MFLP Mitsui Fudosan Logistics Park Inc. Development / Operation Track Record
2 -3. Initiatives for ESG 4 - for Governance
Governance
MFLP Mitsui Fudosan
Initiatives for governance: Taking unitholders' interests into consideration
Logistics Park Inc.
MFLP-REIT and the Asset Management Company are working to establish proper governance through the following measures in order to build a solid relationship of
trust that aligns interests of unitholders with those of MFLP-REIT and the Asset Management Company while giving sufficient consideration to unitholders' rights.
Rules concerning conflicts of interest in asset
management
The acquisition and transfer of assets by MFLP-REIT from related parties are
decided by the Asset Management Company via a transparent decision-making
process.
Draft by the Investment Team
Approval by the Chief Compliance Officer
Deliberation and resolution by the Compliance Committee
*2
Examination and approval by the Investment Committee
Approval by MFLP-REIT's Board of Directors
Submission of the acquisition plan by the Chief
Investment Officer to the Management Committee
Deliberation and resolution by the Management
Committee
Reporting to the Board of Directors and MFLP-REIT
Instruction to cancel or amend details
or amend details
Instruction to cancel
Asset management with emphasis placed on
relationship of trust with unitholders
Asset management fee structure consistent with the
interests of unitholders
Our aim is to align the interests of the Asset Management Company with
those of unitholders.
Asset management fee I
Asset management fee II
Asset management fee III
Total assets × 0.1% (maximum)
Operating income (before deduction of asset
management fees and depreciation) × 5.5% (maximum)
Pre-tax earnings (before deduction of asset management
fees) × Pre-tax EPU (before deduction of asset
management fees) × 0.001% (maximum)
Mitsui Fudosan's investment in MFLP-REIT
Mitsui Fudosan has a 4.8% stake in MFLP-REIT (as of August 31, 2023).
Accepting a certain level of capital investment leads to the alignment of the
interests of MFLP-REIT's unitholders and Mitsui Fudosan, and enables the
pursuit of greater mutual interests in asset management.
Adoption of cumulative investment unit ownership program
Ownership of the investment units by employees of the Asset Management
Company through the program elevates the motivation of employees to
improve the performance of MFLP-REIT, with the aim of enhancing its
medium-to long-term unitholder value.
Timely and proper information disclosure and
ensuring transparency
*1
The above chart shows the decision-making flow when a transaction involves a related party, which requires the approval of MFLP-
REIT's Board of Directors under Article 201-2 of the Act on Investment Trusts and Investment Corporations.
*2 If a transaction falls below the threshold prescribed in Article 201-2 of the Act on Investment Trusts and Investment Corporations for
significance defined therein, the approval of MFLP-REIT's Board of Directors shall be omitted.
MFLP-REIT strives to make timely and proper disclosure of information
necessary for unitholders to make investment decisions. With regard to
disclosure, MFLP-REIT focuses on prompt and transparent information
disclosure in a fair and equitable manner, and, in addition to financial information,
also discloses non-financial information related to ESG.
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