MORI TRUST Hotel Reit : Sustainability Report 2021

Sustainability Report

（Asset Management Company）

December 2021

＜CONTENTS＞
１．About MORI TRUST Hotel Reit, Inc.・・・・・・・・・・・・・・・・・・・・・・・・・	3
２．MORI TRUST Hotel Reitʼs ESG Initiatives・・・・・・・・・・・・・・・・・・・・	4
３．Environmental Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	9
４．Social Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	13
５．Corporate Governance Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・	21

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１．About MORI TRUST Hotel Reit, Inc.

• Overview of MORI TRUST Hotel Reit, Inc.

MORI TRUST Hotel Reit, Inc. ("MORI TRUST Hotel Reit") is a hotel-focused REIT that aims to achieve medium- to long-term growth by leveraging the development capabilities of MORI TRUST CO., LTD. and the hotel operation and management capabilities of MORI TRUST HOTELS & RESORTS CO., LTD., both of which are sponsors of MORI TRUST Hotel Reit.

MORI TRUST Hotel Reit was listed on the Tokyo Stock Exchangeʼs market for real estate investment trusts (J-REIT market) in 2017 and has since achieved steady growth by investing in carefully selected properties that will contribute to stable operations over the medium and long term.

Name of Investment	MORI TRUST Hotel Reit, Inc.
Corporation
Address	3-1 Toranomon 4-chome,Minato-ku, Tokyo
Representative	Amane Sakamoto, Executive Director
Date of foundation	January 15, 2016
Date of listing	February 7, 2017
Portfolio	Hotels
Securities Code	3478
Fiscal period end	February and August

Features of MORI TRUST Hotel Reit

• Focused Investment in Hotel assets with "Asset Quality" "Stability" "Growth Potential"
• • Investment in competitive, high-quality hotels with a focus on international hotel brands
  • Emphasis on intrinsic real estate value such as location and building grade

• Growth strategies that maximizes the support of MORI TRUST Group
• • Utilization of MORI TRUST Groupʼs development and hotel operation/management capabilities
  • Valid agreements concluded with MORI TRUST Group to provide real estate information, etc

• Sound, stable financial management
• • Mitigation of refinancing risks through the best mix, etc of short-term and long-term loans
  • LTV control to increase unitholder value (aiming for maximum 50% in normal time)

MORI TRUST Hotel Reitʼs Organization Chart

Please refer to the governance section of this report for MORI TRUST Hotel Reitʼs organization chart and structure.

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２． MORI TRUST Hotel Reitʼs ESG Initiatives

• Sustainability Policy and Framework for Promoting Sustainability

As MORI TRUST Hotel Reitʼs asset management company, we, MORI TRUST Asset Management Co., Ltd. (the "Asset Management Company") recognize that efforts to improve sustainability such as environmental consideration, contribution to society and strengthening corporate governance though our asset management operations are essential for growing unitholders' value in the mid- to-long term. We hereby establish the "Sustainability Policy" and aim to implement it.

Sustainability Policy

（１）Promoting energy saving and GHGs emissions reduction

In our asset management operations, we make efforts to reduce CO2 emissions through energy conservation by promoting efficient energy use at our assets under management as well as introducing equipment and facilities that contribute to energy conservation and low carbonization.

（２）Contributing to recycle-oriented society

We strive to contribute to realizing sustainable recycle-oriented society through implementing measures to make effective use of limited resources, such as water saving and "3Rs" for reducing wastes, i.e., reduce, reuse, recycle.

（３）Streamlining internal management system and strengthening compliance We establish internal management system to effectively promote initiatives based on this policy and strictly comply with laws and regulations including environmental and social matters. In addition, we promote sustainability initiatives by improving employees' awareness and performance by continually implementing educational and awareness-raising activities focused on environment, society, and governance (ESG).

（４） Promoting health and comforty

We conduct asset management that seeks improvement in health, safety, and comfort of tenants and facility users. Furthermore, valuing each and every employee, we strive to create a working environment that is healthy and conducive to work and enables each person to demonstrate his/her skills to their full extent.

（５） Responding to climate change and improving resilience

We identify and evaluate risks and opportunities that arise from climate change and reflect them in our asset management operations, and by doing so, promote initiatives for adapting to and mitigating climate change to respond to risks and opportunities.

（６）Collaborating with external stakeholders

We make efforts to contribute to reducing environmental impact of our assets under management, improving tenants' satisfaction and developing sustainable local communities through engaging and collaborating with external stakeholders such as our tenants/occupiers, suppliers (e.g. property management companies) and local communities.

（７）Disclosing ESG information

We strive to proactively disclose ESG information such as this policy and status of sustainability initiatives to build good relationships and communicate with stakeholders such as our unitholders, tenants and suppliers.

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2. MORI TRUST Hotel Reitʼs ESG Initiatives

• Relevance to materiality and the SDGs

We identify issues, taking into consideration recognized issues in the REIT sector, external organizations' ESG evaluations, current social trends and other factors, and then evaluate materiality from MORI TRUST Hotel Reit's perspectives by factoring in the main initiatives advanced by MORI TRUST Hotel Reit as well as the importance and priority of these initiatives. In addition, we seek to contribute to the achievement of the Sustainable Development Goals (SDGs) through the implementation of these materiality-linked initiatives.

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