Ichigo Office 8975

Governance

No Fixed Fee, Performance Fee-Only Structure

  • Shifted to performancelinked fee structure on November 1, 2020 to fully align with value creation for shareholders
  • Pro-active, dynamic management of Ichigo Office assets on behalf of shareholders
  • Reduced NOI & Dividend Performance Fee based on Shareholder Meeting approval on June 23, 2023
  • Reduced Gains on Merger Performance Fee & Gains on Merger Performance Fee based on Shareholder Meeting approval on July 20, 2024

Best Practice Governance

REIT

Monitors Asset Management Company

  • All Ichigo Office 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

Independence of the Investment Corporation From AMC

25 of 57 J-REITs have AMC Presidents serving as Executive Director of the REIT

All Ichigo Hotel Directors are Independent

Independent Directors at AMC

Only 4 Asset Management Companies have any Independent Directors

2 of 5 Ichigo Investment Advisors Directors are Independent