Note 1-26

26 Along with the expansion of the aggregate market value of J-REITs, the market for non-listed, privately placed real estate investment funds (private funds) has expanded and one estimate says the market exceeded the J-REIT market in asset size as of the end of 2004. (According to the "First survey on the status of members-only private funds" (Association for Real Estate Securitization), the aggregate value of assets managed by real estate private funds stood at about 6.1 trillion yen as of the end of December 2005). However, the market is still small compared with that in the United States, where the number of listed REITs stood at 197 and their aggregate market value at about 42.3 trillion yen as of the end of February 2006.