GHG

Solar Power Generation

Introduction of solar power generation equipment

Solar panels have been installed on the rooftops of logistics and retail properties owned by DHR, and DHR utilizes the renewable energy they generate.

	Number of properties	Power generated in FY ended Mar. 2020	Power generated in FY ended Mar. 2021	Power generated in FY ended Mar. 2025
Solar power generation equipment installations	23 properties	MWh	MWh	23,732MWh

• Amount of power generated is calculated only for properties with solar power generation equipment for which the requisite data are available.

Main properties with solar power generation equipment installed

Status of conversion to LED lighting

	Number of portfolio properties (Note 1)	Number of properties with LED lighting (Note 2)	Percentage of properties with LED lighting
Logistics	65	65	100.0%
Residential	129	128	99.2%
Retail	15	14	93.3%
Hotel	7	7	100.0%
Other	6	6	100.0%
Total	222	220	99.1%

• The number of properties is as of March 31, 2025.

• Excludes land properties.
• The number of properties in which LED lighting has been installed in at least half the area of common areas (in properties with common areas) or at least half the area of the entire property (in properties leased as an entire building with no common areas).

Example of conversion to LED lighting

• Calculated using an emission factor of 0.000441 t-CO₂/kWh

Energy

Energy Consumption(total consumption, intensity (MWh/㎡))

Improved Electricity Data Acquisition Rate

In June 2023, the Asset Manager became the first J-REIT asset manager to join the Secured Meter Data Sharing Association. By obtaining electricity usage statistics for DHR’s properties, it significantly improved the electricity data acquisition rate for residential facilities, including the private areas.

Electricity Data Acquisition Rate (FY2024)

Energy Saving Measures

DHR is taking the measures at its properties in consideration of the environment as shown below.

Water

Policy and Basic Approach

The water supply is expected to become unstable as a result of climate change; it is becoming more important to conserve aquatic environments around the world. As water risks are highly influenced by local factors, DHR evaluates water stress at its properties and uses hazard maps to assess the risk of water damage. DHR also promotes efforts to reduce water consumption at its properties to ensure that water resources are available for continued use.

Target	Reduce consumption rate to the consumption intensity of fiscal year ended March 2018 (base year) or less (10-year period from 2018 to 2027)
Actual	Water consumption intensity 0.5953㎥/㎡ (Fiscal year ended March 2025)	0.8205 ㎥/㎡ Base year (Fiscal year ended March 2018)

Water Consumption (total consumption, intensity (㎥/㎡))

Improved Water Consumption Data Acquisition Rate

We have significantly improved the acquisition rate of water consumption data in our residential properties, including the private areas, by requesting the Waterworks Bureau for information on water consumption in the private areas.

Acquisition Rate of Water Consumption Data (FY2024)

Effective Use of Rainwater, Groundwater, and Greywater

DHR reduces tap water use and the environmental impact of its owned properties by effectively using rainwater, groundwater, and greywater (used tap water recycled for flushing toilets, watering, and other purposes before being discharged into sewer systems).
At “DPL Nagareyama I” and “DPL Misato,” irrigation systems that use rainwater and automatic irrigation timers to conserve water and improve landscape management are installed.
Chiba Prefecture where “ACROSSMALL Shinkamagaya” is located has stable ground with plenty of good quality water. DHR implemented construction to switch from tap water to groundwater, which reduced the tap water consumption by supplying water to the sports club with a pool and other such facilities.
DHR uses gray water at the “Naha Shin-Toshin Center Building (Daiwa Roynet Hotel Naha-Omoromachi).”

Adoption of Water Conservation Equipment

DHR is furthering the adoption of water conservation equipment at the time of renewal of facilities or equipment at its properties in an effort to reduce water consumption.

Water Stress

DHR does not own any properties in regions where the water stress is “high” or “extremely high.”

Waste Management/Pollution Prevention

Policy and Basic Approach

The increasing world population and other factors are triggering a substantial rise in consumption of global natural resources; resource depletion and the negative impacts of waste on the environment are becoming more severe. The “2030 Agenda for Sustainable Development” adopted at the United Nations Summit in 2015 calls for a “vast reduction in waste by 2030.” Interest is mounting in the “circular economy”, in Japan and abroad, in which products and other items of value are continuously recycled and reused. DHR is taking steps to reduce waste and increase recycling rates at portfolio properties.

KPIs and Main Initiatives

Waste management

Target	Improve recycling rate to the rate of fiscal year ended March 2018 (base year) or higher (10-year period from 2018 to 2027)
Actual	Recycling rate 73.7% (Fiscal year ended March 2025)	54.2% Base year (Fiscal year ended March 2018)

Waste Management (recycling rate)

Pollution Prevention

Target	Prevent occurrence of any environmental risk incidents (e.g., violations of environmental laws and regulations) to zero.
Actual	0 (Fiscal year ended March 2025)

Before acquiring any property, DHR shall conduct detailed environmental due diligence on the matters listed below.
During the due diligence process, DHR makes comprehensive investment decisions by enlisting a third party with sufficient skill and experience in due diligence to conduct an assessment, weighing its impact on DHR’s overall portfolio, and studying its contribution to expected increase in value and other relevant considerations.

a. Soil and ground conditions, buried objects, soil contamination, etc.
b. Status with respect to hazardous substances (asbestos, PCBs, etc.)

Furthermore, DHR maintains the proper processing and procedures in accordance with laws and regulations for any chemical substances present on its properties to strictly handle all chemical substances in the most thorough manner to ensure no leaks or emissions.
The Asset Manager considers chemical substance and pollution prevention to be important, and to strengthen its commitment to resolving sustainability issues and improving governance, the Asset Manager has implemented a compensation system in which the occurrence of environmental risk incidents (violations of environmental laws and regulations, etc.) is evaluated with regard to the compensation of the Asset Manager’s Directors.

Soil Contamination Countermeasures

“FOLEO Ome Imai” was built on the land of a former electronic component production plant. Even though the soil contamination had been verified, construction work was conducted by properly excavating and removing the soil. DHR acquired the property after confirming that the topsoil survey for all specific hazardous chemicals after the construction work showed none of the substances were detected and all were in compliance with regulatory standards.