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Investor Presentaiton

Sustainability Initiatives (5) Governance Governance structure for avoiding conflicts of interest ■The Asset Management Company's Decision-Making Process Flow for Acquiring or Selling Investment Assets Preliminary Plan Related-party transaction When CCO determines that a compliance issue has arisen 1 Approval of CCO 2 Confirmation of Compliance Committee Proposal by CIO 3 Investment Committee *1 Report to Board of NAF Compliance Checking System N Nippon Accommodations Fund 1 Approval by Chief Compliance Officer (CCO) The following require approval of the Compliance Committee Related-party transactions*2 When CCO determines that a compliance issue has arisen *2 Property acquisition price from sponsor-related parties is below appraisal value 2 The Compliance Committee Requires approval by independent external professionals Members: CCO (Chairperson), CEO, 2 external professionals (Currently 1 lawyer and 1 CPA) External professionals: Appoint professionals independent from sponsor-related parties Resolution: Requires the votes of 2/3 or more members and at least 1 of the 2 independent external professionals 3 Functions as a Check on the Investment Committee CCO can suspend discussion when he sees any problem in the discussion process *1 When NAF acquires or sells of assets in transactions with related parties as defined by the Investment Trust and Investment Corporation Act of Japan, the Asset Management Company must obtain consent from NAF based on the approval of NAF's Board of Directors prior to the deliberations of the Investment Committee. However, such consent is not required for property or other real estate acquisitions stipulated by Article 245-2-1 of the Investment Trust and Investment Corporation Act as having immaterial impact on NAF's assets because the acquisition cost represents less than 10 percent of the book value of NAF's investment properties. For details of governance initiatives, please visit our website (*Now preparing new ESG website) 69
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