1. Distribution Policy
The Investment Corporation will undertake distributions, in principle, pursuant to the policy below.
- The distributable amount generated by the asset management of the Investment Corporation (hereafter referred to as the “Distributable Amount”) will be the amount of profits (the amount deducting the amount of unitholders’ capital, investment surplus and valuation, translation adjustments from the net assets on the balance sheet) calculated on each account closing date in conformity with the Act on Investment Trust and Investment Corporations and generally accepted accounting principles in Japan.
- The distribution amount shall be the amount determined by the Investment Corporation that exceeds the equivalent of 90% (should the relevant amount be amended to the calculation of the said amount due to revisions to the laws and regulations, etc., then it shall be the amount set forth after those amendments) of the distributable income (hereafter referred to as the “Distributable Income”) stipulated in Article 67, Item 15 (the Special Provisions of Taxation for Investment Corporations) of the Act on Special Measurements Concerning Taxation (hereafter referred to as the “Special Provision for Taxation of Investment Corporations”). Provided, however, that the distribution amount will be the amount reasonably determined by the Investment Corporation, when a tax loss is generated or when no income for tax purposes is generated due to a deduction of carryover losses. In addition, the Investment Corporation may accumulate reserves or allowances that are deemed to be necessary for the maintenance or value enhancement of assets under management such as reserve for long-term repairs, payment reserve, reserve for distribution, or any other similar reserves, etc.
2. Cash Distributions Exceeding Profits
The Investment Corporation may, in the following cases, distribute the amount respectively prescribed in excess of the distributable amount as a return of contribution.
However, that upper limit shall be the amount prescribed in the regulations, etc., of The Investment Trust Association, Japan.
- In the case when the distributable amount does not reach an amount equivalent to 90% of the Distributable Income and in cases where undertaking the return of contribution for the purpose of satisfying the requirements for the application of the Special Provision of Taxation for Investment Corporations, the amount of cash distribution determined by the Investment Corporation as the amount satisfying the relevant requirements for application
- When the Investment Corporation deems it appropriate based on trends in the economic environment, the real estate market and leasing market, etc., the amount of cash distribution determined by the Investment Corporation as the upper limit of the amount deducting appropriate reserves, etc. from the depreciation amount in the current fiscal period
3. Method of Distribution
Distributions shall be distributed in cash and shall be, in principle, distributed within three (3) months from the last day of the fiscal period to the unitholders or to registered investment unit pledgees who are listed or recorded in the unitholders register on the closing date of each fiscal period in proportion to the investment units held by the unitholder or investment unit pledgee.
4. Extinctive Prescription for Cash Distribution
The Investment Company shall be released from its payment obligation of distributions when three (3) years have elapsed from the date of starting payment without the payment of the distribution to the unitholder. No interest is payable in respect to unpaid distributions.