Basic Principles

The Investment Corporation is a listed Japanese real estate investment trust (J-REIT) sponsored by two companies: MEITETSU CITY DESIGN CO.,LTD., the core company of the Nagoya Railroad Group’s real estate business, and the XYMAX Group, a leading company in the field of real estate management ^(Note).

The Investment Corporation seeks to maximize unitholder value by fully unlocking the potential of real estate through appropriate portfolio management that leverages the solid property development capabilities and financial base of the Nagoya Railroad Group, together with the real estate management expertise of the XYMAX Group.

MEITETSU CITY DESIGN CO., LTD., as the leading comprehensive real estate developer of the Nagoya Railroad Group, has focused on residential development along the Nagoya Railroad lines, the leasing business centered on residential and office properties, and the development of station-front commercial facilities, while also expanding its operations into the Tokyo metropolitan and Kansai areas. In addition, the Nagoya Railroad Group also engages in property management and building maintenance services.
The XYMAX Group boasts one of Japan’s most prominent track records in real estate management, and has long supported the J-REIT and broader real estate investment market through its core business of real estate management.
The Investment Corporation believes that strong real estate management capabilities are indispensable to secure stable returns over the medium to long term in real estate investment, which is generally characterized as moderate risk and moderate return.

(Note)	“Leading company” refers to companies or corporate groups that actually have the track record and scope of operations commensurate with a presence to lead a certain business or field from a comprehensive perspective of business size, workforce, area coverage, operational track record, etc. Given the XYMAX Group’s positioning as one of the top entities in Japan in light of a track record in real estate management, number of property managers, etc. and the XYMAX Group being in a position with actual track record and scope of operations to lead the real estate management industry, The Investment Corporation believes that the XYMAX Group can be said to be one of the leading companies in the real estate management industry. “Real estate management” collectively refers to property management, building maintenance services, and also the combination of property management and comprehensive building maintenance services (including cases that sublease contracts bring such management service contracts). Furthermore, “Comprehensive real estate services” collectively refers to not only real estate services but also estate solution services. The same shall apply hereinafter. Also, it collectively refers to various specialized service including the effective utilization of owned real estate, sales brokerage, and leasing brokerage—that address diverse real estate needs to support corporate asset strategies.

(Note)

“Leading company” refers to companies or corporate groups that actually have the track record and scope of operations commensurate with a presence to lead a certain business or field from a comprehensive perspective of business size, workforce, area coverage, operational track record, etc. Given the XYMAX Group’s positioning as one of the top entities in Japan in light of a track record in real estate management, number of property managers, etc. and the XYMAX Group being in a position with actual track record and scope of operations to lead the real estate management industry, The Investment Corporation believes that the XYMAX Group can be said to be one of the leading companies in the real estate management industry.
“Real estate management” collectively refers to property management, building maintenance services, and also the combination of property management and comprehensive building maintenance services (including cases that sublease contracts bring such management service contracts). Furthermore, “Comprehensive real estate services” collectively refers to not only real estate services but also estate solution services. The same shall apply hereinafter. Also, it collectively refers to various specialized service including the effective utilization of owned real estate, sales brokerage, and leasing brokerage—that address diverse real estate needs to support corporate asset strategies.