Distribution Policy
LaSalle Japan shall, in principle, make cash distributions based on the following distribution policy.
Profit Distribution
- Of the total amount of dividends to unitholders, the amount of profit (“distributable amount”) will be calculated according to generally accepted accounting standards.
- The amount of dividends shall be determined by LaSalle Japan to the effect that it should be in excess of 90% of distributable income (“distributable income”) as stipulated in Article 67, Paragraph 15 of the Special Taxation Measures Law (“special taxation provisions for investment corporations”), but not exceeding the distributable amount. LaSalle Japan may accumulate reserves for various purposes, including long-term capital expenditures deemed necessary for maintaining or increasing the value of assets, for repayments, and for dividend distributions.
- Of the distributable amount, the reserved portion shall be managed based on LaSalle Japan’s Asset Management Policy and Targets.
Distribution in Excess of Profit
In cases where the distributable amount is less than 90% of distributable income, or cases where LaSalle Japan considers it appropriate based on the economic environment and trends in real estate market or rental market, etc., LaSalle Japan may distribute dividends in excess of the distributable amount by adding an amount within 60% of the accumulated depreciation on the last day of the fiscal period to the distribution amount set forth in Profit Distribution (2) above, pursuant to Article 136, Paragraph 1 of the Investment Trust and Investment Corporation Law. In this case, if the distribution amount does not meet the requirements in the special taxation provisions for investment corporations, LaSalle Japan may distribute the amount determined to meet such requirements.
While LaSalle Japan goes to great lengths to ensure stable distribution, as long as individual unitholders are required to calculate capital gains/losses by themselves each time they receive distributions in excess of retained earnings, LaSalle Japan shall not make such excess distributions to unitholders.
Distribution Method
Distributions shall be made in cash to the unitholders or registered pledgees of units on record as of the end of the fiscal period in proportion to the number of units they own within three months, in principle, from the end of each fiscal period.
Distribution Right Forfeiture Period
LaSalle Japan shall be exempt from payment obligations for any distributions unclaimed for a period of three years after the date on which such distributions first become payable. No interest will accrue to distributions paid in arrears.
Investment Trusts Association Rules
In addition to the above, LaSalle Japan shall comply with the rules of the Investment Trusts Association of Japan when it makes distributions.