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Distribution Policy

OJR shall carry out monetary distributions exclusively based on the following policy after the latest changes to Articles of Incorporation on Nov. 30, 2015.

(1) Distribution of profits

a. Out of the total amount for distribution to unitholders, the amount of profit, or the amount obtained by subtracting unitholders' capital, etc., from net assets on OJR's balance sheet, as stipulated by the Investment Trust Law (the same applies hereinafter), shall be calculated in accordance with Japanese GAAP.
b. When OJR makes a distribution up to the profit amount, as a rule, it shall exceed the amount equivalent to 90% of the amount of OJR's account profit available for distribution, stipulated in Article 67-15 of the Special Measures for Taxation Law and Article 39-32-3 of the Enforcement Ordinance for the Special Measures for Taxation Law (if the criteria for determining such amount change due to the revision of laws and/or regulations, an amount based on the criteria for determining the amount after the relevant changes).
c. OJR may accumulate the allowance for long-term repairs, payment reserve, distribution reserve and similar reserves as well as other necessary amount such as allowance that are deemed necessary to maintain and improve the value of its assets, and may reserve them or treat them otherwise.

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(2) Distributions in excess of profits

If the board of directors considers it appropriate, OJR may make a distribution to unitholders within the scope of the regulations of The Investment Trusts Association, Japan, a general incorporated association (ITA) in excess of profit based on a statement of cash dividends authorized in accordance with the Act on Investment Trusts and Investment Corporations; provided, however, that OJR shall consider whether tax liabilities will arise as a result of such distribution under the Corporation Tax Law, and what will be the effect on tax liabilities after the fiscal period to which such in-excess distribution relates. Furthermore, distributions in excess of profit (exceeding the amount OJR has decided) will be possible when OJR deems appropriate for the objective of reducing burden of taxation on OJR.

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(3) Method of distributions

Distributions shall be made in cash to unitholders and registered pledgeholders of investment units who are recorded or registered in the final register of unitholders as of the Account Closing Date, and will, as a rule, be paid within three months of the day following the Account Closing Date and in accordance with the number of investment units held or the investment units subject to the registered pledge.

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(4) Period of exclusion of distributions

The obligation to pay the distribution stipulated in 3 above will be void after a period of three years from the date of commencement of payments. The payment of distributions shall not include interest.

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(5) Regulations of The Investment Trusts Association, Japan

In addition to either (1) to (4) above, OJR shall abide by the “Regulations concerning Real Estate Investment Trusts and Real Estate Investment Corporations” (enacted in March 2001 and including later revisions) established by The Investment Trusts Association, Japan for the distribution of monetary proceeds.

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