15th Term Interim Business ReportJanuary 1, 2009 June 30, 2009

We are pleased to present our interim business report for

the first half of the 15th term (from January 1, 2009, to

June 30, 2009).

Although some investors showed renewed interest

during the first half, overall real estate investment market

liquidity fell short of recovery. Consequently, the business

environment remained opaque.

In this environment, the Kenedix Group (the “Group”)

formulated a Medium-Term Management Plan. We made

steady progress on the measures of this plan: improving

the flexibility of our response to sharp fluctuations in the

market, building up a sound financial position and shifting

toward a stable profit structure.

One result of these efforts was our sale of a major

development project, KDX Toyosu Grandsquare, to a fund

managed by the Carlyle Group of the United States. The

Carlyle Group then commissioned us to perform asset

management services for the property.

Thanks to this situation, we were able to delete the

“Notice Concerning Precaution about the Going Concern

Assumption,” as the significant uncertainty that prompted

the notice was deemed no longer to exist.

To achieve further success toward the goals outlined in

our Medium-Term Management Plan, we will endeavor to

make steady improvements in our operating performance.

We ask for your continued support and understanding

of our management policy.

September 2009

Atsushi Kawashima

President

Ryosuke Homma

Chairman

Message from the Management

Revenue

0

30,000

60,000

2007 2008 2009 2007 2008

90,000

120,000

150,000Note Investment Management Business

Asset Management Business

Real Estate Investment Advisory Business

Real Estate Investment Business

Interim Full year

(Millions of yen)

Ordinary Income

2007 2008 2009 2007 20080

5,000

10,000

15,000

20,000

25,000

30,000

Interim Full year

(Millions of yen)

Net Income

2007 2008 2009 2007 2008Interim Full year

(Millions of yen)

-12,000

-9,000

-6,000

-3,000

0

3,000

6,000

9,000

12,000

15,000

Assets under Management

Office BuildingsRental CondominiumsCommercial Facilities

Logistics FacilitiesOthers

0

2,000

4,000

6,000

8,000

12,000

10,000

2007 2008 2009 2007 2008Interim Full year

(Millions of yen)

Note: 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 prop-

erty 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.

Highlights of Business Results

1

PresidentChairman

How would you describe conditions in the real estate investment market?

The real estate investment market is just beginning to emerge from its state of shock following the unprecedented financial crisis precipitated by last autumn’s Lehman shock. REIT investment overseas is steadily increasing, while investment in large-scale office buildings is on the rebound in Japan. With the fund market beginning to emerge from a state of hibernation, how is Kenedix recovering from the first-ever losses it posted in the previous fiscal year? We asked Chairman Ryosuke Homma and President Atsushi Kawashima to provide an synopsis of perfor-mance in the first half of the fiscal year ending December 31, 2009, as well as their outlook for the future.

Striving to Be a Trusted Real Estate Asset Manager that Is Transparent, Specialized and Stable

Real Estate Investment Market Moving toward Recovery

Management Interview

Kawashima: In the first quarter (January through March

2009), the business environment remained stagnant, owing

to a frozen market. However, as we moved into the second

quarter in April major life insurers showed resurgent invest-

ment interest in large-scale office buildings, which finally broke

the logjam. In addition, we sold our large-scale office building

development, KDX Toyosu Grandsquare, to a fund managed

by the Carlyle Group of the United States. Such activity sug-

gests that investor interest is on the rebound.

Homma: Following last autumn’s Lehman shock, investors

lost their bearings to such an extent that properties could not

even be properly priced. The market began shedding some of

its uncertainty about the future as we moved into the second

quarter, and the emergence of motivated investors caused

the cap rate*1 to fall slightly.

Sale of KDX Toyosu Grandsquare a Highlight of the First Half

Please describe your performance by segment during the first half of 2009.Kawashima: Looking first at the Real Estate Investment

Advisory Business, lackluster fund formation prevented us

from earning the same levels of fee income as we had in

the past from acquisition (locating and acquiring investment

3

reduce total assets, which were approximately ¥430 billion as

of June 30, 2008, by half. I also believe that we will achieve

our third objective, a stable profit structure, as long as we

take a fund formation approach that is consistent with market

needs and work steadily to slim our balance sheet. Striking

a balance between increasing AUM and reducing inventories

will allow us to cover our fixed costs with this income.

Homma: Achieving the goals of our Medium-Term

Management Plan naturally involves some pain, but by pulling

together as a company I am convinced that we will emerge

victorious from this bid to ensure our survival.

properties) and disposition (selling investment properties).

Nevertheless, undertaking the asset management on KDX

Toyosu Grandsquare helped us achieve a steady increase in

assets under management (AUM) creating a base from which

to secure steady revenues. In the Real Estate Investment

Business, we posted a capital gain on the sale of this prop-

erty. The financial crisis is expected to cause non-performing

loans to increase, presenting opportunities for the Note

Investment Management Business. As specific developments

have yet to materialize, we continue to monitor the situation

with a view to involvement from the third quarter or thereafter.

In March, the refinancing by two Japanese banks of nearly

¥16.0 billion was a major benefit to us on the financial front.

As a result of these factors, in the first half we posted a

24.8% year-on-year decrease in revenue, to ¥60.3 billion.

Operating income fell 30.3%, to ¥10.7 billion, and ordinary

income dropped 45.6%, to ¥6.5 billion. We recorded a net

loss of ¥8.8 billion for the first half, compared with ¥5.5 billion

in net income in the first half of the preceding year.

Homma: Focusing on KDX Toyosu Grandsquare, nearly a

year elapsed between the property’s May 2008 completion

and its sale. Although we had to revise our selling price to

some extent, nevertheless we succeeded in generating a

profit of nearly 30% on the sale.

How is progress on the Medium-Term Management Plan that you put in place at the end of last year?Kawashima: The three objectives of our Medium-Term

Management Plan are to steadily grow AUM, slim down our

balance sheet and transition to a stable profit structure. In

the first half, we raised AUM to ¥870 billion, and we plan to

steadily increase this amount to ¥1.2 trillion by 2013. In terms

of slimming our balance sheet, we outpaced our plans to

Management Interview

4

estate development and management expertise. Having in

place a sufficient service infrastructure, in terms of financing

and revenue, also is essential to earning the trust of investors.

Homma: Recognizing that internal transparency is linked

with transparency to investors, the president in particular has

begun holding regular employee meetings. Such periodic get-

togethers help instill our corporate mission, promote employee

motivation and ensure that everyone is moving along the

same path.

Do you have any closing remarks for the shareholders?Kawashima: Earlier in this report, I mentioned that dur-

ing the period under review we managed to erase the

“Notice Concerning Precaution about the Going Concern

Assumption.” I offer my sincere apologies for any concerns

the notice may have caused. Going forward, we will work

more aggressively to expand our business in such areas as

taking on new asset management agreements. I ask for your

support in these endeavors.

Homma: This is a year of repairing our business to ensure our

ongoing viability. Once we have passed through this difficult

phase in the operating environment, I look forward to benefit-

ing from the position we have secured as a survivor, and I

appreciate your ongoing support as we work toward this goal.

Glossary:

*1 The cap rate refers to investors’ expected returns on profit-earning real

estate. Also known as the capitalization rate, it decreases when real estate

market conditions are good and increases when conditions are bad.

*2 CMBS, an abbreviation for commercial mortgage backed securities, is

also described as commercial real estate loan back securities. This type

of asset-backed security is a securitized product that provides financing

using rental condominiums, hotels, warehouses, office buildings,

supermarkets and other commercial real estate as collateral.

Developing a Fee-Based Business that Responds Quickly to Market Fluctuations

What are some of particular points of focus for your activities from the third quarter onward?Kawashima: Our first focus is to make steady progress on

financial restructuring. We will reduce interest-bearing debt,

and we have received the support of our banks for ongoing

refinancing. Furthermore, now that it is showing signs of

recovery the real estate investment market should begin

attracting Japanese and overseas investors. We must forge

the link between this situation and fund formation. Specifically,

we need to recognize the needs of Japanese pension funds,

as well as Asian and Australian investors, and create com-

mercial facility funds to meet these needs. This approach will

balance our fund composition among J-REITs and private

funds. A number of CMBS*2 defaults are expected to occur

this autumn or later. This situation spells opportunity for our

Note Investment Management Business.

Homma: For CMBSs, in addition to simply acquiring dis-

counted notes we need to begin taking a servicer-type

approach. In other words, we will enter the market for fee-

based services, regardless of the type of underlying equity.

I believe we need to adopt this sort of complex approach to

become the real estate manager of choice for investors.

What are some of the conditions for being a choice of investors?Kawashima: Nowadays, real estate asset managers are

required to be transparent, specialized and stable. To deliver

quality services, we need to offer investment schemes that

are easy for investors and vendors to understand, excel in

accumulating high-quality market information and have real

Management Interview

5

On March 30, we concluded a ¥15.8 billion syndicated loan agreement with

Sumitomo Mitsui Banking Corporation and the Bank of Tokyo-Mitsubishi UFJ, Ltd.,

as joint arrangers.

Owing to the slump in the secondary market for real estate stemming from the

financial crisis, we anticipated that real estate sales would become sluggish. We

responded by seeking to reschedule ¥21.0 billion in debt slated to come due in

or before September 2009 by transferring the debt to a syndicated loan. The new

agreement will ensure that terms are longer than one year and help avoid unreason-

able sales of properties to repay loans. At the same time, the new loans will help

ensure stable revenue from rental income during the ownership period.

Agreement Reached on ¥15.8 Billion Syndicated Loan Agreement

In May 2008, Kenedix completed construction on KDX Toyosu Grandsquare, its

large-scale office building development in Koto-ku, Tokyo. Simultaneously with its

sale to a fund managed by the Carlyle Group, Kenedix undertook the asset manage-

ment business on this property. This Tokyo Bay area redevelopment project is exten-

sive, measuring more than 5,000 square meters per floor. This leading-edge facility

features rooftop greenery to reduce its heat load and employs cool-tube cooling

and other energy-conserving systems. The acquirer, the Carlyle Group, is one of the

world’s largest private equity funds, with global investments spanning North America,

Asia and Europe. We look forward to other opportunities to work with the Carlyle

Group, expanding business and profit-generation opportunities such as joint invest-

ments in the formation of real estate funds.

Sale of KDX Toyosu Grandsquare and Undertaking of Asset Management Business

2 0 0 9T O P I C S

Mar. Apr. May Jun.2009

Jan. Feb.

6

Management Discussion

First, please explain how you reached the decision to sell to the Carlyle Group.

Ikeda: From the time KDX Toyosu Grandsquare was com-

pleted last May, we conducted tenant leasing activities and

formed a private fund with this property as its core asset. At

the same time, we forged ahead on the investor selection

front. We received several inquiries from overseas investors,

and we had expected to complete the transaction by the end

of 2008, but in the aftermath of the Lehman shock the mar-

kets froze and investor activity stopped. Caught in this situ-

ation, we strove to attract tenants, raising occupancy levels

to maximize the sale price of the property once the market

recovered.

Tanaka: Conditions remained sluggish as we moved into

2009, and around the time the market started showing signs

of movement in April, we received word that the Carlyle

Group was interested in including Tokyo office buildings in

one of its funds. Selling the property also generated a sub-

stantial capital gain for Kenedix. We believe the transaction

was a success for both parties.

Why do you believe the Carlyle Group invested in KDX Toyosu Grandsquare?Ikeda: Ultimately, I believe the property itself was an attractive

investment. This is a large-scale building located in the bay

In June 2009, Kenedix sold its large-scale office building development project, KDX Toyosu Grandsquare, to a fund managed by the Carlyle Group, a prominent U.S. investor. Since the project’s completion in May 2008, real estate pundits have carefully followed the activities surrounding the sale of Kenedix’s largest development project to date. In a market rendered extremely illiquid by the financial crisis, how did Kenedix succeed in selling the building? The people who worked with single-minded dedication to author the project’s exit strategy, Akira Tanaka (Senior Executive Officer and General Manager, Corporate Planning Department, and Soushi Ikeda (Executive Officer and General Manager, Investment Business Department), describe the process.

Successful Sale of a Large-Scale Office Building Despite Difficult Real Estate Market Conditions

KDX Toyosu Grandsquare

Creating an Attractive Investment Property with 95% Occupancy

7

area and featuring more than 5,000 square meters per floor.

In a market characterized by rising vacancy rates, rents had

not fallen, and we had raised the occupancy ratio to 95%.

Among the building’s tenants were 10 companies in the

finance sector that used the space as headquarters as well

as for back office activities. For such companies, relocation

involves substantial capital expenditure. As a result, the risk of

tenant departure was relatively low. The facility also received

high marks for its profitability and level of safety.

10-floor vaulted atrium built into the center of the facility

Features of KDX Toyosu Grandsquare

The Carlyle Group is a world-prominent private equity firm

that is expanding its investments on a global scale. Its invest-

ment criteria are stringent, so we were pleased that our prop-

erty made the grade.

Tanaka: I think that another important factor in the Carlyle

Group’s investment decision was our ability to arrange with

two Japanese banks to extend non-recourse loans with rea-

sonable conditions.

Grand Kitchen Canal Port (restaurant)

Rooftop garden

Located in a redevelopment area in Shinonome, Koto-ku, in the

bay area of Tokyo, KDX Toyosu Grandsquare is a large-scale

offi ce building with 10 fl oors above ground and a total fl oor area

of 63,892 square meters. The building has a stylish exterior free of

unnecessary elements and a 10-fl oor vaulted atrium built into the

center to admit sunlight. A glass-walled elevator fl anks the atrium,

creating a sense of space. The astylar construction creates some of

the largest uninterrupted offi ce space in Japan, at more than 5,000

square meters per fl oor, which allows the space to be used freely.

The building’s sophisticated security system uses contactless cards.

Air conditioning employs a water/ice-based regenerative storage

system that takes advantage of outside air and less expensive

electricity generated at night. Blinds automatically descend and

ascend in response to the strength of sunlight. Rooftop greenery

has also been installed to top off the high-value-added features

of the building in terms of safety, comfort, energy conservation

and environmental friendliness. The fi rst fl oor houses restaurants,

convenience stores and other shops to support the lifestyles of

the people working within the tenant companies. The building is a

12-minute walk from Toyosu Station, on Tokyo Metro’s Yurakucho

and Yurikamome lines, as well as Shinonome Station on the Rinkai

Line. A shuttle bus runs between the building and Toyosu Station.

Management Discussion

8

Will you continue doing business with the Carlyle Group?Ikeda: Although this is the first transaction we have concluded

with the Carlyle Group, we have communicated with them in

the past, and at that time we both hoped to have the oppor-

tunity to do business together in the future. This became pos-

sible through KDX Toyosu Grandsquare, and since the sale

we have been providing sub-asset management services. The

Carlyle Group is expanding its investments throughout Japan

in a wide range of asset categories, including office build-

ings, commercial facilities, logistics facilities, nursing care and

other housing, and the group has an extensive investment

track record. While maintaining a close focus on the signs of

recovery in the Japanese real estate market, the group has

indicated its desire to work with an asset manager capable of

providing a range of services ranging from investment prop-

erty location through to sale, with careful attention to detail in

each service category. We believe this need points to busi-

ness opportunities for us. We aim to take advantage of busi-

ness and revenue-generation opportunities with the Carlyle

Group by pursuing such avenues as forming joint-investment

real estate funds.

Tanaka: The Carlyle Group is investing aggressively in Asian

real estate. The fact that South Korea’s National Pension

System owns a 49% stake in the fund that acquired KDX

Toyosu Grandsquare points to the group’s strength in rela-

tionships with overseas investors. This acquisition should

serve as an ice-breaker for the Korean pension system, which

apparently is planning further real estate acquisitions in key

cities overseas. Cooperation with the Carlyle Group should

What investment strategies are you pursuing as you move into the second half?Ikeda: In the future, we plan to hold back on large-scale

development projects such as KDX Toyosu Grandsquare that

we pursue on our own account because they involve bal-

ance sheet risk. As far as large-scale projects, we are likely

to revert to our revenue model on the Kawasaki Tech Center,

The Asset Manager of Choice for Investors, Lenders and Shareholders

Kawasaki Tech Center

First Deal with Carlyle Group Sets the Stage to Generate Revenue through Further Cooperation

open up a communications route with South Korean, Chinese

and other potential overseas clients to which we have had

little access in the past.

9

“new order,” asset managers must conduct their asset man-

agement activities according to pre-arranged scenarios in

order to be selected for lender financing.

For example, if the scenario calls for a exit in three years’

time, the asset manager is expected to raise the asset value

of the property during that period, sell the property and

ensure a return in three years on the dot. With lenders paying

such close attention, any deviation from the initial scenario

results in a loss of creditworthiness. Of course, scenarios

must have some leeway to account for changes in the market

environment, but even in this case scenarios must be rewrit-

ten with the full agreement of all both parties, making strong

investor–lender relationships essential. Fortunately, we were

able to provide a solid scenario and have a solid performance

record, as well as strong lender relations. We plan to continue

working carefully to achieve our planned results.

Ikeda: The ability to sell KDX Toyosu Grandsquare was highly

dependent on the cooperation we received from lenders, as

well as the support on property management and leasing. I

would say that building such organic relationships with busi-

ness partners is one of our key strengths.

Tanaka: We plan to make the most of this strength to position

ourselves even more clearly as the asset manager of choice.

an investment we made in 1999. In this case, we made a

small joint investment (same-boat investment) with a major

U.S. real estate fund to acquire a property, and then raised

the occupancy rate through asset management. Through

various types of fee income, such as an incentive fee gained

if the investment yield was over a certain amount at the time

of sale, we were able to make nearly seven times on our

investment. In recent years, the business environment was

characterized by increasing competition for superior proper-

ties, making such efficient investments as the Kawasaki Tech

Center difficult to achieve. However, the current industry

shakeout has alleviated the situation somewhat, with the

business environment returning to a state that makes it pos-

sible to generate return without taking on excessive risks.

Accordingly, we will return to our initial investment strategy of

employing client investors’ funds to acquire excellent proper-

ties as inexpensively as possible, apply our characteristic

asset management expertise to raise property value while

maintaining good tenant relations. By pursuing investment

efficiency in these ways, we aim to be the asset manager of

choice from the viewpoint of investors.

How is the fund-raising environment?Tanaka: Debt financing, chiefly loans through financial institu-

tions, is just now becoming possible on superior properties

such as KDX Toyosu Grandsquare. However, lenders are

being selective in their financing decisions, and their evalu-

ations take into account the asset manager as well as the

property.

Whereas in the past it was possible to achieve 70% to 80%

leverage through debt financing of real estate, 50% to 60%

has now become standard. Furthermore, under the so-called

Management Discussion

10

Consolidated Financial Statements

(Millions of yen) (Millions of yen) Consolidated Interim Balance Sheets

Account titleCurrent

interim periodAs of June 30, 2009

Previous interim periodAs of June 30, 2008

Assets 212,869 433,886

Current assets 119,246 400,446

Cash and cash equivalents 10,818 26,769

Deposits held in trust 4,774 11,517

Accounts receivable – trade 1,060 1,129

Inventories 93,865 347,218

Note receivable (loan pool) 2,984 5,595

Others 5,888 8,268

Allowance for doubtful accounts (147) (52)

Fixed Assets 93,622 33,439

Tangible assets 69,976 200

Intangible assets 903 2,306

Investment and other assets 22,742 30,932

Investment securities 20,205 26,962

Investment in capital 311 280

Long-term loans 1,110 1,036

Deferred tax assets 114 392

Others 1,032 2,719

Allowance for doubtful accounts (32) (458)

Total assets 212,869 433,886

Account titleCurrent

interim periodAs of June 30, 2009

Previous interim periodAs of June 30, 2008

Liabilities 170,441 338,714

Current liabilities 92,920 156,164

Accounts payable – trade 484 7,632

Short-term borrowings 32,975 105,732

Commercial paper — 1,000

Long-term borrowings – due within one year 47,226 19,305

Corporate bonds – due within one year 4,767 4,664

Accrued income taxes 433 2,450

Security deposits 3,155 7,842

Deferred tax liabilities 1,723 1,727

Others 2,154 5,811

Long-term liabilities 77,521 182,549

Bonds payable 37,900 42,667

Long-term borrowings 37,571 139,242

Deferred tax liabilities 15 0

Silent partnership contribution received 5 167

Allowance for employees’ retirement benefits 30 20

Others 1,997 451

Net assets 42,427 95,171

Shareholders’ equity 38,950 64,094

Capital 14,591 14,585

Capital surplus 14,850 14,844

Consolidated retained earnings 9,596 34,788

Treasury stock (88) (124)

Valuation and translation adjustments (1,023) (173)

Net unrealized holding gains on other securities 24 99

Deferred hedge gains/losses — 162

Foreign currency translation and adjustments (1,048) (435)

Minority interests 4,500 31,251

Total liabilities and net assets 212,869 433,886

11

(Millions of yen) (Millions of yen) Consolidated Interim Statement of Income Consolidated Interim Statements of Cash Flows

Account titleCurrent

interim periodFrom January 1, 2009

to June 30, 2009

Previous interim periodFrom January 1, 2008

to June 30, 2008

Revenue 60,334 80,217

Cost of revenue 47,038 61,112

Gross profit 13,295 19,105

Selling, general and administrative expenses 2,534 3,661

Operating income 10,761 15,443

Non-operating income 354 358

Non-operating expenses 4,564 3,767

Ordinary income 6,552 12,034

Extraordinary income 180 126

Extraordinary loss 14,099 748

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

(7,367) 11,413

Profit distribution to silent partnerships (6) (11)

Income (loss) before provision for

income taxes(7,360) 11,425

Corporation tax, inhabitant tax and

enterprise tax521 4,709

Adjustment of corporation tax, etc. 4 242

Minority interests 954 956

Net Income (loss) (8,840) 5,517

Account titleCurrent

interim periodFrom January 1, 2009

to June 30, 2009

Previous interim periodFrom January 1, 2008

to June 30, 2008

Net cash provided by (used in)

operating activities47,692 (66,408)

Net cash provided by (used in)

investing activities29 (11,879)

Net cash (used in) provided by

financing activities(49,708) 67,433

Effect of exchange rate changes on

cash and cash equivalents(60) (516)

Net decrease in cash and cash

equivalents(2,046) (11,371)

Cash and cash equivalents at

beginning of period16,281 44,962

Increase (decrease) in cash and cash

equivalents resulting from changes in

scope of consolidation

(275) 4

Cash and cash equivalents at end of period 13,959 33,595

Consolidated Financial Statements

12

Corporate Profi le (As of June 30, 2009)

http://www.kenedix.com/eng

Company name: Kenedix, Inc.

Founded: April 17, 1995

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

Minato-ku, Tokyo, 105-0004

Capital: ¥14,591,516,310

Number of employees: 76 (168 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

Director: Hiroo Shibaoka

Director: Noboru Kashiwagi

Corporate Auditor: Eiji Kubota

Corporate Auditor: Harutaka Hamaguchi

Corporate Auditor: Shintaro Kanno

Corporate Auditor: Haruo Funabashi

Corporate Auditor: Tamon Ohmura

Senior Executive Officer: Akira Tanaka

Senior Executive Officer: Eisuke Fujii

Executive Officer: Keizo Katayama

Executive Officer: Kenichi Yamasaki

Executive Officer: Soushi Ikeda

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.

CRES CO., LTD.

Kenedix Westwood, LLC

KW Multi-Family Management Group, LLC

Company Information Officers

Major Affiliates Website

Corporate Profi le

13

Shareholder Information (As of June 30, 2009)

Total number of authorized shares: 1,400,000

Number of total shares outstanding: 636,982

Number of shareholders: 22,065

Name of Shareholder Shares held Shareholding (%)

Bank of New York. GCM Client Account JPR DISG FEAC

37,549 5.89

Japan Securities Finance Co., Ltd. 26,313 4.13

JP Morgan Chase Oppenheimer JASDEC Lending Account

25,000 3.92

Japan Trustee Services Bank, Ltd.(trust account 4G)

23,664 3.71

Goldman Sachs International 20,601 3.23

State Street Bank & Trust Company 505041

16,000 2.51

Ryosuke Homma 14,908 2.34

Cargill International Trading PTE Ltd. #2 14,128 2.21

The Master Trust Bank of Japan, Ltd. (trust account)

8,269 1.29

UBS AG London A/C IPB Segregated Client Account

7,100 1.11

Number of Shares Issued and Shareholders

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: The Chuo Mitsui Trust and Banking Co., Ltd.

33-1, Shiba 3-chome, Minato-ku, Tokyo

Mailing address: The Chuo Mitsui Trust and Banking Co., Ltd.

Stock Transfer Agency Division

8-4, Izumi 2-chome, Suginami-ku, Tokyo,

168-0063

Telephone inquiries: 0120-78-2031 (Toll free in Japan)

Transfer agent services are provided at all

nationwide branches of The Chuo Mitsui

Trust and Banking Co., Ltd., and the 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.

Memorandum for Shareholders

Major Shareholders (Top 10)

Distribution of Shares in Terms of Category of Holder

Note: The category “Individual persons/others” includes shares in the name of Japan

Securities Depository Center.

Securities companies

15,622 (2.45%)

Other domestic companies

17,028 (2.67%)

Financial institutions

82,089 (12.89%)

Individual foreigners

328 (0.05%)

Foreign companies

207,357 (32.56%)

Individual persons/others

314,558 (49.38%)

Stock Information

14

KDX Building, 2-2-9, Shimbashi, Minato-ku, Tokyo 105-0004, Japan

http://www.kenedix.com/eng