Provisional translation only
April 15, 2021

EARNINGS BRIEFING FOR THE PERIOD ENDED FEBRUARY 2021
Name of issuer:
Code number:
URL:
Stock listings:

Fukuoka REIT Corporation (FRC)8968
https://www.fukuoka-reit.jp/en/
Tokyo Stock Exchange, and Fukuoka Stock Exchange

Representative:

Etsuo Matsuyuki Executive Director

Asset manager:
Representative:
Contact:

Fukuoka Realty Co., Ltd.
Etsuo Matsuyuki CEO & Representative Director
Akira Eguchi
Executive Managing Director and General Manager ofPlanning Dept.
Phone: +81-92-272-3900

Expected date for submitting securities report:
May 31, 2021
Expected commencement date of dividend payments: May 18, 2021
Supplementary documents for earnings briefing
Yes
Analyst meeting (for institutional investors and analysts) Yes(Figures rounded down to nearest mm yen)

1. Performance and situation of assets for the period ended February 2021
(September 1, 2020 to February 28, 2021)(1) Performance
Operating revenues
mm of yen

Period ended

February 2021
Period ended

August 2020

%

2,675

3.4

8,518

(7.0)

2,966

(9.4)

2,587

(10.8)

2,586(10.8)

Return on net assets

Ratio of ordinary income Ratio of ordinary income
to total assets
to operating revenues

3,361 yen

2.6%

1.3%

30.1%

3,249 yen

2.5%

1.3%

30.4%

Total
dividend(excl. dividendin excess ofearnings)

Dividendin excess ofearnings
per unit

Total
dividendin excess ofearnings

Dividend
per unit(incl. dividendin excess ofearnings)

Total
dividend(incl. dividendin excess ofearnings)

3,361 yen 2,675 mm yen 100.0%

2.6%

3,250 yen 2,587 mm yen— yen — mm yen

3,250 yen 2,587 mm yen 100.0%

2.5%

February 2021
Period ended

August 2020

Ratio of net assets tototal assets

Net assets per unit

101,614 mm yen

50.9%

127,656 yen

101,525 mm yen

51.0%

127,544 yen

Total assets

Net assets

199,559 mm yen
199,004 mm yen(4) Cash flows condition
Cash flows fromoperating activities

Period ended

August 2020

assets— yen — mm yen

Period ended

February 2021

Ratio of

Payout dividend
to netratio

3,361 yen 2,675 mm yen(3) Financial condition

Period ended%

3.5(excl. dividendin excess ofearnings)

August 2020mm of yen

2,677

August 2020

Period ended

Profit%3.2

Period ended

February 2021

Ordinary income

mm of yen

3,061

February 2021

Period ended%

4.5

Period ended

Dividend
per unit

mm of yen(% shows percentage change from previous period)

8,904

Profit per unit

(2) Dividends

Operating income

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at
end of period

5,374 mm yen(842) mm yen(2,586) mm yen

10,293 mm yen

3,450 mm yen(7,136) mm yen

2,000 mm yen

8,348 mm yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

2. Forecast of performance for the period ending August 2021 (March 1, 2021 to August 31, 2021)
and the period ending February 2022 (September 1, 2021 to February 28, 2022)(% shows percentage change from previous period)

Operating revenues Operating income

Period ending

August 2021
Period ending

February 2022

Ordinary income

ProfitDividend
per unit

Dividendin excess ofearnings
per unit

mm of yen%

mm of yen%

mm of yen%

mm of yen(excl. dividend% in excess ofearnings)

8,979

0.8

3,176

3.7

2,787

4.1

2,786

4.2 3,500 yen

— yen

8,724

(2.8)

3,168

(0.2)

2,787

(0.0)

2,786

(0.0) 3,500 yen— yen(Reference) Forecast profit per unit: Period ending August 2021
Forecast profit per unit: Period ending February 2022

3,500 yen
3,500 yen

3. Other(1) Changes in accounting policies, changes in accounting estimates and restatement of accounting errors(i) Changes in accounting policies accompanying amendments to accounting standards, etc.: No(ii) Changes in accounting policies other than above (i):No
(iii) Changes in accounting estimates:No(iv) Restatement of accounting errors:No(2) Number of investment units outstanding(i) Number of investment units outstanding at end of period (including treasury investment units):
As of February 2021
796,000 units
As of August 2020
796,000 units(ii) Treasury investment units at end of period:
As of February 2021
0 unitAs of August 2020
0 unitNote: Regarding the number of investment units, a basis for calculating profit per unit, please refer to “Per unit information,” on page12.

* Statement on Implementation Status of Audit Procedure
This Earnings Briefing (“Kessan Tanshin” in Japanese) report is not subject to audit procedures by public
accountants or audit corporations.
* On the adequate use of performance forecasts and other items warranting special mention
Forecast figures are calculated based on information available on the date of release of the forecast and contain
uncertain factors to a large extent. Actual operating revenues, operating income, ordinary income, profit, anddividend per unit may differ due to changes in the business environment. The forecast should not be construed
as a guarantee of actual dividend. Concerning details of the preconditions for the above forecast figures pleaserefer to “1. Management Situation, (2) Forecast for the next fiscal period – Preconditions for the performance
forecast for the period ending August 2021 (March 1, 2021 to August 31, 2021) and the period ending February
2022 (September 1, 2021 to February 28, 2022)” on page 4.

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

1. Management Situation(1) Summary of the current fiscal period(a) Brief history of the investment corporation
Fukuoka REIT Corporation (hereinafter “FRC”) was established on July 2, 2004 based on the “Act on Investment
Trusts and Investment Corporations” (Act No. 198 in 1951 including later revisions) and listed on the Tokyo Stock
Exchange Group Inc. and the Fukuoka Stock Exchange on June 21, 2005 as the nation’s first real estate
investment trust specializing in regional properties (code number: 8968). FRC invests in real estate throughout allof Kyushu (including Okinawa Prefecture) with a central focus on Fukuoka City and Yamaguchi Prefecture(hereinafter the “Fukuoka/Kyushu area) by turning regional characteristics in the real estate industry into strengths.
FRC started asset management activities on November 9, 2004 after acquisition of four properties such as Retailin Canal City Hakata (excluding some areas of specialty shops, hotels, theaters, offices and common space), a
commercial complex where specialty shops, cinema complex, theaters, amusement facilities, hotels and offices
are integrally developed (hereinafter “Canal City Hakata”). As of the end of the 33rd fiscal period (February 28,2021), FRC manages a total of 31 properties comprising 11 Retail, 9 Office buildings and 11 Others.
(b) Investment environment and portfolio performance
During the fiscal period under review (the 33rd fiscal period), the Japanese economy continued to show a pickup
trend amid a severe situation still persisting under the impact of the novel coronavirus (COVID-19) infection
despite weakness in some areas. As for the outlook, the economy is expected to further pick up due in part to theeffects of various political measures, although attention should be paid to the impact of changes in the financial
and capital markets, etc.
In the Fukuoka and Kyushu area, the core investment target area for FRC, the economy is picking up amid asevere situation, with public spending at a high level. The pickup trend in consumer spending has come to atemporary pause, however, and supply-and-demand conditions for labor and compensation of employees areboth on a weak note. As we foresee, we must be wary of the impact of the trend of COVID-19 on corporate andhousehold sentiments, among other factors.
As for land price trends, the national average price in combined average for residential and commercial land took
a downward turn for the first time in 6 years, with residential land price and commercial land price dropping forthe first time in 5 years and 7 years, respectively, according to the 2021 Land Market Value Publication. Meanwhile,in Fukuoka City, the central area of FRC’s investment targets, land prices continued rising for 9 consecutive years,
up 6.6% year-on-year for commercial land and up 3.3% year-on-year for residential land.
Under such circumstances, FRC’s portfolio achieved a solid performance in the asset types of office buildings,
logistics facilities, and residential properties. Sales of Canal City Hakata and other major retail properties
increased period-on-period, counter to the emergency declaration period against the spread of COVID-19 in the
32nd fiscal period, while hotels failed to recover as demand from tourists, etc. did not return strongly.
When analyzing FRC’s portfolio (on an acquisition price basis) as of the end of the 33rd fiscal period by investment
target area, the investment ratio in the Fukuoka urban area accounted for 76.6%; when analyzing by property
type, Retail, Office buildings, and Others accounted for 58.0%, 27.7% and 14.3%, respectively.
On top of these efforts, FRC is engaged in promoting sustainability through environmental, social and governance(ESG) considerations based on its Sustainability Policy. For this purpose, the Sustainability Promotion Committee
has been established at Fukuoka Realty Co., Ltd. to which FRC entrusts its asset management (the AssetManager). The Committee, which comprises President/CEO and general managers of Property Management
Department, Investment Department, Finance Department, Planning Department and Compliance Department of
the Asset Manager, investigates specific targets and measures and supervises the progress in implementation of
the measures with regard to the internal system, cooperation with related parties outside the company andinformation disclosure policy, etc. On the implementation side, FRC has established the Sustainability Promotion
Office under the sustainability officer (general manager of the Planning Department), who is the person
responsible for the practical aspects concerning the targets set at the Sustainability Promotion Committee, andthe Office is engaged in continuous operations related to the GRESB Real Estate Assessment (with Green Star
rating), the Principles for Responsible Investment (PRI) and the Principles for Financial Action for the 21st Century(PFA21) continuing operations and other initiatives.
(c) Summary of fundraising
The balance of FRC's interest-bearing debt outstanding (including investment corporation bonds) at the end of
the 33rd fiscal period totaled 82,400 mm yen, with the loan-to-value ratio (ratio of interest-bearing debt (including
investment corporation bonds) to total assets) at 41.3% and the ratio of fixed-interest rate debt (ratio of interestbearing debt with fixed interest rates (including investment corporation bonds) to total interest-bearing debt) at
94.1% as of the same date. In addition, with regard to the commitment line agreement (credit limit: 7,000 mmyen) with The Nishi-Nippon City Bank, Ltd. serving as the agent, FRC extended the commitment period by a year,
lengthening the remaining term of commitment to three years.
Going forward, FRC will continue its endeavors to reduce refinancing risks by dispersing debt repayment dates
and extending debt duration. At the same time, FRC will work to mitigate risks of rising interest rates by shifting
to fixed-interest rate borrowings and through other measures.

1

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

Moreover, the credit ratings assigned to FRC as of the end of the current fiscal period are as follows.
Credit Rating Agency
Rating and Investment Information, Inc. (R&I)
Japan Credit Rating Agency, Ltd. (JCR)

Rating Type
Issuer Rating
Long-term Issuer Rating

RatingA+
AA−

Rating Outlook
StableStable(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 8,904 mm yen and operating income after
excluding operating expenses such as expenses related to leasing business and asset management fees totaled
3,061 mm yen. Ordinary income was 2,677 mm yen and profit amounted to 2,675 mm yen. Management decided
to make a dividend of 3,361 yen per unit to meet the requirements of special tax measures for an investment
corporation (as stipulated in Article 67-15 of the Act on Special Measures Concerning Taxation of Japan [Act No.
26 in 1957 including later revisions]). Under this act, an investment corporation is allowed to deduct the maximum
amount of dividends paid to investors from its taxable income.
(2) Forecast for the next fiscal period(a) Portfolio management policy
FRC will further reinforce management and leasing capabilities by cooperating with property managementcompanies including sponsor companies, and secure and maintain the stable operation of the properties bymaking the most use of their advantages.
FRC will make investments based on the basic policy stipulated in its Articles of Incorporation and its basic
philosophy: focusing on “specialized areas in which FRC can demonstrate its competitive edge” that are in “highgrowth potential markets.” By geographic location, of Fukuoka and Kyushu areas, FRC will invest 60% to 90%
of its assets in the Fukuoka urban area since the Fukuoka urban area is expected to have a high population
growth rate in the future. In addition to the Fukuoka urban area, management has decided to actively acquire
properties in major cities if there are regions or properties where FRC can generate investment merits from
community-oriented viewpoints. FRC will acquire high-quality properties with adequate use of its advantages,
such as information gathering ability in the areas, good knowledge of regional properties and close relations withthe local business community and governments, so that investors can continue to invest in FRC with assurance.
Meanwhile, FRC will build stronger relationships with financial institutions to realize stable fundraising and try tomaintain a solid financial structure.
(b)

Significant events that have occurred after the end of the current fiscal period:
1) Disposition of AssetOn March 18, 2021, FRC concluded a sales agreement regarding disposal of real estate trust beneficiary interest.
Type of asset to be disposed:
Property name:
Use:
Location:
Buyer:
Disposition price (planned):
Disposition date (planned):
Impact on earnings:

Real estate trust beneficiary interest
Canal City Hakata･B Grand Building (Note 1)
Retail2-82, 1-chome, Sumiyoshi, Hakata Ward, Fukuoka City
Hoshino Resorts REIT, Inc.
7,700 mm yen (Note 2)
June 1, 2021
FRC plans to record gain on sales of real estate of approximately 95
million yen as operating revenues for the fiscal period ending August
2021.

(Note 1) FRC will dispose of the beneficiary interest of a trust with 88.28% co-ownership interest in Grand Building, one of
the compartmentalized buildings, as trust property. The trust will be arising by splitting the trust that has been
established based on the real estate management and disposition trust agreement for Canal City Hakata･B.
(Note 2) The disposition price (planned) does not include disposition expenses, the amount equivalent to the settlement ofproperty taxes and city planning taxes, etc. and consumption taxes.
(Note 3) The beneficiary interest disposition agreement for the property (the "Disposition Agreement") falls under the
category of forward commitment, etc. (a postdated transaction agreement where the settlement and delivery are to
take place one month or more after the conclusion of the agreement as well as other similar agreements). The
Disposition Agreement states that, in the event either FRC or the buyer fails to fulfill the obligations of the Disposition
Agreement and the affected party demands to fulfill it within a reasonable period of time and the other party fails to
fulfill it within the specified period of time, the affected party may cancel the sales agreement as long as the property
has not yet been transferred. In addition, FRC or the buyer will be liable to compensate for damages, etc. sufferedby the other party in relation to the breach of the Disposition Agreement, but the compensation amount shall be up
to 20% of the total sales price at a maximum.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

2) Acquisition of AssetOn March 18, 2021, FRC concluded a sales agreement regarding acquisition of real estate trust beneficiaryinterest.
Type of asset to be acquired:
Property name:
Use:
Location:
Buyer:
Acquisition price (planned):
Acquisition date (planned):

Real estate trust beneficiary interest
Tenjin Nishi-Dori Business Center (Land with leasehold interest)
Office2-149, Tenjin, Chuo Ward, Fukuoka City and 4 other lots
Fukuoka Jisho Co., Ltd.
7,700 mm yen (Note 1)
June 1, 2021

(Note 1) The acquisition price (planned) does not include acquisition expenses and the amount equivalent to the settlementof property taxes and city planning taxes, etc.
(Note 2) The beneficiary interest disposition agreement for the acquisition of the property (the "Acquisition Agreement") falls
under the category of forward commitment, etc. (a postdated transaction agreement where the settlement anddelivery are to take place one month or more after the conclusion of the agreement as well as other similar
agreements). FRC shall be able to cancel the Acquisition Agreement without penalty if it becomes impossible toachieve the purpose of the agreement due to a cause not attributable to FRC. In the Transaction Agreement FRC
will not pay any deposit.

(c)Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending August 2021 (March 1, 2021 toAugust 31, 2021) and the period ending February 2022 (September 1, 2021 to February 28, 2022). Concerning
preconditions for the forecast, please refer to “Preconditions for the performance forecast for the period ending
August 2021 (March 1, 2021 to August 31, 2021) and the period ending February 2022 (September 1, 2021 to
February 28, 2022)” on page 4.
Period ending August 2021
Period ending February 2022
Operating revenues
8,979 mm yen
8,724 mm yen
Operating income
3,176 mm yen
3,168 mm yen
Ordinary income
2,787 mm yen
2,787 mm yen
Profit2,786 mm yen
2,786 mm yen
Dividend per unit
3,500 yen
3,500 yen
Dividend in excess of earnings per
— yen
— yen
unit
Note:

The above forecast figures are calculated based on certain preconditions. The forecast should not be construed as aguarantee of actual performance since actual operating revenues, operating income, ordinary income, profit, dividend
per unit and dividend in excess of earnings per unit may differ due to changes in the business environment.

3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

Preconditions for the performance forecast for the period ending August 2021 (March 1, 2021 to August 31, 2021) andthe period ending February 2022 (September 1, 2021 to February 28, 2022)
Item
Preconditions
34th fiscal period: March 1, 2021 to August 31, 2021 (184 days)
Calculation period
35th fiscal period: September 1, 2021 to February 28, 2022 (181 days)• It is assumed that there will be 32 properties comprising the 31 properties FRC owns as of February
28, 2021 plus Tenjin Nishi-Dori Business Center (Land with leasehold interest), which FRC plans toacquire on June 1, 2021. Furthermore, the planned disposition of Canal City Hakata･B Grand
Assets under
Building scheduled for June 1, 2021 represents a split and disposition of the trust for the 88.28% comanagement
ownership interest in Grand Building, which is one of the compartmentalized buildings of Canal City
Hakata･B. Accordingly, it does not change the number of properties.
• In practice, the number may fluctuate due to changes in assets under management.
Total number ofinvestment units• It is assumed that there will be no issuance of new investment units until February 28, 2022.
outstanding• The balance of interest-bearing debt outstanding at the end of the 34th fiscal period (August 31,2021) is expected to total 82,400 mm yen. The loan-to-value ratio (interest-bearing debt / total assets
× 100) is expected to stand at around 41.3% (as of February 28, 2021, the loan-to-value ratio stands
Interest-bearing debt
at 41.3%).
and refinancing• The balance of interest-bearing debt outstanding at the end of the 35th fiscal period (February 28,2022) is expected to total 82,400 mm yen, the same as the end of the 34th fiscal period (August 31,2021). The loan-to-value ratio (interest-bearing debt / total assets × 100) is expected to stand ataround 41.3%.
• Of leasing revenues – real estate, revenues from properties FRC has already acquired are calculated
based on tenancy agreements that are valid as of April 15, 2021 by taking into account thecompetitiveness of the properties and the market environment, etc.
Of leasing revenues– real estate, revenues from lease contracts with variable rent such as
percentage-of-sales rent and percentage-of-GOP rent are calculated based on past results by taking
into account such fluctuation factors as sales and GOP of the relevant tenants.
• For leasing revenues – real estate, tenant vacancies are taken into account to a certain extent. It is
assumed that there will be no rent arrears or non-payments by tenants.
Operating revenues• With the impact of the spread of COVID-19 in Japan and abroad prolonging, the situation requires
FRC to anticipate that a certain degree of impact will continue in the 34th and 35th fiscal periods on
its retail properties and hotels for which percentage-of-sales rents, etc. are established. In estimating
the sales, etc. of such properties, FRC assumes that, while domestic tourism will recover gradually,
inbound tourism will not recover until the 35th fiscal period. However, actual sales may fluctuate
depending on when the COVID-19 pandemic is contained.
• Gain on sales of real estate, etc. from the disposition of Canal City Hakata･B Grand Building
scheduled for June 1, 2021 is expected to be 95 mm yen.
• When acquiring properties, the property taxes and city planning taxes for the assets will be
proportionally calculated according to the holding period and adjusted with the former owner.
However, the adjusted amount of the property taxes and city planning taxes to be borne by FRC for
the initial year will not be written off since they will be included in the acquisition cost.
• FRC writes off estimated repair costs expected to be required for buildings for the calculation periods(the 34th and 35th fiscal periods). Actual repair costs may differ significantly from the estimatedamounts since there is the possibility that repair costs are incurred urgently due to damages tobuildings caused by unforeseeable factors, repair costs generally differ largely from period to period,
Operating expenses
and repair costs are not regularly incurred.
• Concerning outsourcing expenses, FRC anticipates 1,826 mm yen for the 34th fiscal period and1,750 mm yen for the 35th fiscal period.
• Concerning taxes and other public charges, FRC anticipates 728 mm yen for the 34th fiscal period
and 695 mm yen for the 35th fiscal period.
• Concerning depreciation and amortization expenses, FRC anticipates 1,558 mm yen for the 34th
fiscal period and 1,489 mm yen for the 35th fiscal period.
• Concerning interest expenses (including interest expenses on investment corporation bonds) andNon-operating
expenses related to financing, FRC anticipates 387 mm yen for the 34th fiscal period and 380 mm
expenses
yen for the 35th fiscal period.
• Dividend (dividend per unit) is calculated based on the dividend policy stipulated in FRC’s Articles ofIncorporation.
Dividend per unit
• Dividend per unit may fluctuate due to fluctuations in leasing revenues caused by changes in assets
under management and tenants or various factors including unexpected occurrences of repair.
• Dividend per unit may fluctuate depending on when the spread will actually be contained.
Dividend in excess• Dividend in excess of earnings (dividend in excess of earnings per unit) is not planned at the moment.
of earnings per unit
• It is assumed that there will be no significant revisions to laws and regulations, the tax system, andaccounting standards that may influence the forecast figures.
Other• It is also assumed that there will be no significant unexpected changes in general economic
conditions and the real estate market.
4

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

2. Financial Statements(1) Balance sheet
Account
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
OthersTotal current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Structures
Accumulated depreciation
Tools and fixtures
Accumulated depreciation
Lands
Buildings in trust
Accumulated depreciation
Structures in trust
Accumulated depreciation
Machinery and equipment in trust
Accumulated depreciation
Vehicles and transport equipment in trust

Accumulated depreciation
Tools and fixtures in trust
Accumulated depreciation
Lands in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right in trust
Other intangible assets in trust
Total intangible assets(thousands of yen)

32nd fiscal period

33rd fiscal period(as of August 31, 2020)(as of February 28, 2021)

3,733,612
4,660,047
1,043,924
282,717
177,6133,570

6,596,412
3,742,580
528,707287,185—
3,007
11,157,893

9,901,484

974,393—
17,045———
103,899,463(33,495,971)
2,047,268(817,728)
1,487,396(595,564)
747(676)
1,391,058(1,194,239)

974,393
17,045—830,254
70,403,492
1,229,539
891,83170
196,818
107,452,281
18,319182,014,046
5,545,883
29,5195,575,402

Investment and other assets
Deferred tax assets
Lease and guarantee deposits

1,166,235(9,712)
20,698
(129)
1,571
(78)
104,526,979(34,998,550)
2,049,545(848,800)
1,509,292(639,038)
747(709)
1,393,755(1,210,954)

1,156,522
20,5691,492
989,124
69,528,428
1,200,744
870,25437
182,801
107,452,281
16,791
181,419,047
5,545,883
24,044
5,569,927

14

63

10,00010,000327,135

327,135

Long-term prepaid expenses

1,138,352

1,042,944

Total investment and other assets

1,475,502

1,380,143

189,064,950

188,369,118

34,142

32,040

Lease and guarantee deposits in trust

Total non-current assets
Deferred assets
Investment corporation bond issuance
expenses
Investment unit issuance expenses
Total deferred assets
Total assets

5

3,835

—

37,97832,040199,004,413

199,559,052

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021
(thousands of yen)Account

32nd fiscal period

33rd fiscal period(as of August 31, 2020)(as of February 28, 2021)

Liabilities
Current liabilities
Operating accounts payable

340,991

561,6736,300,000

6,300,000

Accounts payable-other

12,612

22,905

Accrued expenses

355,374

415,653

Income taxes payable

967

1,835

Accrued consumption taxes—

316,581

Advances received

1,123,558

1,088,923

Deposits received

894,072

793,952

9,027,577

9,501,526

Investment corporation bonds

5,000,000

5,000,000

Long-term debt

71,100,000

71,100,000

366,654450,791

11,984,384

11,892,365

88,451,039

88,443,156

97,478,617

97,944,683

98,938,764

98,938,764

Unappropriated surplus

2,587,031

2,675,604

Total surplus

2,587,031

2,675,604

101,525,796

101,614,369

101,525,796

101,614,369

199,004,413

199,559,052

Current maturities of long-term debt

Total current liabilities
Non-current liabilities

Tenant leasehold and security deposits
Tenant leasehold and security deposits
received in trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus

Total unitholders’ equity
Total net assets
Total liabilities and net assets

6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

(2) Statement of income(thousands of yen)

32nd fiscal period

Account

33rd fiscal period(March 1, 2020 toAugust 31, 2020)(September 1, 2020 toFebruary 28, 2021)

Operating revenues
Leasing revenues – real estate
Other leasing revenues – real estate*1*1

7,912,804
605,527*1
8,518,332*1

8,306,678
597,438

8,904,117

Operating expenses
Expenses related to leasing business
Asset management fees

*1, *2

4,897,107*1, *2

5,180,315

520,263524,777

Asset custody fees

7,344

7,401

Administrative service fees

57,10058,665

Director’s compensations

9,600

9,600

Other operating expenses

60,308Operating income

5,551,725

61,374

2,966,606

5,842,134
3,061,982

Non-operating revenues
Interest received

44

Others

502

47
546

1,357

1,404

Non-operating expenses
Interest expenses
Interest expenses on investment
corporation bonds
Amortization of investment
corporation bond issuance expenses
Amortization of investment unit
issuance expenses
Financing related expenses

249,252

253,182

29,20029,200

2,102

2,102

3,835

3,835

94,84897,663

Others37379,27537386,021

Ordinary income

2,587,877

2,677,366

Profit before income taxes

2,587,877

2,677,366

Income taxes-current

974

Income taxes-deferred

3

Profit

1,842
978

(49)

1,793

2,586,899

2,675,572

Surplus brought forward

132

31

Unappropriated surplus

2,587,031

2,675,604

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

(3) Statement of changes in net assets
32nd fiscal period (March 1, 2020 to August 31, 2020)

Item
Balance as ofMarch 1, 2020
Changes in thecurrent fiscal period

Unitholders’ Equity
Surplus
Unitholders’ capital

Unappropriated surplus

Totalunitholders’ equity

Total
net assets

2,899,164

101,837,928

101,837,928

Dividend of surplus(2,899,032)(2,899,032)(2,899,032)

Profit2,586,899

2,586,899

2,586,899—(312,132)(312,132)(312,132)

98,938,764

2,587,031

101,525,796

101,525,796

Total of changes in thecurrent fiscal period
Balance as ofAugust 31, 2020

98,938,764(thousands of yen)

33rd fiscal period (September 1, 2020 to February 28, 2021)

Item
Balance as of
September 1, 2020
Changes in thecurrent fiscal period

Unitholders’ Equity
Surplus
Unitholders’ capital

Unappropriated surplus

Totalunitholders’ equity

Total
net assets

2,587,031

101,525,796

101,525,796

Dividend of surplus(2,587,000)(2,587,000)(2,587,000)

Profit2,675,572

2,675,572

2,675,572—

88,572

88,572

88,572

98,938,764

2,675,604

101,614,369

101,614,369

Total of changes in thecurrent fiscal period
Balance as ofFebruary 28, 2021

98,938,764(thousands of yen)

8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

(4) Dividend statement
Account

32nd fiscal period(March 1, 2020 toAugust 31, 2020)

33rd fiscal period(September 1, 2020 toFebruary 28, 2021)

I.

Unappropriated surplus

2,587,031 thousand yen

2,675,604 thousand yen

II.

Total

2,587,000 thousand yen

2,675,356 thousand yen[Dividend per investment
unit][3,250 yen]

[3,361 yen]

III. Surplus brought forward

31 thousand yen

248 thousand yen

Method for calculating dividends

The amount of dividends shall be decided in The amount of dividends shall be decided inaccordance with the dividend policy accordance with the dividend policy
stipulated in Article 38-1-1 of FRC’s Articles stipulated in Article 38-1-1 of FRC’s Articles
of Incorporation and must exceed 90% of of Incorporation and must exceed 90% of
FRC’s distributable profits as stipulated in FRC’s distributable profits as stipulated in
Article 67-15-1 of the Special Taxation Article 67-15-1 of the Special Taxation
Measures Act. Following the above policy, Measures Act. Following the above policy,
FRC shall decide to distribute 2,587,000 FRC shall decide to distribute 2,675,356
thousand yen, which is almost the entire thousand yen, which is almost the entire
amount of unappropriated surplus, as amount of unappropriated surplus, asearnings dividends. Moreover, dividend in earnings dividends. Moreover, dividend inexcess of earnings as stipulated in Article 38- excess of earnings as stipulated in Article
2 of FRC’s Articles of Incorporation will not be 38-2 of FRC’s Articles of Incorporation will
provided.
not be provided.

(Note) Amounts other than the amounts of dividend per investment units are rounded down to the nearest thousand yen.

9

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

(5) Cash flows statement(thousands of yen)

32nd fiscal period

Account(March 1, 2020 toAugust 31, 2020)

Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation and amortization expenses
Amortization of investment corporation bond issuance
expenses
Amortization of investment unit issuance expenses
Interest received
Interest expenses
Decrease (increase) in operating accounts receivables
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits expenses
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from restricted trust deposits
Payments for restricted trust deposits
Net cash provided by (used in) investment activities
Net cash provided by (used in) financial activities
Proceeds from short-term debt
Repayments of short-term debt
Proceeds from long-term debt
Repayments of long-term debt
Dividends paid
Net cash provided by (used in) financial activities
Net increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at end of period

10

33rd fiscal period(September 1, 2020 toFebruary 28, 2021)

2,587,877
1,686,347

2,677,366
1,623,716

2,102

2,102

3,835
(44)
278,452(384,662)(177,613)(191,370)(3,385)(6,241)(20,452)
40,65926,365
5,534(123,914)
3,154
3,726,644
44(274,651)(1,048)3,450,990

3,835
(47)
282,382
515,217
177,613
316,581
25,185
10,28760,503(34,635)(100,119)(4,468)95,407
6,766
5,657,694
47(282,607)(974)
5,374,159(1,809,655)(5,371,496)
29,788(66,382)
316,851(238,343)
5,296(2,074)(7,136,015)(355,262)(479,144)
84,136—
122,888(214,907)
2,016(2,470)(842,743)

6,400,000(6,400,000)
5,900,000(1,000,000)(2,899,126)
2,000,873(1,684,151)
10,032,589
8,348,438————(2,586,536)(2,586,536)
1,944,879
8,348,438
10,293,317

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

(6) Notes on the going concern assumption
No relevant items.
(7) Significant accounting policies
The disclosure is omitted, since there are no significant changes from contents disclosed by the latest securities report(submitted on November 30, 2020).
(8) Notes to financial statements
FRC omits the disclosure of notes to balance sheet, statement of changes in net assets, and cash flows statement,
as well as notes on lease transactions, financial instruments, securities, derivative transactions, related-party
transactions, tax-effect accounting, retirement benefits, asset retirement obligations, rental properties, segment
information and equity method income, etc. since it does not find substantial need for disclosure in the earnings briefing.
(Notes to statement of income)*1. Breakdown of revenues and expenses related to real estate leasing business(thousands of yen)

32nd fiscal period(March 1, 2020 toAugust 31, 2020)

33rd fiscal period(September 1, 2020 toFebruary 28, 2021)

A. Real estate leasing business revenues
Leasing revenues – real estate
Rents

6,531,941

6,830,181

Common charges

1,056,349

1,075,140

Parking revenues

324,513

7,912,804

401,356

8,306,678

Other leasing revenues – real estate
Incidental income

568,375

Other miscellaneous income

37,152

Total real estate leasing business revenues

552,811605,527

44,627

8,518,332

597,438
8,904,117

B. Expenses related to real estate leasing business
Expenses related to leasing businessOutsourcing fees

1,611,755

1,870,563

Repair and maintenance expenses

92,463211,326

Taxes and other public charges

743,726

743,094

Insurance premiums and trust compensation

49,29045,880Utilities expenses

479,907452,048

1,686,347

1,623,716

Depreciation and amortization expenses
Other expenses related to real estate leasing
business
Total expenses related to real estateleasing business
C. Revenues and expenses related to real estateleasing business (A - B)

233,617

4,897,107

233,685

5,180,315

4,897,107

5,180,315

3,621,224

3,723,801*2. Transactions with affiliated companies(thousands of yen)

32nd fiscal period

Item(March 1, 2020 toAugust 31, 2020)

Expenses related to real estate leasing business

970,79711

33rd fiscal period(September 1, 2020 toFebruary 28, 2021)

966,563

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

(Per unit information)
32nd fiscal period

33rd fiscal period(March 1, 2020 to August 31, 2020)

Net assets per investment unit:
Profit per investment unit:(September 1, 2020 to February 28, 2021)

127,544 yen
3,249 yen

Net assets per investment unit:
Profit per investment unit:

127,656 yen
3,361 yen

Note 1: Profit per investment unit is calculated by dividing profit by the day-weighted average number of investment units
outstanding during the fiscal period. Diluted profit per investment unit is not shown since there are no potential
investment units.
Note 2: Calculation of profit per investment unit is based on the following.

32nd fiscal period

Account

33rd fiscal period(March 1, 2020 toAugust 31, 2020)

Profit (thousands of yen)Amount not attributable to common unitholders(thousands of yen)
Profit attributable to common investment units(thousands of yen)
Average number of investment units during the fiscal
period (units)(September 1, 2020 toFebruary 28, 2021)

2,586,899

2,675,572——

2,586,899

2,675,572

796,000

796,000(Significant subsequent events)
1)

Disposition of AssetOn March 18, 2021, FRC concluded a sales agreement regarding disposal of real estate trust beneficiary interest.
Type of asset to be disposed:
Property name:
Use:
Location:
Buyer:
Disposition price (planned):
Disposition date (planned):
Impact on earnings:

Real estate trust beneficiary interest
Canal City Hakata･B Grand Building (Note 1)
Retail2-82, 1-chome, Sumiyoshi, Hakata Ward, Fukuoka City
Hoshino Resorts REIT, Inc.
7,700 mm yen (Note 2)
June 1, 2021
FRC plans to record gain on sales of real estate of approximately 95 million
yen as operating revenues for the fiscal period ending August 2021.

(Note 1) FRC will dispose of the beneficiary interest of a trust with 88.28% co-ownership interest in Grand Building, one of
the compartmentalized buildings, as trust property. The trust will be arising by splitting the trust that has been
established based on the real estate management and disposition trust agreement for Canal City Hakata･B.
(Note 2) The disposition price (planned) does not include disposition expenses, the amount equivalent to the settlement ofproperty taxes and city planning taxes, etc. and consumption taxes.
(Note 3) The beneficiary interest disposition agreement for the property (the "Disposition Agreement") falls under the
category of forward commitment, etc. (a postdated transaction agreement where the settlement and delivery are to
take place one month or more after the conclusion of the agreement as well as other similar agreements). The
Disposition Agreement states that, in the event either FRC or the buyer fails to fulfill the obligations of the Disposition
Agreement and the affected party demands to fulfill it within a reasonable period of time and the other party fails to
fulfill it within the specified period of time, the affected party may cancel the sales agreement as long as the property
has not yet been transferred. In addition, FRC or the buyer will be liable to compensate for damages, etc. sufferedby the other party in relation to the breach of the Disposition Agreement, but the compensation amount shall be up
to 20% of the total sales price at a maximum.

2) Acquisition of AssetOn March 18, 2021, FRC concluded a sales agreement regarding acquisition of real estate trust beneficiaryinterest.
Type of asset to be acquired:
Property name:
Use:
Location:
Buyer:
Acquisition price (planned):
Acquisition date (planned):

Real estate trust beneficiary interest
Tenjin Nishi-Dori Business Center (Land with leasehold interest)
Office2-149, Tenjin, Chuo Ward, Fukuoka City and 4 other lots
Fukuoka Jisho Co., Ltd.
7,700 mm yen (Note 1)
June 1, 2021

(Note 1) The acquisition price (planned) does not include acquisition expenses and the amount equivalent to the settlementof property taxes and city planning taxes, etc.
(Note 2) The beneficiary interest disposition agreement for the acquisition of the property (the "Acquisition Agreement") falls
under the category of forward commitment, etc. (a postdated transaction agreement where the settlement anddelivery are to take place one month or more after the conclusion of the agreement as well as other similar
agreements). FRC shall be able to cancel the Acquisition Agreement without penalty if it becomes impossible to12

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021
achieve the purpose of the agreement due to a cause not attributable to FRC. In the Transaction Agreement FRC
will not pay any deposit.

(9) Change in the number of investment units outstanding
No relevant items.

13

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

3. Reference Information(1) Information on the prices, etc. of investment assets
1) Investment situation
Type ofasset

Real estate

Office buildings
OthersTotal value of
properties owned

Location

Use

Retail(as of February 28, 2021)(Note 1)(mm of yen) (Note 2)

Real estatein trust

Office buildings
Others(%) (Note 3)

Fukuoka urban area——

Other Kyushu areas——

Fukuoka urban area——

Other Kyushu areas——

Fukuoka urban area——

Other Kyushu areas

2,167

1.1

2,167

1.1

Fukuoka urban area

74,583

37.4

Other Kyushu areas

36,828

18.5

Fukuoka urban area

47,996

24.1

Other Kyushu areas——

Fukuoka urban area

20,033

10.0

Other Kyushu areas

5,362

2.7

184,804

92.6

12,586

6.3

199,559

100.0[186,988][93.7]

Subtotal
RetailPercentage of
total assets

Subtotal
Deposits and other assets
Total amount of assets (Note 4)

Note 1: “Fukuoka urban area” refers to cities, towns and villages where 10% or more of the population commute to Fukuoka City
for school and work, according to the 2015 census, which states “the number of workers and students aged 15 years orolder (students including those aged 14 years or younger: particular reference) including commuting between their homes
and places of work or school” conducted by Fukuoka City and the Statistics Bureau of the Ministry of Internal Affairs andCommunications. “Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka urban area).
Note 2: “Total value of properties owned” is based on the value on the balance sheet (the value of real estate and real estate intrust is the book value after depreciation).
Note 3: Concerning the “Percentage of total assets,” the figures are rounded off to one decimal place. The total of individual
percentages in the above table may not equal 100%.
Note 4: Figures in parentheses for “Total amount of assets” refer to the value and percentage of real estate owned in effect tothe total amount of assets.
(as of February 28, 2021)

Value on balance sheet(mm of yen)

Percentage of total amount of assets(%)

Total amount of liabilities

97,944

49.1

Total amount of net assets

101,61450.9

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021

2) Investment assets(A) Values and investment ratios at end of period are as follows.

(as of February 28, 2021)

Acquisitionvalue(mm of yen)
(Note 1)

Value onbalance sheet(mm of yen)

Period-end
appraisal value(mm of yen)
(Note 2)

Investment
ratio
(%)
(Note 3)

Canal City Hakata

32,00029,58430,70015.8

Canal City Hakata･B

28,70028,701

28,900Park Place Oita

19,61020,195

21,200SunLive City Kokura

6,633

5,439

8,440

Konoha Mall Hashimoto

10,000

9,913

10,300

Square Mall Kagoshima Usuki

5,300

4,296

4,960

Kumamoto Intercommunity SC

2,400

1,956

2,740

Hanahata SC

1,130

967

1,200

Kurume Higashi Kushiwara SC

2,500

2,010

2,740

K’s Denki Kagoshima

3,550

2,930

3,660

Real estate property nameMarinoa City Fukuoka (Marina
Side Building)Retail subtotal:
Canal City Business Center
Building

5,250

5,416

6,080

117,073

111,412120,920

14,60012,922

16,800Gofukumachi Business Center

11,2008,796

15,200Sanix Hakata Building

4,400

3,763

6,510

Taihaku Street Business Center

7,000

5,698

9,180

Higashi Hie Business Center

5,900

4,405

8,280

Tenjin Nishi-Dori Center Building

2,600

2,663

3,140

Tenjin North Front Building

2,800

2,447

4,400

Higashi Hie Business Center II

4,230

4,023

4,580

Higashi Hie Business Center III

3,290

3,275

3,320

Office buildings subtotal:

56,02047,996

71,410Amex Akasakamon Tower

2,060

1,652

1,840

City House Keyaki Dori

1,111

891

1,030

Aqualia Chihaya

1,280

1,157

1,900

D-Wing Tower

2,800

2,652

3,580

Granfore Yakuin Minami

1,100

1,088

1,340

Hotel FORZA Oita

1,530

1,364

1,890

Tissage Hotel Naha

2,835

2,834

2,860

Tosu Logistics Center

1,250

1,162

1,320

LOGICITY Minato Kashii

8,150

7,789

9,100

LOGICITY Hisayama

5,050

4,800

5,340

LOGICITY Wakamiya

1,700

2,167

2,370

Others subtotal:
Total

28,866201,959

27,563
186,972

32,570224,900

15

Real estate appraiser

Tanizawa Sogo
Appraisal Co., Ltd.
Tanizawa Sogo
14.2
Appraisal Co., Ltd.
Japan Real Estate
9.7
InstituteJapan Real Estate
3.3
InstituteTanizawa Sogo
5.0
Appraisal Co., Ltd.
Japan Real Estate
2.6
InstituteJapan Real Estate
1.2
InstituteTanizawa Sogo
0.6
Appraisal Co., Ltd.
Tanizawa Sogo
1.2
Appraisal Co., Ltd.
Tanizawa Sogo
1.8
Appraisal Co., Ltd.
Tanizawa Sogo
2.6
Appraisal Co., Ltd.
58.0
Tanizawa Sogo
7.2
Appraisal Co., Ltd.
Tanizawa Sogo
5.5
Appraisal Co., Ltd.
Japan Real Estate
2.2
InstituteJapan Real Estate
3.5
InstituteTanizawa Sogo
2.9
Appraisal Co., Ltd.
Japan Real Estate
1.3
InstituteJapan Real Estate
1.4
InstituteTanizawa Sogo
2.1
Appraisal Co., Ltd.
Tanizawa Sogo
1.6
Appraisal Co., Ltd.
27.7
Daiwa Real Estate
1.0
Appraisal Co., Ltd.
Daiwa Real Estate
0.6
Appraisal Co., Ltd.
Japan Real Estate
0.6
InstituteTanizawa Sogo
1.4
Appraisal Co., Ltd.
Tanizawa Sogo
0.5
Appraisal Co., Ltd.
Japan Real Estate
0.8
InstituteTanizawa Sogo
1.4
Appraisal Co., Ltd.
Japan Real Estate
0.6
InstituteTanizawa Sogo
4.0
Appraisal Co., Ltd.
Tanizawa Sogo
2.5
Appraisal Co., Ltd.
Tanizawa Sogo
0.8
Appraisal Co., Ltd.
14.3
100.0

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021
Note 1:
Note 2:
Note 3:“Acquisition value” refers to the amount (purchasing prices shown on the purchasing contracts) not including expenses forthe acquisition of relevant properties (agency fees and taxes and other public charges).
“Period-end appraisal value” refers to the evaluation value based on appraisals by a real estate appraiser in conformity withthe method and standards for asset evaluation stipulated in FRC’s Articles of Incorporation and rules stipulated by theInvestment Trusts Association, Japan.
“Investment ratio” is obtained by dividing each property’s acquisition value by the total acquisition value. The total ofindividual percentages in the above table may not equal 100%, since the figures are rounded off to one decimal place.

(B) Summary of the real estate leasing business

Real estate property name
Canal City Hakata(as of February 28, 2021)

45,501.63

Total
leasingrevenues(mm of yen)
(Note 4)
1,018

Percentage of
total
leasingrevenues(%) (Note 5)
11.4

Number oftenants(Note 1)

Occupancy
rate(%)(Note 3)Total
leasable floor
space
(m2)

Total
leased floor
space
(m2)

1 [46]

97.7

46,585.57

Canal City Hakata･B

1 [45]

99.5

68,824.95

68,473.81

1,429

16.1

Park Place Oita

1 [104]100.0

121,212.26

121,198.96

1,198

13.5

1

100.0

61,450.22

61,450.22

262

2.9

SunLive City Kokura
Konoha Mall Hashimoto

1 [123]97.8

22,121.05

21,631.32

778

8.7

Square Mall Kagoshima Usuki

13

100.0

14,602.88

14,602.88

252

2.8

Kumamoto Intercommunity SC

2

100.0

6,968.66

6,968.66

89

1.0

Hanahata SC

2

100.0

2,801.15

2,801.15

40

0.5

Kurume Higashi Kushiwara SC

1

100.0

6,467.80

6,467.80

88

1.0

K’s Denki Kagoshima
Marinoa City Fukuoka (Marina
Side Building)

1

100.0

7,296.17

7,296.17

112

1.3

Retail subtotal:
Canal City Business Center
Building
Gofukumachi Business Center
Sanix Hakata Building

1

100.0

33,069.82

33,069.82

178

2.0

25 [339](Note 2)

99.5

391,400.53

389,462.42

5,450

61.2

1 [62]

100.0

23,029.92

23,029.92

641

7.2

36

100.0

19,905.34

19,905.34

557

6.3

16

100.0

6,293.75

6,293.75

205

2.3

Taihaku Street Business Center

1 [68]

98.8

14,677.30

14,505.95

318

3.6

Higashi Hie Business Center
Tenjin Nishi-Dori Center
Building
Tenjin North Front Building

1 [27]

100.0

13,614.59

13,614.59

351

4.0

1

100.0

3,339.32

3,339.32

86

1.0

11

100.0

5,252.41

5,252.41

144

1.6

Higashi Hie Business Center II

2

100.0

6,214.77

6,214.77

162

1.8

Higashi Hie Business Center III

94.1

2,981.14

2,806.28

92

1.0

99.6

95,308.54

94,962.33

2,560

28.8

Amex Akasakamon Tower

5
74 [228](Note 2)
1 [66]

98.8

4,821.25

4,765.4366

0.7City House Keyaki Dori1 [41]

97.8

2,710.86

2,650.79

39

0.4

Aqualia Chihaya

1 [103]

97.9

5,619.69

5,500.23

60

0.7

D-Wing Tower

1 [132]

95.1

7,187.59

6,837.60

112

1.3

Granfore Yakuin Minami

Office buildings subtotal:

1 [95]

96.0

2,496.06

2,396.22

38

0.4

Hotel FORZA Oita

1

100.0

5,785.44

5,785.44

63

0.7

Tissage Hotel Naha

1

100.0

3,758.76

3,758.76

Tosu Logistics Center

1

100.0

4,173.29

4,173.29

LOGICITY Minato Kashii

2

100.0

43,233.72

43,233.72

LOGICITY Hisayama

1

100.0

24,505.65

24,505.65

LOGICITY Wakamiya

1

100.0

17,556.32

17,556.32

28
Undisclosed(Note 6)
Undisclosed(Note 6)
Undisclosed(Note 6)
Undisclosed(Note 6)

0.3
Undisclosed(Note 6)
Undisclosed(Note 6)
Undisclosed(Note 6)
Undisclosed(Note 6)99.4

121,848.63

121,163.45

892

10.0

99.5

608,557.70

605,588.20

8,904

100.0

Others subtotal:
Total
Note 1:

12 [444](Note 2)111 [1,011](Note 2)

“Number of tenants” is based on the total number of sections stipulated in the tenancy agreements for retail and officebuildings among relevant properties. For the number of tenants in pass-through master leasing properties, the number ofsections stipulated in the tenancy agreements with end tenants is shown in parentheses. The Taihaku Street Business16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2021
Note 2:
Note 3:Note 4:Note 5:Note 6:

Center is an office building with a residential tower. Its number of end tenants comprises 12 offices and 56 residences.
The subtotal and total of all the tenants in other than pass-through master leasing properties and the number of sections
stipulated in the tenancy agreements with end tenants for pass-through master leasing properties is shown in parentheses
in the totals column for “Number of tenants.”“Occupancy rate” refers to the percentage of total leased floor space to total leasable floor space and the figures are rounded
off to one decimal place.
“Total leasing revenues” is the total of real estate leasing revenues and other revenues from real estate rent in the current
fiscal period.
“Percentage of total leasing revenues” is obtained by dividing each property’s total leasing revenues by the total amount of
total leasing revenues. The total of individual percentages in the above table may not equal 100%, since the figures arerounded off to one decimal place.
The figures are not disclosed as no consent to disclosure has been obtained from the tenants.

(2) Status of capital expenditures
1) Capital expenditures after the end of the 33rd fiscal period and planned capital expenditures
The following table provides amounts of major items of capital expenditures associated with renovations, etc.
conducted after the end of the 33rd fiscal period and of capital expenditures associated with renovations, etc.
planned as of April 15, 2021 for real estate properties owned by FRC. The planned construction costs indicatedbelow may be partly classified as expenses. In addition, FRC will implement renewal construction work in order tomaintain and improve the competitiveness of properties in the market as well as tenant satisfaction, on top of theconstruction, facilities and replacement work for which expenditures will be made regularly.
Real estate
property nameLocation

Canal City
HakataHakata Ward,
Fukuoka City

Canal City
Hakata･B

Hakata Ward,
Fukuoka City

Park Place Oita

Oita City, Oita

SunLive City
KokuraPurposePlanned construction cost
(mm of yen)
Constructio
AmountTotaln costalready paid

Schedule

Replacement of
mechanical security
system monitoring
terminals
Replacement of
mechanical security
system monitoring
terminals

From August 2021 to
February 2022

28

—

—

From August 2021 to
February 2022

57

—

—

Rooftop painting

From April 2021 to
May 2021

48——

Kokura Minami
Ward, Kitakyushu
City

Renovation ofcommon spaces

From June 2021 toSeptember 2021

258

—

—

Square Mall
Kagoshima Usuki

Kagoshima City,
Kagoshima

Renovation of
external walls

From October 2021 to
February 2022

32

—

—

Sanix Hakata
Building

Hakata Ward,
Fukuoka City

Replacement of airconditioning units

From March 2021 toApril 2021

16

—

—

2) Capital expenditures during the 33rd fiscal period
Capital expenditures for the real estate properties owned by FRC totaled 687 mm yen in the 33rd period.
Furthermore, FRC incurred construction costs of 905 mm yen in total in the period, including 211 mm yen in repair
and maintenance expenses classified as expenses on the statement of income and 7 mm yen in expenses forrestoration to former state. The following table provides the overview of major construction work that was completed
in the 33rd fiscal period.
Real estate
property nameLocation

PurposeCanal City Hakata

Hakata Ward,
Fukuoka City

Formation of tenant sections

From August 2020 toJanuary 2021

99

Canal City Hakata･B

Hakata Ward,
Fukuoka City

Replacement of central
monitoring equipment

From April 2020 to
September 2020

27

Park Place Oita

Oita City, Oita

Replacement of airconditioning units

November 2020

113

Square Mall
Kagoshima Usuki

Kagoshima City,
Kagoshima

Renovation of external walls

From November 2020 toFebruary 2021

24

Gofukumachi
Business Center

Hakata Ward,
Fukuoka City

Replacement of airconditioning units

February 2021

38

Sanix Hakata
Building

Hakata Ward,
Fukuoka City

Replacement of airconditioning units

From October 2020 to
December 2020

43

17

PeriodConstruction cost
(mm of yen)