Timely Disclosure Requirements Applicable to J-REITs under Tokyo Stock Exchange Rules

J-REITs listed on the Tokyo Stock Exchange and their asset management companies are subject to disclosure requirements under the rules of the Tokyo Stock Exchange that are similar to those imposed on other listed companies.

Investment Corporations and Asset Management Companies

Decisions concerning the issue and sale of additional units, unit splits or reverse splits of units must be disclosed by investment corporations and their asset management companies. Other matters to be disclosed include the receipt of regulatory orders to improve operations, as well as information regarding our asset management companies.

Assets under Management

Any adjustment over a certain level of assets under management must be disclosed. In particular, the following must be disclosed:

• a transfer of assets the price of which is 50 million yen or more as of the end of the last fiscal period;
• a purchase of assets the price of which is expected to be 50 million yen or more; and
• a natural disaster or damages that result in a loss equivalent to 3% or more of net assets.

As is the case with joint stock corporations, investment corporations are required to publicly announce summaries of their financial results once they are finalized. These reports include a forecast of distributions, as well as the net value of assets under management. Also investment corporations are required to disclose any expectation that profit or loss will differ by 30% or more from the original forecast announced for the period, or that distributions will differ by 5% or more from the original forecast.