To Our Shareholders

The internationalization of corporate activities has sparked a growing wave of globalization in logistics activities, making it imperative for us to be active not only in Japan but also in overseas markets if we are to continuously provide optimal solutions to our customers. Furthermore, the market is seeing an increasing number of logistics facilities being consolidated into larger, more sophisticated facilities than in the past and is also seeing third party logistics (3PL) providers steadily expanding their presence in the market as they seek to offer a means to help corporations reduce their logistics costs.

Since its foundation nearly 30 years ago, J-REP Co., Ltd. has focused on the brokerage of logistics real estate as our primary business. In 2005, we entered the asset management business with the aim of expanding the overall size of our operations.

More recently, in 2007, we established a capital and business alliance with Macquarie Goodman Japan Pte. Ltd - a deal that enables us to invest in and develop logistics real estate with our own capital on a full scale, while cultivating customers and seizing business chances worldwide. This is one way in which we are striving to upgrade our customer services, increase business opportunities and further solidify our business foundation amid diversifying customer needs.

This year - in March 2008 - we established a large-scale investment portfolio focusing on logistics real estate through which we intend to further expand our group's business in years to come. We envision this portfolio becoming the central pillar of our overall business activities and a major source of income for the J-REP Group as a whole.

Your continued support and patronage would be very much appreciated.