010_9281210402005.indd 1 2008/05/27 6:49:08

1

We are pleased to present our business report for the 13th

term (from January 1, 2007, to December 31, 2007).

In 2007, fierce competition to acquire quality properties

continued even as the subprime mortgage loan problem in

the second half of the year and other factors contributed to

a somewhat uncertain business outlook. In this environment,

Kenedix, Inc. (the Company) teamed up with Australian

company Challenger Financial Service Group Limited to form

a listed property trust investing in Japanese real estate. The

Kenedix Group (the Group) made its own efforts to expand

earnings, including listing the trust on the Australian Securities

Exchange. As a result, the Group posted record earnings with

revenues and profits increasing for the 12th consecutive year

as real estate development projects began bearing fruit, assets

under management surpassed ¥700 billion and revenue from

fees grew steadily.

The Group wil l continue locating quality properties,

extending geographic coverage in Japan and other countries

and expanding its client customer base by taking in pension-

based and overseas real estate investment funds, which are

expected to continue increasing.

We ask for your continued support and understanding of

our management policy emphasizing shareholder value.

Highlights of Business Results Message from the Management

0

30,000

60,000

90,000

120,000

150,000

0

5,000

10,000

15,000

20,000

25,000

30,000

0

3,000

6,000

9,000

12,000

15,000

20072003 2005 20062004 20072003 2005 20062004

20072003 2005 20062004 20072003 2005 20062004

(Millions of yen)

(Millions of yen)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Note Investment Management Business

Asset Management Business

Real Estate Investment Advisory Business

Real Estate Investment Business

(Millions of yen)

(Millions of yen)

Office BuildingsRental CondominiumsCommercial FacilitiesLogistic FacilitiesOthers

（百万円）債権投資マネジメント事業アセットマネジメント事業不動産アドバイザリー事業不動産投資事業

0

20,000

40,000

60,000

80,000

100,000

通　期

20062005200420032002

● Operating Income (Note 1)(Note 2) ● Ordinary Income

● Net Income ● Asset, Under Management (Note 3)

Record Earnings Achieved as Development Projects Come to Fruition and Assets Under Management Expand Robustly

March 2008

PresidentChairman

Note 1: We have taken into account an increase in development projects and present investments in real estate on our own account, which were included in the Real Estate Investment Advisory Business, as the Real Estate Investment Business, a new, independent business segment, starting with the interim period ended June 30, 2007.

Note 2: In previous fiscal years, when offering real estate for sale, the Group recognized as revenue only the difference between the proceeds and costs. Beginning with the fiscal year under review, all proceeds are included in revenue and the corresponding cost of these properties is included in the cost of revenue. Although this change resulted in large increases in revenue, there is no effect on gross profit and all other earnings figures.

Note 3: The Group uses the following standards for calculating the balance of assets under management (AUM).(1) AUM includes real estate properties for which the Group performs asset management services, but does not include development projects prior to completion.(2) AUM uses the purchase price of a property exclusive of tax. Costs associated with acquisitions, capital expenditures to raise a property’s value and other related items are included in the book value of a property for

accounting purposes. However, these items are not included in AUM.(3) AUM includes properties that the Group holds itself for a short period of time. AUM also includes properties held by J-REITs (Kenedix Realty Investment Corporation and Japan Logistics Fund) that are managed by

Kenedix affiliates.

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2

Homma Stock prices are stagnating across the

industry and are fundamentally determined by

the market, so we cannot always control them.

I f we continue in the Kenedix tradit ion of sol id

performance as in 2007, the share price should

grow to reflect business results at some point.

To ensure this, we must effectively convey to our

shareholders the strong factors that have supported

the Company’s healthy performance.

Kawashima Indeed, there were three events that

drove performance in 2007. Foremost was the

listing of a listed property trust on the Australian

Securities Exchange. The trust was formed jointly with

Challenger Financial Service Group Limited, a publicly

owned Australian company, and invests in a portfolio

of 15 commercial properties in Japan discovered by

Homma Looking back on the year, I would give

business performance an A+ for realizing more than

¥14.6 billion in net income even as the industry hit a

rather rough spot. We can see that it was no mistake

passing the torch to younger management to take on

the changing business environment.

Kawashima I certain agree that the year’s business

results left little to be desired. However, I would give

the share price a D grade based on the very harsh

evaluation from the stock market. We offer our deepest

apologies to all our shareholders. The year made us

keenly aware of the need to develop the Company into

a more attractive business group for investors.

Performance Gets an A+ for Record RevenuesSluggish Share Price Gets a D

PresidentChairman

Interview with the Chairman and President

The real estate investment fund market, which has enjoyed

s teady expans ion, i s now reach ing a turn ing po int . The

contraction in credit due to regulatory tightening by Japan’s

Financial Services Agency, the subprime mortgage loan problem

in the United States and other factors are turning the tides.

What advantages enable Kenedix to maintain strong results in

the face of such changes in the business environment? We sat

down with Chairman Ryosuke Homma and President Atsushi

Kawashima to review this past fiscal year of record earnings and

discuss future strategy.

A Gatekeeper and Solutions Provider Connecting Investors with Real Estate

Management Interview

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3

dispose of properties it had been holding through

principle investments.

Fu r the rmore , the Company took on asse t

management for all three of the above trusts to

which we supplied properties. As a result, assets

under management significantly exceeded initial

targets to reach ¥734.9 billion, solidifying a base of

stable revenues.

Homma Another factor boosting revenues was the

sale of two residential rental investment properties

in the United States to real estate funds and other

ent it ies in the United States We succeeded in

disposing of the properties even as the subprime

mortgage loan problem was unfolding.

Kawashima Since the subprime problem was

brought on by loans to low-income earners for

new homes, it had little effect on the residential

renta l propert ies the Company invests in . In

fact, the real estate bubble burst is expected to

increase demand for residential rental properties

in the United States.

Under such circumstances, one might say that

the listed property trust (LPT) in Australia was

where the Group felt the impact of subprime.

Other firms’ LPTs that hold assets in the United

States ceased to pay div idends, which put a

the Company. This is the first time Japan has seen a

fund investing only in Japanese commercial properties

be listed on a securities exchange overseas.

Next was the public offering of Kenedix Realty

Investment Corporation—a J-REIT sponsored by the

Group—accompanied by the sale of properties held

by the Company to the investment corporation.

Additionally, we supplied logistics facilities developed

by the Company to Japan Logistics Fund, Inc.—

another J-REIT associated with the Company. In

this way, increased revenues were generated as the

development projects we had been nurturing came

into their own, allowing the Company to steadily

Business Only Modestly Impacted by Subprime Loan Problem

Interview with the Chairman and President

Chairman

Ryosuke Homma

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4

damper on the whole market and lowered the

value of LPTs associated with the Company as

well. This was a bit of a miscalculation.

Homma What about the impact on fund raising?

We cannot anticipate financing from major United

States financial institutions, which have posted

substantial losses due to subprime loans, and

Japanese banks are expected to further tighten loan

policy.

Kawashima In 2007, continuing from the previous

year, two major Japanese banks extended commitment

lines for us of over ¥70 billion in total, and our public

stock offering in August went according to plan.

Furthermore, in autumn the Company made its first

public issuance of straight bonds. This keeps our

bases covered funding-wise as we enter 2008 and

can be considered the result of the Group’s highly

regarded track record.

However, with the credit contraction forecast in the

real estate investment market, the Company must

work to further diversify fund-raising channels while

maintaining its creditworthiness.

Homma There also seems to be some pessimism in

these real estate markets.

Kawashima The tide has turned for the markets,

previously subject to intense bidding wars that drove

up prices for quality properties, and we are finally

seeing signs of impending price decreases. This is a

result of the current delay in property supply due to

an overall slack J-REIT market. Fortunately, prices for

the two trusts associated with the Company are off

only slightly, and last year’s financing efforts have left

us with sufficient reserve capacity for new property

acquisitions. However, J-REITs with large percentage

losses are simply unable to add more properties to

their portfolios in the midst of the credit contraction.

Homma This means that sellers that cannot obtain

re f inanc ing due to l im i ted cred i t cou ld dump

properties onto the market at discounted prices.

Taking Advantage of Shifting Market Tides and Pursuing Aggressive Overseas Expansion

President

Atsushi Kawashima

Management Interview

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Kawashima That’s right. Such sellers are seeking

definite buyers even if it means selling at lower prices,

which provides agile buyers with opportunities for

efficient property acquisition. We see this shift in the

market as a major opportunity if we can mobilize our

capital-raising capacity, fund composition ability and

J-REIT investment reserves.

Homma At the same time, we must also channel

resources into development projects.

Kawashima Of course. To ensure stable returns

next year and each year thereafter, we will continue

to focus on development of urban office buildings,

housing complexes and logistics facilities—which are

still in short supply—as well as commercial facilities

in densely populated areas. The Company also has

29 nursing homes, including those currently under

construction, amounting to ¥30 billion in assets in

nursing/healthcare facilities, and we are looking for

ways to move these into funds during 2008.

Homma We a lso a im to extend our overseas

investment portfolio—a key feature of the Group.

Kawashima In 2007, rather than l imi t ing our

investments to the United States, we sought to

expand geographic coverage by approaching

concerns in Asia and Europe and made actual

investments in the United Kingdom and Eastern

Europe. In China, Vietnam and other emerging

markets, we have had difficulties finding reliable

local partners, which we consider an indispensable

element. Although we are sti l l in the beginning

stages, I think client investors anticipate the Group’s

expansion over time into a comprehensive global

real estate investment corporation. We will redouble

our efforts to attain a set percentage of overseas

properties in our portfolio several years from now.

Homma The 2008 estimate of a 4.3% increase in

net income to ¥15.3 billion might turn out to be

slightly low.

Kawashima We are sticking to a conservative figure

to avoid leading our shareholders astray. That kind of

earnestness, coupled with an emphasis on flexibility

and speed in responding to changes, has been a

tradition of the Company since its establishment.

Homma Yes, we wi l l maintain that approach,

advancing the business as a team and striving to live

up to shareholder expectations by exceeding forecasts

in 2008 as well.

Management InterviewInterview with the Chairman and President

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6

2007 TOPICS

Jul Aug Sep Oct Dec Feb

2007

November 2007Issued Unsecured Domestic Straight Bonds

The Company used its ¥50 billion she l f reg is t ra t ion implemented in August 2007 to make a public offering of ¥15 billion (term: three years) of straight bonds. Although w e h a d p r e v i o u s l y w o r k e d t o diversify fund procurement channels, t h i s i s suance has p rov i ded an even more stable environment for obtaining financing.

2008

September 2007Compliance Department Established

The Company set up a Compliance Department as part of preparations for Japan’s Financial Instruments and Exchange Law, which went into effect on September 30, 2007. Although we previously had a Compliance Officer reporting directly to the President and had been working to create a compliance framework, we are now strengthening that framework toward enhanced regulatory compliance.

October 2007/January 2008Invested in Office Buildings in Romania

We invested in three office buildings jointly with local partners in Romania’s capital city of Bucharest. Following Romania’s entry into the European Union in January 2007, the country’s laws and infrastructure are being developed, demand for quality real estate is expected to rise as the economy g rows and f i n anc i ng t o bus i nesses from banks is predicted to increase. In addition, expectations of high returns for development projects based on competitive personnel costs and more favorable tax rates than other European nations truly make this a timely investment opportunity.

Jun

November 2007Sold Certain Investment Housing Complexes in the United States

As per our init ial plan, we sold off certain residential rental properties on the west coast of the United States, which we had invested in jointly with Kennedy Wilson, Inc., of the United States. Despite the uncertain market environment caused by the subprime loan problem at the time, this investment in highly competitive properties in choice locations led to sale at a profit, as planned from the outset.

Nov

6

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——P l e a s e g i v e u s a n o v e r v i e w o f t h e development business that drives Kenedix’s strong performance.O n e o f t h e r e a s o n s w e h a v e e x p a n d e d o u r development business is the overheated real estate investment market brought on by more players bidding on surging land prices over the past several years. Since many investors were having difficulty making rewarding investments, we formally launched the Development Project Department in 2006 and started in on development projects that encompass everything from site acquisition to building planning, design and asset management. We are currently engaged in projects in such areas as housing, office buildings, commercial facilities, logistics warehouses and nursing/healthcare facilities.

Development Business Framework and Lineup

Executive OfficerGeneral Manager, Investment

Business Department and Development Project Department

Eisuke Fujii

We leverage our strong track record and extensive experience in investment and asset management services to bring out the full potential of real estate.

KDX Nihonbashi 216 Building Habitation Chiba

Management Discussion

Development Project Department (General Manager)

Engineering Team Leasing TeamSourcing Team

●Building a broad-based deve lopmen t ne two rk

starting in 2003

●A d e d i c a t e d t e a m o f engineers and designers

enabling in-house planning

and design

●Supporting development and planning from a leasing

perspective

●Incorporating tenant needs in product planning

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8

——Tell us about your development staff lineup.Our Development Project Department currently has 18 members divided into three teams. The Sourcing Team gathers property information; the Engineering Team employs first-class architects and designers to handle building design, layout and construction management; and the Leasing Team supports development and planning from the tenant’s perspective and attracts tenants after project completion.

——What areas have you focused on in develop-ment projects so far?First of all, speed. Fully leveraging the expertise we have cultivated through extensive experience with investments and asset management services, we evaluate investments swiftly and make decisions quickly. This has bolstered our credibility in the industry, giving us access to a higher standard of property information. Another area we have emphasized is human resources. The Development Project Department is

composed of people from commercial construction departments, general contractors and developers with experience in building properties that pursue the essence of real estate. Our staff also has the flexibil ity to validate their work through a fiscal approach with an eye to market movements without overemphasizing the creation aspects. This small group of elite professionals is our Development Project Department.

Development Project Features and Advantages

Carino Chitosedai Regalo Nishi-Waseda Shiba-Kouen Building Regalo Yakumo Fukuura Logistics Center

Management Discussion

Product Planning Phase Construction Phase Operation Phase

KDX Reservation Agreement (during construction)

Implementing Entity: Developer

KDX Reservation Agreement Project Participation (at construction commencement)

KDX Asset Management

Transition to funds and REITs

Implementing Entity: Developer

KDX Reservation Agreement Project Participation (when application for building con�rmation is obtained)

Implementing Entity: KDXLand Procurement /Marketing Construction Commencement Construction Completion

Implementing Entity: Developer

Phase1 Phase2 Phase3

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——So that is the characteristic development business aspect of Kenedix and a strength of the Company. What would you identify as the reason for the dramatic increase in the contribution to revenue?As part of our efforts to differentiate our asset m a n a g e m e n t s e r v i c e s , w e t o o k t h e l e a d i n undertaking development projects, designing custom-made buildings tailored to market needs. This has enabled us to attract tenants in accordance with the project plan by the time the project is complete. The resulting high-income products have been a major factor buoying revenues. Selling such properties to the J-REITs associated with the Company and the Australian listed property trust has contributed soundly to earnings.

——Please tel l us about your future business strategy and focus areas.Although residential rental properties led by our Regalo series have made up the largest percentage of our portfolio, we will henceforth add emphasis to development of office buildings, logistics warehouses and commercial facilities. We have recently decided to create a dedicated, cross-organizational Commercial and Logistics Development Team to implement aggressive expansion in these areas. We will also cont inue bui ld ing our t rack record with large-scale projects like the KDX Harumi Building, which was completed in February 2008. Once sufficient experience and trust have been established, we would like to put together development funds employing outside capital and form consortium with major developers, taking on large-scale development projects with the Company as project manager.

Future Strategy and Focus Areas

Scale of Development Projects

Management Discussion

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

(Millions of yen)

2003 2004 2005 2006 2007

4,400 6,400

29,800

62,40065,500

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The Development of the KDX Harumi Building

Located in Harumi 3-chome, Chuo-ku, Tokyo, the KDX Harumi Building is one of the largest office buildings the Company has undertaken, with 11 floors above ground and one below, and a total floor area of over 3,900 tsubo (12,870 square meters). Eyeing the potential value in the Tokyo Bay area—near the heart of the city, surrounded by brisk development—we decided to invest in the building in the summer of 2005, anticipating demand for transfers of back-office operations and corporate mergers and consolidations. We set the completion date for February 2008 to allow time to attract tenants and in expectation of move-ins during the Golden Week holidays. However, in the preliminary consultations with government agencies started in November 2005, procedures to obtain the necessary building permits took more than one year and three months—longer than we had expected. Construction finally began in March 2007, leaving a mere one year to complete a project of considerable scale. Going over budget in development projects is simply not tolerated, and since construction time is a factor in expenses we have to avoid pushing back deadlines. At the same time, given the recent rise in building material costs, builders are striving to reduce the specifications on buildings and furnishings to give themselves more leeway in construction budgets and deadlines. While keeping to the budget and scheduled completion date, Kenedix held firm to its policy of maintaining the highest quality standards. Specifically, when determining specifications for the building and furnishings in the design phase, we carefully

coordinated costs with the designers and builders in efforts to come to agreement on such items before construction began. From the early design stages through to completion of construction, the Company’s design and management professionals also participated directly in consultation and coordination from a supervisory and construction management position, working to ensure the project maintained its initial specifications, schedule and budget. With these efforts, along with the limitless understanding and dedication of the builders and all parties involved, we managed to complete construction on schedule on February 29, 2008. The KDX Harumi Building features a cleanly designed and stylish interior and exterior and safety and peace of mind through its seismic damping structure and highly secure non-contact card entry system. The office space is astylar for high usability, multi-paned glass and electric blinds reduce the influence of outside heat, heating and air conditioning are automatically regulated throughout the building with no restrictions any time of year, and automatic lighting adjusts brightness using daylight sensors. Such factors contribute to an energy-efficient and comfortable office space. We also did not neglect environmental considerations, including a rooftop garden and a complete collection and recycling system for all waste generated within the building. We are take pride in this project as a showcase of the Kenedix commitment to high value-added properties offering safety, comfort, energy efficiency and environmental friendliness. We a re cu r ren t l y accep t i ng t enan t app l i ca t ions and the l a rge number o f interested companies is surpassing our initial expectations. W e s t r i v e t o c o n t i n u e p l a n n i n g a n d d e v e l o p i n g advanced office buildings in the Kenedix tradition.

Deputy General Manager, Development Project

Department

Noboru Sugata

10

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11

Consolidated Financial Statements

(Millions of yen)

Account title

● Consolidated Balance Sheets(Millions of yen)

Account title

Assets 338,509 158,147

Current assets 307,766 134,566

Cash and cash equivalents 39,369 34,390

Deposits held in trust 6,966 4,821

Accounts receivable – trade 971 866

Inventories 243,895 86,848

Note receivable (loan pool) 5,532 3,603

Deferred tax assets 2,729 579

Others 8,629 3,488

Allowance for doubtful accounts (327) (32)

Fixed Assets 30,743 23,581

Tangible assets 203 153

Intangible assets 973 8

Investment and other assets 29,566 23,419

Investment securities 25,131 17,558

Investment in capital 188 3,126

Long-term loans 1,920 1,431

Deferred tax assets — 77

Others 2,326 1,225

Total assets 338,509 158,147

Liabilities 258,020 118,353

Current liabilities 106,397 64,772

Accounts payable – trade 477 362

Short-term borrowings 60,720 35,900

Commercial paper 6,000 —

Long-term borrowings – due within one year 17,312 15,259

Corporate bonds – due within one year 3,435 2,785

Accrued income taxes 8,409 5,066

Security deposits 5,405 3,575

Deferred tax liabilities 521 —

Accrued directors’ and corporate auditors’ bonuses 430 270

Others 3,683 1,552

Long-term liabilities 151,623 53,581

Bonds payable 47,110 30,519

Long-term borrowings 103,691 22,166

Silent partnership contribution received 162 279

Deferred tax liabilities 306 303

Allowance for employees’ retirement benefits 17 13

Allowance for directors’ retirement benefits — 164

Others 335 135

Net assets 80,488 39,794

Shareholders’ equity 60,047 36,510

Capital 14,546 9,648

Capital surplus 14,805 9,907

Consolidated retained earnings 30,821 16,996

Treasury stock (124) (42)

Valuation and translation adjustments 788 700

Net unrealized holding gains on other securities 773 674

Deferred hedge gains/losses 72 (111)

Foreign currency translation and adjustments (57) 137

Minority interests 19,652 2,583

Total liabilities and net assets 338,509 158,147

Current periodAs of December 31, 2007

Previous periodAs of December 31, 2006

Current periodAs of December 31, 2007

Previous periodAs of December 31, 2006

010_9281210402005.indd 11 2008/05/27 6:49:16

12

Consolidated Financial Statements

● Consolidated Statements of Income(Millions of yen)

Account title

Revenue 138,025 27,044

Cost of revenue 101,476 4,659

Gross profit 36,549 22,384

Selling, general and administrative expenses 5,686 3,747

Operating income 30,863 18,637

Non-operating income 1,519 376

Non-operating expenses 6,261 2,552

Ordinary income 26,120 16,461

Extraordinary income 141 20

Income before provision for income taxes and profit distribution to silent partnerships

26,262 16,481

Profit distribution to silent partnerships 90 474

Income before provision for income taxes 26,172 16,007

Corporation tax, inhabitant tax and enterprise tax 12,605 6,739

Adjustment of corporation tax, etc. (2,797) (263)

Minority interests 1,702 515

Net Income 14,662 9,015

● Consolidated Statements of Cash Flows(Millions of yen)

Account titleCurrent period

From January 1, 2007to December 31, 2007

Previous periodFrom January 1, 2006to December 31, 2006

Net cash used in operating activities (48,778) (2,900)

Net cash used in investing activities (35,962) (8,894)

Net cash provided by financing activities 91,886 28,283

Effect of exchange rate changes on cash and cash equivalents (209) 14

Net increase in cash and cash equivalents 6,935 16,503

Cash and cash equivalents at beginning of period 37,074 19,178

Increase in cash and cash equivalents resulting from changes in scope of consolidation

952 1,392

Cash and cash equivalents at end of period 44,962 37,074

Previously, when a property for sale was sold, the profit or a loss

from the sale as a result of offsetting proceeds from the sale with

the cost of the property sold was recorded in revenue. Starting

with the interim period ended June 30, 2007, proceeds from the

sale are recorded in revenue, and the cost of the property sold is

posted as a cost of revenue.

We have judged that recording total proceeds from the sale of

a property for sale in revenue is more appropriate for reflecting

the Group’s operating performance. This is based on the following

reasons: (1) As the number of development projects is increasing,

holding periods tend to become longer than when we held

properties temporarily to make up funds; and (2) We are actively

involved in determining the properties’ specifications, etc. and

derive development profits.

Changes in accounting methods

Current periodFrom January 1, 2007to December 31, 2007

Previous periodFrom January 1, 2006to December 31, 2006

010_9281210402005.indd 12 2008/05/27 6:49:16

13

Company name: Kenedix, Inc.

Founded: April 17, 1995

Address: Head office at 2-2-9, Shimbashi,

Minato-ku, Tokyo, 105-0004

Capital: 14,546,074,908 yen

Number of employees: 87 (162 on a consolidated basis)

Major financial institutions: Sumitomo-Mitsui Banking Corporation

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mizuho Bank, Ltd.

Resona Bank, Ltd.

The Chuo Mitsui Trust and Banking Co., Ltd.

Aozora Bank, Ltd.

Chairman: Ryosuke Homma

President: Atsushi Kawashima

Director: Taiji Yoshikawa (CFO)

Director: Hiroo Shibaoka

Director: Noboru Kashiwagi

Corporate Auditor: Shoichi Honda

Corporate Auditor: Shintaro Kanno

Corporate Auditor: Haruo Funabashi

Corporate Auditor: Tamon Ohmura

Corporate Auditor: Eiji Kubota

Executive Officer: Akira Tanaka

Executive Officer: Eisuke Fujii

Executive Officer: Keizo Katayama

Executive Officer: Kenichi Yamazaki

KENEDIX Advisors Co., Ltd.

KENEDIX REIT Management, Inc.

Mitsui & Co. Logistic Partners Ltd.

KENEDIX Development Corporation

Pacific Servicing & Asset Management Co., Ltd.

Asset One Co., Ltd.

Jyutaku Ryutsu Co., Ltd.

KW Multi-Family Management Group, Ltd.

● Company information ● Officers (As of March 31, 2008)

● Major affiliates: ● Website

Corporate Profile (As of December 31, 2007) Corporate Profile

http://www.kenedix.com/eng

010_9281210402005.indd 13 2008/05/27 6:49:17

14

Total number of authorized shares 1,400,000(*)Number of total shares outstanding 635,140(*)Number of shareholders 13,080*The Company conducted a 2-for-1 stock split on July 1, 2007.

Business year: January 1 to December 31

Ordinary General Meeting of Shareholders:

To be held in March every year

Record date: December 31 every year (When otherwise required, a date to be

determined and announced in advance)

■ Share handling locations

Transfer agent: 33-1, Shiba 3-chome, Minato-ku, Tokyo The Chuo Mitsui Trust and Banking Co., Ltd.

Place of transfer agent: 33-1, Shiba 3-chome, Minato-ku, Tokyo The Chuo Mitsui Trust and Banking Co., Ltd. Head office

Administrative center of 8-4, Izumi 2-chome, Suginami-ku, Tokyo, transfer agent: 168-0063 Transfer Agent Center The Chuo Mitsui Trust and Banking Co., Ltd. Stock Transfer Agency Division TEL: 0120-78-2031 (Toll-free in Japan)

Other locations of transfer All branches of agent services: The Chuo Mitsui Trust and Banking Co., Ltd. Head office and all nationwide branches of Japan Securities Agents, Ltd.

■ Public announcements

Notices will be posted in electronic format on our Internet web page (http://www.kenedix.com).

However, notices will be published in the Nihon Keizai Shimbun when it is impossible to make electronic notification for unavoidable reasons.

● Number of shares issued and shareholders ● Memorandum for shareholders

● Major shareholders (Top 10)

Shareholder Information (As of December 31, 2007)

(Note) The category “Individual persons/others” includes shares in the name of Japan Securities Depository Center.

Shareholder Information

Name of shareholder Shares held Shareholding (%)Japan Trustee Services Bank, Ltd. (trust account) 66,773 10.51

State Street Bank & Trust Company 54,206 8.53The Master Trust Bank of Japan, Ltd. (trust account) 43,296 6.81

JP Morgan Chase Oppenheimer Funds JASDEC Account 40,000 6.29

Trust & Custody Services Bank, Ltd. (Trust Account B) 29,839 4.69

The Bank of New York JASDEC Treaty Account 19,612 3.09

Ryosuke Homma 14,908 2.34Cargill International Trading PTE Ltd. #2 14,128 2.22Morgan Stanley and Company, Inc. 11,957 1.88Mellon Bank Treaty Clients Omnibus 10,605 1.67

● Distribution of shares in terms of category of holderSecurities companies

14,546 (2.29%)

Other domestic companies

14,975 (2.36%)

Individual persons/others

109,870 (17.30%)

Foreign companies

307,816 (48.46%)

Financial institutions

187,763 (29.56%)

Individual foreigners

170 (0.03%)

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Our website: http://www.kenedix.com

KDX Building, 2-2-9, Shimbashi, Minato-ku, Tokyo, 105-0004TEL: 03-3519-2530 FAX: 03-3519-2533

Environment-friendly soy ink is used.

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