ESR-REIT Annual Report 2024 137 Influencing behaviours through Green Leases Influencing the behaviours of tenants to support the monitoring and mitigation of sustainability impacts is a key challenge for REITs. Since FY2023, we have introduced Green Leases clauses to our Australia and Japan properties for new and renewed tenants. We see the opportunity to leverage on Green Leases to collaborate with tenants on our sustainability initiatives. To accelerate our sustainability efforts, we have set a new target to apply Green Leases to 100.0% of our Singapore portfolio’s NLA by FY2028. As of FY2024, we have applied Green Leases to 6.6% of Singapore portfolio’s assets, primarily due to the introduction of new and renewed tenants. Through the use of Green Leases, we provide guidance to tenants on choosing lower impact fittings and also require the provision of environmental data to our property managers. The availability of such data will improve our sustainability performance, enhance our reporting and rating, and enable us to make better-informed decisions on potential AEIs. Tenant occupancy rates The effectiveness of our portfolio and asset management measures are tracked through indicators such as tenant occupancy rate and tenant retention rate as at 31 December 2024. Over the past two years, our portfolio has consistently achieved an occupancy rate of >90.0% and an increase in tenant retention rate, which is testament to the value we bring to our tenants. 2023 2024 Tenant occupancy rate 92.8% 92.3% Tenant retention rate 75.5% 76.0% MATERIAL TOPIC: TENANT ENGAGEMENT AND SATISFACTION Target Time Horizon 2024 Performance Updated Achieve >80.0% tenant satisfaction rate across the portfolio Perpetual Achieved tenant satisfaction rate of 78.2% in FY2024 Impact of Tenant Engagement on Stakeholders Building and maintaining strong, mutually beneficial relationships with our tenants is essential to the success of our business. Collaborating to enhance facilities while creating steady tenancy and a reliable source of income for the REIT is a key aspect of our business strategy. Without clear channels of communication, we risk missing opportunities to enhance our services and improve our relationships with tenants, which could undermine our ability to attract and retain tenants. How We Manage Tenant Engagement We actively engage with our tenants, address their concerns and enhance our facilities to attract and retain them. We utilise a range of communication channels, including site visits, email communication, and tenant surveys. In FY2024, we organised a series of events aimed at creating a sense of community and promoting tenant engagement.
RkJQdWJsaXNoZXIy NTM2MDQ5