Ichigo Hotel 3463

Governance

First J-REIT No Fixed Fee, Performance Fee-Only Structure

  • Performance-linked fee structure to support shareholder value creation
  • Pro-active, dynamic management of Ichigo Hotel assets on behalf of shareholders

Best Practice Governance

REIT

Monitors Asset Management Company

  • All Ichigo Hotel Directors are Independent Directors
  • Active dialogue and effective internal controls via Board discussions led by REIT Executive Director
  • Draw upon expertise of REIT Supervisory Directors (qualified lawyers & accountants)

Asset Management Company (AMC)

Best Practice

  • 2 of 5 AMC Directors are Independent Directors
  • Independent asset management team & best-practice execution on behalf of Ichigo Hotel within AMC
  • Compliance and Audit are directly under the AMC President to monitor and review critical compliance matters
  • Ensure objectivity by including third-party, independent lawyers and accountants in the Investment Committee & Risk & Compliance Committee

Only 3 J-REITS (out of 58), including Ichigo Hotel (3463) and Ichigo Office (8975) ,
have both an Asset Management Company (AMC) board that has at least one Independent Director and whose AMC President does NOT serve as the Executive Director of the REIT

Independence of the Investment Corporation From AMC

26 of 58 J-REITs have AMC Presidents serving as Executive Director of the REIT

All Ichigo Hotel Directors are Independent

Independent Directors at AMC

Only 3 Asset Management Companies have any Independent Directors

2 of 5 Ichigo Investment Advisors Directors are Independent