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This page shows the change in asset management fee structure.
Since last year, through investors meetings and other occasions, we have recognized a necessity to change the asset management fee structure.
As already announced on June 26, 2019, upon approval at the 5th unitholders’ meeting on August 9, 2019, asset management fee structure will be changed from the period ending May 2020.
Specifically speaking, we will lower the ratio of type-I fee linked to total assets from 0.30% to 0.25%, while pull up the ratio of type-Ⅱfee linked to NOI/DPU from 0.0002% to 0.00021%.
Since its IPO in June 2012, as we have adopted a DPU-based asset management fee structure as the first J-REIT, API has incentivized the asset management company to maximize our unitholder value.
Our fee structure was originally made based a concept not relying too much on type-I fee, which maintains the balance between type I and type Ⅱ at 6:4 and also set the ratio of total fee to total assets at 0.45%.
However, around seven years have been passed since our IPO, our initial fee concept and current results have deviated and we have decided to revise the structure at the occasion of the unitholders’ meeting.
Through this change, the ratio of type-Ⅱfee will be 42.7%, up 5.9 points from the current rate.
We consider this increase of type-Ⅱfee will strengthen the close alignment among the asset management performance with our unitholders’ interest and the asset management fee, which will further improve same-boat operations with unitholders.
Upon this change, we estimate to lower total asset management fee by approximately ¥100 million per period.
Please move on to the next page.
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