Corporate Governance

Administration Fees

Administration fees the Investment Corporation pays are as follows;
  • Fees for Executive Directors and Supervisory Directors
The fees for each executive director is an amount no greater than 800,000 yen per month determined by the board of directors, and is paid by the final business day of each month. The fees for each of the supervisory director is an amount no greater than 500,000 yen per month determined by the board of directors, and is paid by the final business day of each month.
 

(Note)
If the executive director or the supervisory directors fail to perform their duties they will be liable for damages arising from such failure. However, if the executive director or the supervisory directors conducted the duties in good faith and there was no material negligence, under the Articles of Incorporation based on the provisions of the Investment Trust Law, the Investment Corporation may release the executive director or supervisory directors from such liability by resolution of the board of directors, within the limits provided by laws and ordinances, if it is judged particularly necessary in light of the circumstances, such as the facts that caused the liability and the state of performance of the duties by the executive director or supervisory directors.

  • Fees for Accounting Auditor
The fees for accounting auditor is an amount no greater than 30 million yen per accounting period subject to audit, determined by the board of directors, and is paid within 1 month of the receipt of all of the audit reports which are required under the investment Trust Act or other laws or regulations.
  • Fees for Asset Manager
Asset Management Fee Ⅰ
Under the asset management agreement as currently in effect, the Asset Manager receives an asset management fee Ⅰ for each calculation period, which is a three-month period that ends on the final day of February, May, August or November of each year, payable after the end of the second month following the end of such calculation period. The asset management fee is equal to 0.45%, annualized and prorated on the basis of a 365-day year, of the value of the “adjusted total assets” as of the end of each calculation period. Where the relevant calculation period ends in February or August, “adjusted total assets” equals our total assets as of the end of the fiscal period that ends concurrently with the calculation period. Where the relevant calculation period ends in May or November, “adjusted total assets” equals our total assets as of the end of the immediately preceding fiscal period, plus the aggregate acquisition price of the properties we acquire during the relevant calculation period, less the aggregate balance sheet value of the properties we dispose of during the relevant calculation period. However, if the aggregate acquisition price of the properties we acquire during the relevant calculation period is smaller than the aggregate balance sheet value of the properties we dispose of during the relevant calculation period, “adjusted total assets” equals our total assets as the end of the immediately preceding fiscal period, plus the aggregate sale price of such acquired properties, less the aggregate balance sheet value of such disposed properties. In addition, under the asset management agreement, the Asset Manager is entitled to reimbursement of certain administrative and other costs.

Asset Management Fee Ⅱ
Under the asset management agreement as currently in effect, the Asset Manager receives an asset management fee II. The asset management fee II is equal to 5.65% of the amount of distribution stated on the statement of distribution of monies for the immediately preceding business period of JMF and shall be payed the amount to the asset manager by the last day of the second month following the month to which the date on which such statement of distribution of monies is approved at the meeting of the board of directors of JMF.

Acquisition Fee
For each new property we acquire, the Asset Manager receives an acquisition fee calculated at 0.8% of the purchase price, payable by the end of the month following the acquisition. 

Disposition Fee
When JMF disposes real estate or Specified Assets principally backed by real estate, the Asset Manager receives the Disposition fee pursuant to the Asset Management Agreement, in accordance with the resolutions of the board of directors, up to 1.5%  of the disposition value of such real estate, or Specified Assets principally backed by real estate (not including the national and local consumption taxes and expenses incurred for such disposition; the same shall apply hereinafter). The Disposition fee shall be payed the amount by the last day of the second month following the end of the business period to which the date of the disposition belongs. No Disposition Fee shall be paid in the case of a capital loss from such disposition will arise, where the disposition value after the deduction of the book value of such assets as of the date of the disposition, the Disposition Fee calculated based on the disposition value and the expenses incurred for such disposition is negative.

Merger Fee
When JMF conducts a merger, the Asset Manager receives the Merger Fee pursuant to the Asset Management Agreement, in accordance with the resolutions of the board of directors, up to 2.0% of the appraisal value, as of the date of the merger, of real estate or Specified Assets principally backed by real estate held by the merger-counterparty. The Merger Fee shall be payed the amount by the last day of the month immediately following the month to which the effective date of merger belongs.

JMF also pays fees for the General Administrator and the Custodian etc.

Please refer on the fees above to the division as below.
KJR Management
Metropolitan Division
Tokyo Building, 7-3, Marunouchi 2-chome, Chiyoda-ku Tokyo 100-6420, Japan
Tel: +81-3-5293-7081