Declaration of Fiduciary Duty

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Declaration of fiduciary duty

1. Initiatives for Customer-Oriented Business Conduct

As the asset management company for "Hankyu Hanshin REIT, Inc." (hereinafter "HHR"), which is based in Kansai, HHRAM aims to contribute to the asset formation of investors through the development and expansion of HHR.
To achieve this business objective, HHRAM has been endeavoring to contribute to the stable mid- to long-term asset management of investors by focusing its investments on the Kansai region and contributing to the sustainable development of the local community, with collaboration with the Hankyu Hanshin Holdings Group (referring to the corporate group consisting of Hankyu Hanshin Holdings, Inc. as the holding company), which is HHRAM's sponsor group, as the core of its business operations. HHRAM will continue to strive for even greater Customer-Oriented Business Conduct.

In managing HHR's assets, HHRAM endeavors to maximize unitholder value based on the following three management principles:

  • Enhancement of long-term profitability
  • Ensuring steady growth
  • Upholding transparency

HHRAM aims to be a J-REIT asset management company that satisfies its investors.

HHRAM has established the basic policy for customer-oriented business conduct (hereafter “the Basic Policy) in order to further implement the customer-oriented business conduct considering the importance of stable asset formation for investors.
HHRAM wishes that all officers and employees practice the Basic Policy, earn high trust from investors, and thereby contribute to the development of real estate investment trusts in Japan.

2. Basic Policy of Customer-Oriented Business Conduct

Announcement and Smooth Promotion of Basic Policy regarding Customer-Oriented Business Conduct

HHRAM will announce the Basic Policy on its website and work for smooth promotion of the policy while periodically confirming the progress. In addition, the implementation status will be verified through internal audit by an external third party as needed, and any issues identified will be corrected without delay.

Pursuit of the Investors’ Best Interest

HHRAM will maintain a high level of expertise and professional ethics as an asset management company of a J-REIT, and conduct its business in an honest and fair manner for its investors in order to pursue their best interest.

HHRAM will endeavor to establish such an attitude towards business operations as its corporate culture.

Appropriate Management of Conflicts of Interest

conflicts of interest with the sponsor group, etc. If there is a potential conflict of interest with regards to transactions, HHRAM will appropriately manage such conflict of interest by having the Compliance Department verify the transaction prior to execution pursuant to laws and regulations as well as internal rules, and, when necessary, having the Compliance Committee that includes outside experts deliberate in advance while also obtaining prior approval at HHR’s Executive Meeting.

Clarification of Management Fees

HHRAM will work to disclose detailed information on management fees, etc. paid to HHRAM by HHR, including description of the services for which such fees are incurred, in an easy-to-understand manner for investors.

Provision of Important Information that is Easily Understandable

HHRAM will, as an asset management company of a J-REIT, strive to provide important information regarding HHR and the asset management carried out by HHRAM, in a timely and easily understandable manner for investors.

Provision of Services Suitable for Investors

HHRAM will make efforts to grasp the investors’ requirements for HHR and strive to provide services suitable for such requirements.
*HHRAM does not directly recommend or sell financial instruments and services to investors.

Establishment of Framework for Appropriately Motivating its Employees

HHRAM will periodically and continuously provide training programs on compliance, etc. to all employees for the sound development of the real estate securitization market, to make constant improvements. Furthermore, HHRAM will properly evaluate the efforts of each employee on compliance and work to further raise awareness.

HHRAM will develop a framework to provide a compliance program every year in accordance with the compliance manual in order to steadily implement measures for customer-oriented business conduct and compliance with the Basic Policy, and strive to establish appropriate structures for governance and execution of business.

The details of the governance structure, basic policy, management policy (growth policy, financial policy, distribution policy, etc.) and such of HHR, which entrusts management of its assets to HHRAM, are available on HHR’s website, etc.

*HHRAM conducts solely the investment management business for HHR, and does not fall under the category of financial service providers engaged in the sale of financial products or their origination.

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HHRAM's Initiatives for Customer-Oriented Business Conduct (as of September 30, 2025)

Announcement and Smooth Promotion of Basic Policy regarding Customer-Oriented Business Conduct

HHRAM is engaged in Customer-Oriented Business Conduct based on the Basic Policy for Customer-Oriented Business Conduct disclosed on HHRAM's website. HHRAM also regularly confirms the progress of these initiatives and discloses them on its website, etc.

Pursuit of the Investors’ Best Interest

In managing HHR's assets, HHRAM endeavors to maximize unitholder profits over the long term, based on its management principles.

HHRAM sets distribution per unit (DPU) as its key performance indicator (KPI) and strives for its sustainable growth.

To maintain a high level of expertise and professional ethics as a J-REIT asset management company, HHRAM encourages the acquisition of qualifications useful for business execution and conducts compliance training.

Leveraging the network of HHRAM and its sponsor group, HHRAM strives to improve portfolio quality and profitability, and expand asset size.

In property management, HHRAM strives to enhance property value and maximize unitholder profits by ensuring close collaboration between the asset manager (AM) and property manager (PM) to meet the needs of users and local residents.

Appropriate Management of Conflicts of Interest

To prevent undue harm to investors' interests, HHRAM strives to appropriately manage conflicts of interest. This includes, when necessary, conducting prior deliberations by the Compliance Committee, which may include outside experts, and obtaining prior approval from HHR's Board of Directors.

Clarification of Management Fees

Information on asset management fees is disclosed in the Semi-Annual Report. For details, including the calculation method and the amount paid for each period, please refer to the relevant sections of the most recent report available via the "IR Library" URL.

Provision of Important Information that is Easily Understandable

Fully recognizing that the enhancement of information disclosure significantly impacts the development and success of the real estate investment trust securities market, HHRAM provides disclosure from the perspective of unitholders, emphasizing "timeliness" and "fairness." Furthermore, HHRAM strives for prompt information disclosure via its website regarding statutory disclosure documents, press releases, financial results information (financial statements, earnings summaries, presentation materials), characteristics of managed assets, performance status, etc.

Provision of Services Suitable for Investors

On September 22, 2021, HHRAM revised its Declaration of Fiduciary Duty, and in the Basic Policy for Customer-Oriented Business Conduct, clarified that HHRAM does not directly recommend or sell financial products or services to investors.

Establishment of Framework for Appropriately Motivating its Employees

HHRAM conducts regular and continuous training and questionnaires on compliance, etc., for all employees. Furthermore, HHRAM strives to understand and enhance the compliance awareness of each employee through various interviews and meetings. For information on training systems, training participation rates, etc., please refer to the "Employee Initiatives" page.

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