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Principles for Customer-Oriented Business Conduct

Principles for Customer-Oriented Business Conduct

Established on December 22, 2017

The Company (PRA) has adopted the entirety of the seven principles set forth in the "Principles for Customer-Oriented Business Conduct" published on March 30, 2017 by the Financial Services Agency of Japan. PRA is resolved to carry out customer-oriented business conduct through implementing its "Investment Philosophy and Policy."

Principle 1: Establish and Publish a Policy for Customer-Oriented Business Conduct

As the asset management company entrusted by Premier Investment Corporation ("PIC") for managing its assets, the Company shall establish the "Investment Philosophy and Policy" (the "Policy") and announce it on its own website. In accordance with the Policy, PRA shall stand on the side of its customers to form and operate real estate investment trusts, placing top priority on the interests of the customers.

Please click here for PRA's Investment Philosophy and Policy.

Principle 2: Pursue Customers' Best Interest

As a financial business operator, PRA shall maintain a high level of expertise and professional ethics, and conduct its business in an honest and fair manner for its customers to pursue their best interest. PRA shall also endeavor to firmly fix this approach of business operations in its corporate culture.

Principle 3: Appropriately Manage Conflicts of Interest

To prevent conflicts of interest from occurring, PRA shall set up internal rules to establish a policy regarding transactions between parties with possibilities of conflicts. Firmly following this policy, PRA shall endeavor to eliminate harmful effects arising from conflicts of interest. Specifically, PRA shall identify in advance its interested parties, etc., as defined by laws and regulations as well as its internal rules. For certain types of transactions, their appropriateness shall be deliberated and approved by the Compliance Committee and resolutions on implementation shall be made by the Board of Directors of PRA. Furthermore, PIC's consent based on the approval of its Board of Directors shall be obtained before concluding agreements on certain transactions.

Principle 4: Clarify Commissions and Fees

PRA shall disclose the types and calculation methods of the asset management fees it receives from PIC in the securities reports (in Japanese) posted on PIC's website.

Principle 5: Provide Important Information in an Easy-to-Understand Manner

PRA shall provide important information regarding PIC in an easy-to-understand manner on PIC's website.

Principle 6: Provide Suitable Services to Customers

PRA shall aim to enhance the stability of earnings from investment assets of PIC by conducting investments in high-quality properties from a medium- to long-term perspective, and pursue high growth potential by enhancing the profitability and added value of the individual properties.

Principle 7: Build System for Adequately Motivating Employees and Prepare Governance Structure

Considering its social responsibilities and public mission as a financial business operator, PRA believes that it must widely gain the trust of society as a whole by contributing to economic and social development through sound business operations. Based on this belief, PRA shall work to build a system for adequately motivating its employees to attain this goal and prepare an appropriate governance structure through such measures as periodically conducting compliance training sessions for employees and establishing the Compliance Committee, which includes outside specialists as members, to deliberate and report on compliance-related matters.