Provisional translation only
April 16, 2024

EARNINGS BRIEFING FOR THE PERIOD ENDED FEBRUARY 2024
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):

May 30, 2024
May 17, 2024
Yes
Yes
(Figures rounded down to nearest mm yen)

1. Performance and situation of assets for the period ended February 2024
(September 1, 2023 to February 29, 2024)(1) Performance
Operating revenues
mm of yen

Period ended

February 2024
Period ended

August 2023

%

3,030

1.4

9,284

2.7

3,372

4.6

2,988

4.8

2,987

4.8

Return on net assets

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

3,806 yen

3.0%

1.4%

32.5%

3,752 yen

2.9%

1.5%

32.2%

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)

3,807 yen 3,030 mm yen 100.0%

3.0%

3,753 yen 2,987 mm yen— yen — mm yen

3,753 yen 2,987 mm yen 100.0%

2.9%

February 2024
Period ended

August 2023

Ratio of net assets tototal assets

Net assets per unit

101,969 mm yen

47.6%

128,102 yen

101,926 mm yen

50.0%

128,048 yen

Total assets

Net assets

214,390 mm yen
203,868 mm yen(4) Cash flows condition
Cash flows fromoperating activities

Period ended

August 2023

assets— yen — mm yen

Period ended

February 2024

Ratio of

Payout dividend
to netratio

3,807 yen 3,030 mm yen(3) Financial condition

Period ended%

1.5(excl. dividendin excess ofearnings)

August 2023

mm of yen

3,031

August 2023

Period ended

Profit%2.7

Period ended

February 2024

Ordinary income

mm of yen

3,462

February 2024

Period ended%

0.5

Period ended

Dividend
per unit

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

9,326

Profit per unit

(2) Dividends

Operating income

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at
end of period

3,724 mm yen(13,636) mm yen

6,912 mm yen

7,460 mm yen

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

10,459 mm yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

2. Forecast of performance for the period ending August 2024 (March 1, 2024 to August 31,2024) and the period ending February 2025 (September 1, 2024 to February 28, 2025)(% shows percentage change from previous period)

Operating revenues Operating income

Period ending

August 2024
Period ending

February 2025mm of yen%

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

Dividendin excess ofearnings
per unit

%

9,305

(0.2)

3,305 (4.5)

2,866 (5.4)

2,865 (5.4) 3,600 yen

— yen

9,242

(0.7)

3,301

2,866

2,865

— yen

(Reference) Forecast profit per unit: Period ending August 2024
Forecast profit per unit: Period ending February 2025—mm of yen

Dividend
per unit

mm of yen

(0.1)

%

Profit— 3,600 yen

3,600 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 February 2024
796,000 units
As of August 2023
796,000 units(ii) Treasury investment units at end of period:
As of February 2024
0 unitAs of August 2023
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 2024 (March 1, 2024 to August 31, 2024) and the period ending February
2025 (September 1, 2024 to February 28, 2025)” on page 4.

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

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 10 Retail, 13 Officebuildings (including land with leasehold interest for an office building) and 12 Others as of the end of the 39th
fiscal period (February 29, 2024).
(b) Investment environment and portfolio performance
The Japanese economy showed a mild recovery during the fiscal period under review (the 39th fiscal period),while coming to a standstill in some parts. As we foresee, with the employment and income environment improving,
the economy is expected to continue recovering moderately due to various political measures proving effective,
among other factors. However, a downturn in overseas economies, including the impact of global monetary
tightening and concerns about the outlook for the Chinese economy, poses a risk of placing downward pressure
on the domestic economy. In addition, full attention should be paid to the impacts on the economy of rising prices,developments in the Middle East, and changes in the financial and capital markets, etc., as well as the 2024 Noto
Peninsula earthquake.
In the Fukuoka and Kyushu area, the core investment target area for FRC, the economy has been recovering
mildly despite weaknesses in some spots. Private consumption has been on a solid trend while affected by rising
prices. Recent production activities have been relatively weak. The employment and income situation has been
improving moderately. As we foresee, we must pay attention to the impacts of such factors as trends in overseas
economies and prices, rising costs and their spillover effects, labor demand and supply, income formation of
employees, and others on local economic and financial circumstances.
As for land price trends, according to the 2024 Prefectural Land Price Survey, the combined average price forresidential and commercial land as well as residential land price and commercial land price increased for the third
consecutive year, respectively, on a national basis, with the rate of increase expanding. Meanwhile, in the city of
Fukuoka, the central area of FRC’s investment targets, land prices rose 12.6% year-on-year for commercial landand 9.6% year-on-year for residential land.
Under such circumstances, FRC’s portfolio as a whole achieved a generally solid performance during the 39th
fiscal period. Among them, Canal City Hakata, a city-center retail property, in particular showed results thatreflected new store replacement associated with the renovation of the South Building, in addition to the continued
recovery in inbound tourism from Asia (except for China).
In addition, FRC acquired Hakata FD Business Center on September 1, 2023, and disposed of Kurume Higashi
Kushiwara SC (30% co-ownership interest) on November 30, 2023.
When analyzing FRC’s portfolio (on an acquisition price basis) as of the end of the 39th fiscal period by investment
target area, the investment ratio in the Fukuoka metropolitan area accounted for 79.1%; when analyzing byproperty type, Retail, Office buildings, and Others accounted for 48.4%, 37.8% and 13.8%, 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. During the 39th fiscal period, FRC acquired new
DBJ Green Building Certification for one property and CASBEE for Building for two properties in its portfolio. As
a result, FRC has acquired green building certifications for 84.6% of its portfolio properties against its 2030 targetof 85% or higher.
(c) Summary of fundraising
In the 39th fiscal period, FRC conducted new financing of 12,400 mm yen and repayment of 2,500 mm yen as
well as refinancing of 4,000 mm yen. These led to the balance of its interest-bearing debt outstanding (including
investment corporation bonds) at the end of the period totaling 96,350 mm yen. The loan-to-value ratio (ratio ofinterest-bearing debt (including investment corporation bonds) to total assets) was 44.9% and the ratio of fixedinterest rate debt (ratio of fixed-interest rate debt (including investment corporation bonds) to total interestbearing debt) stood at 90.9% at the end of the 39th fiscal period. In addition, with regard to the commitment line
agreement (credit limit: 7,000 mm yen) with The Nishi-Nippon City Bank serving as the agent, FRC extended thecommitment period by a year, lengthening the remaining term of commitment to three years. While endeavoring
to reduce refinancing risks by dispersing debt repayment dates and other measures, FRC will investigate ways
to mitigate the possible increase in financing costs in accordance with higher interest rates, including reducing
financing periods.
Moreover, the credit ratings assigned to FRC as of the end of the 39th fiscal period are as follows.
1

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

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 9,326 mm yen and operating income after
excluding operating expenses such as expenses related to leasing business and asset management fees totaled
3,462 mm yen. Ordinary income was 3,031 mm yen and profit amounted to 3,030 mm yen. Management decided
to make a dividend of 3,807 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)
Disposition of Asset
On September 2, 2024, FRC disposed the following real estate trust beneficiary interest.
Type of asset acquired:
Property name:
Use:
Location:
Seller:
Disposition price (planned):
Scheduled date of disposition:
Impact on profit and loss:

Real estate trust beneficiary interest (Note 1)
Marinoa City Fukuoka (Marina Side Building) (Building)Retail2-12-30 Odo, Nishi Ward, Fukuoka City
Fukuoka Jisho Co., Ltd. and not disclosed company (Note 1)
783 mm yen (Note 2)
September 2, 2024
We plan to record a gain on sales of real estate and other assets ofapproximately 0 million yen as operating revenue in the fiscal year
ending February 2025.

(Note 1) Not stated because the consent of the buyer cannot be obtained.
(Note 2) The disposition price does not include disposition expenses and the amount equivalent to the settlement of property
taxes and city planning taxes, etc.
(Note 3)The beneficiary interest transfer agreement for the disposition (the “Transfer Agreement”) falls under forward
commitment, etc. (a postdated transaction agreement where the settlement and delivery are to take place one
month or more after the conclusion of agreement as well as other similar agreements).Under the Transfer
Agreement, in the event that either FRC or the buyer breaches its obligations under the Transfer Agreement, theother party may cancel the Transfer Agreement in whole or in part if the party breaching its obligations under theTransfer Agreement is given notice in writing specifically indicating the breach and such breach is not resolved
within 30 days of receiving the notice.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024(c)

Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending August 2024 (March 1, 2024 toAugust 31, 2024) and the period ending February 2025 (September 1, 2024 to February 28, 2025). Concerning
preconditions for the relevant performance forecast, please refer to “Preconditions for the performance forecast
for the period ending August 2024 (March 1, 2024 to August 31, 2024) and the period ending February 2025
(September 1, 2024 to February 28, 2025)” on page 4.
Period ending August 2024
Period ending February 2025
Operating revenues
9,305 mm yen
9,242 mm yen
Operating income
3,305 mm yen
3,301 mm yen
Ordinary income
2,866 mm yen
2,866 mm yen
Profit2,865 mm yen
2,865 mm yen
Dividend per unit
3,600 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.

3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

Preconditions for the performance forecast for the period ending August 2024 (March 1, 2024 to August 31, 2024) andthe period ending February 2025 (September 1, 2024 to February 28, 2025)
Item
Preconditions
40th fiscal period: March 1, 2024 to August 31, 2024 (184 days)
Calculation period
41st fiscal period: September 1, 2024 to February 28, 2025 (181 days)• It is assumed that assets under management will comprise the 35 properties FRC owns as ofFebruary 29, 2024.
Assets under• FRC assumes that it will dispose Marinoa City Fukuoka (Marina Side Building) on September 2,
management2024.
• 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, 2025.
outstanding• The balance of interest-bearing debt outstanding at the end of the 40th fiscal period (August 31,2024) is expected to total 96,350 mm yen. The loan-to-value ratio (interest-bearing debt / total assets
Interest-bearing debt
× 100) is expected to stand at around 44.9%.
and refinancing• The balance of interest-bearing debt outstanding at the end of the 41st fiscal period (February 28,2025) is expected to total 96,350 mm yen. The loan-to-value ratio (interest-bearing debt / total assets
× 100) is expected to stand at around 44.9%.
• Of leasing revenues – real estate, revenues from properties FRC has already acquired are calculated
based on tenancy agreements that are valid as of April 16, 2024, 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 40th and 41st 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 1,811 mm yen for the 40th fiscal period and1,796 mm yen for the 41st fiscal period.
• Concerning taxes and other public charges, FRC anticipates 831 mm yen for the 40th fiscal period
and 831 mm yen for the 41st fiscal period.
• Concerning depreciation and amortization expenses, FRC anticipates 1,617 mm yen for the 40th
fiscal period and 1,621 mm yen for the 41st fiscal period.
• Concerning interest expenses (including interest expenses on investment corporation bonds) andNon-operating
expenses related to financing, FRC anticipates 438 mm yen for the 40th fiscal period and 434 mm
expenses
yen for the 41st 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.

4

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

2. Financial Statements(1) Balance sheet

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
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)

38th fiscal period

39th fiscal period(as of August 31, 2023)(as of February 29, 2024)

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

Investment and other assets
Deferred tax assets

3,304,641
4,206,465
954,107
288,720
371,690
12,477
9,138,073

2,012,675(119,317)
24,857(1,431)
0
—
3,513
(806)
113,422,114(41,778,221)
1,983,032(964,144)
1,602,321(853,366)
626(594)
1,500,654(1,261,849)

1,893,357
23,4250
2,706
1,684,370
71,643,893
1,018,887
748,95431
238,805
121,016,223
15,885
198,286,541
5,545,883
1,711
5,547,594

9

1,847

Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

327,135

335,492

Long-term prepaid expenses

994,244

1,050,380

1,331,388

1,397,720

192,254,332

205,231,856

22,68721,027

22,68721,027

203,868,228

214,390,957

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

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024
(thousands of yen)

38th fiscal period

39th fiscal period(as of August 31, 2023)(as of February 29, 2024)

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

771,072

871,4272,000,000—

5,200,000

2,700,000

Accounts payable-other

16,957

19,422

Accrued expenses

433,746

463,375

861

3,306

11,301—

Advances received

1,065,467

1,058,145

Deposits received

1,125,748

1,078,148

Total current liabilities

10,625,155

6,193,826

Investment corporation bonds

3,000,000

3,000,000

Long-term debt

76,250,000

90,650,000

837,073

835,295

11,229,544

11,742,547

91,316,617

106,227,842

101,941,773

112,421,668

98,938,764

98,938,764

Unappropriated surplus

2,987,690

3,030,524

Total surplus

2,987,690

3,030,524

101,926,454

101,969,288

101,926,454

101,969,288

203,868,228

214,390,957

Income taxes payable
Accrued consumption taxes

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 2024

(2) Statement of income(thousands of yen)

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

39th fiscal period(September 1, 2023 to
February 29, 2024)

Operating revenues
Leasing revenues – real estate*18,154,854

Other leasing revenues – real estate*1

697,523

Gain on sales of real estate*2432,324*1

8,480,341*1
9,284,702

608,442*2 237,704

9,326,487

Operating expenses
Expenses related to leasing business

5,231,929*1, *3 5,166,743

544,383

557,556

Asset custody fees

7,616

7,603

Administrative service fees

58,481

58,817

Director’s compensations

3,600

3,600

Other operating expenses

66,055

Asset management fees

*1, *3Operating income

5,912,065

69,974

3,372,637

5,864,295
3,462,192

Non-operating revenues
Interest received

46

Others

523

44
569

679

724

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

255,474

303,409

29,20024,655

1,988

1,660

98,436

101,441

Others37385,13652

431,219

Ordinary income

2,988,069

3,031,697

Profit before income taxes

2,988,069

3,031,697

Income taxes-current

868

Income taxes-deferred

9Profit3,313
878(1,838)1,475

2,987,191

3,030,221

Surplus brought forward

499

302

Unappropriated surplus

2,987,690

3,030,524

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

(3) Statement of changes in net assets
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)

39th fiscal period (September 1, 2023 to February 29, 2024)
Unitholders’ Equity
Surplus
Unitholders’ capital
Balance as of
September 1, 2023
Changes in thecurrent fiscal period

Unappropriated surplus

Totalunitholders’ equity

Total
net assets

2,987,690

101,926,454

101,926,454

Dividend of surplus(2,987,388)(2,987,388)(2,987,388)

Profit3,030,221

3,030,221

3,030,221—

42,83342,83342,83398,938,764

3,030,524

101,969,288

101,969,288

Total of changes in thecurrent fiscal period
Balance as ofFebruary 29, 2024

98,938,764(thousands of yen)

8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

(4) Dividend statement
Item

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

39th fiscal period(September 1, 2023 to
February 29, 2024)

I.

Unappropriated surplus

2,987,690 thousand yen

3,030,524 thousand yen

II.

Total dividend

2,987,388 thousand yen

3,030,372 thousand yen[Dividend per investment
unit][3,753 yen]

[3,807 yen]

III. Surplus brought forward

302 thousand yen

152 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 2,987,388 FRC shall decide to distribute 3,030,372
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.

9

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

(5) Cash flows statement(thousands of yen)

38th fiscal period(March 1, 2023 toAugust 31, 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
Purchase of intangible assets 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
Payments of leasehold and guarantee 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
Redemption of investment corporation bonds
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

39th fiscal period(September 1, 2023 to
February 29, 2024)

2,988,069
1,531,607

3,031,697
1,609,261

1,988

1,660

(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(44)
328,065(237,704)(162,985)(371,690)(11,301)(62,642)
2,953
6,714
(7,322)(47,599)(28,756)(56,135)
36,3284,030,497
44(305,150)(868)
3,724,522(1,539,902)
1,495,942(3,172,032)—
94,927(16,330)
195,388(494,151)—
1,962(2,204)(3,436,400)(357)
815,522(14,953,253)(1,323)
5,901(7,679)637,210(124,208)(8,357)2,522(2,439)(13,636,461)

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

21,900,000(21,900,000)
16,400,000(4,500,000)(2,000,000)(2,987,237)
6,912,762(2,999,175)
10,459,366
7,460,191

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

(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 November 29, 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)

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

39th fiscal period(September 1, 2023 to
February 29, 2024)

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

6,827,162

7,167,168

Common charges

902,307890,497

Parking revenues

425,384

8,154,854

422,675

8,480,341

Other leasing revenues – real estate
Incidental income

670,653

Other miscellaneous income

26,869Total real estate leasing business revenues

582,646697,523

25,7958,852,377

608,442
9,088,783

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

1,765,556

1,777,909

Repair and maintenance expenses

308,710

191,999

Taxes and other public charges

752,259

749,471

Insurance premiums and trust compensation

42,57643,802

Utilities expenses

575,322489,833

1,531,607

1,609,261

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)

255,896*2. Breakdown of gain on sales of real estate

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

11

5,231,929

304,466

5,166,743

5,231,929

5,166,743

3,620,448

3,922,039

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

39th fiscal period (September 1, 2023 to February 29, 2024)
Kurume Higashi Kushiwara SC (30% 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)

822,000
577,8176,477
237,704*3. Transactions with affiliated companies(thousands of yen)

39th fiscal period

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

Expenses related to real estate leasing business(September 1, 2023 to
February 29, 2024)

874,958

891,822(Per unit information)
38th fiscal period

39th fiscal period(March 1, 2023 to August 31, 2023)

Net assets per investment unit:
Profit per investment unit:(September 1, 2023 to February 29, 2024)

128,048 yen
3,752 yen

Net assets per investment unit:
Profit per investment unit:

128,102 yen
3,806 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.

39th fiscal period

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

12(September 1, 2023 to
February 29, 2024)

2,987,191

3,030,221——

2,987,191

3,030,221

796,000

796,000

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

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 February 29, 2024)(Note 1)(mm of yen) (Note 2)(%) (Note 3)

RetailFukuoka
metropolitan area——

Other Kyushu areas——

Office buildings

Fukuoka
metropolitan area

—

—

1,510

0.7

OthersFukuoka
metropolitan area

—

—

2,093

1.0

3,603

1.7

Other Kyushu areas

Other Kyushu areas
Subtotal

Real estatein trust

Percentage of
total assets

RetailFukuoka
metropolitan area

66,147

30.9

Other Kyushu areas

34,648

16.2

Office buildings

Fukuoka
metropolitan area

72,97034.0——

OthersFukuoka
metropolitan area

21,163

9.9

Other Kyushu areas

5,284

2.5

200,214

93.4

10,572

4.9

214,390100.0[203,834][95.1]

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 February 29, 2024)

Value on balance sheet(mm of yen)

Percentage of total amount of assets(%)

Total liabilities

112,421

52.4

Total net assets

101,969

47.6

13

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

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)(as of February 29, 2024)

Investment
ratio
(%)
(Note 3)

Real estateappraiser

Tanizawa Sogo
14.5 Appraisal Co., Ltd.

Canal City Hakata

32,00029,73029,000Canal City Hakata･B

21,06020,38921,700Park Place Oita

19,61020,316

20,200SunLive City Kokura

6,633

5,483

8,530

Konoha Mall Hashimoto

10,000

9,799

10,100

Square Mall Kagoshima Usuki

5,300

4,158

4,660

Kumamoto Intercommunity SC

2,400

1,892

2,840

Hanahata SC

1,130

939

1,220

K’s Denki Kagoshima

3,550

2,797

3,490

Marinoa City Fukuoka (Marina
Side Building) (Note 4)

5,250

5,289

5,264

106,933

100,796

107,004

48.4

Canal City Business Center
Building

14,60012,601

19,100

Tanizawa Sogo
6.6 Appraisal Co., Ltd.

Gofukumachi Business Center

11,2008,586

16,100Sanix Hakata Building

4,400

3,674

7,210

Taihaku Street Business Center

7,000

5,669

10,400Higashi Hie Business Center

5,900

4,279

9,220

Tenjin Nishi-Dori Center Building

2,600

2,622

3,400

Tenjin North Front Building

2,800

2,266

5,180

Higashi Hie Business Center II

4,230

3,785

4,880

Higashi Hie Business Center III

3,290

3,160

3,520

Tanizawa Sogo
1.5 Appraisal Co., Ltd.

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

7,700

7,754

8,770

Japan Real Estate
3.5 InstituteHakata Chikushi-Dori Center
Building

4,320

4,476

4,560

Tanizawa Sogo
2.0 Appraisal Co., Ltd.

Kumamoto East Front Building

1,450

1,510

1,500

Hakata FD Business Center(Note 5)

14,10014,093

16,100Japan Real Estate
6.4 Institute

Office buildings subtotal:

83,59074,481

109,940

37.8

Amex Akasakamon Tower

2,060

1,583

2,100

City House Keyaki Dori

1,111

842

1,170

Aqualia Chihaya

1,280

1,133

2,060

D-Wing Tower

2,800

2,687

4,030

Granfore Yakuin Minami

1,100

1,118

1,430

Axion Befu-Ekimae Premium

1,525

1,643

1,570

Hotel FORZA Oita

1,530

1,484

1,870

Tissage Hotel Naha

2,835

2,691

2,940

Tosu Logistics Center

1,250

1,108

1,640

LOGICITY Minato Kashii

8,150

7,579

11,400Retail subtotal:

14

Tanizawa Sogo
9.5 Appraisal Co., Ltd.
Japan Real Estate
8.9 InstituteJapan Real Estate
3.0 InstituteTanizawa Sogo
4.5 Appraisal Co., Ltd.
Japan Real Estate
2.4 InstituteJapan Real Estate
1.1 InstituteTanizawa Sogo
0.5 Appraisal Co., Ltd.
Tanizawa Sogo
1.6 Appraisal Co., Ltd.
Tanizawa Sogo
2.4 Appraisal Co., Ltd.

Tanizawa Sogo
5.1 Appraisal Co., Ltd.
Japan Real Estate
2.0 InstituteJapan Real Estate
3.2 InstituteTanizawa Sogo
2.7 Appraisal Co., Ltd.
Japan Real Estate
1.2 InstituteJapan Real Estate
1.3 InstituteTanizawa Sogo
1.9 Appraisal Co., Ltd.

Tanizawa Sogo
0.7 Appraisal Co., Ltd.

Daiwa Real Estate
0.9 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
1.3 Appraisal Co., Ltd.
Japan Real Estate
0.6 InstituteTanizawa Sogo
3.7 Appraisal Co., Ltd.

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

Tanizawa Sogo
2.3 Appraisal Co., Ltd.

LOGICITY Hisayama

5,050

4,575

5,930

LOGICITY Wakamiya

1,700

2,093

2,590

Tanizawa Sogo
0.8 Appraisal Co., Ltd.

Others subtotal:

30,391

28,541

38,73013.8

220,914203,818

255,674

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)

8,082

-

8,210

Total

(Real estate property to be acquired)Real estate property name
Island City Minato Bay related site
(Land with leasehold interest)(tentative) (Note 6) (Note 7)
Note 1:

Investment
ratio
(%)
(Note 3)

Real estateappraiser
Tanizawa Sogo
- Appraisal Co., Ltd.

“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).
Note 2: “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.
Note 3: “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.
Note 4: The building is scheduled to be transferred on September 2, 2024. The land continued to be hold (26,917.74 m2) will beleased to Fukuoka Jisho Co., Ltd., one of the companies to which the building was transferred. The appraisal value of thebuilding only as of February 1, 2024 was 754 million yen, and the appraisal value of the land only as of February 29, 2024
was 4,510 million yen, the sum of which is shown in the appraisal value at the end of the period.
Note 5: Of the building, FRC acquired 77% co-ownership interest owned and trust beneficiary interest in the land (a part of thebuilding’s leasehold land, so-called “partial ownership”) In addition, the figures reflect the percentage of ownership. The
same applies below.
Note 6: 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.
Note 7: 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).
Note 8: Real estate property to be acquired indicate the property for which contracts or letters of agreement have been concluded
as of the end of the 39th fiscal period.

15

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

(B) Summary of the real estate leasing business(as of February 29, 2024)

Total
leasingrevenues(mm of yen)
(Note 4)1,070

Percentage
of totalleasingrevenues(%) (Note 5)
11.8

29,214.26

951

10.5

120,995.81

1,160

12.8

61,450.22

292

3.2

Number oftenants(Note 1)

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

Total
leased floor
space
(m2)

Canal City Hakata

1 [24]

99.5

48,176.33

47,953.27

Canal City Hakata･B

1 [37]

93.8

31,141.44

Park Place Oita

1 [99]

99.8

121,184.16

1

100.0

61,450.22

Real estate property name

SunLive City Kokura
Konoha Mall Hashimoto

1 [121]

99.2

22,191.52

22,023.34

840

9.2

Square Mall Kagoshima Usuki

12

99.1

14,602.88

14,469.18

248

2.7

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

0.4

―

―

―

―

13

0.1

1

100.0

7,296.17

7,296.17

105

1.2

1

100.0

33,069.82

33,069.82

177

1.9

23 [300](Note 2)

99.2

348,882.35

346,241.88

4,990

54.9

1 [62]

98.6

23,031.14

22,709.44

652

7.2

35

99.1

19,905.34

19,732.18

586

6.5

16

100.0

6,293.75

6,293.75

207

2.3

Taihaku Street Business Center1 [70]

99.3

14,677.35

14,573.54

333

3.7

Higashi Hie Business Center1 [24]

99.4

13,482.02

13,396.20

368

4.1

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

150

1.7

Higashi Hie Business Center II

2

100.0

6,214.77

6,214.77

161

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

97

1.1

1

100.0

1,343.51

1,343.51

159

1.8

1 [13]

89.6

5,994.41

5,368.83

140

1.6

6

75.4

3,114.07

2,347.23

47

0.5

1 [13]
84 [261](Note 2)
1 [65]

86.5

12,102.05

10,466.76

151

1.7

96.8

117,740.51

114,028.31

3,145

34.6

97.0

4,821.25

4,674.95

67

0.7

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

Hakata FD Business Center
Office buildings subtotal:
Amex Akasakamon Tower
City House Keyaki Dori1 [41]

97.8

2,710.86

2,650.06

39

0.4

Aqualia Chihaya

1 [104]98.9

5,619.69

5,559.96

60

0.7

D-Wing Tower

1 [135]

98.9

7,187.59

7,111.59

117

1.3

Granfore Yakuin Minami

1 [98]

99.0

2,496.06

2,471.10

39

0.4

Axion Befu-Ekimae Premium

1 [20]

74.3

1,937.75

1,439.91

21

0.2

Hotel FORZA Oita

1

100.0

5,785.44

5,785.44

61

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

33
Undisclosed(Note 8)
Undisclosed(Note 8)
Undisclosed(Note 8)
Undisclosed(Note 8)

0.4
Undisclosed(Note 8)
Undisclosed(Note 8)
Undisclosed(Note 8)
Undisclosed(Note 8)

99.3

123,786.38

122,920.75

953

10.5

98.8

590,409.24

583,190.94

9,088

100.0

Others subtotal:
Total

13 [470](Note 2)120 [1,031](Note 2)16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

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 (30% co-ownership interest) on November 30, 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.

17

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2024

(2) Status of capital expenditures
1) Capital expenditures after the end of the 39th 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 39th fiscal period and of capital expenditures associated with renovations, etc.
planned as of April 16, 2024, 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
HakataHakata Ward,
Fukuoka City

Canal City
Hakata·B

Hakata Ward,
Fukuoka City

Canal City
Hakata·B

Hakata Ward,
Fukuoka City

Canal City
Hakata·B

Hakata Ward,
Fukuoka City

Higashi Hie
Business Center

Hakata Ward,
Fukuoka City

Tenjin Nishi-Dori
Center Building

Chuo Ward,
Fukuoka City

Tenjin Nishi-Dori
Center Building
LOGICITY
Wakamiya

PurposePlanned construction cost
(mm of yen)Amountpaid in the Total amountTotal
39th fiscal already paid
periodSchedule

Replacement of central
monitoring devices andequipment
Renovation of external
walls of Grand Building(Third phase)
Replacement of central
monitoring devices andequipment
Renovation of external
walls of Grand Building(Third phase)
4th floor section A
equipment renewal
work
Switching to LED
lighting in exclusive
areas

From April 2023 toApril 2024

173

—

—

From January 2024
to November 2024

94

—

—

From April 2023 toApril 2024

223

—

—

From January 2024
to November 2024

121

—

—

From July 2024 to
February 2025

84

—

—

From August 2023
to March 2024

101

—

—

Renovation of external
walls of Grand Building

From October 2024
to February 2025

144

—

—

Chuo Ward,
Fukuoka City

Elevator renewal work

From October 2024
to December 2024

81

Miyawaka City,
FukuokaRenovation of external
walls of Grand Building

From August 2024
to December 2024

63

—

—

2) Capital expenditures during the 39th fiscal period
Capital expenditures for the real estate properties owned by FRC totaled 970 mm yen in the 39th fiscal period.
Furthermore, FRC incurred construction costs of 1,172 mm yen in total in the period, including 191 mm yen in repair
and maintenance expenses classified as expenses on the statement of income and 9 mm yen in expenses forrestoration to former state. The following table provides the overview of major construction work that was completed
in the 39th fiscal period.
Real estate
property nameLocation

Canal City Hakata

Hakata Ward,
Fukuoka City

Canal City Hakata·B

Hakata Ward,
Fukuoka City

Park Place Oita

Oita City, Oita

SunLiveCity Kokura

PurposeRenovation of external wallsof Grand Building(First and second phase)
Renovation of external wallsof Grand Building(First and second phase)
Renewal of water tankequipment

Kitakyushu City,
Fukuoka

Taihaku Street
Business Center

PeriodConstruction cost
(mm of yen)

From May 2023 toNovember 2023

36

From May 2023 toNovember 2023

47

From December 2023 to
February 2024

99

Renovation of 3rd floor
parking lot

From September 2023 to
December 2023

85

Hakata Ward,
Fukuoka City

Renovation of external walls
of office building

From May 2023 to
December 2023

127

Taihaku Street
Business Center

Hakata Ward,
Fukuoka City

Renovation of external wallsof residence

From August 2023 to
February 2024

87

D-Wing Tower

Chuo Ward,
Fukuoka City

Renovation of external walls

From July 2023 to
February 2024

128

Hotel FORZA Oita

Oita City, Oita

Replacement of airconditioning units

From August 2023 to
October 2023

65

18