Principles for Customer-Oriented Business Conduct

Mission Statement

Kenedix is dedicated to realizing the full potential of real estate.

Corporate Mission

(1) Business Objective: “For What?”
We contribute to society by making the best use of investment capital and creating value from real estate.

(2) Business Field: “For Whom?”
We offer the best investment opportunities to our clients by committing to multiple roles globally as a real estate asset manager.

(3) Business Principle: “How?”
We confront new business challenges through our management speed and flexibility while emphasizing stability and fairness.

We also actively discuss and promote our commitment to sustainability and ESG (Environment, Society and Governance) management.

1.　Our company will, concurrently with our close observation of real estate investment and management environment, always seek to pursue the best interests of our customers and to implement the necessary measures with speed and adaptability. On the basis of this overarching principle, we have established the specific policies set forth in Principle 3 through Principle 7 below.

2.　We will manage the portfolio of the investment corporations that have entrusted the management of their assets to our company with an emphasis on the realization of stable and long-term dividends, based on the investment policies of such investment corporations as stipulated in their respective articles of incorporation.

3.　As regulatory compliance is closely connected with our pursuit of the best interests of our customers, strict compliance constitutes one of the most important subjects for the management of our company and guides the conduct of our day-to-day operations.

1.　Investment corporations that entrust their asset management functions to our company may engage in the trading of investment properties with Kenedix Inc. or with the funds that entrust their asset management function to Kenedix Inc.
When transactions are entered into between an investment corporation and a related party, such as transactions through the support of our sponsor (referred to above), our Compliance Officer, with a view to preventing unreasonable damage to the interests of our customers, will conduct an inspection to determine whether such transactions give rise to any issue under our internal rules on related party transactions. Thereafter our Compliance Committee (which includes outside independent members) will consider the appropriateness of the transactions. Passing the inspection by the Compliance Officer and obtaining approval of such transactions by the Compliance Committee are among the conditions to be met in executing the relevant transactional agreements.

2.　As we have been entrusted with the asset management functions of more than one investment corporations, we follow the rule of “Priority of Consideration,” according to which priority will be granted to investment properties based on type or scale, in order to prevent conflicts of interests that result from conflicts between investment opportunities sought by investment corporations.

1.　We provide clear information on the types of fees concerning listed investment corporations and how such fees are calculated in the annual securities reports and asset management reports, etc. of the respective investment corporations.

2.　We provide clear information on the types of fees concerning private investment corporations in the relevant private placement memorandums and asset management reports, etc.

KDO

In order to accurately grasp the needs of tenants in office buildings, we conduct investment management that contributes to our customers' medium-to long-term profits through implementing customer satisfaction surveys and carrying out appropriate facility construction based on the results of these surveys.
As office building tenants are also customers, we are striving to provide an office environment that is highly satisfactory to tenants.

KDR

We provide investment and management services through "flexible" and "dynamic" real estate investment management based on the three core strategies of KDR: "Consistent External Growth by Making Use of Good Judgment," "Efficient Profit Management" and "Challenge New Business Opportunities.“ We will invest primarily in residential and healthcare facilities as its target investments, with the aim of achieving sustainable growth and stable investment that contributes to the medium-to long-term interests of customers.

KRR

By investing primarily in shopping centers for daily needs and additionally investing in distribution centers, which supplement retail facilities in providing goods, we aim to contribute to enlivening local communities and enhancing social infrastructures, and to ensure stable asset management over the medium to long term.

KPI

We provide opportunities providing long-term and stable income, investment opportunities, and information according to the characteristics of our private investment corporation and the requirement of our investors. In addition, we have established “an Advisory Committee” in our management structure, and aim to tap into the opinions of investors in asset management.