Industrial & Infrastructure Fund Investment Corporation (IIF), established in March 2007, was listed on the Tokyo Stock Exchange on Oct 18, 2007 and started operations as the first Japanese REIT to focus on both industrial and infrastructure properties. As you may know, other JREITs invest in logistics properties, but IIF also invests in factories, R&D facilities and infrastructure facilities which are new asset categories for JREITs, making IIF a pioneer for investments in these sectors.

IIF acquired a portfolio of nine properties for approximately JPY 66 billion following the IPO. We generated operating income of JPY 806 million and net income of JPY 183 million for the 74 net operating days in the 1st Period (Mar. 26, 2007-Dec. 31, 2007), and paid out a dividend per unit of JPY 2,323. Going forward, we will focus on growing our asset base, further improving our portfolio quality, and increasing our expertise at improving portfolio performance in order to realize the tremendous potential of industrial and infrastructure properties.

As industrial and infrastructure properties are integral to the economic activity of the nation, we believe they are minimally influenced by economic trends, and therefore provide long-term stable cashflow. We, as an investor in industrial and infrastructure properties, are convinced that we are providing you with a new opportunity of great value.

We will fully leverage the management capabilities and expertise of our asset manager, Mitsubishi Corp.-UBS Realty Inc., will focus on generating long-term stable revenues, and ask for the continued support of our valued investors.

Yasuyuki Kuratsu
Representative and Executive Director
Industrial & Infrastructure Fund Investment Corporation