Formulation of a Basic Policy
on Customer-Oriented Business Conduct
Fukuoka Realty Co., Ltd. has adopted all seven principles set forth in the Principles for Customer-Oriented Business Conduct, announced by the Financial Services Agency on March 30, 2017, and formulated a basic policy to realize customer-oriented business operation on September 20, 2017.
Fukuoka Realty’s Basic Policy
1.Fukuoka Realty is a financial business operator that operates listed REITs. We will constantly strive to provide high-quality services so that we can meet the investment needs of unitholders.
2.Fukuoka Realty, as an asset management company knowledgeable about the particular circumstances of the region, strives to maximize the profit of our unitholders by utilizing information and expertise, to provide investors with stable earnings over the mideum to long term.
3.Fukuoka Realty will make the fiduciary duty entrusted to us by unitholders the primary consideration and appropriately manage conflicts of interest.
4.Fukuoka Realty’s executives and employees daily engage in honest and fair operation and act responsibly toward the Company’s investors and other stakeholders.
5.Fukuoka Realty will proactively engage in voluntary IR activities in addition to statutory disclosure and timely disclosure and increase the fairness and transparency of information disclosure.
Fukuoka Realty Co., Ltd. has adopted all of the seven principles listed in the Principles for Customer-Oriented Business Conduct published by the Financial Services Agency on March 30, 2017.
The company's goals for the respective principles are described below.
Principle 1: Establishment and Announcement of Policy on Customer-Oriented Business Conduct
Fukuoka Realty is a financial business operator managing a listed REIT which, through investing in real estate properties, supports and facilitates asset formation of a wide range of investors. As such, we have established a clear basic policy to implement customer-oriented business conduct throughout the investment chain and publicized it on our website, etc. Moreover, we continuously check on the status of our endeavors in order to realize better customer-oriented business conduct.
Principle 2: Pursuit of Customers' Best Interests
As a financial business operator, we maintain a high level of professionalism and professional ethics, and conduct operations with integrity and fairness for unitholders in an effort to secure their best interests. We also strive to ensure that such business conduct will be deeply rooted in our corporate culture.
Principle 3: Appropriate Management of Transactions with Conflicts of Interest
For transactions with our interested parties including Fukuoka Jisho Co., Ltd., one of our sponsors having 50% equity, which may cause conflicts of interest, we work to accurately grasp the possibility of conflicts of interest with unitholders pursuant to laws and regulations as well as our internal rules, etc. If any such possibility is found, our Compliance Department investigates the matter in advance before the relevant transaction takes place, and deliberation is made in advance at the Investment Committee and the Compliance Committee which invites outside experts if necessary. Through these steps, we appropriately manage transactions that may have conflicts of interest. Specifically, when acquiring real estate from any interested party, for example, we follow the processes established in our voluntary rules for determining whether a certain deal is a transaction with conflict of interest as stipulated in our Asset Management Guidelines. By doing so, we prevent any disadvantage for unitholders from arising. When acquiring real estate from any interested party, we thoroughly conduct investigation and consideration, for instance conducting the transaction at a price equal to or lower than the appraisal value provided by a third party, before deciding on the investment.
Principle 4: Clarification of Fees and Commissions
We provide information through statutory and timely disclosure and voluntary disclosure so that unitholders can understand our asset management fees and other commissions or expenses to be borne by the investment corporation, including what types of services are paid for.
Principle 5: Provision of Important Information in an Easy-to-Understand Manner
We do not conduct any sale or recommendation, etc. of financial instruments or financial services. However, as an asset management company of a listed REIT, we provide important information that relates to investment decision-making for unitholders in an easy-to-understand manner through statutory and timely disclosure and voluntary disclosure so that such information can be readily understood. We also post such information on our website in a timely manner in an effort to provide information desirable for investors from an investor-oriented perspective.
Principle 6: Provision of Services Suitable for Unitholders
We strive to understand the needs and requirements of unitholders, and conduct asset management taking into account such needs and requirements. Specifically, we aim to secure stable dividends, increase dividends over the medium to long term and conduct investment that can contribute to society, among other endeavors.
Principle 7: Preparing a Framework, etc. for Appropriately Motivating Employees
We established a "Code of Conduct" to ensure our officers and employees always act in the best interest of unitholders. In addition, we regularly and continuously carry out education and training on compliance for all of our employees so that they can secure fairness in business conduct and thoroughly implement appropriate management for transactions that may involve conflicts of interest, as well as enhance their awareness on compliance.
Established on September 20, 2017