April 1, 2025
Partially updated on July 1, 2026
Our initiatives in FY2024 with regard to our Basic Policy on Customer-Oriented Business Conduct (“the Policy”) are described below.
1. Pursuit of the best interests of our customers
In addition to handling asset management for the real estate investment fund (J-REIT) NTT UD REIT Investment Corporation (NUD) and the unlisted real estate investment fund (private REIT) NTT Urban Development Private REIT, Inc. (NUPR), we handle business such as management of other private real estate funds.
As a member of the NTT Urban Development Group, when conducting these business activities, with the aim of upholding the company’s corporate philosophy, “Integrity and Innovation,” we always adopt the customer’s perspective and conduct our day-to-day operations in an honest, fair manner while viewing customer profits as our top priority.
Furthermore, as real estate asset management professionals, we seek to deploy employees and officers with specialized qualifications in order to always maintain a high degree of expertise and professional ethics. We also recommend that personnel acquire specialized qualifications, with the company bearing the cost of acquiring and maintaining them.
The key specialized qualifications that had been acquired as of the end of FY2024 were as follows:
| Real Estate Broker | 40 (64.5% of officers and employees) |
|---|---|
| Real Estate Securitization Master | 21 (33.9% of officers and employees) |
| Real Estate Appraiser | 1 (1.6% of officers and employees) |
| First-Class Architect | 1 (1.6% of officers and employees) |
| Building Manager | 16 (25.8% of officers and employees) |
- Including employees who have passed the exam.
Our company is committed to increasing the distribution per unit in order to achieve stable, long-term growth while serving the best interests of our customers. Customers may consult distribution information for NUD at the website shown below. NUPR unitholders may see information from the following site by using their personal ID and password.
2. Appropriate management of conflicts of interest
We comply with the Stakeholder Transaction Rules, and in the event of a transaction in our business that could cause a conflict of interest, we make decisions via the appropriate processes, as stipulated in the Rules.
In FY2024, 38 stakeholder transactions were reviewed by the Compliance Committee, which includes external experts, and brought before the senior decision-making institutions after receiving the Committee’s approval.
3. Clarification of fees, etc.
Service fees borne directly or indirectly by customers primarily include acquisition fees, interim fees, and sale fees. The details of our approach and fee levels are indicated in NUD’s Articles of Incorporation, securities reports, etc., while the specific figures paid are indicated in asset management reports, etc. We also make this information clear by disclosing it on the following sites.
- NUD: Management Fee System of the Asset Management Company
- NUD: IR Information – IR Library
- NUPR: IR Information – Disclosure Information
4. Clear provision of important information
We provide important information such as schemes, returns, risks, and management status related to the financial instruments and services we offer via platforms such as our website, using timely and easy-to-understand descriptions, graphics, etc. Moreover, through opportunities such as financial briefings, we establish venues for direct communication with customers and provide them with information.
In FY2024, activities to provide information about the investment corporation were as follows.
Provision of information
| NUD | |
|---|---|
| Information about financial results, etc. | 14 |
| Information about property management, etc. | 15 |
| Information about financing, etc. | 25 |
| Other | 31 |
| NUPR | |
|---|---|
| Information about financial results, etc. | 6 |
| Information about property management, etc. | 2 |
| Information about financing, etc. | 7 |
| Other | 5 |
For detailed information, refer to the following websites.
5. Provision of services suitable for customers
The main products that we provide to our customers are J-REITs, private REITs, and private real estate funds, etc.
Compared with direct investment in real estate, J-REITs enable everyone to invest with very small amounts, and since they are listed on securities exchanges, these investment products may be transacted in the same manner as shares.
Private REITs are investment products offered only to qualified institutional investors. We strive to provide services based on customers’ need for stable, long-term investments that will not be impacted by the price volatility of listed markets.
Private real estate funds, etc. are investment products aimed primarily at professional investors. Given that the product characteristics differ for each fund, we strive to provide information that will enable customers to make suitable investment decisions.
Buying and selling of all the above investment products is conducted via securities companies and the like, and after sharing the above characteristics with customers, we provide them with services based on their asset status, transaction experience, knowledge, purpose, and needs.
6. Appropriate motivational framework for officers and employees
Believing that it is necessary to maintain a high degree of professional ethics in order to fulfill our social responsibilities and public mission as a financial operator, we provide regular training for our officers and employees. Furthermore, we seek to develop their skills by improving their expertise through external training, etc. and encouraging them to acquire external qualifications.
We conducted the following training in FY2024.
We have established measures to ensure that the efforts of our officers and employees toward maximizing customer interests, and upholding compliance are duly reflected in their personnel evaluations.
7. Basic philosophy of product governance
We are entrusted with the investment management business of NTT UD REIT Investment Corporation and NTT Urban Development Private REIT Inc. and the investment advisory and agency business of private real estate funds, etc., and we newly formed two private real estate funds this period.
Measures are taken in alignment with the basic philosophy in each process from the formation to operation and management for each of the financial instruments.
8. Establishment of product governance system
We have a system for ensuring the effectiveness of product governance by establishing a system for quality control by the departments in charge themselves, combined with verification from the perspective of compliance with laws and regulations by the Compliance Office and deliberation by various meeting bodies (Compliance Committee and Investment Committee) whose members include external experts (attorney and real estate appraiser).
9. Measures to be taken at the time of formation of financial instruments
We newly formed two private real estate funds this period, both as financial instruments aimed at specific investors with product design based on customer needs, and the risks, returns, and costs verified, and the reasonableness and appropriateness of executing transactions are verified based on deliberation by various meeting bodies whose members include management level and external experts.
10. Measures to be taken after the formation of financial instruments
For financial instruments in the form of real estate investment corporations, we check that portfolio building and stable management over the medium to long term are underway and that assets under management are being appropriately managed and operated in accordance with each investment corporation’s guidelines that outline the basic investment policies and other matters to follow in operations.
Furthermore, we strive to provide information required for customers to make investment decisions in an appropriate and easy-to-understand manner and thereby serve to realize the best interests of our customers.
For private real estate funds, etc., we have a system in place for regularly verifying whether the product characteristics envisioned at the time of formation are being secured, and for the results to be utilized in making improvements and reviews as needed and in future formations.
11. Provision of easy-to-understand information to customers
For financial instruments in the form of real estate investment corporations, information, such as operational structure and performance, is disclosed to customers on each investment corporation’s website.
Furthermore, for financial instruments in the form of private real estate funds, etc., accurate information on assets under management is provided to customers in a timely and accurate manner.
End