Rerating likely depends on US housing business improvement

Research evidence excerpt

Rerating likely depends on US housing business improvement

29 June 2026

ESG initiatives

Environment

In accordance with its sustainability policy, Sekisui House Reit’s asset management

company manages real estate investments in consideration of ESG. The REIT aims

to reduce Scope 1 and Scope 2 GHG emissions by 42% versus 2023 levels and

reduce Scope 3 emissions by 25% by 2030. It aims to achieve net zero emissions by

2050. Its GHG emissions reduction targets have been recognized as science-based

targets. In 2024, Scope 1, 2, and 3 GHG emissions declined 32.4% versus 2023. The

REIT is also mindful of investing in real estate with excellent environmental

performance, and in March 2026 raised its portfolio green certification ratio target to at

least 90%. Properties with green certification accounted for 91.3% of the overall

portfolio as of end-April 2026 (based on total floor area). Sekisui House Reit has been

awarded an MSCI ESG rating of “A”, and also obtained a score of “A”, the highest

distinction, in the CDP Climate Change Program.

Social

SHR sees a growing demand for real estate in locations that can serve as a

sustainable lifestyle hub for residents and a sustainable location for business activities

for tenant companies, as well as real estate with high residential standards including

comfort and safety and the functionality sought by tenant companies. The REIT

categorizes these high quality residential and commercial properties located in

strategic areas as prime properties and prioritizes investments in such properties.

Prime Maison Shinagawa is one example of disaster-resistant housing. The rental

condo was developed by Sekisui House in response to growing interest in efforts to

mitigate global warming as well reduce electricity use and improve disaster