Basic Policy on Customer-First Operations

Daiwa Real Estate Asset Management Co. Ltd. (the "Company") agrees to the "Principles for Customer-Oriented Business Conduct" announced by Financial Services Agency on March 30, 2017 and establishes the following policies on such initiatives based on the principles.

Policy 1. Formulation, Publication, Etc. of Policies

The Company strives for operations that think of customers' interests first based on the "Basic Policy on Customer-First Operations" formulated by the Daiwa Securities Group (https://www.daiwa-grp.jp/english/about/management/strategy/policy.html) and this basic policy formulated specially for the Company's fields of operations, and periodically announces the status of such initiatives.
In addition, this basic policy is periodically revised in an ongoing effort to improve operations.

Policy 2. Pursuing Customers' Best Interests

The Company engages in operations that are honest and fair to customers by maintaining corporate ethics and independence as a management company. In addition, the Company has engaged in investment management, risk management, etc. based on advanced expertise. Through such, the Company pursues customers' best interests.

Policy 3. Appropriate Management of Conflicts of Interest, Etc.

The Company engages in operations with a view not only to complying with all laws and regulations related to the operations and bylaws, but also acting in accordance with social conventions, common sense and market rules, and maintaining strong self-discipline based on high ethical standards, and ascertains and appropriately manages any conflicts of interest that may exist with customers to ensure transactions are not inappropriate for customers.

Policy 4. Clarification of Fees, Etc.

The Company discloses and provides information on the details of management fees, etc. receivable from the investment corporations, etc. entrusting asset management operations to the Company, including for which services that the concerned management fees, etc. are attributable, in a manner that is easy to understand to facilitate customers' understanding.

Policy 5. Provision of Easy-to- Understand Important Information

In consideration of the customer's transaction experience and financial knowledge, the Company provides important information pertaining to management products provided by the Company and such in a manner that is easy to understand to facilitate customers' understanding through not only the provision of various information on the website as appropriate but also other means, such as proactively conducting IR activities and briefings.
The Company do not sell or recommend multiple financial products or services as a package.

Policy 6. Provision of Products and Services Suited to Customers

The Company endeavors to ascertain the needs, etc. of customers and conduct asset management with the needs, etc. of customers in mind.
The Company do not sell or recommend multiple financial products or services as a package. In addition, we do not sell or recommend complicated or high-risk financial products, or sell or recommend products to customer groups vulnerable to financial transaction damage.

Policy 7. Framework for Appropriately Motivating Employees, Etc.

The Company will ensure appropriate management of conflicts of interest, etc., foster employees who act with integrity and have a high level of expertise, correctly evaluate their capabilities and contributions and provide an environment enabling employees to perform to the best of their ability so that employees each seek customers' best interests in their respective fields of operations.

Status of Initiatives for Customer-First Operations

April 2024

Pursuing Customers' Best Interests

As a real estate asset management company under Daiwa Securities Group, the Company engages in operations considering customers' interests first, aspiring to be the management company most trusted and chosen by customers, while striving to revitalize the real estate and financial markets and foster sound markets.

Appropriate Management of Conflicts of Interest, Etc.

The Company appropriately manages any conflicts of interest and other adverse effects that may arise in engaging in asset management operations for investment corporations, management operations for funds under management based on discretionary investment, investment advisory operations for private funds under advisory, etc. entrusted to the Company by not only complying with laws, regulations, bylaws, etc. and accurately ascertaining any such risk but also providing guidelines for securing the appropriateness of operations in terms of preventing conflicts of interest and other adverse effects, such as having any transactions that may have the risk of conflicts of interest and other adverse effects deliberated by the Compliance Committee, which shall also include outside experts, in advance prior to execution of the transaction.

Clarification of Fees, Etc.

Please refer to the following for the asset management fees that the Company receives from the listed investment corporations entrusting asset management operations to the Company.

Calculation Method: Each Investment Corporation's Articles of Incorporation Appendix "Asset Management Fees to the Asset Manager"

Amount: Each Investment Corporation's Securities Report "Part II: Detailed Information on the Investment Corporation; Section 5: Accounting Status of the Investment Corporation; 1. Financial Statements; (2) Statements of Income"

Providing Easy-to-Understand Important Information

The financial brief meetings are held every fiscal period for analysts and institutional investors for each of the listed investment corporations entrusting asset management operations to the Company, at which meetings the Company's President and Representative Directors, etc. provide briefings on the financial report and business overview. The briefing contents and presentation materials are posted on the website in a timely manner in order to be fair and timely information disclosure. In addition, the Company proactively takes initiatives of IR activities for domestic and overseas institutional investors and for retail investors.

Please refer to the "Disclosure Policy" posted on each investment corporation's website below and such for the initiatives for information disclosure of the listed investment corporations entrusting asset management operations to the Company.

In addition, the information disclosure for the private investment corporations, etc., shall be along with the level of the listed investment corporations and the Company dialogue with investors on a periodic basis.

Provision of Products and Services Suited to Customers

The Company endeavors to constantly ascertain the needs, etc. of customers by utilizing the Daiwa Securities Group's networks in an effort to provide and enrich the lineup of quality management products that offer customers opportunities for secure and long-term investment and management.

Real Estate Management Products Entrusting Management Operations to the Company

Daiwa Office Investment Corporation
Daiwa Securities Living Investment Corporation
Daiwa Residential Private Investment Corporation
Daiwa Hotel Private Investment Corporation
Daiwa Securities Logistics Private Investment Corporation
Private real estate funds for which various discretionary investment operations are conducted
Private real estate funds for which various investment advisory operations are conducted

Framework for Appropriately Motivating Employees, Etc.

The Company implements periodic compliance training of all employees and provides support, such as recommendations for acquiring various qualifications to enhance specialized knowledge and training and examinations for acquiring a wide range of knowledge and skills required in operations, in order to foster employees who act with integrity and have a high level of expertise.

Number of Employees with Qualifications as at the End of March 2024

Building Lots and Buildings Transaction Business agent: 67 employees
ARES certified master: 39 employees
First-class architect: 8 employees
Certified real estate consulting master: 6 employees
Building administrator: 11 employees
Certified property manager: 4 employees
Certified public accountant: 2 employees
Certified tax accountant: 2 employees
Chartered Member of The Security Analysts Association of Japan: 8 employees