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Decision-making Flow Chart

Investment Management Division

The Asset Investment Group, a key member of the Investment Management Division, handles matters relating to the acquisition and sale of Kenedix Realty Investment Corporation's assets, administrative matters relating to acquisition and sale risks concerning individual real estate investments, and analyses of studies on the real estate market as well as industry trends.

The Asset Management Group handles matters relating to management of Kenedix Realty Investment Corporation's assets, including determination of and changes to Management Guidelines, Asset Administration Plans, and administrative matters relating to asset management risks for individual real estate investments.

Property Management Division

The Property Management Group of the Property Management Division directs leasing and building management for Kenedix Realty Investment Corporation's portfolio.

The Engineering Group supervises capital expenditure and repairs and maintenance work of real estate owned by Kenedix Realty Investment Corporation.

Financial Planning Division

The IR Group within the Financial Planning Division handles all Kenedix Realty Investment Corporation IR activities, including disclosure, analyses of the REIT market, correspondence with investors, negotiations with regulatory authorities on matters related to Kenedix Realty Investment Corporation, and correspondence with other related organizations.

The Finance and Accounting Group handles the procurement of funds for Kenedix Realty Investment Corporation, determination of and changes to Kenedix Realty Investment Corporation's medium-term and fiscal year management plans, its budget and balance sheet, and matters related to financial risk.

Business Administration Division

The Business Administration Group of the Business Administration Division manages the general meeting of unitholders, meetings of the board of directors and various committee meetings for Kenedix Realty Investment Corporation. The Business Administration Group also provides support to the Compliance Officer, performs general business, accounting and personnel duties, holds negotiations with regulatory authorities on matters related to Kenedix Office Partners, Inc. and handles matters related to system as well as business continuity risks.

Compliance Officer

The Compliance Officer is in charge of overall control of compliance procedures and drafts the compliance program as well as the compliance manual. This Officer is also charged with creating, changing and verifying observance of various internal rules and regulations, including general business laws and regulations. The Compliance Officer is also responsible for supervising the handling of claims, general information, important information related to Kenedix Realty Investment Corporation, matters concerning insider transactions, internal audits, risk management, and risk associated with legal compliance and everyday business.

Asset Management Committee

The asset management committee consists of the president of the Asset Manager (acting as chairman of the committee), the general manager of the investment management division, the general manager of the property management division, the general manager of the financial planning division and the compliance officer. The asset management committee discusses and passes resolutions relating to investment policies, acquisition and sale of investment assets, investment budgets and results of operations, financing, management of assets and liabilities management, disclosure, risk management and any other related matters.

A meeting is held with a quorum of two-thirds of the committee members and mandatory attendance of the president and the compliance officer. Resolutions require the consent of two-thirds or more of the attendees, including the president. The compliance officer may send a proposal back to the division from which it originated, even while an asset management committee meeting is in session, when the compliance officer finds any material compliance issue in the proposal.

Compliance Committee

The compliance committee consists of the president of the Asset Manager, the compliance officer (acting as chairman of the committee), full-time directors, and outside members (currently one outside legal counsel). The compliance committee discusses and passes resolutions relating to transactions involving related parties, property acquisition and disposition transactions not involving related parties but that meet certain conditions prescribed in the compliance committee rules, or alternatively, fail to meet such conditions, investment policies in connection with our asset management business, transactions exceeding the thresholds allotted in annual plans, internal compliance and compliance procedures, establishment, revision and abolishment of internal rules, acquisition of investment units by any of our directors and officers as defined in our prevention of insider trading rules, compliance with any rules the compliance officer sets, and any other related matters.

A meeting is held with a quorum of two-thirds of the committee members and mandatory attendance of the compliance officer and the outside member. A resolution must be passed unanimously (with exceptions in limited circumstances where a matter may be submitted to the board of directors by the compliance officer), or the compliance officer sends the matter being considered back to the division from which it originated.

Structure of the Investment Corporation

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