management, but also work to create working environments where all employees can continue to work with confidence through the various initiatives described later. Specifically, the Asset Management Company has joined the Mitsui Health Insurance Association and provides various assistance systems such as subsidies for influenza, external subsidies for smoking ban and other vaccinations as well as health screening fees, encourage to undergo periodic health checkups and physical examinations (the medical examination rate in FY2023 was 100%), to all employees (including both regular and contract employees, etc.). In addition, balance balls and elevating tables have been introduced in conjunction with office renovations to promote physical exercise due to desk work. Health management measures are being implemented such as the use of health apps to promote exercise and improve diet.

Also, the Asset Management Company support the maintenance and promotion of employees' health through follow-up services such as invitations to undergo reexamination by industrial physicians. Officers, etc. who have been seconded from Mitsui Fudosan also benefit from similar subsidy systems, and initiatives for the health of all officers and employees are implemented. In addition, in cooperation with an industrial physician, the Asset Management Company has established a consultation point where all employees (including both regular and contract employees, etc.) can consult about both mental and physical health. Furthermore, to ensure the safety of workplaces, the Asset Management Company conducts onsite checks by an industrial physician. In addition, in order to reduce smoking rates in the workplace, a smoking cessation assistance program was introduced in FY2023.

The Asset Management Company strives to care for the mental health of all employees (including both regular and contract employees, etc.) by conducting stress checks for all officers and employees (seconded employees are subject to the system of the assigning company) and holding mental health seminars performed by external instructors (the participation rate in FY2023 was 100%). In addition, as events to promote health, the Asset Management Company participate in walking team competitions (the participation rate was 100%) also provide subsidies for the use of health-related facilities and sports facilities as part of our welfare program. As a result of these activities, we obtained "authorization of silver" for healthy excellent company in November 2023 and the 2023 Certified Health & Productivity Management Outstanding Organizations (under the SME category) in March 2024 for two consecutive years.

画像
Certified Health & Productivity Management Outstanding Organizations
画像
Introduction of health appliance
画像
Installation of blood pressure monitor

Page Top