| I. |
Investment Restrictions Pursuant to the Articles of Incorporation |
| The investment restrictions pursuant to ADR's Articles of Incorporation are as follows. |
| (1) | Investment Restrictions (Articles of Incorporation Attachment 1 "Target and Policy of Asset Management: Investment Restrictions") |
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- Restrictions in relation to marketable securities and monetary claims
When investing into marketable securities and monetary claims, ADR shall do so with importance placed on security and liquidity. ADR shall not engage in investments solely for the purpose of proactively earning gains on investments.
- Restrictions in relation to derivatives transactions
ADR shall invest into rights associated with derivatives transactions only when it is under the objective of hedging interest rate fluctuation risks and other risks that arise from the liabilities of ADR.
- The real estate that are the target of ADR's investments (including real estate, etc. other than real estate, and real estate, etc. that back securities backed by real estate) shall be limited to real estate located in Japan.
- ADR shall not engage in investments into foreign currency denominated assets.
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| (2) | Leasing of Portfolio Assets (Articles of Incorporation Attachment 1 "Target and Policy of Asset Management: Purpose and Scope of Leasing of Acquired Assets") |
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- ADR shall be able to rent out real estate that are assets under management (including real estate that back securities backed by real estate, other than real estate, etc., that are acquired by ADR) (including the renting out of parking spaces, signboards, etc.) for the purpose of securing stable earnings over the medium to long term.
- There are instances where ADR receives lease and guarantee deposits or other similar monies upon the renting out of real estate. ADR shall be able to manage such monies received in accordance with ADR's Investment Policy.
- There are instances where ADR loans out assets under management other than real estate that are assets under management (including real estate that back securities backed by real estate, other than real estate, etc., that are acquired by ADR).
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| (3) | Maximum Amount, etc. for the Borrowing of Funds and Floating of Investment Corporation Bonds (Article 30 of the Articles of Incorporation) |
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- Purpose of borrowing funds
ADR shall be able to borrow funds and float investment corporation bonds for the purpose of ensuring stable earnings and steady growth of assets under management.
The uses of monies received through the borrowing of funds and investment corporation bonds shall include the acquisition of assets, repairs and maintenance, payment of dividends, funds required in operating ADR, and repayment of obligations (including refunding of lease and guarantee deposits and repayment of loan and investment corporation bond obligations).
- Maximum borrowing amount
The maximum amount of loans and for the floating of investment corporation bonds shall be 1 trillion yen, respectively, AND the sum total of these shall not exceed 1 trillion yen.
- Lenders
When borrowing funds, funds shall only be borrowed from qualified institutional investors as defined in Article 2-3-1 of the Financial Instruments and Exchange Law.
- Provision of collateral
When borrowing funds or floating investment corporation bonds in accordance with the stipulations given in a. above, ADR shall be able to provide assets under management as collateral.
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| II. | Other Investment Restrictions |
| ADR does not engage in the underwriting of marketable securities and margin trading. |
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