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Policy for Customer-Oriented Business Operations

1. Formulation and Publication of Policies for Customer-Oriented Business Operations, etc.

LaSalle REIT Advisors K.K.(“LRA”), as the asset management company of LaSalle LOGIPORT REIT (“LLR”), formulates and announces the policy for realizing customer-oriented business operations, and periodically announces the status of its efforts. In addition, in order to achieve further enhanced business operations, LRA will periodically review this policy.

2. Pursuing the Best Interests of Our Customers

As a member of LaSalle Investment Management, a real estate investment company that is proud to be one of the world’s pre-eminent firms in this space with years of experience, LRA aims to build long term relationships which are based upon trust from its customer base. LRA maintains a high level of expertise and ethics, conducts sincere and fair operations to LLR and its unitholders, with a commitment to customer-oriented asset management, and is managing the assets of LLR based on the following basic policy.

i. Focus on Investments in Prime Logistics (Note 1) within the Tokyo and Osaka Areas
ii. Growth Strategy Backed by Sponsor Group’s Support
iii. Robust Balance Sheet and Cash Management Optimization
iv. Focus on Alignment of Interests with Unitholders and Transparent Governance Structure

In the management of the assets of LLR, LRA is strongly aware of the distribution and NAV per unit, and is working on a number of measures to achieve the growth of unitholder value.

Please refer to the following about the status of our efforts:
Growth Strategies Supported by the LaSalle Group as its Sponsor
Presentation Materials
Semi-Annual Report

3. Appropriate Management pertaining to Conflicts of Interest

LRA shall accurately grasp the possibility of conflicts of interest with LLR in transactions, and will appropriately manage such conflicts of interest in the event of a potential conflict of interest.

LRA has established the "Related Party Transaction Rules" and, when LRA intends to conduct transactions such as the acquisition or transfer of properties between LLR and LRA’s related parties, LRA shall implement strict examination procedures consisting of multiple stages, where the Compliance Committee and the Investment Committees, with external experts as board members, strive to ensure fairness, objectivity, and validity in the committee's decision-making.

Please refer to the following about the status of our efforts:
Decision Making Flow Chart for Related Party Transactions

4. Clarification on Asset Management Fees, etc.

LRA has established an operational system that emphasizes unitholder stake and transparency, and has adopted a full-performance compensation system for asset management compensation received from LLR.

Please refer to the following about the status of our efforts:
Asset Management Fee Structure
Asset Management Fee (Semi-Annual Report/ Financial Section/ Statements of Income/ Asset management fee)

5. Providing Important Information in an Easy-to-Understand Way (Note 2)

LRA shall ensure transparency toward investors and disclose information necessary for investors' investment decisions in a timely and appropriate manner.

LRA discloses information in a timely and appropriate manner based on the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, and the rules of the Tokyo Stock Exchange and the Investment Trusts Association. Along with that, taking into account the transparency and clarity of information, LRA will consider the content to meet the needs of investors, and make efforts to disclose information that may be useful for investors' investment decisions in a timely and appropriate manner by utilizing LLR's website.

Please refer to the following about the status of our efforts:
LaSalle LOGIPORT REIT website

6. Providing Services that are Right for Customers (Note 2)

In managing LLR’s assets, LRA endeavors to grasp the needs of unitholders, utilizes the LaSalle Group's global real estate investment knowledge and the operational capabilities supported by its extensive development and investment experience in logistics facilities in Japan, and will strive to improve unitholder value through long-term stable growth of cash flow and asset value. LRA will proactively provide information to the unitholders of LLR so that they can easily understand the structure and asset management status of LLR.

Please refer to the following about the status of our efforts:
Presentation Materials
Semi-Annual Report

7. Framework for Appropriate Motivation for Employees, etc.

In order to establish the trust of society as a whole by recognizing the social responsibility and public mission that the asset management business of LLR is an act of managing the funds on behalf of the unitholders of LLR, and contributing to the development of the economy and society through sound business operations, LRA will build an appropriate management system to promote management with the highest priority on compliance. Therefore, in order to ensure thorough compliance with laws and regulations, LRA has established the Compliance Regulations and the Compliance Manual, has formulated the Compliance Program, which is a concrete practice plan for realizing compliance with laws and regulations, and will strive to implement compliance with laws and regulations in accordance with the program.

LRA and LaSalle Investment Management K.K. (the “Sponsor”), which is the sponsor of LLR, have established an Investment Unit Ownership Program and have made strides to promote further alignment of interests between the unitholders of LLR and the directors and employees of LRA as well as the Sponsor on a medium-to-long term basis which would contribute to the enhancement of investor value.

Please refer to the following about the status of our efforts:
Employee Initiatives
(Note 1) Prime logistics facilities refers to properties which are located in areas well suited to logistics operations and with large-scale and high functionality building specifications.
(Note 2) LRA is not engaged in the sale or recommendation of financial products or services or the structuring of financial products, and therefore has not established policies regarding these matters (Principle 5 (Note 1) (Note 2) (Note 4) and Principle 6 (Note 1) (Note 2) (Note 3) (Note 4)).


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