Our Policy for Customer-Oriented Business Conduct

Mitsui Fudosan Frontier REIT Management Inc. (hereinafter the “Company”) has identified the following policy for meeting requirements stipulated in the “Principles for Customer-Oriented Business Conduct” announced by the Financial Services Agency on March 30, 2017.

1. Establishment and Disclosure of
Policy for Customer-Oriented Business Conduct

The Company has established a clearly defined policy for maintaining customer-oriented business conduct. The policy is publicly disclosed and the Company periodically assesses the status of related initiatives.

2. Serving the Best Interests of Customers

The Company strives to maintain highly specialized expertise and robust professional ethics, pursuing sincere and fair dealings aimed at ensuring that the best interests of its customers are served. To that end, the Company strives to foster a strong corporate culture that encourages all employees to act accordingly.

3. Appropriate Management of Conflicts of Interest

The Company ensures that possible conflicts of interest are accurately recognized and appropriately managed in accordance with laws, regulations and in-house rules.

4. Clear Presentation of Fees and Commissions

The Company provides sufficient information with regard to the compensation it receives from Frontier Real Estate Investment Corporation so that the details of such compensation (value, calculation method and payment date) may be fully understood by customers.

5. Easy-to-Understand Disclosure of
Important Information

The Company discloses important information with regard to Frontier Real Estate Investment Corporation to customers in an easily understood manner.

6. Provision of Services Tailored to Each Customer

The Company is attentive to customer needs and aligns its operations to better satisfy such needs, thereby providing the high-quality services they expect and deserve.

7. An Appropriate Framework for
Motivating Employees

The Company evaluates staff on standards that focus on ensuring fair business practices, such as serving the best interests of customers, maintaining strict compliance with laws and regulations, and appropriately managing conflicts of interest. Moreover, the Company provides all officers and employees with relevant training programs while continually developing the appropriate business framework and governance structure for motivating them to act in line with these standards.

Initiative

1. Strive to provide the best benefits to customers

We are working hard to expand net asset value (NAV) per investment unit and steadily grow dividends over the medium to long term.

Our dividend and NAV per unit track record is included in the attachment below.

Dividend per unit and NAV per unit track record

2. Properly manage conflicts of interest

We fully leverage Mitsui Fudosan’s sponsor pipeline to continually acquire prime properties. In addition, we take full advantage of the wealth of knowledge held by the Group’s retail facility operations to manage properties. However, there is a possibility that conflicts of interest may emerge between customers and Mitsui Fudosan Frontier REIT Management Inc. (MFF) or its related parties.

  • Regarding transactions where there is the potential for conflicts to emerge between the interests of customers and the interests of MFF or its related parties, MFF is always aware of its accountability and, in line with laws, regulations, and its own internal regulations on trade with related parties, avoids improper and unfair trade.
  • Therefore, in order to prevent improper and unfair trade, MFF complies with laws and regulations and has put in place an internal system and internal regulations regarding transactions with related parties.
Report on the operation system etc. of issuers etc. of real estate investment trust securities (Japanese only)

3. Clarify fees

We clearly lay out the management fees we receive from investment corporations, and a record of fees for every fiscal period is available in the attachment below.

Management fee structure / Management fee record

4. Provide important information in an easy-to-understand way

We disclose information in line with laws and regulations to ensure transparency. In a timely manner and in an easy-to-understand way, we disclose information related to investment corporations deemed necessary and appropriate for investors to make investment decisions.

5. Provide appropriate services for customers

We manage assets with the aim of ensuring long-term, stable earnings, mainly through investments in retail facilities, while staying aware of investors’ opinions and needs through the following IR activities.

  • Holding IR meetings for Japanese and overseas institutional investors
  • Holding briefings for individual investors
  • Participating in seminars for individual investors held by various organizations

6. Maintain a framework for appropriately motivating employees

We focus on training professional personnel in order to consistently provide sophisticated asset management services. To this end, we provide employees with support for acquiring skills and knowledge in a wide range of subjects needed for performing their duties. We also provide support for testing and training to acquire or retain specialist qualifications. In addition, we work hard to ingrain awareness of the customer focus in our operations by regularly promoting initiatives and training related to compliance and ESG topics. Furthermore, our performance evaluations take into consideration compliance-related matters.