Focus on DPU headroom

Research evidence excerpt

Focus on DPU headroom

14 May 2026

ESG initiatives

Environment

Tokyu REIT aims to reduce GHG emissions by 46.2% by FY30 (versus FY19 levels)

and become carbon neutral by FY50. It also aims to reduce energy consumption and

water consumption by 5% versus FY19 levels by FY24, and has been disclosing its

progress. As of end-January 2026, the REIT has reduced its greenhouse gas

emissions intensity by 38.0%, energy consumption intensity by 25.2%, and water

consumption intensity by 1.3%. Furthermore, the REIT has introduced 100%

renewable energy at 25 properties under management, which equates to 77.2% of

total floor space. The green lease adoption ratio is 86.4% of the total (by number of

lease contracts). The REIT has an MSCI ESG rating of A.

Social

Tokyu REIT has set up message boards for emergency contact as well as

emergency-use/disaster prevention kits at each of its properties and is focused on

contributing to local communities by promoting disaster prevention and business

continuity planning (BCP).

The REIT introduced an investment unit ownership program for officers and

employees of its investment management company in June 2024, and it is working to

foster a healthy organizational culture and workplace environment (e.g., via efforts to

create offices with comfortable environments for each individual), reflecting the results

of the questionnaire for officers and employees conducted following office relocation

and renovations in December 2024. It has also established a hygiene committee and

implemented ‘cross-department lunches’ to contribute to a healthy corporate culture

and workplace environment.

Governance

Tokyu REIT received an "A" rating in the Global Real Estate Sustainability Benchmark

(GRESB) survey in FY25 and also received four stars in the GRESB Rating, a