In principle, ADR shall pay out dividends based on the following policy.
| I. |
Distribution of Earnings (Article 32(1) of the Articles of Incorporation) |
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| (1) | Of the aggregate amount of cash to be distributed to unitholders, the amount of earnings (hereafter, the "distributable amount") shall be the earnings calculated in accordance with generally accepted corporate accounting standards in Japan (refers to the amount arrived at when the sum total amount of unitholders' capital, retained earnings, valuation and translation adjustments, etc. (unitholders' capital, etc.) is subtracted from the amount arrived at when the total liabilities amount is subtracted from the total assets amount (unitholders' equity) as shown on the balance sheets for the fiscal period). |
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| (2) | The dividend amount, in principle, shall be the amount determined by ADR, which shall be in excess of an amount equivalent to 90% of the amount of ADR's income available for dividends as stipulated in Article 67-15-1 of the Special Taxation Measures Law (Law No. 26 of 1957; including amendments thereto) (hereafter, the "Special Taxation Stipulations") (hereafter, the "amount of income available for dividends"). Furthermore, ADR shall be able to use the distributable amount to accumulate long-term repair reserves, payment reserves, dividend reserves and other similar reserves and allowances, etc. that are recognized to be necessary for maintaining and enhancing the value of assets under management. |
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| II. |
Cash Distributions In Excess of Earnings |
| When the distributable amount falls below the amount equivalent to 90% of the amount of income available for dividends or when ADR deems appropriate, ADR shall be able to distribute as cash in excess of earnings an amount determined by ADR up to the amount specified in the rules of The Investment Trusts Association, Japan (body text of Article 32(2) of the Articles of Incorporation). In the event of the above, however, when the cash dividend amount fails to fulfill the requirements of the Special Taxation Stipulations that are applicable to ADR, ADR shall be able to distribute cash in an amount determined by ADR for the purpose of fulfilling those requirements (proviso to Article 32(2) of the Articles of Incorporation). |
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| III. |
Method of Dividend Distribution (Article 32(3) of the Articles of Incorporation) |
| The distribution shall be in cash and shall, in principle, be distributed within three months of the end of the fiscal period to unitholders of record or registered investment unit pledgees on the final register of unitholders (including the register of beneficial unitholders) as at the end of the fiscal period in accordance with the number of investment units held. |
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| IV. | Statute of Limitation for Right to Claim Dividends (Article 32(4) of the Articles of Incorporation) |
| When a distribution of cash has not been collected, ADR shall be released from the obligation to pay such dividends once three full years has passed since the date payout of such commenced. No interest shall accrue on dividends payable. |
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| V. |
Rules of The Investment Trusts Association, Japan (Article 32(5) of the Articles of Incorporation) |
| In addition to I. to IV. above, ADR shall comply with the rules, etc. stipulated by The Investment Trusts Association, Japan in relation to cash distributions. |
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