LaSalle Japan REIT Inc.｜Investment Policies

(1) Restrictions on the Type of Investment Assets

The Investment Corporation shall not intentionally invest in assets for the benefit of specified third parties. The principal objective of the Investment Corporation is to engage in investment and asset management activities for the benefit of investors and unitholders.
The aggregate total of real estate held, including securities backed by real estate earmarked for disposal within one year, must not exceed 50% of the Investment Corporation's total assets.

(2) Asset Leasing

The Investment Corporation may engage in lease activities of real estate, real estate leasehold and surface rights as discussed in Types of Investments Considered as Targets, including parking facilities, advertising displays and related facilities, for the purpose of enhancing management performance and asset management efficiency.
In connection with leasing of the real estate, real estate leasehold and surface rights identified in (2)a. above, the lessees may deposit or pledge to the Investment Corporation key money, guarantee deposits and like monies. In such cases, the Investment Corporation shall invest and manage these proceeds in accordance with the Investment Corporation’s management policies.
The Investment Corporation shall not engage in leasing activities of assets other than real estate, leasehold and surface rights.

(3) Restrictions on Debt Financing

Purpose of Debt Financing
- The Investment Corporation shall undertake debt financing with the aim of ensuring efficient and stable management. Debt funding shall be undertaken for the purposes of asset acquisition and repair as well as the payment of cash dividends and the repayment of liabilities (including the refund of security and guarantee deposits, repayment of debt financing and redemption of corporate bonds).
Restrictions on Debt Financing
- Debt financing shall be restricted to a maximum amount of \1.0 trillion. This maximum limit applies to the aggregate total of debt financing and the issue of corporate bonds identified in (4) Issue of Corporate Bonds, below.
Lenders
- Debt financing shall be undertaken from qualified institutional investors.
Provision of Collateral
- The Investment Corporation shall provide as required a portion of its asset holdings as collateral for debt financing.

(4) Issue of Corporate Bonds

Purpose of Corporate Bond Issue
- The Investment Corporation shall issue corporate bonds with the aim of ensuring efficient and stable management.
Restrictions on the Issue of Corporate Bonds
- The issue of corporate bonds shall be restricted to a maximum amount of \1.0 trillion. This maximum limit applies to the aggregate total corporate bond issue and debt financing identified in (3) Restrictions on Debt Financing, above.
Matters relating to the Use of Proceeds from the Issue of Corporate Bonds
- The issue of corporate bonds shall be undertaken for the purposes of asset acquisition and repair as well as the payment of cash dividends and the repayment of liabilities (including the refund of security and guarantee deposits, repayment of debt financing and redemption of corporate bonds).
The Provision of Collateral
- The Investment Corporation shall provide as required a portion of its asset holdings as collateral for the issue of corporate bonds.

The Investment Corporation shall not underwrite the issue of securities or engage in marginal trading.