• Basic Policy
• Tenant Engagement
• System Investment Utilizing ICT
• Initiatives in Collaboration with the Operators
• Contribution to Local Communities
• Initiatives in collaboration with business partners
• Positive Impact of Investing in Healthcare Facilities
• Initiatives at HAM

Basic Policy

Initiatives for Solving the Challenges of an Aged Society

Healthcare Asset Management Co., Ltd. (hereinafter, “HAM”) believes that Healthcare & Medical Investment Corporation (hereinafter, “HCM”)’s continuous investment in healthcare facilities and its stable management of assets will help towards solving the social challenges of an aged society. Therefore, we have cooperated with various internal and external stakeholders including unitholders, operators and hospital personnel, the sponsors, executives and employees.

Tenant Engagement

Healthcare facilities are assets that require special know-how and expertise to operate, so in order to properly evaluate an asset on its business characteristics, it is necessary to evaluate the operator's business capabilities and management stability.

Building a relationship of trust with the operator is essential for properly conducting due diligence prior to acquisition and monitoring after acquisition.

HAM actively works to build trust by visiting the healthcare facility and meeting with the facility manager and others in charge to gain an appropriate understanding of the facility's operations.

HCM has built a stable portfolio through business due diligence and monitoring.

System Investment Utilizing ICT

HCM paid 44.6 million yen, the initial cost of capital expenditure for 2 properties owned by HCM, in a lump sum, while the operator paid for the amount of increase in rent, thereby leveling the payment of introduction cost and realizing early introduction. (2019)

• ▪Targeted facilities and amount of capital expenditure
  ASHEIM Bunkyohakusan (completed introduction in July 2019, 20.9 million yen)
  ASHEIM Hikarigaoka (completed introduction in August 2019, 25.6 million yen)
  Total Amount of capital expenditure 46.5 million yen

Initiatives in Collaboration with the Operators

HAM conducts a satisfaction survey of operators of its properties on a regular basis (in principle once a year), and shares the results of this survey (requests, issues, etc.) with the property management company to increase operator satisfaction.

ESG Workshops for Operators

HCM holds ESG workshops for operators of its properties to deepen their understanding and to introduce and promote initiatives to address issues based on HAM's Basic Policy on ESG.

Regular information exchanges with operators

HCM has established regular opportunities to exchange information with operators of HCM-owned properties, hearing about issues they are aware of and their ESG-related initiatives, and providing information and ESG-related proposals based on such information.

Distribution of SDGs Promotion Leaflets

HCM distributes "SDGs promotion leaflets" to operators of properties it owns to promote the SDGs during facilities use.

Sponsorship of Music Concerts Organized by Operators

HAM sponsored the Nichii Home Autumn Music Festival 2025 organized by operator Nichii Carepalace Company in October 2025.

Contribution to Local Communities

Facilities owned by HCM are open to the community, not only to the residents of the facilities, but also to the local community.

At “Green Life Moriguchi” and “SHIP Senri Building,” hydroponic cultivation of vegetables is carried out as a job assistance project for people with disabilities.

Combining Facilities with Daycares for children

As of the end of December 2025, 3 of the 57 properties owned by HCM were contributing to the local community by housing daycare facilities.

Combined-Use Facilities

Property name	Contract area
ASHEIM Bunkyohakusan	1683.88㎡
Kobe Gakuentoshi Building
SHIP Senri Building

Combining Facilities with Clinics, Pharmacies, and Day Centers

The properties owned by HCM include some in which part of the area is leased to businesses other than facilities/housing for seniors, such as clinics, pharmacies, and day centers.
These areas are open to not only residents of the facility but also the local community in general, providing it with necessary medical and care services.
As of the end of December 2025, 8 of the 57 properties owned by HCM were contributing to the local community by housing clinics or pharmacies.

Combined-Use Facilities (clinic, pharmacy)

Property name	Contract area
Kobe Gakuentoshi Building	2,900.46㎡
Smiling Home Medice Adachi
AIKOEN ICHIBANKAN Building
SOMPO CARE La vie Re Hama-Kawasaki
Hanakotoba Shin-Yokohama
Hanakotoba Shin-Yokohama II
Royal Kawaguchi
SHIP Senri Building

As of the end of December 2025, 13 of the 57 properties owned by HCM were contributing to the local community by housing day centers.

Combined-Use Facilities (Day Centers)

Property name
SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SOMPO CARE La vie Re Hama-Kawasaki
Royal Kawaguchi
Heartland Kawaguchi Meiseien
NOAH GARDEN LEGEND
NOAH GARDEN L Grace
NOAH GARDEN CASA RICH
NOAH GARDEN Season Bell
NOAH GARDEN Building A
NOAH GARDEN Building B
NOAH GARDEN Villa
NOAH GARDEN Bloom View

ASHEIM Bunkyohakusan (Kids Harmony Hakusan)

Activity of watch over students going to and from school and leaving

Hapine Kobe Uozaki Nibankan conducts activities to watch over students going to and from school as part of community interaction.

Landscape-friendly exterior wall repainting

In the painting of the exterior walls of "Verde Hotaka," with the cooperation and approval of the operator, the color of the exterior walls was changed to the color recommended in the "Beautiful community ordinance created by everyone in Kawaba Village" of Kawaba Village, Tone County, Gunma Prefecture, where this property is located, in consideration of the local landscape.

Initiatives in collaboration with business partners

In order to promote environmental and social considerations in our supply chain, HCM requests our business partners to understand and cooperate with our environmental and social considerations when selecting new business partners, as well as through regular monitoring and information sharing with existing business partners.

In conjunction with the TCFD policy formulation, HCM is utilizing the support of NIKKEN SEKKEI RESEARCH INSTITUTE as our expert consultant in planning and implementing measures to improve environmental performance through portfolio energy management and professional building evaluations such as "energy conservation walk-throughs".

Positive Impact of Investing in Healthcare Facilities

The scatter plots below show the monthly fees of HCM's main facilities on the horizontal axis and the deviation compared with surrounding facilities on the vertical axis. Our investments are diversified rather than skewing toward a high price range.
In particular, the facilities with reasonable monthly fees for their area (the lower-left shaded area) are not only price-competitive but also affordable to a wide range of elderly people. HCM defines these facilities as affordable facilities.
HCM and HAM believe that investing in these affordable facilities for the elderly can contribute to the development and revitalization of communities where people can continue to live.

Data source: Prepared by HAM based on "Paid Nursing Home Product Data: Average Monthly Cost for 60-month Nursing Care Residents" and "Average Monthly Cost for 120-month Independent Residents" by Tamura Planning & Operating.

Initiatives at HAM

Personnel Data (Diversity & Inclusion)

(Note1)	Numbers of employees are as of the end of each fiscal year (March 31).
(Note2)	The ratio of employees leaving the company to all executives and employees as of the end of each fiscal period (March 31) are indicated.
(Note3)	Occupational injury frequency = Number of occupational injury ÷ Total actual working hours × 1,000,000

Human Capital Development Initiatives / Framework for Ensuring that Executives and Employees Are Suitably Motivated

In order for all executives and employees to improve their professional skills, HAM recommends the acquisition of qualifications that are closely related to our business, such as a Real Estate Notary license or ARES Certified Master license.

HAM also encourages active participation in outside seminars.

Number of Employees Holding Qualifications as of the End of March 2026 (including employees on temporary assignment from the sponsors, etc.)		Ratio
Real Estate Notary	15	77.3%
ARES Certified Master	11	50.0%
First-Class Architect	1	4.5%
Real Estate Appraiser	1	4.5%
Property Manager	2	9.1%
Certified Building Administrator	3	13.6%
Chartered Member Analyst of the Securities Analysts Association of Japan	1	4.5%
Medical Management Specialist, Second Grade	1	4.5%
Medical Management Specialist, Third Grade	3	13.6%

(Note)	Including passing the examination

Education and training expenses per person
Fiscal 2025	77,412 yen

In order to foster and improve self-directed compliance awareness, HAM holds monthly compliance workshops and rigorously implement customer-oriented business operations (fiduciary duty) for all executives and employees.

	Fiscal 2022	Fiscal 2023	Fiscal 2024	Fiscal 2025
Number of compliance workshops	22	25	23	24
Number of participation in external compliance workshops	17	15	13	8

(Note)	The participation rate is calculated using the number of full-time directors and employees as the denominator and the number of participants as the numerator. Follow-up training is provided for those absent on the day of the workshop, and the number of participants includes those who attended the follow-up training. In addition, participants in Compliance Test exclude test creators.

Actions Aimed at Securing Human Resources

HAM has continued to consider new hires for the purpose of ensuring that we have sufficient human resources and to promote the development of an employee-friendly working environment, such as actively encouraging employees to take paid leave (paid leave usage rate in FY2025: 81.5%), with the aim of improving the motivation of employees and executives and retaining them on a long-term basis. HAM has set a goal of 100% paid leave utilization in FY2026, and is working to ensure that employees plan to take their paid leave.

Initiatives for Fair Personnel Evaluation

HAM has revised its personnel evaluation system, clarifying the roles and abilities required for each employee level, to evaluate job performance, base element, and comprehensive achievement of three performance targets which consist of single-year targets, medium-term targets and skill development. The final evaluation for the year for each employee is determined through regular interviews with and feedback from primary and secondary evaluators, making it a fair personnel evaluation process.

Benefits and work-life balance

Introduction of Cumulative Investment System
HAM has introduced a cumulative investment system that allows directly hired executives and employees to purchase HCM investment units. It is expected that the introduction of this system will assist executives and employees with asset-building and make them more conscious of improving business performance, which HAM believes will contribute to the continuous growth of HCM and improved unitholder value. Moreover, with the aim of promoting investment unit acquisition by employees and thereby enhancing the impact of the system, HAM began providing financial incentives in April 2021.

Introduction of Corporate Defined Contribution Pension Plan
HAM has introduced a corporate defined contribution pension plan as one of its benefit programs, with the aim of contributing to the lifelong stability and welfare of its executives and employees.

Vacation System
HAM provides a vacation system which includes leave for weddings, funerals, pregnancy, childbirth, childcare, sick or injured children, family care and sick.

Premium Friday
As part of our efforts to reform the way we work, HAM encourages employees to leave the office early on "Premium Friday" (the last Friday of the month).

Health Examinations
Health examinations with items of inspection exceeding the legal requirement are conducted once every year.

Employee Satisfaction Survey
HAM conducted a questionnaire survey on employee satisfaction in 2021 through a third-party investigation agency in order to understand employee’s perceptions of work as well as the conditions of the workspace and to realize an office environment that is conducive to work.

Arrangement of the Office Environment

Environmentally friendly asset management reporting

HAM selects environmentally friendly ink and paper for the Asset Management Report, and has reduced the size of the Asset Management Report since the fiscal year ended July 31, 2023, thereby reducing the amount of paper used.

Basic Policy on Respect for Human Rights

HAM has established a "Basic Policy on Respect for Human Rights" to continuously promote activities that respect human rights.

Employee Opinion Exchange Meeting

HAM holds meetings for employees to exchange opinions with each other, excluding managers, to improve engagement.

Initiatives for DEI (Diversity, Equity and Inclusion)

HAM respects diverse personality of each employee, and strives to establish and improve an employee-friendly working environment and equitable human resource support system that maximizes each employee's ability. These initiatives will not only increase job satisfaction of each employee but also enhance engagement between the company and employees. HAM believes that these initiatives will contribute to improving unitholder value over the long term.

Therefore, HAM has set targets as follows:

• ▪ Basic Targets:
  Achieve 100% participation rate of full-time executives and employees in training.
  Achieve 100% employee satisfaction survey collection rate.
• ▪Long-term Targets:
  Deepen the understanding of DEI among executives and employees, thoroughly analyze current issues, and establish internal system to secure DEI by reviewing various rules and systems.

In 2025, one in-house training session on DEI was held, with a participation rate of 100%.