FY2020 Status of Efforts for Customer-Oriented Business Conduct

April 22, 2021

The status of our efforts in FY2020 regarding our Policy on Customer-Oriented Business Conduct (the “Policy”) is as follows.

There was no change in the Policy this fiscal year. We will continue to strive to operate our business in line with this Policy.

1. Pursuit of the best interests of our customers

Taking our customers’ point of view at all times, we strive to operate our business with the highest priority given to the interests of our customers, and we hire personnel with specialized qualifications as our officers and employees. Furthermore, in order to maintain a high level of professionalism and professional ethics, we recommend the acquisition of professional qualifications and bear the cost of acquiring and maintaining these qualifications.

As of the end of FY2020, acquisition of major professional qualifications is as follows.

Real Estate Securitization Master 8people (61.5% of officers/employees)
Real Estate Broker (Takken) 10people (76.9% of officers/employees)
Building Manager 8people (61.5% of officers/employees)
  • Includes those who have passed the exam.

In managing our private REIT, NTT Urban Development Private REIT Investment Corporation (“NUPR”), we strive to continuously improve its investment value by increasing the distribution per unit. NUPR unitholders can access the NUPR website using their dedicated ID and password to check information.

2. Appropriate management of conflicts of interest

We comply with our Stakeholder Transaction Rules and, when conducting transactions that may have conflicts of interest, we make decisions through an appropriate process stipulated in these rules.

In FY2020, 15 stakeholder transactions were deliberated by the Compliance Committee, which includes outside experts, and those approved were submitted to the higher resolution body.

3. Clarification of fees, etc.

Fees borne directly and indirectly by customers consist mainly of acquisition fees, interim fees, sale fees, etc., and we clarify these by describing our thinking and fee levels in product descriptions and explaining them in advance as well as stating specific planned and actual amounts in operation plans and reports, explaining them directly and disclosing them on our website.

4. Clear provision of important information

We provide important information such as schemes, returns, risks, and operational status related to the financial products and services we offer in a clear, timely manner through our website, etc., and set up places to communicate this directly to customers such as opportunities to explain financial results. In FY2020, we held a total of 40 meetings with our customers.

We have set up a dedicated website for REIT unitholders to provide timely information on our REIT management.

In FY2020, we provided information to REIT unitholders as follows.

Information on financial results, etc. 11times
Information on property management, etc. 16times
Information on fundraising, etc. 5times
Others 4times

5. Provision of services suitable for customers

The products we provide are mainly our private REIT and private real estate funds.

Our private REIT is an investment product provided only to qualified institutional investors, and we strive to offer this service based on the need for stable long-term operation not affected by price fluctuations in the listed market.

Our private real estate funds are investment products mainly targeting specific investors, and since the product characteristics differ for each fund, we strive to provide information that allows customers to adequately make investment decisions.

All of these investment products are sold through securities companies, etc., and having communicated the characteristics above, we provide services based on our customers’ asset status, transaction experience, knowledge, purpose and needs.

6. Appropriate motivational framework for officers and employees

We believe that it is necessary for us to maintain a high level of professional ethics in order to fulfill our social responsibilities and public mission as a financial business, so we regularly provided training to our officers and employees. We also improved the skills of officers and employees by leveling up their expertise with external training and recommending the acquisition of external qualifications.

In FY2020, we implemented the following training.

  • Compliance training for all employees
  • E-learning such as corporate ethics for all employees
  • Management training for managers

Our stance of maximizing customer interests and compliance is reflected in our officer and employee personnel evaluations.