Provisional translation only
October 18, 2023

EARNINGS BRIEFING FOR THE PERIOD ENDED AUGUST 2023
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:

Zenji Koike

Asset manager:
Representative:
Contact:

Fukuoka Realty Co., Ltd.
Zenji Koike
President and CEO
Hiroyuki Ayabe
General Manager of Planning Dept.
Phone: +81-92-272-3900

Executive Director

Expected date for submitting securities report:
Expected commencement date of dividend payments:
Supplementary documents for earnings briefing:
Analyst meeting (for institutional investors and analysts):

November 29, 2023
November 17, 2023
Yes
Yes
(Figures rounded down to nearest mm yen)

1. Performance and situation of assets for the period ended August 2023
(March 1, 2023 to August 31, 2023)(1) Performance
Operating revenues
mm of yen

Period ended

August 2023
Period ended

February 2023

%

2,987

4.8

9,037

2.3

3,223

1.3

2,851

1.6

2,849

1.6

Return on net assets

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

3,752 yen

2.9%

1.5%

32.2%

3,580 yen

2.8%

1.4%

31.5%

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)

3,753 yen 2,987 mm yen 100.0%

2.9%

3,580 yen 2,849 mm yen— yen — mm yen

3,580 yen 2,849 mm yen 100.0%

2.8%

August 2023
Period ended

February 2023

Ratio of net assets tototal assets

Net assets per unit

101,926 mm yen

50.0%

128,048 yen

101,788 mm yen

50.5%

127,875 yen

Total assets

Net assets

203,868 mm yen
201,442 mm yen(4) Cash flows condition
Cash flows fromoperating activities

Period ended

February 2023

assets— yen — mm yen

Period ended

August 2023

Ratio of

Payout dividend
to netratio

3,753 yen 2,987 mm yen(3) Financial condition

Period ended%

4.8(excl. dividendin excess ofearnings)

February 2023

mm of yen

2,988

February 2023

Period ended

Profit%4.6

Period ended

August 2023

Ordinary income

mm of yen

3,372

August 2023

Period ended%

2.7

Period ended

Dividend
per unit

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

9,284

Profit per unit

(2) Dividends

Operating income

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at
end of period

3,939 mm yen(3,436) mm yen(298) mm yen

10,459 mm yen

4,688 mm yen(117) mm yen(2,803) mm yen

10,255 mm yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

2. Forecast of performance for the period ending February 2024 (September 1, 2023 to
February 29, 2024) and the period ending August 2024 (March 1, 2024 to August 31, 2024)(% shows percentage change from previous period)

Operating revenues Operating income

Period ending

February 2024
Period ending

August 2024

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)

9,313

0.3

3,424

1.5

2,990

0.1

2,988

0.1 3,755 yen

— yen

9,322

0.1

3,319

(3.1)

2,866 (4.1)

2,865 (4.1) 3,600 yen— yen(Reference) Forecast profit per unit: Period ending February 2024
Forecast profit per unit: Period ending August 2024

3,755 yen
3,600 yen

3. Others(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 August 2023
796,000 units
As of February 2023
796,000 units(ii) Treasury investment units at end of period:
As of August 2023
0 unitAs of February 2023
0 unitNote: Regarding the number of investment units, a basis for calculating profit per unit, please refer to “Per unit information” on page11.

* 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 February 2024 (September 1, 2023 to February 29, 2024) and the period ending
August 2024 (March 1, 2024 to August 31, 2024)” on page 3.

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

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, 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 all of 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 comprisingretail properties and an office building and manages a total of 35 properties comprising 11 Retail, 12 Officebuildings (including land with leasehold interest for an office building) and 12 Others as of the end of the 38th
fiscal period (August 31, 2023).
(b) Investment environment and portfolio performance
The Japanese economy showed a mild recovery during the fiscal period under review (the 38th fiscal period).
With the employment and income environment improving, the economy is expected to continue recoveringmoderately due to various political measures proving effective, among other factors. However, a downturn inoverseas economies, including the impact of global monetary tightening and concerns about the outlook of theChinese economy, poses a risk of placing downward pressure on the domestic economy. In addition, full attention
should be paid to the impacts of rising prices and changes in the financial and capital markets, etc.
In the Fukuoka and Kyushu area, the core investment target area for FRC, the economy has been recovering
mildly, with the employment situation improving moderately despite production activities remaining flat. As weforesee, we must be fully wary of such factors as rising raw material and other costs, overseas financial andeconomic trends, and labor shortage.
As for land price trends, according to the 2023 Prefectural Land Price Survey, the combined average price forresidential and commercial land as well as residential land price and commercial land price increased for thesecond consecutive year, respectively, on a national basis, with the rate of increase expanding. Meanwhile, inFukuoka City, the central area of FRC’s investment targets, land prices rose 11.2% year-on-year for commercial
land and 8.2% year-on-year for residential land.
Under such circumstances, FRC’s portfolio as a whole achieved generally solid performance. Among them, Canal
City Hakata, a city-center retail property, in particular showed results that mainly reflected the recovery in inboundtourism from Asia except for China.
In the 38th fiscal period, FRC acquired Kumamoto East Front Building on March 28, 2023, and Axion Befu-Ekimae
Premium on April 27, 2023, and conducted disposition of Kurume Higashi Kushiwara SC (55% co-ownershipinterest) on August 31, 2023. Furthermore, at the beginning of the 39th fiscal period, FRC completed acquisitionof Hakata FD Business Center on September 1, 2023.
When analyzing FRC’s portfolio (on an acquisition price basis) as of the end of the 38th fiscal period by investment
target area, the investment ratio in the Fukuoka metropolitan area accounted for 77.4%; when analyzing byproperty type, Retail, Office buildings, and Others accounted for 51.9%, 33.5% and 14.6%, respectively.
Fukuoka Realty Co., Ltd. to which FRC entrusts its asset management (the Asset Manager) has established theSustainability Policy and Regulations Concerning Sustainability Management to promote sustainability throughenvironmental, social and governance (ESG) considerations. In terms of external certifications, FRC has acquired
either DBJ Green Building Certification, CASBEE for Building Certification or BELS Evaluation for 79.7% of its
portfolio properties on a total floor space basis as of the end of the 38th fiscal period.
(c) Summary of fundraising
In the 38th fiscal period, FRC conducted refinancing of 5,500 mm yen as well as new financing of 2,950 mm yen
and repayment of 400 mm yen. These led to the balance of its interest-bearing debt outstanding (including
investment corporation bonds) at the end of the period totaling 86,450 mm yen. The loan-to-value ratio (ratio ofinterest-bearing debt (including investment corporation bonds) to total assets) was 42.4% and the ratio of fixedinterest rate debt (ratio of fixed-interest rate debt (including investment corporation bonds) to total interest-bearingdebt) stood at 92.8% at the end of the 38th fiscal period. In addition, with regard to the commitment line agreement(credit limit: 6,000 mm yen) with The Bank of Fukuoka, Ltd. serving as the agent, FRC extended the commitment
period by a year, lengthening the remaining term of commitment to three years. While endeavoring to reducerefinancing risks by dispersing debt repayment dates and other measures, FRC will investigate mitigating thepossible increase in financing costs in accordance with higher interest rates, including reduction of financing
periods.
Moreover, the credit ratings assigned to FRC as of the end of the 38th 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
1

RatingA+
AA−

Rating Outlook
StableStableFukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 9,284 mm yen and operating income after
excluding operating expenses such as expenses related to leasing business and asset management fees totaled
3,372 mm yen. Ordinary income was 2,988 mm yen and profit amounted to 2,987 mm yen. Management decided
to make a dividend of 3,753 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 metropolitan area since the Fukuoka metropolitan area is expected to have a highpopulation growth rate in the future. In addition to the Fukuoka metropolitan area, management has decided toactively 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 with the local business community including its sponsors and governments, so that investors cancontinue to invest in FRC with assurance. Meanwhile, FRC will build stronger relationships with financial
institutions to realize stable fundraising and try to maintain a solid financial structure.
(b)

Significant events that have occurred after the end of the current fiscal period:
No relevant items.

(Reference information)
Acquisition of Asset
On September 1, 2023, FRC acquired the following real estate trust beneficiary interest.
Type of asset acquired:
Property name:
Use:
Location:
Seller:Acquisition price:
Acquisition date:

Real estate trust beneficiary interest (Note 1)
Hakata FD Business Center
Office building
10 Tsunabamachi, Hakata Ward, Fukuoka City and 13 other lots
Fukuoka Jisho Co., Ltd.
14,100 mm yen (Note 2)
September 1, 2023

(Note 1) FRC acquired the beneficiary interest in trust for the 77% co-ownership interest in the property’s building the sellerowns and the land it owns (part of the building’s leasehold land; so-called “partial ownership”).
(Note 2) The acquisition price does not include acquisition expenses and the amount equivalent to the settlement of property
taxes and city planning taxes, etc.

(c)

Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending February 2024 (September 1, 2023
to February 29, 2024) and the period ending August 2024 (March 1, 2024 to August 31, 2024). Concerning
preconditions for the relevant performance forecast, please refer to “Preconditions for the performance forecast
for the period ending February 2024 (September 1, 2023 to February 29, 2024) and the period ending August2024 (March 1, 2024 to August 31, 2024)” on page 3.
Period ending February 2024
Period ending August 2024
Operating revenues
9,313 mm yen
9,322 mm yen
Operating income
3,424 mm yen
3,319 mm yen
Ordinary income
2,990 mm yen
2,866 mm yen
Profit2,988 mm yen
2,865 mm yen
Dividend per unit
3,755 yen
3,600 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.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

Preconditions for the performance forecast for the period ending February 2024 (September 1, 2023 to February 29,2024) and the period ending August 2024 (March 1, 2024 to August 31, 2024)
Item
Preconditions
39th fiscal period: September 1, 2023 to February 29, 2024 (182 days)
Calculation period
40th fiscal period: March 1, 2024 to August 31, 2024 (184 days)• It is assumed that assets under management will comprise the 35 properties FRC owns as of August
31, 2023 plus Hakata FD Business Center, which FRC acquired on September 1, 2023.
Assets under• FRC assumes that it will dispose 30% co-ownership interest of Kurume Higashi Kushiwara SC on
management
November 30, 2023.
• 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 August 31, 2024.
outstanding• The balance of interest-bearing debt outstanding at the end of the 39th fiscal period (February 29,2024) is expected to total 98,850 mm yen. The loan-to-value ratio (interest-bearing debt / total assets
Interest-bearing debt
× 100) is expected to stand at around 45.6%.
and refinancing• The balance of interest-bearing debt outstanding at the end of the 40th fiscal period (August 31,2024) is expected to total 98,850 mm yen. The loan-to-value ratio (interest-bearing debt / total assets
× 100) is expected to stand at around 45.6%.
• Of leasing revenues – real estate, revenues from properties FRC has already acquired are calculated
based on tenancy agreements that are valid as of October 18, 2023, 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
Operating revenues
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.
• 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 39th and 40th 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 1,782 mm yen for the 39th fiscal period and1,789 mm yen for the 40th fiscal period.
• Concerning taxes and other public charges, FRC anticipates 749 mm yen for the 39th fiscal period
and 813 mm yen for the 40th fiscal period.
• Concerning depreciation and amortization expenses, FRC anticipates 1,601 mm yen for the 39th
fiscal period and 1,626 mm yen for the 40th fiscal period.
• Concerning interest expenses (including interest expenses on investment corporation bonds) andNon-operating
expenses related to financing, FRC anticipates 433 mm yen for the 39th fiscal period and 452 mm
expenses
yen for the 40th 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 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 revisions to laws and regulations, the tax system, and accounting
standards that may influence the forecast figures.
Others• It is also assumed that there will be no significant unexpected changes in general economic
conditions and the real estate market.

3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

2. Financial Statements(1) Balance sheet

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
OthersTotal current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Structures
Accumulated depreciation
Machinery and equipment
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)

37th fiscal period

38th fiscal period(as of February 28, 2023)(as of August 31, 2023)

6,069,891
4,236,159
738,177
270,539
16,961
11,331,729

1,181,091(68,543)
20,698
(903)
—
—
1,571
(547)
104,967,252(39,379,429)
1,974,987(931,405)
1,490,515(781,851)
626(594)
1,489,296(1,257,920)

1,112,547
19,795—
1,023
989,124
65,587,822
1,043,582
708,66431
231,375
113,501,599
8,217
183,203,784
5,545,883
5,421
5,551,305

Investment and other assets
Deferred tax assets

6,267,244
4,243,120
791,122259,963
29,755
11,591,207

2,012,318(93,923)
24,857(1,167)
0
—
1,571
(665)
106,613,034(40,472,531)
1,977,417(944,053)
1,522,289(818,780)
626(594)
1,489,624(1,251,116)

1,918,394
23,6900906
1,684,370
66,140,502
1,033,364
703,50831
238,508
113,622,069
9,186
185,374,532
5,545,883
2,528
5,548,411

19

9

Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

327,135

327,135

Long-term prepaid expenses
Total investment and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance
expenses
Total deferred assets
Total assets

4994,175

994,244

1,331,330

1,331,388

190,086,419

192,254,332

24,676

22,687

24,676

22,687201,442,825

203,868,228

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023
(thousands of yen)

37th fiscal period(as of February 28, 2023)

38th fiscal period(as of August 31, 2023)

Liabilities
Current liabilities
Operating accounts payable
Current maturities of investment
corporation bonds
Current maturities of long-term debt

662,491

771,072

2,000,000

2,000,000

10,400,000

5,200,000

Accounts payable-other

21,315

16,957

Accrued expenses

422,685433,746

1,079

861

366,970

11,301

Advances received

1,068,121

1,065,467

Deposits received

924,435

1,125,748

15,867,098

10,625,155

Investment corporation bonds

3,000,000

3,000,000

Long-term debt

68,500,000

76,250,000

758,476

837,073

11,528,307

11,229,544

83,786,783

91,316,617

99,653,881

101,941,773

98,938,764

98,938,764

Unappropriated surplus

2,850,179

2,987,690

Total surplus

2,850,179

2,987,690

101,788,943

101,926,454

101,788,943

101,926,454

201,442,825

203,868,228

Income taxes payable
Accrued consumption taxes

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

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

(2) Statement of income(thousands of yen)

37th fiscal period

38th fiscal period(September 1, 2022 toFebruary 28, 2023)(March 1, 2023 toAugust 31, 2023)

Operating revenues
Leasing revenues – real estate*1

8,233,996

Other leasing revenues – real estate*1

687,929

Gain on sales of real estate*2

115,438*1
9,037,365

8,154,854*1

697,523*2

432,324

9,284,702

Operating expenses
Expenses related to leasing business
Asset management fees

*1, *3

5,147,017*1, *35,231,929

534,370

544,383

Asset custody fees

7,483

7,616

Administrative service fees

57,64858,481

Director’s compensations

3,600

3,600

Other operating expenses

63,584

Operating income

5,813,704

66,0553,223,660

5,912,065
3,372,637

Non-operating revenues
Interest received

44

Others

991

46
1,035

523

569

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

245,360

255,474

29,20029,200

1,988

1,988

97,10398,436

Others37373,68837385,136

Ordinary income

2,851,007

2,988,069

Profit before income taxes

2,851,007

2,988,069

Income taxes-current

1,085

Income taxes-deferred(5)

Profit

868
1,080

9

878

2,849,927

2,987,191

Surplus brought forward

251

499

Unappropriated surplus

2,850,179

2,987,690

6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

(3) Statement of changes in net assets
37th fiscal period (September 1, 2022 to February 28, 2023)
Unitholders’ Equity
Surplus
Unitholders’ capital
Balance as of
September 1, 2022
Changes in thecurrent fiscal period

Unappropriated surplus

Totalunitholders’ equity

Total
net assets

2,804,559

101,743,324

101,743,324

Dividend of surplus(2,804,308)(2,804,308)(2,804,308)

Profit2,849,927

2,849,927

2,849,927—

45,61945,61945,61998,938,764

2,850,179

101,788,943

101,788,943

Total of changes in thecurrent fiscal period
Balance as ofFebruary 28, 2023

98,938,764(thousands of yen)

38th fiscal period (March 1, 2023 to August 31, 2023)
Unitholders’ Equity
Surplus
Unitholders’ capital
Balance as ofMarch 1, 2023
Changes in thecurrent fiscal period

Unappropriated surplus

Totalunitholders’ equity

Total
net assets

2,850,179

101,788,943

101,788,943

Dividend of surplus(2,849,680)(2,849,680)(2,849,680)

Profit2,987,191

2,987,191

2,987,191—

137,511

137,511

137,51198,938,764

2,987,690

101,926,454

101,926,454

Total of changes in thecurrent fiscal period
Balance as ofAugust 31, 2023

98,938,764(thousands of yen)

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

(4) Dividend statement
Item

37th fiscal period(September 1, 2022 toFebruary 28, 2023)

38th fiscal period(March 1, 2023 toAugust 31, 2023)

I.

Unappropriated surplus

2,850,179 thousand yen

2,987,690 thousand yen

II.

Total dividend

2,849,680 thousand yen

2,987,388 thousand yen[Dividend per investment
unit][3,580 yen]

[3,753 yen]

III. Surplus brought forward

499 thousand yen

302 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 38-1-2 of FRC’s Articles stipulated in Article 38-1-2 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 2,849,680 FRC shall decide to distribute 2,987,388
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 excess of earnings as stipulated in Article38-2 of FRC’s Articles of Incorporation will 38-2 of FRC’s Articles of Incorporation will
not be provided.
not be provided.

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

8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

(5) Cash flows statement(thousands of yen)

37th fiscal period(September 1, 2022 toFebruary 28, 2023)

Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation and amortization expenses
Amortization of investment corporation bond issuance
expenses
Interest received
Interest expenses
Gain on sales of real estate
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
Proceeds from sale of property, plant and equipment in trust
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

938th fiscal period(March 1, 2023 toAugust 31, 2023)

2,851,007
1,499,723

2,988,069
1,531,607

1,988

1,988

(44)
274,560(115,438)
50,199124,948366,970
59,0304,919
3,459(16,729)(101,788)(42,905)
3,774
2,479
4,966,156
44(277,126)(969)
4,688,104(46)
284,674(432,324)(52,945)—(355,668)
31,361(4,706)
5,120(2,653)201,313
10,576(68)
12,7584,219,055
46(278,734)(1,086)
3,939,280—
407,974(443,750)
142,690(125,232)
55,365(154,691)
6,387(6,347)(117,604)(1,539,902)
1,495,942(3,172,032)
94,927(16,330)
195,388(494,151)
1,962(2,204)(3,436,400)————(2,803,686)(2,803,686)
1,766,813
8,488,481
10,255,294

3,000,000(3,000,000)
8,450,000(5,900,000)(2,848,807)(298,807)
204,072
10,255,294
10,459,366

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

(6) Notes on the going concern assumption
No relevant items.
(7) Significant accounting policies
Disclosure is omitted, since there are no significant changes from contents disclosed by the latest securities report(submitted on May 30, 2023).
(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, revenue
recognition, segment information and equity method income, etc. since it does not find substantial need for disclosurein the earnings briefing.
(Notes to statement of income)*1. Breakdown of revenues and expenses related to real estate leasing business(thousands of yen)

37th fiscal period(September 1, 2022 toFebruary 28, 2023)

38th fiscal period(March 1, 2023 toAugust 31, 2023)

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

6,864,849

6,827,162

Common charges

917,441

902,307

Parking revenues

451,706

8,233,996

425,384

8,154,854

Other leasing revenues – real estate
Incidental income

650,853

Other miscellaneous income

37,076

Total real estate leasing business revenues

670,653
687,929

26,8698,921,926

697,523
8,852,377

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

1,746,745

1,765,556

Repair and maintenance expenses

266,909308,710

Taxes and other public charges

719,446752,259

Insurance premiums and trust compensation

41,241

42,576

Utilities expenses

579,433

575,322

1,499,723

1,531,607

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)

293,516*2. Breakdown of gain on sales of real estate

37th fiscal period (September 1, 2022 to February 28, 2023)
Kurume Higashi Kushiwara SC (15% co-ownership interest)
Proceeds from sales of real estate
Costs of sale of real estate
Other selling expenses
Gain on sales of real estate(thousands of yen)

411,000
292,535
3,025
115,438

10

5,147,017

255,896

5,231,929

5,147,017

5,231,929

3,774,909

3,620,448

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

38th fiscal period (March 1, 2023 to August 31, 2023)
Kurume Higashi Kushiwara SC (55% co-ownership interest)
Proceeds from sales of real estate
Costs of sale of real estate
Other selling expenses
Gain on sales of real estate(thousands of yen)

1,507,000
1,063,617
11,057432,324*3. Transactions with affiliated companies(thousands of yen)

38th fiscal period

37th fiscal period(September 1, 2022 toFebruary 28, 2023)

Expenses related to real estate leasing business(March 1, 2023 toAugust 31, 2023)

909,403874,958(Per unit information)
37th fiscal period

38th fiscal period(September 1, 2022 to February 28, 2023)

Net assets per investment unit:
Profit per investment unit:(March 1, 2023 to August 31, 2023)

127,875 yen
3,580 yen

Net assets per investment unit:
Profit per investment unit:

128,048 yen
3,752 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.

38th fiscal period

37th fiscal period(September 1, 2022 toFebruary 28, 2023)

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

11(March 1, 2023 toAugust 31, 2023)

2,849,927

2,987,191——

2,849,927

2,987,191

796,000

796,000

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

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

Total value of
properties owned

Location

Use

Real estate(as of August 31, 2023)(Note 1)(mm of yen) (Note 2)(%) (Note 3)

RetailFukuoka
metropolitan area——

Other Kyushu areas——

Office buildings

Fukuoka
metropolitan area

—

—

1,518

0.7

OthersFukuoka
metropolitan area

—

—

2,108

1.0

3,627

1.8

Other Kyushu areas

Other Kyushu areas
Subtotal

Real estatein trust

Percentage of
total assets

RetailFukuoka
metropolitan area

66,552

32.6

Other Kyushu areas

35,312

17.3

Office buildings

Fukuoka
metropolitan area

58,966

28.9——

OthersFukuoka
metropolitan area

21,158

10.4

Other Kyushu areas

5,296

2.6

187,286

91.9

12,9546.4

203,868

100.0[190,922][93.7]

Other Kyushu areas

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

Note 1: “Fukuoka metropolitan 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 2020 census, which states “the number of workers and students aged
15 years or older (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 and Communications. “Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka
metropolitan 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 August 31, 2023)

Value on balance sheet(mm of yen)

Percentage of total amount of assets(%)

Total liabilities

101,94150.0

Total net assets

101,92650.0

12

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

2) Investment assets(A) Values and investment ratios at end of period are as follows.
Real estate property nameAcquisition
price(mm of yen)
(Note 1)

Value onbalance sheet(mm of yen)

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

Investment
ratio
(%)
(Note 3)(as of August 31, 2023)

Real estateappraiser

Tanizawa Sogo
15.4 Appraisal Co., Ltd.

Canal City Hakata

32,00029,89929,300Canal City Hakata･B

21,06020,506

21,700Park Place Oita

19,61020,37420,200SunLive City Kokura

6,633

5,449

8,540

Konoha Mall Hashimoto

10,000

9,893

10,100

Square Mall Kagoshima Usuki

5,300

4,187

4,700

Kumamoto Intercommunity SC

2,400

1,900

2,840

Hanahata SC

1,130

941

1,200

750

580

822

K’s Denki Kagoshima

3,550

2,819

3,490

Marinoa City Fukuoka (Marina
Side Building)

5,250

5,311

5,860

107,683

101,865

108,752

51.9

Canal City Business Center
Building

14,60012,646

19,300

Tanizawa Sogo
7.0 Appraisal Co., Ltd.

Gofukumachi Business Center

11,2008,634

16,000Sanix Hakata Building

4,400

3,696

7,010

Taihaku Street Business Center

7,000

5,507

10,100Higashi Hie Business Center

5,900

4,320

9,240

Tenjin Nishi-Dori Center Building

2,600

2,630

3,400

Tenjin North Front Building

2,800

2,297

5,050

Higashi Hie Business Center II

4,230

3,821

4,900

Higashi Hie Business Center III

3,290

3,179

3,530

Tanizawa Sogo
1.6 Appraisal Co., Ltd.

Tenjin Nishi-Dori Business Center(Land with leasehold interest)

7,700

7,754

8,770

Japan Real Estate
3.7 InstituteHakata Chikushi-Dori Center
Building

4,320

4,477

4,580

Tanizawa Sogo
2.1 Appraisal Co., Ltd.

Kumamoto East Front Building

1,450

1,518

1,510

Tanizawa Sogo
0.7 Appraisal Co., Ltd.

Office buildings subtotal:

69,49060,484

93,39033.5

Amex Akasakamon Tower

2,060

1,597

2,050

Daiwa Real Estate
1.0 Appraisal Co., Ltd.

City House Keyaki Dori

1,111

850

1,150

Aqualia Chihaya

1,280

1,136

2,060

D-Wing Tower

2,800

2,575

4,020

Granfore Yakuin Minami

1,100

1,125

1,430

Axion Befu-Ekimae Premium

1,525

1,651

1,560

Hotel FORZA Oita

1,530

1,463

1,860

Tissage Hotel Naha

2,835

2,715

2,940

Tosu Logistics Center

1,250

1,117

1,640

LOGICITY Minato Kashii

8,150

7,607

10,000Kurume Higashi Kushiwara SC(Note 4)Retail subtotal:

13

Tanizawa Sogo
10.1 Appraisal Co., Ltd.
Japan Real Estate
9.4 InstituteJapan Real Estate
3.2 InstituteTanizawa Sogo
4.8 Appraisal Co., Ltd.
Japan Real Estate
2.6 InstituteJapan Real Estate
1.2 InstituteTanizawa Sogo
0.5 Appraisal Co., Ltd.
Tanizawa Sogo
0.4 Appraisal Co., Ltd.
Tanizawa Sogo
1.7 Appraisal Co., Ltd.
Tanizawa Sogo
2.5 Appraisal Co., Ltd.

Tanizawa Sogo
5.4 Appraisal Co., Ltd.
Japan Real Estate
2.1 InstituteJapan Real Estate
3.4 InstituteTanizawa Sogo
2.8 Appraisal Co., Ltd.
Japan Real Estate
1.3 InstituteJapan Real Estate
1.3 InstituteTanizawa Sogo
2.0 Appraisal Co., Ltd.

Daiwa Real Estate
0.5 Appraisal Co., Ltd.
Japan Real Estate
0.6 InstituteTanizawa Sogo
1.3 Appraisal Co., Ltd.
Tanizawa Sogo
0.5 Appraisal Co., Ltd.
Daiwa Real Estate
0.7 Appraisal Co., Ltd.
Japan Real Estate
0.7 InstituteTanizawa Sogo
1.4 Appraisal Co., Ltd.
Japan Real Estate
0.6 InstituteTanizawa Sogo
3.9 Appraisal Co., Ltd.

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

Tanizawa Sogo
2.4 Appraisal Co., Ltd.

LOGICITY Hisayama

5,050

4,613

5,950

LOGICITY Wakamiya

1,700

2,108

2,590

Tanizawa Sogo
0.8 Appraisal Co., Ltd.

Others subtotal:

30,391

28,56337,25014.6

207,564

190,913239,392

100.0

Acquisition
price (planned)(mm of yen)
(Note 1)

Value onbalance sheet(mm of yen)

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

14,100-15,000Japan Real Estate- Institute

8,082

-

8,210

Tanizawa Sogo
- Appraisal Co., Ltd.

Total

(Real estate property to be acquired)Real estate property nameHakata FD Business Center(Note 5)Island City Minato Bay related site
(Land with leasehold interest)(tentative) (Note 6) (Note 7)
Note 1:
Note 2:
Note 3:Note 4:Note 5:Note 6:Note 7:Note 8:Investment
ratio
(%)
(Note 3)

Real estateappraiser“Acquisition price” and “Acquisition price (planned)” refer to the amount (purchasing prices shown on the purchasing
contracts) not including expenses for the 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 price. The total ofindividual percentages in the above table may not equal 100%, since the figures are rounded off to one decimal place.
The amounts after the disposition of Kurume Higashi Kushiwara SC (70% co-ownership interest) are indicated.
The period-end appraisal value indicates the appraisal value as of March 1, 2023.
The acquisition of the property falls under the category of forward commitment, etc. as provided by the “Comprehensive
Guidelines for Supervision of Financial Instruments Business Operators, etc.” set by the Financial Services Agency. As areservation deposit, FRC paid the amount equivalent to 5% (approximately 4 mm yen) of the purchase price corresponding
to its acquisition ratio at the time of applying for purchase to the Fukuoka City Government. If FRC withdraws from thepurchase of the property, the deposit shall be used as cancellation penalty.
The property is planned for delivery on March 31, 2029 (which may be changed depending on the situation of its foundation
enhancement work and other factors).
Real estate properties to be acquired indicate the properties for which contracts or letters of agreement have been concluded
as of the end of the 38th fiscal period.

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

(B) Summary of the real estate leasing business(as of August 31, 2023)

Total
leasingrevenues(mm of yen)
(Note 4)850

Percentage
of totalleasingrevenues(%) (Note 5)
9.6

30,114.41

942

10.6

121,023.76

1,197

13.5

61,450.22

278

3.1

Number oftenants(Note 1)

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

Total
leased floor
space
(m2)

1 [22]

97.6

48,176.33

46,998.43

Canal City Hakata･B

1 [42]

96.7

31,141.44

Park Place Oita

1 [101]

99.9

121,184.13

1

100.0

61,450.22

Real estate property name
Canal City Hakata

SunLive City Kokura
Konoha Mall Hashimoto

1 [124]100.0

22,191.52

22,191.52

856

9.7

Square Mall Kagoshima Usuki

13

100.0

14,602.88

14,602.88

253

2.9

Kumamoto Intercommunity SC

2

100.0

6,968.66

6,968.66

89

1.0

Hanahata SC
Kurume Higashi Kushiwara SC(Note 6)
K’s Denki Kagoshima
Marinoa City Fukuoka (Marina
Side Building)

2

100.0

2,801.15

2,801.15

40

0.5

1

100.0

1,940.34

1,940.34

74

0.8

1

100.0

7,296.17

7,296.17

105

1.2

1

100.0

33,069.82

33,069.82

177

2.0

25 [310](Note 2)

99.3

350,822.66

348,457.36

4,868

55.0

1 [64]

100.0

23,031.14

23,031.14

656

7.4

34

97.7

19,905.34

19,450.19

594

6.7

16

100.0

6,293.75

6,293.75

209

2.4

Taihaku Street Business Center1 [70]

99.2

14,677.35

14,566.60

331

3.7

Higashi Hie Business Center1 [24]

99.4

13,482.02

13,396.20

372

4.2

Tenjin Nishi-Dori Center Building

1

100.0

3,339.32

3,339.32

86

1.0

Tenjin North Front Building

12

100.0

5,261.64

5,261.64

152

1.7

Higashi Hie Business Center II

2

100.0

6,214.77

6,214.77

162

1.8

Higashi Hie Business Center III
Tenjin Nishi-Dori Business Center(Land with leasehold interest)(Note 7)
Hakata Chikushi-Dori Center
Building
Kumamoto East Front Building

6

100.0

2,981.14

2,981.14

98

1.1

1

100.0

1,343.51

1,343.51

159

1.8

1 [13]

92.8

5,994.41

5,561.39

146

1.7

82.0

3,139.20

2,572.89

44

0.5

98.4

105,663.59

104,012.54

3,014

34.1

Amex Akasakamon Tower

6
82 [249](Note 2)
1 [67]

100.0

4,821.25

4,821.25

67

0.8City House Keyaki Dori1 [42]

100.0

2,710.86

2,710.86

39

0.4

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

Office buildings subtotal:

Aqualia Chihaya

1 [101]

95.7

5,619.69

5,380.69

60

0.7

D-Wing Tower

1 [131]

96.1

7,187.59

6,907.14

117

1.3

Granfore Yakuin Minami

1 [96]

97.0

2,496.06

2,421.34

38

0.4

Axion Befu-Ekimae Premium

1 [15]

55.1

1,937.89

1,068.48

13

0.2

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

45
Undisclosed(Note 8)
Undisclosed(Note 8)
Undisclosed(Note 8)
Undisclosed(Note 8)0.5
Undisclosed(Note 8)
Undisclosed(Note 8)
Undisclosed(Note 8)
Undisclosed(Note 8)98.8

123,786.52

122,322.94

969

10.9

99.1

580,272.77

574,792.84

8,852

100.0

Others subtotal:
Total

13 [459](Note 2)120 [1,018](Note 2)15

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023
Note 1:

Note 2:
Note 3:Note 4:Note 5:Note 6:Note 7:Note 8:“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 BusinessCenter is an office building with a residential tower. Its number of end tenants comprises 13 offices and 57 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 total 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.
FRC disposed Kurume Higashi Kushiwara SC (55% co-ownership interest) on August 31, 2023.
The number of tenants indicates the number of the lessee of the land with leasehold interest. The total leasable floor spaceindicates the land area recorded in the real estate registry.
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 38th 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 38th fiscal period and of capital expenditures associated with renovations, etc.
planned as of October 18, 2023, for real estate properties owned by FRC. The planned construction costs indicatedbelow may be partly classified as expenses for accounting purposes. In addition, FRC will implement renewal
construction work in order to maintain and improve the competitiveness of properties in the market as well as tenantsatisfaction, on top of the construction, 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

Canal City
Hakata·B

Hakata Ward,
Fukuoka City

Konoha Mall
Hashimoto

Nishi Ward,
Fukuoka City

SunLive City
KokuraKokura Minami
Ward, Kitakyushu
City

Gofukumachi
Business Center

Hakata Ward,
Fukuoka City

Taihaku Street
Business Center

Hakata Ward,
Fukuoka City

Taihaku Street
Business Center

Hakata Ward,
Fukuoka City

Higashi Hie
Business Center

Hakata Ward,
Fukuoka CityD-Wing Tower

Chuo Ward,
Fukuoka City

Hotel FORZA
Oita

Oita City, Oita

PurposeSchedule

Replacement ofcentral monitoring
devices andequipment
Renovation of 1st
basement floor ofGrand Building
Replacement ofcentral monitoring
devices andequipment
Second phase ofrenovation of toilet
and sanitary facilities
Renovation of
parking lot on the 3rd
floor
Replacement of LED
lighting in exclusive
areas
Renovation of
external walls of theoffice building
Renovation of
external walls of theresidential tower
Switching to LED
lighting in exclusive
areas

Planned construction cost
(mm of yen)Amountpaid in the Total amountTotal
38th fiscal already paid
periodFrom April 2023 toApril 2024

173

—

—

From August 2022 toAugust 2024

771

1

3

From April 2023 toApril 2024

223

—

—

From March 2024 toJuly 2024

49

—

—

From September
2023 to November
2023

85

—

—

From August 2023 to
February 2024

103

—

—

From May 2023 to
October 2023

113

—

—

From August 2023 to
February 2024

87

—

—

From August 2023 to
December 2023

101

—

—

Renovation of
external walls

From July 2023 to
February 2024

128

—

2

Replacement of airconditioning units

From August 2023 to
October 2023

65

—

—

16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2023

2) Capital expenditures during the 38th fiscal period
Capital expenditures for the real estate properties owned by FRC totaled 1,602 mm yen in the 38th fiscal period.
Furthermore, FRC incurred construction costs of 1,921 mm yen in total in the period, including 308 mm yen in repair
and maintenance expenses classified as expenses on the statement of income and 10 mm yen in expenses forrestoration to former state. The following table provides the overview of major construction work that was completed
in the 38th fiscal period.
Real estate
property nameLocation

Purpose

PeriodCanal City Hakata

Hakata Ward,
Fukuoka City

Replacement of facilities andformation of floor sections

From January 2023 toAugust 2023

399

Canal City Hakata·B

Hakata Ward,
Fukuoka City

Replacement of lighting
equipment at parking lots

From May 2023 toAugust 2023

49

Canal City Hakata·B

Hakata Ward,
Fukuoka City

Replacement of emergency
power generators

April 2023

50

Park Place Oita

Oita City, Oita

Replacement of airconditioning units

From April 2023 to May
2023

147

Konoha Mall
Hashimoto

Nishi Ward,
Fukuoka City

First phase of renovation of
toilet and sanitary facilities

From July 2023 toAugust 2023

31

Gofukumachi
Business Center

Hakata Ward,
Fukuoka City

Replacement of automatic fire
alarm equipment

May 2023

49

Granfore Yakuin
Minami

Chuo Ward,
Fukuoka City

Renovation of external walls

From January 2023 toJune 2023

80

Hotel FORZA Oita

Oita City, Oita

Replacement of airconditioning units

From May 2023 to July
2023

186

17

Construction cost
(mm of yen)