Relationships with the Local Communities

Participating in local events

theUmeda area, is hosted, and in addition to hosting Bon festival dances and customer participation-type Uchimizuevents, it is also the site where “UMEDA MEETS HEART,”(a project to transmit positive messages from Umeda with a motif of “Heart”) a winter event in the area is implemented.
The Umeda Yukata Matsuri, run by Umeda Area Management Alliance (Osaka Station District) as part of their activities, is a local event aimed at further improving the area's attractiveness, under the theme of "yukata,"which is a part of traditional Japanese culture.
We also offer the open space of Hankyu Corporation Head Office Building as event sites for locally hostedevents such as the Umeda Yukata Matsuriand and the 1000000 People's Candle Night@OSAKA CITY Chayamachi Slowday.

 

Umeda Yukata Matsuri

Offering venues for holding of local events

HHR provides support and space for holding local events at its owned properties.

• Dew Hankyu Yamada
  Playing a role in supporting local industries and drawing customers to localmarkets, by providing market spaces for startups who are planning to opentheir businesses in the surrounding communities, and holding market eventsat its common areas on a regular basis.

• GRAND FRONT OSAKA
  Regularly holding live music events for free as a joint project with a radio station, and providing the SpringX program, which offers online venues for practical learning opportunities and startup support.

Cooperation with nearby local communities

Dew Hankyu Yamada makes community-based contributions by holding "children’s job experience" events.

METS OZONE contributes to local revitalization and deepens its engagement with the community by providing a platform for local choirs andnearby universities to present their activities at in-facility events.

Introducing a bike sharing system

Kitano Hankyu Building has introduced a bike sharing system operated by DOCOMO BIKESHARE, INC. and contributes to reducing the environmental load by mitigating traffic congestion in the city center. Moreover, this also contributes to the development of local industry as transportation infrastructure for commuting, business, and tourism.

Implementing a park-and-ride

Dew Hankyu Yamada has implemented a park-and-ride on its rooftop parking lot. A park-and-ride, is a method of commuting whereby people park their automobiles in parking lots with public transport connections, and transfer to public transportation such as railways and fixed-route buses. It is a transportation policy that is promoted as a way to mitigate traffic congestion in city centers and tourist sites, suppress traffic pollution, and reduce illegal parking, etc.

Supporting sales promotions of tenants and startups

On the first floor below ground at HEP Five, the "FIVE LAB" has been set up to support startups, which is a pop-up space that collects and dispatches popular contents, and provides opportunities for creators and EC shops to make sales at special events. In fact, some members who had participated in those events became official tenants by opening their own shops. HEP Five has also established a photo studio for SNS and live commerce to support the sales promotions of tenants.

Participating in the Hankyu Hanshin Mirai no Yume Machi Project

Our sponsor, Hankyu Hanshin Holdings Group conducts the Hankyu Hanshin Mirai no Yume Machi Project, and the employees of HHRAM also participate in this project.

[Overview of Hankyu Hanshin Mirai no Yume Machi Project]
https://www.hankyu-hanshin.co.jp/yume-machi/top.html (in Japanese)

Relationships with Tenants

Employee satisfaction surveys

With the cooperation of a property management company, we conduct regular employee satisfaction surveys at the properties owned by HHR listed below, and aim to improve employee satisfaction and increase the value of facilities, through improvements based on the survey results.
Properties with employee satisfaction surveys:
9 properties in total, including Kitano Hankyu Building, Dew Hankyu Yamada, METS OZONE

Training for employees of tenants

We conduct various video and offline training sessions at HEP Five, aimed at making the facility attractive and selected by customers. In fiscal 2025, training courses at GRAND FRONT OSAKA are scheduled to learn basic customer service etiquette and other fundamentals.

HHANKYU NISHINOMIYA GARDENS and GRAND FRONT OSAKA have produced participants for the national customer service role-playing contest hosted by the Japan Council of Shopping Centers. Through such achievements, we strive to improve the skills of the employees and enhance the comfort of customers using their facilities.

Hosting social gatherings and trips for employees

At HEP Five and HANKYU NISHINOMIYA GARDENS, we contribute to improving employee satisfaction and promoting employee communication by hosting one-day bus trips, and social gatherings for the employees of tenants.

Providing work-friendly building environments

SHIBAURA RENASITE TOWER provides opportunities to connect with its tenants through activities such as smalllocal markets organized by the tenants in the lobby and distributing mimosas to its tenant employees onInternational Women’s Day.

SHIBAURA RENASITE TOWER

HEP Five renovated its employee cafeteria in fiscal 2019 and has a meeting space where employees can communicate with one another, in addition to a space for charging devices. In addition, HANKYU NISHINOMIYA GARDENS established a female powder room in the employee lounge to provide and support an environment where tenant employees can work comfortably.

Award history

HEP Five has received the ES Award multiple times at the Developer Award and Tenant Award event hosted by SENKEN SHIMBUN CO., LTD. In addition, HANKYU NISHINOMIYA GARDENS received the Gold Award at theJapan SC Awards in 2013 as the first retail facility ever to receive the award outside of the Tokyo metropolitanarea while it also received the Developer Award Chosen by Tenants (Second prize) at the 27th (fiscal 2024)Developer Award and Tenant Award event hosted by SENKEN SHIMBUN CO., LTD.

Initiatives towards Employees of HHRAM

Due to the provisions of the Act on Investment Trusts and Investment Corporations (hereafter "Investment Trust Act"), HHR cannot hire employees. As such, its assets are managed by the employees of HHRAM. We believe that each and every employee related to the business is an indispensable asset, and in addition to working to create a healthy work environment where employees can maximize their various personalities and abilities, it also aims to improve business competitiveness through proactive personnel development.

Health Management

Purpose of health management and approach to issues

Holding "respect for people" as one of its most important values, the Hankyu Hanshin Holdings Group believes that the health of its employees and theirfamilies is the cornerstone of the company's bright future. The Group has therefore promoted health management initiatives to proactively support everyemployee in leading a healthy life and to create a workplace where they can work with enthusiasm. As HHRAM has a small number of employees, ourbusiness could be significantly affected even if only one of them is unable to perform at full capacity due to poor health — an issue we recognize as animportant management challenge. To address this, we have established health management promotion policies aimed at enabling employees and theirfamilies to live healthy lives, and at fostering a "Heartful & Joyful" working environment where everyone can develop their own unique individuality and fully demonstrate their abilities. Since the establishment of our Health Declaration in September 2019, we have continued to advance health management, strivingto create a working environment where each employee can work energetically and with a sense of fulfillment to realize these policies. As a numerical goal forour overall health management, we have set a target to increase "the ratio of employees with light-exercise habits" from 27% in 2024 to 35% in fiscal 2028. Inaddition, as a Key Goal Indicator (KGI), we aim to reduce "the ratio of employees who are unable to fully perform due to poor health," from 35% in 2024 to25% in fiscal 2028.

Promotion system and initiatives for health management

The Health Management Project Team implements annual programs that promote employee health and communication. A company-wide health surveyidentified several health issues, mainly related to diet and exercise. Focusing on one of the key health issues —light-exercise habits—we have set anumerical target of "the ratio of employees regularly engaging in light-exercise of 10 to 30 minutes per day," aiming to raise overall activity levels. To addressthese issues, the cross-functional project team holds internal discussions with executive officers and employee representatives from each department anddevelops specific projects under the themes of promoting smooth communication as well as improving dietary and exercise habits. The various projects haveincluded the Arukatsu walking events, and yoga and stretching sessions using health management support applications. In addition, we collaborate withexternal organizations to advance health management, such as regularly participating in seminars provided by the Tokyo Fudosangyo Health InsuranceSociety. Furthermore, we place great value on information sharing with our employees. Through the Stress Check Council, we inform employeerepresentatives of the progress of our health management initiatives and the implementation status of the Certified Health & Productivity ManagementOrganization Recognition Program.

<Main initiatives implemented to date>

• Vegetable catering service introduced to offices
• Lunch activities (small group dining events for all employees, including executive officers ）
• Twice-daily TV exercise program (introducing a stamp card to encourage employee participation)
• “Arukatsu” (walking events)
• Property inspection tours (once a year)
• Health lectures by external instructors (two or three times a year)
• Background music for working introduced to offices
• Introduction of a health management support app

Effect of introducing health management

Along with various initiatives for health management, we have also promoted flexible working as described later in “Work-life balance.” Our health management initiatives include the Arukatsu walking events, property inspection tours, and the TV exercise program. Regarding Arukatsu, the original target was 5,000 steps per day with a participation rate of over-50%. In fiscal 2024, the participation rate again reached 100% (excluding former employees and employees on administrative leave), the same as the previous year, and the average number of steps increased to approximately 8,600 per day. In fact, the employee survey in fiscal 2024 shows better results than in fiscal 2023: increasing from 80% to 92% for having breakfast three or more times a week; increasing from 83% to 96% for relieving stress; falling from 40% to 35% for not performing well due to poor health condition. We consider the item "not performing well due to poor health condition" an important indicator of presenteeism. Concerning labor indicators, the average monthly overtime in fiscal 2024 slightly increased to 8.1 hours from fiscal 2023, but decreased by approximately two hours compared with fiscal 2022. In addition, the number of occupational accidents remained at zero, indicating our ongoing efforts to maintain a safe working environment. Internal activities such as the "Minna de Gohan" lunch activities and property inspection tours have helped improve communication in the office. Building on this, we have been focusing on stimulating staff engagement by taking measures to enhance communication, which in turn contributes to strengthening our business relationships and increasing productivity. It is clear to us that increasing the opportunities to cooperate with outside organizations through health management is also highly beneficial: collaborating with Tokyo Fudosangyo Health Insurance Society on organizing seminars and other various activities; letting our employees speak at outside seminars as lecturers; our initiatives being introduced on the websites of both the Ministry of Health, Labour and Welfare, and the Ministry of Economy, Trade, and Industry.

Recognized as 2025 Outstanding Organizations of KENKO Investment for Health Bright 500 (SME category)

The Recognition Program for the Outstanding Organizations of KENKO Investment for Health is a program that Minister of Economy, Trade and Industry examines large enterprises, SMEs and other organizations that are engaging in health-conscious activities in collaboration with health insurance society members and promoting such activities led by the Nippon Kenko Kaigi, and recognizes outstanding enterprises engaging in efforts for health and productivity management.
*”Bright 500” is given to the top 500 enterprises among the “2025 Outstanding Organizations of KENKO Investment for Health (SME Category)” demonstrating “further outstanding health and productivity management” and “expansion of efforts to regional areas.”

Osaka Wellness Action Award Spin-off Project:
Received a special award at the 'Workplace Ken-Katsu 10 Grand Prize' event (March 2021)

Osaka Wellness Action Award Spin-off Project: Special Award at the 'Wellness Activity 10 at Workplace' Grand Prize Awarded in March 2021.
The Osaka Wellness Action Awards aim to promote and disseminate independent and proactive health and productivity management, and HHRAM wasrecognized as an organization that is proactively engaged in activities for health and productivity management in Osaka and for promoting health in the workplace and across the region.

Work environment

Human resource development

Human resource development is recognized as the most crucial element for companies to achieve sustainable growth andstrengthen their competitiveness. At HHRAM, based on the belief that each and every employee is an irreplaceable asset, we aredeveloping a wide range of human resource development programs to maximize their diverse personalities and abilities.

Support for acquiring qualifications

To foster the development of professional human resources, HHRAM has implemented a qualification acquisition incentiveprogram. For specialized qualifications recognized as necessary for HHRAM's asset management business, including ARESCertified Master (an educational program through which individuals can systematically acquire practical expertise in real estateand finance), HHRAM covers the costs for training, examinations, and the maintenance of these qualifications.
The table below shows the number of employees who have acquired each qualification.

Group training system

Hankyu Hanshin Holdings offers the group training system to all employees who have reached important milestones, for example, when entering the company, and when taking up a new management post. HHR employees can also take part in the training sessions. In addition, Hankyu Hanshin Holdings has a personnel and accounting company for all group employees, Hankyu Hanshin Business Associates, which plans and conducts seminars to support all group companies with human resource development throughout the year at Hankyu Hanshin Manabi-ba seminars, and Hankyu Hanshin Business School. The group training system, therefore, creates opportunities for group employees to develop their own self-awareness as a group member and strengthen cooperation with other group companies, and to improve themselves through competition by taking part in a group seminar for job ranking or personnel development.

Implementation of the HHRAM seminar

At HHRAM, we conduct our unique training program, the "HHRAM Seminar," for mid-career hires and seconded employees. Theseminar aims to enhance their understanding of the business overview and their expertise in real estate investmentmanagement. Through this seminar, personnel from each department explain their work, practical points, and requiredspecialized knowledge, thereby fostering the development of human resources with the desired profile for HHRAM. Additionally,by sharing knowledge across the company, the seminar contributes to improved departmental collaboration and enhanced overallorganizational performance.

Management by Objectives (MBO)

All employees including contract ones are expected to develop their own ability through various business operations with MBO strategies applied. Among them are goal setting together with their supervisor, and having a year-end interview for evaluation feedback from their supervisor. In addition, regular interviews are scheduled for employees to get appropriate support from their own supervisor. The MBO system gives them varied career paths, engaging in job rotation if necessary.

Establishment of an Office environment

Upon office expansion, a collaboration space was added after taking employee opinions into consideration. The new space will promote ease of work and communication.

Employee questionnaires (once a year)

In cooperation with group companies of Hankyu Hanshin Holdings, we conduct two surveys every other year: the Employee Satisfaction Survey to improve employee engagement, and the Working Environment Survey to prevent harassment in the workplace and educate employees on harassment.

Work-life balance

Introduction of flextime system

With the purpose of improving productivity, the flextime system (without core time) was introduced starting in August 2019, which gives employees the choice of when they will work, including daily start and end times, and enables them to work efficiently while balancing life and work.
Combined with the flextime system, a work interval system was also introduced, which sets a certain interval of time between the time employees leave work until they can start again. In this way, we are also making considerations to prevent long work hours.

Introduction of high-performance laptop computers and in-house wireless LAN

Along with the introduction of a flextime system, replacing desktop computers withhigh-performance laptop computers and establishing an in-house wireless LAN hasresulted in greater flexibility in terms of location and time, improved productivity,and paperless meetings.

Enabling remote work

With the purpose of realizing smooth progress in business while considering the health of employees amid the spread of COVID-19, we allowed our employees to select remote work as an option.
In addition to introducing secure remote-access services for safe access from outside the office, the target of web-conferencing system users was expanded to all employees of HHRAM. Currently, remote work has been effectively established, which shows that flexible work arrangements have been fully introduced to our employees.

Digitalization of decision-making processes

In conjunction with the adoption of remote work, we digitized decision-makingprocesses for approval documents, decision papers, and directives, aiming toimprove productivity and efficiency.

Health management

By conducting regular health examinations and covering the costs of influenza vaccinations, we are engaged in maintaining and improving the health of our employees.

Welfare program

• Cafeteria plan (Multiple-choice welfare service program)
• Sukoyaka leave (Reserved annual paid leave)
• Special sick leave (Employees who get sick or injured for a private reason may be granted up to five working days per year when they use up all their leave days specified in both annual paid leave and reserved annual paid leave.)
• System to balance medical treatment and working life (Employees who receive medical treatment while working may be granted a flexible working style: shorter working hours, shorter working days, and remote work.)
• Rehabilitation system for the return-to-work process (Mainly absentees due to mental health problems may be eligible for the system as a support to return to work sooner.)
• Defined contribution (DC) pension plan (Revision of the retirement benefit plan from October 2025)

Introduction of Investment Unit Accumulation Program and Employee InvestmentUnit Ownership Program

At HHRAM, with the aim of promoting the acquisition and ownership of HHR investment units by employees and thereby enhancing unitholder value over the medium-to-long-term through the alignment of interests between HHR's unitholders and employees, and also increasing benefits for employees, we have implemented the Investment Unit Accumulation Program since July 2012 and the EmployeeInvestment Unit Ownership Program from July 2025. Through the Employee Investment Unit Ownership Program, incentives are provided for unit purchases, supporting employees' asset building and enhancing their welfare.

Diversity

Respecting human rights, preventing harassment

We respect the diversity of each and every employee and believe that mutual acceptance is indispensable to sustainable growth, and the sponsor group takes initiative as one body by conducting human rights training, conducting surveys, and increasing the number of consultation service counters. Employees can anonymously receive a counselor’s advice or report harassment, and it is clearly stated that the privacy of the counselee shall be protected, and they shall not be subject to discriminatory treatment due to such consultation or reporting.
In addition to counselling, HHRAM establishes a consultation counter for corporate ethics (Note) as part of the internal whistleblowing system for harassment and human rights abuse.

• Please refer to “Establishing a consultation counter of corporate ethics” at"Initiatives towards Property Management Companies and Suppliers"

Human Rights Policy

HHRAM shares “Basic Philosophy and Policy on Respect for Human Rights” by the Hankyu Hanshin Holdings Group which was revised in April, 2023. (The following is translation of the excerpt from the Hankyu Hanshin Holdings Group’s website.)

The mission of the Hankyu Hanshin Holdings Group is to realize our customers’ happy lives and contribute to the society by providing them with “safety and comfort” as well as “dreams and excitement.” To accomplish our mission, we believe that we should respect the human rights of all the stakeholders, including customers, clients, shareholders, the local community, and our staff members who are in charge of our businesses, based upon the belief that we shall coexist with all people as a member of society. Our Basic Philosophy and Policy on Respect for Human Rights are well established so that every one of us can recognize and become conscious of human rights as our own affair by enhancing the sense of human rights to think and behave accordingly. In fact, our Philosophy and Policy is stipulated based on the United Nations Guiding Principles on Business and Human Rights.

Hankyu Hanshin Holdings Group Basic Philosophy and Policy on Respect for Human Rights
“Basic Philosophy on Respect for Human Rights”
By respecting the human rights of all people involved in our business activities, we contribute to the creation of an affluent society free from discrimination and the infringement of human rights based on birth, race, nationality, religion, creed, sex, sexual orientation and gender identity, age, disability, etc.

“Basic Policy on Respect for Human Rights”
1.  Compliance with laws and regulations related to respect for human rights
We will endeavor to comply with human rights laws and regulations applicable in the countries and regions in which we operate and will support and respect international human rights norms such as the International Bill of Human Rights (Universal Declaration of Human Rights and International Covenants on Human Rights) and the ILO Declaration on Fundamental Principles and Rights at Work* issued by the International Labour Organization (ILO).
* The core labour standards include freedom of association and recognition of the right to collective bargaining, prohibition of forced labour, prohibition of child labour, prohibition of discrimination in respect of employment and occupation, and a safe and healthy working environment.

2.  Scope of application
This philosophy and policy apply to all officers and employees of the Hankyu Hanshin Holdings Group. We also will try to gain the understanding and support of stakeholders in this philosophy and policy, and we hope to work together to proceed with respect for human rights.

3. Human rights due diligence
In order to fulfill our responsibility to respect human rights, we will continue to implement human rights due diligence and work to avoid and reduce negative impacts on human rights.

4. Remedy and correction
Upon our knowledge of any directly caused, and/or the contributing of, adverse impacts on human rights through our business activities, we will implement or cooperate in remedies and corrections through appropriate means.

5. Dialogues with stakeholders
We seek to gain insights through dialogue with outside experts, listen to the opinions of our stakeholders, and strive to respond responsibly.

6. Education and Awareness
We will continue to provide the necessary education and awareness to ensure that this philosophy and policy are carried out in our business activities.

7. Creating a safe and satisfying work environment
In order to respect the human rights of each employee, we will endeavor to maintain fairness and equality in all treatment, starting with the hiring process. We will also promote the creation of a work environment where officers and employees can recognize each other's differences and make full use of their individuality and talent.

8. Information disclosure
We will disclose information on our efforts to respect human rights in a timely and appropriate manner.

Promoting women's success

We are creating an environment where female employees are able to realize their potential and succeed as part of our diversity acceptance measures.

Personnel data

• Actual total number of new employees in the past year
• Average number of years when the employees have worked (as for secondedemployees, based upon the date when they were officially accepted)