Need to boost profit growth and capital efficiency

Research evidence excerpt

Need to boost profit growth and capital efficiency

14 May 2026

ESG

In 2025, Mori Hills REIT Investment (MHR) received four Stars in the GRESB real

estate evaluation, which is based on a relative comprehensive score. Following an

independent assessment, FTSE Russel stated that the REIT has joined the

FTSE4Good Index Series after having met the conditions to join.

Environment

MHR revised its CO2 emissions reduction targets in June 2022 to aim for more

aggressive reductions. The revised targets include a 50% reduction in CO2 emissions

(total volume, Scope 1, 2, and 3) versus FY19 levels by FY30 and net zero emissions

by FY50. Emissions were cut by 46.1% in FY24. MHR’s asset management company

has announced its support for the recommendations issued by TCFD (The Financial

Stability Board’s Task Force on Climate-related Financial Disclosures) and will press

ahead with risk management and initiatives for climate change based on the

recommendations and carry out information disclosure.

Social

MHR and asset manager Mori Building Investment Management strive to improve

their tenants’ health, comfort, and convenience partly by bolstering emergency

management systems and strengthening backup plans for their offices. For example,

the REIT installed three different types of vibration dampening systems to make

Toranomon Hills Mori Tower extremely earthquake resistant, enough so that an

earthquake on par with the Great Hanshin-Awaji Earthquake or the Great East Japan

Earthquake would not significantly damage the building’s structure, allowing business

to continue. The REIT is also stockpiling supplies needed during an emergency,

including food, blankets, medicine, and temporary toilets.

The asset manager’s diverse and talented employes receive continuous support for