Governance (G)

Governance (G)

Since its listing, GLP J-REIT, together with GLP Japan Advisors, has pursued the maximization of unitholder interest by continuously enhancing governance systems to establish a strong relationship that aligns the interests of unitholders, GLP J-REIT and GLP Japan Advisors.

Adoption of performance-linked asset management fee to meet unitholder interest

  • The asset management fee is a performance-linked fee where approximately two-thirds of asset management remuneration is linked to NOI and EPU.
  • The bonus paid to the management of the asset management company is incentive remuneration linked to EPU (Earnings per Unit) and the relative performance of the investment unit price (to the Tokyo Stock Exchange REIT Index).

Introduction of a strict governance structure for related-party transactions

  • GLP J-REIT is not allowed to carry out related-party transactions without the approval of independent outside expert(s) of the asset management company’s Investment Committee and Compliance Committee.
  • The selection of such outside expert(s) requires the approval of the J-REIT board.

The GLP Group's holding of investment units (same boat investment)

GLP J-REIT seeks to improve mutual interest by aligning the interests of GLP J-REIT's unitholders and the interests of the GLP Group by having the GLP Group hold investment units.

Highly transparent and appropriate information disclosure in pursuit of fair disclosure

  • GLP J-REIT was the first J-REIT to implement information disclosure to a wide range of unitholders by holding a management call meeting for overseas investors in capital increase through public offering.
  • GLP J-REIT was the first J-REIT to introduce a telephone conference system for the purpose of information disclosure to a wide range of unitholders at the financial presentation meetings.
  • GLP J-REIT discloses Japanese and English press releases and disclosure material simultaneously.

Further enhancing governance through an Employee Stock Ownership Plan (ESOP)

  • Established ESOP targeting officers and employees of GLP Japan Inc. and the asset management company of GLP J-REIT in May 2020, with a policy to further enhance the alignment of interests with our unitholders.
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