Sekisui House Asset Management, Ltd. (“SHAM”) is entrusted with operations for asset management from Sekisui House Reit, Inc. (“Sekisui House Reit”).
The Sekisui House Group of which SHAM is a member has set “love of humanity” as its fundamental philosophy, “truth and trust” as its stance, “superior quality and leading technology” as its objective and “comfortable housing and ecologically sound communities” as its business focus in its corporate philosophy. “Love of humanity,” the fundamental philosophy, means “doing all things in good faith and with a spirit of service, desiring happiness for others and treating their joy as our own, with the awareness that each and every human being has irreplaceable value.” Accordingly, the Sekisui House Group is committed to creating “comfortable housing and ecologically sound communities” through the provision of “superior quality and leading technology” based on its principle of “truth and trust” rooted in this “love of humanity.”
SHAM has adopted all the Principles for Customer-Oriented Business Conduct published by the Financial Services Agency on March 30, 2017. SHAM’s policy on customer-oriented business conduct is as follows.
1. Action Policy for Realizing Customer-Oriented Business Conduct
As a member of the Sekisui House Group, SHAM will work on customer-oriented business conduct, or business conduct oriented to Sekisui House Reit and its unitholders, with the aim of providing high-quality social capital and maximizing unitholder value through asset management that seeks to secure stable revenue and the steady growth of assets under management in the medium to long term for the purpose of achieving mutual development with all stakeholders, including unitholders and tenants, based on the corporate philosophy above. SHAM will also realize better business conduct by regularly checking the status and the outcome of its initiatives and reviewing its policies as needed.
2. Pursuit of the Best Interests of Customers
As the asset management company of Sekisui House Reit, SHAM will strive to pursue the best interests of Sekisui House Reit and its unitholders, taking full advantage of the real estate development and operation capabilities of Sekisui House, Ltd. (“Sekisui House”), which is the sponsor of Sekisui House Reit, and the expertise of the Sekisui House Group.
3. Appropriate Management of Conflict of Interest
While SHAM aims to maximize unitholder value by making the best use of the diverse support of the sponsor Sekisui House for its growth strategies, SHAM will work to avoid undermining unitholder interests through the conflict of interest between Sekisui House and Sekisui House Reit.
SHAM will appropriately manage the risk of conflict of interest by building a governance system to ensure objectivity in its transactions with related parties who are defined more widely than those defined by laws and regulations through the formulation of the “Regulations on Related Party Transactions” and by taking initiatives to match the interests of the unitholders and Sekisui House.
Please refer to Features of SHR and Corporate Governance of SHR on the website of Sekisui House Reit for its governance structure that has ensured objectivity.
4. Clarification of Fees
SHAM engages in all operations for asset management entrusted by Sekisui House Reit and receives management fees from Sekisui House Reit as consideration for its services. SHAM strives to maximize unitholder value by executing asset management operations worth the consideration and appropriately provides information on the content and amount of the consideration in its securities reports and the like.
SHAM also appropriately discloses the details of the fees that Sekisui House Reit pays to outsourcing contractors for other operations in its securities reports and the like to maintain high transparency.
For the details of the fees, please refer to “Part 1. Information on Fund, Section 1. Status of Fund, 4. Fees and Taxes” of the securities reports posted in Investor Relations and IR Library on the website of Sekisui House Reit.（http://sekisuihouse-reit.co.jp/en/ir/library.html）
5. Easy-to-understand Provision of Important Information
SHAM will proactively disclose information that is considered to be important for the investment decisions of Sekisui House Reit. SHAM will also seek to disclose information other than that for statutory disclosure promptly, accurately and equitably in consideration of the transparency and explicitness of the information.
SHAM will make efforts to provide the unitholders with opportunities to gain equitable information by developing information disclosure rules and building a system for gathering and disclosing accurate and useful information so that the unitholders will be able to trade investment units with peace of mind.
6. Asset Management with an Awareness of Customer Needs
In the belief that high-quality residential properties and commercial properties located in strategic locations are investment targets from which stable revenues are expected to be secured in the medium to long term, SHAM calls them prime properties and positions them as focused investment targets.
In addition, to play a part in the realization of a sustainable society based on the “Sustainable Vision” set by Sekisui House, SHAM provides a “sustainable living base” for residents and a “sustainable base of operation” for tenant companies through the investment management of real estate in consideration of ESG (environment, society and governance).
SHAM will strive to secure stable revenues and realize steady growth of assets under management in the medium to long term through investments in these prime properties and conduct asset management tailored to the unitholders by understanding their needs.
7. Framework for Appropriate Motivation of Employees
The Sekisui House Group to which SHAM belongs works to disseminate and comply with the corporate philosophy, the code of conduct, the corporate action guidelines and the corporate ethical code by distributing a booklet that posts them to all employees. The Group also puts all its energy into creating a better work climate by implementing a governance awareness survey to all employees every year to understand the current status of their awareness of corporate ethics and the work environment, etc. and providing them with opportunities to exchange opinions in each organization. In addition, SHAM will strive to entrench its customer-oriented business conduct as the corporate culture by appropriately motivating the employees to conduct themselves always in pursuit of the best interests of Sekisui House Reit and its unitholders through in-house education and training.