Investment Policies

Property Management / Sales Policy

The asset management company establishes the management guideline as follows.

Property Management Policy

In managing real estate, NUD intends to maintain and enhance the value and competitiveness of its assets through continuous capital expenditures made from a medium to long-term perspective, and aims to achieve steady growth in investment returns through higher earnings (e.g., increases in rents, decreases in vacancy rates, and prolonging and fixing the terms of agreements) and reduced expenses (e.g., reduction in outsourcing fees, utility expenses and other fees and expenses).
UDAM shall select an appropriate party to contract with for the provision of property management services for each acquired investment property by considering the details of the items listed below. If such a party falls under the category of interested parties as stipulated in the Regulations on Transactions with Interested Parties, UDAM shall consign the property management services to the party only when the standards and procedures stipulated in the said Regulations are satisfied, on top of the following requirements.

Item	Details
Business history	1. Deemed to be capable of appropriately implementing operations due to such reasons as having been engaged in property management services for at least three years or having been in charge of property management services for the relevant individual properties or facilities and residences for the elderly so as to have a thorough knowledge of the situation and characteristics of such properties.
Financial standing	1. Not generating net loss continuously for the most recent three fiscal periods 2. Not in a state of insolvency in any of the most recent three fiscal periods
Organizational structure	1. Preparation of internal regulations 2. Number of employees 3. Establishment of compliance structure and business audit system 4. Track record related to the subject investment assets, feasibility of implementing operations in accordance with management plans, and continuity of management operations 5. Establishment of a system to avoid conflicts of interests
Level of knowledge and experience the relevant properties and relationship with the tenants or operators	1. Consigned period for the relevant properties 2. Any trouble with the tenants or operators
Ability to report	1. Capable of preparing management plans and monthly reports
Level of compensation and fees	1. Level of compensation to be in the scope of market levels
Social attributes	1. No fact of conducting material breach of laws and regulations or causing misconduct, etc. in the most recent three years, and no problem found in the legal compliance structure 2. Not belonging to or having a relationship with any anti-social forces

NUD will endeavor to take measures such as maintaining appropriate allocation rates of investments and taking out insurance against losses (e.g., fire and general liability insurance) in order to avoid major declines and fluctuations in earnings caused by disasters, move-outs of tenants and other factors.

Sales Policy

The basic policy is to hold the investment assets acquired by NUD over the medium to long term. Disposal of property will be determined from an overall perspective by considering situations as described below.

When a strategic sale would contribute to earnings of NUD
When an investor offers an attractive purchase price
When the property has lost strategic importance
When the property is sold from a financial viewpoint