Our goal is to use medium- to long-term investment policies to maintain or increase the value of our assets under management.

We will formulate a management plan aimed at maintaining and improving the functionality, safety and usability of our properties, and we will carry out day-to-day management of our properties in accordance with such plan. Further, we will establish and implement a medium- to long-term repair plan to improve the functionality of our properties and address any normal depreciation.

We aim to secure profits in the medium to long term by maintaining close communication with our tenants, understanding their needs as well as any trends affecting them, and working to increase their satisfaction levels. To that end, we will make it a policy to enter into medium- to long-term leases and, at the time of renewal, we will consider appropriate adjustments to the terms and conditions of such leases, such as rent and term, taking into account factors such as the tenant’s credit status and the average term of the other leases in our portfolio.

We aim to diversify our tenants by evaluating such factors as credit standing, competitive position within the tenant’s industry, prospects for continuous use of the property, rent level and other lease terms. Further, although most tenants will likely have long-term, stable leases, we will also strive, where appropriate and desirable, to introduce variable rent terms that are tied to various indices, such as gross domestic product.

We aim to strengthen our leasing capability by establishing relationships with property managers and other companies that are familiar with the asset categories, tenants and industries our properties are involved in. We also intend to utilize such relationships to monitor trends among tenants as well as the overall rental demand and rent levels in the market.

We will utilize the broad networks of Mitsubishi Corporation and our asset manager in order to create a J-REIT alternative for industrial and infrastructure properties owned by private businesses or the public sector. Further, we will select tenants in accordance with our investment plan, taking into account the overall situation of each tenant, including its credit standing, its competitive position within its industry and its products.

To enhance the value as well as the long-term profitability of our assets, we may from time to time increase the leasable area of our properties, create additions to them or renovate them.

We will contract with property managers to manage the properties we acquire, either directly or indirectly through a trust beneficiary arrangement.

For each property we acquire, we will, in principle, call for bids from potential property managers that suit the specific characteristics of the property. We will then select a property manager by taking into account such factors as the property manager’s management and other policies, its business development plans and its fees.

We expect to receive regular reports from the property managers of each of our properties, including reports about such things as the property’s financial performance, its occupancy rate, the needs of its tenants, any repair requirements or plans, new environmental contamination risks and any trends in the surrounding area.

In particular, we have established guidelines for the regular monitoring of possible soil contamination and other such environmental risks that may be caused by our tenants. For example, we will:

• assess our tenants’ management policies regarding environmental risks;
• conduct periodic meetings with our tenants (if the possibility of soil and other environmental contamination risks exists, we will discuss the situation with the tenant and outside experts); and
• conduct periodic monitoring of our tenants’ management and operations, if necessary, following a third party assessment of any soil or other environmental contamination risks.

Finally, we will conduct our own reviews and evaluate our property managers’ operations for quality assurance and cost effectiveness.