Little room for DPU growth

Research evidence excerpt

Little room for DPU growth

9 June 2026

ESG initiatives

Environment

Hulic Reit (HLC) aims to achieve net-zero emissions by end-2050. The REIT has set

the following medium-term targets to achieve by end-2030. HLC aims to reduce

Scope 1 and Scope 2 emissions by 42% versus the 2022 levels and reduce Scope 3

emissions by 25% by end-2030. In 2024, the REIT reduced its Scope 1 and 2

greenhouse gas emissions by 39.5% and its Scope 3 emissions by 1.3%, versus 2022

levels. As part of its efforts to reduce emissions, HLC has been switching over to LED

lighting at the time of tenant replacement, and as of end-March 2026, a total of 59

properties had been fitted with LED lighting. The REIT has been working to introduce

a green lease clause in new leases for its rental spaces to gain the cooperation of

tenant companies on energy conservation and environmental considerations. The

green lease ratio for new office contracts in FP8/25 and FP2/26 was 85.7% (number

of contracts basis). The REIT aims to maintain a green building certification rate of at

least 50% for its entire portfolio. As of end-March 2026, it has secured certifications for

59.8% of its portfolio (total floor area basis).

The REIT has been participating in the CDP Climate Change Program since 2023,

and received a B score in 2025.

Social

HLC contributes to local communities by establishing large-scale multi-purpose halls

capable of holding regional events, participating in community clean-up activities, and

utilizing corporate furusato nozei (hometown tax). Through the corporate furusato

nozei system in 2025, the REIT donated to the wildfire recovery and reconstruction

project in Ofunato City, Iwate Prefecture, and forest-based town development in the

Itsuki village in Kuma District, Kumamoto Prefecture.