Social Responsibility Initiatives for Residents and Tenants

Role of SHR with Respect to Residents and Tenants

In recent years, the significance of SHR’s efforts to provide resilient buildings that can withstand disasters, etc., and to minimize damage in the event of a crisis has become greater. We believe that our role is to make the properties owned by SHR a place that provides safety and peace of mind, and to make it a comfortable place that improves the quality of life on a daily basis.

SHR seeks properties that are located in suitable locations to provide a “sustainable base for living” for residents and a “sustainable base for business operation” for tenant companies. Based on the recognition that the need for real estates that have high residential functionalities including comfort and safety or the components desired by tenant companies is increasing, SHR designates “high quality” residential and commercial properties, etc. located at “strategic locations” as “Prime Properties” and prioritizes investments in such properties.

Through investments in properties that qualify as “Prime Properties”, SHR will pursue both sustainable lifestyles and business activities for its residents and tenants, and the sustainable asset management of SHR.

Six Factors of Prime Property

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Focus Points for Residences

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Element Focus Points
Economic Zones
  • Areas where stable rental demand can be expected in terms of commuting distance, residential population, number of passengers who use nearby stations, etc.
Convenience
  • Good access to major transport routes and major terminals, and adjacent to commercial stores, etc.
Livability
  • Designed to be comfortable as a living space and installed with functional equipment
  • Installation of comfortable common spaces and functional equipment, and provision of services
Environmental Consideration
  • Environmental performance is ensured by energy-saving equipment, etc. in common areas and exclusive areas
  • Biodiversity-friendly planting and landscape design
Safety
  • Buildings with risk management considerations for disasters
  • Location with high safety, earthquake resistance of buildings, and disaster resilience
Brand
  • Popularity as an area and recognition of properties
  • High quality in terms of building grade, design, etc.

Focus Points on Office Building

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Element Focus Points
Economic Zones
  • Population of the commercial area, residential population, number of passengers who use nearby stations, and thickness as an economic zone
Convenience
  • Good access from major transport routes
  • Convenience, commercial concentration, and prosperity that contribute to commuting and attracting customers
Functionality
  • Functional design with comfort that leads to increased productivity for tenant companies
  • Sufficient standard floor space and comfortable spacious design, etc.
Environmental Consideration
  • Environmental performance is ensured by energy saving, rooftop greening, etc.
BCP
  • Provide important facilities as a foundation for “business continuity”
  • Resilience to disasters, in terms of both location and specifications
Brand
  • Dignity of the area, sense of luxury and cleanliness of the building

Safety, Security, and Comfortability for Tenants

Measures against Earthquakes

SHR's investment criteria require that the company's domestic portfolio has a seismic PML (probable maximum loss) of 10% or less in principle and that the addition of earthquake insurance is considered for an individual property with a PML of 20% or more. The seismic PML of SHR's domestic portfolio as of October 31, 2024, was 2.4%; there were no individual properties with a PML exceeding 20%.

Seismic PML of Top Five Properties in Japan Based on Investment Ratio

(As of October 31, 2024)

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Property Name Investment Ratio
(Acquisition Price Basis)
Seismic PML
Akasaka Garden City (Note 1) 10.4% 4.3%
Hommachi Minami Garden City 9.1% 1.0%
Gotenyama SH Building (Note 1) 7.5% 1.2%
Hommachi Garden City (Note 2)
(office building portion)
2.8% 3.1%
Prime Maison EGOTANOMORI 2.2% 4.5%

(Note 1)Akasaka Garden City is scheduled to be disposed in May 2025, and the disposition of Gotenyama SH Building is carried out in installments until April 2028.

(Note 2)Hommachi Garden City (office building portion) was disposed in November 2024.

Measures against Flooding

SHR has a system for minimizing damage from natural disasters by investigating the risks of inland flooding, river flooding and storm surge for our owned properties in Japan to assess domestic flood risks and use the findings to improve our business continuity plan (BCP).
The percentage of our domestically owned properties with a flood depth of 0.5 meters or more account for 55.0% (As of October 31, 2024).

Flood Depth Classification of Owned Properties (Acquisition Price Basis)

(As of October 31, 2024)

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Flood Depth Total
<0.5m ≥0.5m
Residence 36.5% 30.5% 67.0%
Greater Tokyo 29.9% 25.4% 55.3%
Osaka Area 0.5% 1.2% 1.7%
Nagoya Area 3.4% 0.8% 4.2%
Others 2.7% 3.1% 5.7%
Office Building 8.5% 24.5% 33.0%
Greater Tokyo 8.5% 10.4% 18.9%
Osaka Area - 12.8% 12.8%
Nagoya Area - 1.3% 1.3%
Total 45.0% 55.0% 100.0%

Residence in Preparation for Disasters

Prime Maison Shinagawa is a rental condominium developed by Sekisui House in response to rising concerns about power conservation and disaster prevention performance following the Great East Japan Earthquake, in addition to climate change. This property has an emergency power generator that was introduced to ensure a higher level of safety and security in the event of an emergency. The generator is connected to solar batteries and storage batteries, ready to serve as an emergency power supply system for use in the event of a blackout.

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Conceptual Diagram of Emergency Power Supply System


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When power is cut due to a natural disaster or similar event, the emergency power generator is activated and supplies power to common areas for approximately 19 hours. It can continue to supply power even longer when connected with solar batteries and storage batteries. As a result, some lights for common corridors and the entrance are illuminated, securing passageways and providing a sense of security even at night. In addition, the generator also supplies power to the electrical outlets in the entrance, where residents would gather, allowing them to charge mobile phones and other devices. The generator also permits the collection of information via the monitor in the control room. Power is also supplied to the feed-water pump. This means that water will be supplied to common areas and dwelling units as long as the water supply has not been cut off.

Examples of Disaster Prevention Equipment for Residences

Emergency cabinet for elevators

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Prime Maison Gotenyama East and others

Distribution of stockpiled emergency supplies to tenants

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Esty Maison Ojima and others

Stockpile of emergency toilets

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Prime Maison Shinagawa

Bench with oven function

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Prime Maison Musashinonomori and others

AED (Automated External Defibrillator)

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Prime Maison Yokohama Nihon-odori and others

Disaster relief vending machines

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Prime Maison Ginza East and others

Disaster-Resilient Office Buildings

Hommachi Minami Garden City takes business continuity into account by installing seismic braces on each floor to absorb the forces that would act on the building in a major earthquake, and by situating its mechanical room on the 3rd floor, above flood level. Despite these features, it still offers over 1,300 square meters of column-less spaces and a ceiling height of 2.8 meters on standard floors.

At HK Yodoyabashi Garden Avenue, the floor level of the first floor has been raised by 0.5 m from the front road on the north side to prevent flooding into the building, in readiness for flooding damage due to torrential rain, etc. Flooding countermeasures have also been implemented in the B1F parking lot, which is susceptible to damage due to rainwater flowing in from the road. Electrically operated waterproof panels that activate automatically when a sensor detects a certain amount of flowing water are installed at the entrances and exits of the roadway ramp to prevent possible flooding damage. We have also installed emergency generators for buildings that can supply power to both common and exclusive areas, and are able to supply power for up to 48 hours even when the supply of power from the power company is stopped, ensuring business continuity.

Conducting Tenant Satisfaction Surveys

SHR regularly conducts tenant satisfaction surveys with the aim not only to improve and stabilize leasing operations, but also to communicate with residents and tenants and build reliable relationships.
For the surveys conducted in fiscal year 2023, we incorporated questions asking about their initiative status of implementation and in-house discussions related to ESG and well-being into the survey items.
The survey results are shared with property management companies, building management companies and others, and measures will be developed to further improve services.

Summary of Survey

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Survey period July to August 2023
Respondents Residence 8,857 residents
Office building 62 tenants
Survey items Residence Items regarding rooms and common area's satisfaction, residents needs, management conditions, interest in environmental issues, etc.
Office building Overall satisfaction, items regarding ESG, well-being, etc.
Response rate Residence 27.5%
Office building 79.0%

Fiscal Year 2023 Survey Results

Residence
A total of 78.8% responded that they were "satisfied" or "highly satisfied".

Satisfaction
78.8%

Acclaimed Points

  • Convenient location
  • Good surrounding environment and security
  • Well-equipped facilities (home delivery boxes and parking spaces)
  • Design and atmosphere of rooms, water facilities
  • Clean and tidy rooms and spaces
  • High soundproofing performance
  • Environmental friendliness through installing LED lightings in common areas, etc.
  • Many pleasant greenery-plantings
  • Internet connection

Points to be improved

  • Introduction of free internet service
  • Introduction of car sharing
  • Maintenance of car and bicycle parking

Office buildings
A total of 93.3% responded that they were "satisfied" or "highly satisfied".

Satisfaction
93.3%

Acclaimed Points

  • Convenient location
  • Building grade, specifications, exterior and interior design of entrances
  • Security and disaster resilience
  • Responsiveness and quality of building management companies
  • Comfortability and safety

Points to be improved

  • Offering common spaces such as café lounges and rental conference rooms
  • Holding the tours of disaster prevention facilities and explanatory meetings regarding the use of disaster prevention equipment, etc for tenants

Based on the results of tenant satisfaction surveys, SHR implemented the various measures aimed at improving safety, security and comfortability for residents and tenants.

Initiatives taken based on the results of 2023 survey

At residences
  • Introduction of free internet service in all units (Esty Maison Kameido)
  • Introduction of car shearing (Esty Maison Kitashinjuku、Prime Maison Momochihama、Esty Maison Sasazuka)
  • Large-scale renovation of the entrance lobby (Esty Maison Toyosu Residence)
At office building
  • As part of the fire drill, training regarding the use of fire extinguishers and a rescue drill in case of an emergency stop of the elevator were conducted for tenants (Hommachi Minami Garden City)

Fire extinguishing training
(Hommachi Minami Garden City)

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Large-scale renovation of the entrance lobby
(Esty Maison Toyosu Residence)

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Before renovation

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After renovation

Selection and Evaluation of Property Management Companies

In order to secure stable earnings and maintain and improve the value of assets, SHR has established criteria for selecting property management companies to which such management may be entrusted. In principle, SHR monitors and evaluates the performance of property management companies' management operations once a year through external evaluation organizations, and verifies their appropriateness.
In addition to the company's property management capabilities and operational systems, its organizational structure for promoting corporate sustainability and the energy conservation promotion system for managed properties are also subject to evaluation. For property management companies that receive relatively low ratings on sustainability-related items as a result of the monitoring, SHR interviews them to share details of SHR's approach to sustainability and strengthens our relationship in promoting initiatives as one.

Approach to Wellness

Initiatives to wellness in residences

At Prime Maison Nishiwaseda, a book cafe has been set up with coffee machine in the common space to provide a place that encourages residents to communicate with each other. In addition, at Esty Maison Toyosu Residence, a walking path has been laid out in the patio aiming to offer residents a peaceful space surrounded by abundant greeneries.

Book Cafe

Walking path laid out in the patio

At the Ivey on Boren (in the U.S.) and City Ridge (in the U.S.), we are working to create a living environment where residents can live a vibrant life by opening the pool and training gym to offer them the opportunities to improve their health, greening the both buildings and enhancing the common facilities such as co-working space and pet’s washing station.

Initiatives to wellness in office buildings 

Hommachi Minami Garden City was designed based on the Building Movement Facilitation Guidance Standard required by the Act on Promotion of Smooth Transportation, etc. of Elderly Persons, Disabled Persons, etc. (known as Barrier-Free Act) and is the first office building in Osaka City to be designated as barrier-free under the law.

Key Features

  • Two multipurpose restrooms accessible to ostomates and wheelchair users on each office floor
  • Wheelchair-accessible elevators
  • Wide hallways that allow two wheelchairs to pass
  • Three wheelchair-accessible parking spaces in the parking garage

Acquisition of Wellness Certification

Acquisition of Fitwel Certification

The Ivey on Boren (in the U.S.) and City Ridge (in the U.S.) acquired “★(1 star)” in Fitwel Certification.

Main Assessment Points for The Ivey on Boren (in the U.S.)

  • Providing residents with opportunities to exercise in the gym and swimming pool
  • Providing residents with greened spaces
  • Implementing acoustic control measures to minimize internal and external noises
  • Establishing and implementing a policy making all indoor areas non-smoking
  • Taking management measures to properly remove asbestos and other noxious materials

Main Assessment Points for City Ridge (in the U.S.)

  • Providing residents with opportunities to exercise in the gym and swimming pool
  • Providing residents with greened spaces considering the scenery in the site
  • Opening a public space to promote residents to communicate
  • Providing residents with good access to supermarkets, commercial facilities and child-care facility
  • Establishing and implementing a comprehensive emergency preparedness plan

<Overview of Fitwel Certification>

Fitwel Certification is a building performance rating system which was originally created by the U.S. Centers for Disease Control (CDC) and Prevention and U.S. General Services Administration in 2017. Fitwel Certification focuses on the health and wellbeing (being in physically, mentally and socially healthy) of people using a building and evaluates whether a building has elements that help people live healthier and more fulfilling lives. A building is scored on 12 criteria across seven health impact categories and certified with a three-star scale from 1 Star to 3 Stars.

Click here for Fitwel Certification

Acquisition of Certification for CASBEE Wellness Office

“Hommachi Minami Garden City” received the Certification for CASBEE Wellness Office, and is certified as "Rank A". Furthermore, it has received "Rank S" of the Certification for CASBEE for Real Estate so far, it has been authorized "Rank A" of the Certification for CASBEE Smart Wellness Office which can be received by combining each certification.

Main Assessment Points for “Hommachi Minami Garden City”

  • Measures for resilience to disasters have been implemented, including the installment of high seismic braces and emergency power facilities and sufficient fuel stockpiles, as well as adequate security measures such as the systems of security gates using key cards
  • Many efforts are taken to revitalize communications, such as consideration for Barrier-Free and installment of benches, etc.
  • Many efforts are taken to improve comfort, such as the introduction of high performance materials and items for both design and facilities, especially the introduction of air conditioning units with simultaneous heating and cooling capabilities
  • Making efforts to improve satisfaction by conducting surveys for tenants

<Overview of the Certification for CASBEE Wellness Office>

Certification for CASBEE Wellness Office is a tool to evaluate the specifications, performance, and efforts of buildings that support the maintenance and promotion of the health and comfort for building users.
In addition to factors that directly affect the health and comfort for the workers working in the building, factors that contribute to the improvement of intellectual productivity and performance related to safety and security are also evaluated. They are scored on the following five categories of evaluation items: "1. Health and Comfort", "2. Improved Convenience", "3. Security and Safety", "4. Operation and Management" and "5. Programs", and are then given ratings from "Rank S", "Rank A", "Rank B+", "Rank B-", or "Rank C".

Click here for the Certification for CASBEE Wellness Office (Japanese Only).