Notice Regarding Disciplinary Action by the Investment Trusts Association against the Asset Management Company

Overview of the Disciplinary Action

Sumisho Realty Management Co., Ltd., the asset management company of SOSiLA Logistics REIT Investment Corporation, was found to have engaged in inappropriate conduct regarding the request for real estate appraisal evaluations when acquiring properties of an unlisted real estate investment corporation. In connection with receiving an administrative disposition (business improvement order) from the Financial Services Agency, it was also penalized with a fine of 25 million yen by the Investment Trusts Association. The disciplinary measures include recommendations to strengthen legal compliance systems, establish conflict of interest management frameworks, clarify management responsibility, and improve organizational culture.

Cause of the Disciplinary Action and Future Measures

The cause was an inappropriate process in selecting real estate appraisal firms and improper influence exerted on the appraisers, with concerns over acquiring appraisal values arbitrarily to meet the parent company's quoted prices. Since the FSA’s business improvement order in December 2025, Sumisho Realty Management Co., Ltd. has implemented measures including formulating compliance declarations, enhancing training programs, appointing internal full-time directors, and strengthening risk management systems, and will continue to respond sincerely going forward. The penalty was collected from the asset management company and has no impact on the investment corporation’s operational status or earnings guidance.