Provisional translation only
October 14, 2015
EARNINGS BRIEFING
FOR THE PERIOD ENDED AUGUST 2015
URL: http://www.fukuoka-reit.jp/eng/
Stock listings: Tokyo Stock Exchange, andFukuoka Stock Exchange
Representative: Etsuo Matsuyuki CEO & Representative Director

Real estate investment trust: Fukuoka REIT Corporation (FRC)
Code number: 8968

Asset manager: Fukuoka Realty Co., Ltd.
Representative: Etsuo Matsuyuki CEO & Representative Director
Contact: Hidenori Hara
Managing Director and Head of Planning Dept.
Phone: +81-92-272-3900
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 26, 2015
November 18, 2015
Yes
Yes
(Figures rounded down to nearest mm yen.)

1. PERFORMANCE AND SITUATION OF ASSETS FOR THE PERIOD ENDED AUGUST 2015
(March 1, 2015 to August 31, 2015)(1) Performance
Operating revenues
mm of yen%
Period ended
August 2015
Period ended
February 2015

Operating income
mm of yen%(% shows percentage change from previous period)
Ordinary income
Net income
mm of yen%
mm of yen
%

8,423

8.1

3,167

10.7

2,663

12.3

2,661

12.3

7,789

0.1

2,860

1.3

2,370

4.7

2,369

4.8

Net income
per unit

Ratio ofordinary income tototal assets

Return on
net assets

Ratio ofordinary income tooperating revenues

Period ended
3.0%
1.5%
3,649 yen
31.6%
August 2015
Period ended
2.9%
1.4%
3,434 yen
30.4%
February 2015
(Note) Fukuoka REIT Corporation (FRC) issued new investment units in the fiscal period ended August 2015. Accordingly, net income per unit
for the fiscal period has been calculated by using the period-average number of investment units, which stood at 729,342 units.

(2) Dividends
Dividend
per unit(excl. dividend inexcess of earnings)

Total
dividend(excl. dividend inexcess of earnings)

Dividendin excess ofearnings
per unit

Total
dividendin excess ofearnings

Payoutratio

Ratio ofdividend to
net assets

Period ended
0 yen
0 mm yen
100.0%
2.9%
3,563 yen
2,661 mm yen
August 2015
Period ended
0 yen
0 mm yen
100.0%
2.9%
3,435 yen
2,370 mm yen
February 2015
(Note) As FRC issued new investment units in the fiscal period ended August 2015, the payout ratio for the fiscal period has been calculated byusing the following formula:
Payout ratio = Total dividend (excl. dividend in excess of earnings) / Net income x 100(3) Financial condition
Period ended
August 2015
Period ended
February 2015

Ratio ofnet assets to total assets

Total assets

Net assets

181,597 mm yen

93,804 mm yen

51.7%

125,574 yen

167,369 mm yen

81,811 mm yen

48.9%

118,567 yen

Net assets per unit

(4) Cash flows condition
Cash flows fromoperating activities
Period ended
August 2015
Period ended
February 2015

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at endof period

4,167 mm yen(14,488) mm yen

10,934 mm yen

7,533 mm yen

3,735 mm yen(1,452) mm yen(2,635) mm yen

6,920 mm yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

2. FORECAST OF PERFORMANCE FOR THE PERIOD ENDING FEBRUARY 2016 (September 1,
2015 to February 29, 2016) AND THE PERIOD ENDING AUGUST 2016 (March 1, 2016 to August
31, 2016)(% shows percentage change from previous period)
Dividend
Net
Dividend
Operating revenues Operating income Ordinary income
per unit
incomein excess of(excl. dividend
earnings
mm of yen
% mm of yen% mm of yen% mm of yen% in excess of
per unit
earnings)
PeriodendingFebruary
2016
PeriodendingAugust
2016

8,261

(1.9)

8,338

0.9

3,089 (2.4)

2,615

(1.8)

2,614

(1.8)

3,500 yen

0 yen

(0.1)

2,616

0.0

2,615

0.0

3,500 yen

0 yen

3,086

(Reference) Forecast net income per unit: Period ending February 2016
Forecast net income per unit: Period ending August 2016

3,500 yen
3,500 yen

3. Other(1) Changes in accounting policies, changes in accounting estimates and restatement of accounting errors(i) Changes in accounting policies accompanying amendments to accounting standards, etc.:No(ii) Changes in accounting policies other than above (i):No
(iii) Changes in accounting estimates:No(iv) Restatement of accounting errors:No(2) Number of investment units outstanding(i) Number of investment units outstanding at end of period (including treasury investment units):
747,000 units at end of August 2015
690,000 units at end of February 2015(ii) Treasury investment units at end of period:— units at end of August 2015
— units at end of February 2015
Note: Regarding the number of investment units, a basis for calculating net income per unit, please refer to “Perunit information,” on page 13.

* Statement on Implementation Status of Audit Procedure
This Earnings Briefing (“Kessan Tanshin” in Japanese) report is outside the scope of the auditing
procedure under the Financial Instruments and Exchange Act. As of the publication of this report, noauditing procedure under the Financial Instruments and Exchange Act has been completed for thefinancial statements.
* 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 andcontain uncertain factors to a large extent. Actual operating revenues, operating income, ordinary
income, net income, and dividend 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 thepreconditions for the above forecast figures please refer to “2. Portfolio Management Policy andManagement Situation, (2) Management situation – Preconditions for the performance forecast for theperiod ending February 2016 (September 1, 2015 to February 29, 2016) and the period ending August
2016 (March 1, 2016 to August 31, 2016)” on page 6.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

Concerning the contents hereinafter, items that FRC judges that “can be omitted from the disclosure from the standpointof importance” are not shown in conformity with the “Format and Guidance for Preparation of Earnings Briefing for
REITs” (December 2014).

1. Investment Corporation-Related Organizations
The disclosure is omitted, since there are no significant changes from the “Structure of the investment corporation”
disclosed by the latest securities report (submitted on May 26, 2015).

2. Portfolio Management Policy and Management Situation(1) Portfolio management policy
The disclosure is omitted, since there are no significant changes from “Investment policy,” “Investment target” and“Dividend policy” disclosed by the latest securities report (submitted on May 26, 2015).
(2) Management situation(i) 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 listedon the Tokyo Stock Exchange Group Inc. and the Fukuoka Stock Exchange on June 21, 2005 as thenation’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 regionality,
characteristics in the real estate industry, into strengths.
FRC started asset management activities on November 9, 2004 after acquisition of four properties such as
Retail in Canal City Hakata (excluding some areas of specialty shops, hotels, theaters, offices andcommon space), a commercial complex where specialty shops, cinema complex, theaters, amusement
facilities, hotels and offices are integrally developed (hereinafter “Canal City Hakata”). As of the end of
the current fiscal period (August 31, 2015), FRC manages a total of 27 properties comprising 11 Retail, 7
Office buildings and 9 Others.
(b) Investment environment and portfolio performance
During the fiscal period under review, the Japanese economy remained on course for a modest recovery
despite variations observed in the pace of improvement. Looking ahead, with the employment and income
environment continuing to improve, the economy is expected to keep recovering moderately thanks tovarious political measures proving effective. In the Fukuoka and Kyushu area, the core investment target
area for FRC, the economy was also on track for a modest recovery, with housing investment and capital
investment picking up due to the consistently improving employment and income environment, althoughconsumer spending remained somewhat weak in certain areas.
As for land price trends, the national average over the past year from July 2014 decreased at a slower pace
both for residential land and commercial land, according to the government's 2015 Prefectural Land Price
Survey. In Fukuoka City, the central area of FRC's investment targets, land prices continued rising for thethird consecutive year, up 4.8% for commercial land and up 2.1% for residential land, both on a year-onyear basis, recording higher rates of increase.
Under such circumstances, FRC focused on stringently selective investment in accordance with its
investment policy. This led to the acquisition of LOGIPORT Island-city Hakata (acquisition price: 8,150mm yen) on March 27, 2015, Marinoa City Fukuoka (Marina Side Building) (acquisition price: 5,250 mmyen) on May 1, 2015 and the adjacent land of Park Place Oita (acquisition price: 590 mm yen) on May 28,
2015. For existing properties, FRC continued its efforts to reinforce competitive advantages and customer
drawing ability at Canal City Hakata and other major retail facilities, and focused on maintaining andincreasing the occupancy rate of its owned properties. As a result of these endeavors, the averageoccupancy rate of all properties FRC owns was 99.5% at the end of the 22nd fiscal period.
When analyzing FRC’s portfolio (on an acquisition price basis) by investment target area, the investment
ratio in the Fukuoka urban area accounted for 78.1%; when analyzing by property type, Retail, Officebuildings, and Others accounted for 60.7%, 27.0% and 12.3%, respectively.

3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015(c) Summary of fundraising
In the 22nd fiscal period, FRC procured 11,701 mm yen by issuing new investment units (payment date:
April 27, 2015 for 57,000 units), as well as increasing long-term debt by 1,700 mm yen, in order toacquire the above-mentioned properties and for other purposes. FRC also refinanced 6,200 mm yen in
long-term debt that matured in June through August 2015. As a result, the balance of interest-bearing debt
outstanding (including the investment corporation bonds) at the end of the 22nd fiscal period totaled
72,400 mm yen, with the loan-to-value ratio (ratio of interest-bearing debt (including the investment
corporation bonds) to total assets) at 39.9%. In addition, FRC concluded an interest rate swap agreement(notional principal of 2,000 mm yen) on August 27, 2015. This brought the ratio of fixed-interest rate debt(including investment corporation bonds) at the end of the fiscal period to 75.3%. Going forward, FRC
will continue its efforts to reduce refinancing risks by dispersing the debt repayment dates and increasing
the average length of time until debt maturity, and to mitigate risks of rising interest rates by shifting to
fixed-interest rate borrowings and through other measures.
Moreover, the credit ratings assigned to FRC as of the end of the current fiscal period are as follows.
Credit Rating Agency
Rating Type
RatingRating Outlook
Standard & Poor's Ratings
Long-term Corporate Credit Rating
StableA−
Japan K.K. (S&P)
Short-term Corporate Credit Rating
A−2
Rating and Investment
Issuer Rating
A+
StableInformation, Inc. (R&I)
Japan Credit Rating Agency,
Long-term Senior Debts Rating
A A−
StableLtd. (JCR)(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 8,423 mm yen and operating income
after excluding operating expenses such as expenses related to the leasing business and asset management
fees totaled 3,167 mm yen. Ordinary income was 2,663 mm yen and net income was 2,661 mm yen.
Management decided to make a dividend of 3,563 yen per investment unit to meet the requirements ofspecial 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, hereinafter the“Special Taxation Measures Act”]). Under this law, an investment corporation is allowed to deduct the
maximum amount of dividends paid to investors from its taxable income.
(ii) 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 even in a weak consumer spending environment, and secure andmaintain the stable operation of the properties by making 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” thatare in “high growth potential markets.” By geographic location, of Fukuoka and Kyushu areas, FRC will
invest 60% to 90% of its assets in the Fukuoka urban area, since the Fukuoka urban area is expected tohave a high population growth rate in the future. In addition to the Fukuoka urban area, management has
decided to actively acquire properties in major cities, if there are regions or properties where FRC cangenerate 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 ofregional properties and close relations with the local business community and governments, so thatinvestors can continue to invest in FRC with assurance.
Meanwhile, FRC will build stronger relationships with financial institutions to realize stable fundraisingand try to maintain a solid financial structure.
(b) Significant events that have occurred after the end of the current fiscal period
No relevant items.
(c) Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending February 2016 (September 1,
2015 to February 29, 2016) and the period ending August 2016 (March 1, 2016 to August 31, 2016).
Concerning preconditions for the forecast, please refer to “Preconditions for the performance forecast forthe period ending February 2016 (September 1, 2015 to February 29, 2016) and the period ending August
2016 (March 1, 2016 to August 31, 2016)” on page 6.
4

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

Period ending February 2016
Operating revenues
Operating income
Ordinary income
Net income
Dividend per unit
Dividend in excess of earnings per unit

8,261 mm yen
3,089 mm yen
2,615 mm yen
2,614 mm yen
3,500 yen
0 yen

Period ending August 2016
Operating revenues
Operating income
Ordinary income
Net income
Dividend per unit
Dividend in excess of earnings per unit

8,338 mm yen
3,086 mm yen
2,616 mm yen
2,615 mm yen
3,500 yen
0 yen

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

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

Preconditions for the performance forecast for the period ending February 2016 (September 1, 2015 to February 29,2016) and the period ending August 2016 (March 1, 2016 to August 31, 2016)
Item
Calculation period
Assets undermanagement
Total number ofinvestment units
outstanding

Interest-bearing debt
and refinancing

Operating revenues

Operating expenses

Non-operating
expensesDividend per unit
Dividend in excessof earnings per unit
Other

Preconditions
23rd fiscal period: from September 1, 2015 to February 29, 2016 (182 days)
24th fiscal period: from March 1, 2016 to August 31, 2016 (184 days)
 It is assumed that there will be 27 properties FRC owned as of August 31, 2015.
 In practice, they may fluctuate due to changes in assets under management.
 It is assumed that there will be no issuance of new investment units until August 31, 2016.
 The balance of interest-bearing debt outstanding at the end of the period ending February
2016 (February 29, 2016) is expected to total 72,325 mm yen, a decrease of 75 mm yenfrom the end of the current period (August 31, 2015). The loan-to-value ratio (interestbearing debt  total assets  100) is expected to stand at around 40.0% (as of August 31,
2015, the loan-to-value ratio stands at 39.9%).
 The balance of interest-bearing debt outstanding at the end of the period ending August
2016 (August 31, 2016) is expected to total 72,250 mm yen, a decrease of 75 mm yenfrom the end of the period ending February 2016 (February 29, 2016). The loan-to-value
ratio (interest-bearing debt  total assets  100) is expected to stand at around 39.9%.
 Of real estate leasing revenues, revenues from properties FRC has already acquired are
calculated based on tenancy agreements that are valid as of October 14, 2015 by taking
into account the competitiveness of the properties and the market environment.
Of real estate leasing revenues, revenues from percentage lease contracts are calculated
based on past results by taking into account sales fluctuation factors of the relevant
tenants.
 Concerning real estate leasing revenues, tenant vacancies are taken into account to acertain extent. It is assumed that there will be no rent arrears or non-payments by tenants.
 When acquiring assets under management, the fixed property tax and city planning tax forthe assets will be proportionally calculated according to the holding period and adjustedwith the former owner. FRC will not write them off since it will include the relevant
adjusted amount in the acquisition cost.
 FRC writes off estimated repair costs for buildings for the calculation periods, the periods
ending February 2016 and August 2016. Actual repair costs may differ significantly fromthe estimated amounts since there is the possibility that repair costs are incurred urgently
due to damages to buildings caused by unforeseeable factors, repair costs generally differ
largely from period to period, and repair costs are not regularly incurred.
 Concerning outsourcing expenses, FRC anticipates 1,559 mm yen for the period ending
February 2016 and 1,576 mm yen for the period ending August 2016.
 Concerning taxes and other public charges, FRC anticipates 596 mm yen for the period
ending February 2016 and 648 mm yen for the period ending August 2016.
 Concerning depreciation and amortization expenses, FRC anticipates 1,476 mm yen forthe period ending February 2016 and 1,528 mm yen for the period ending August 2016.
 Concerning interest expenses (including interest expenses on investment corporation
bonds) and expenses related to financing, FRC anticipates 463 mm yen for the period
ending February 2016 and 465 mm yen for the period ending August 2016
 It is planned that the expenses associated with the issuance of new investment units will beamortized utilizing the straight-line method over three years.
 Dividend (dividend per unit) is calculated based on the dividend policy stipulated in
FRC’s Articles of Incorporation.
 Dividend per unit may fluctuate due to fluctuations in leasing revenues caused by changes
in assets under management and tenants or various factors including unexpectedoccurrences of repair.
 Dividend in excess of earnings (dividend in excess of earnings per unit) is not planned at
the moment.
 It is assumed that there will be no significant revisions to laws and regulations, the tax
system, and accounting standards that may influence the forecast figures.
 It is also assumed that there will be no significant unexpected changes in general
economic conditions and the real estate market.

(3) Investment risks
The disclosure is omitted, since there are no significant changes from the “Investment risks” disclosed in the latest
securities report (submitted on May 26, 2015).

6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

3. Financial Statements(1) Balance sheets
Account(thousands of yen)
22nd fiscal period(as of August 31, 2015)

21st fiscal period(as of February 28, 2015)

AssetsCurrent assets
Cash and deposits

2,545,162

2,331,908

Cash and deposits in trust

4,438,305

5,267,938

Operating accounts receivable

318,677

434,567

Prepaid expenses

248,214

267,938

Consumption taxes receivable－

246,657

Deferred tax assets

9

62

4,209

4,536

7,554,578

8,553,609

OthersTotal current assets
Noncurrent assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation

79,100,573(18,259,209)

Structures in trust

83,847,220
60,841,364

1,311,964

Accumulated depreciation(484,118)

Machinery and equipment in trust(241,057)

Vehicles and transport equipment in trust

827,846(151)

Tools and fixtures in trust

344,768(877,740)

Lands in trust
Construction in progress in trust
Total property, plant and equipment

953,657(262,400)

356,245747
596

1,248,071

Accumulated depreciation(521,623)
618,646

747

Accumulated depreciation

64,240,475

1,475,281

585,826

Accumulated depreciation(19,606,745)

(198)

548

1,250,581
370,331(926,118)

324,463

95,084,266

104,756,397

18,696

10,276

157,487,870

170,642,063

1,765,318

1,765,318

12,3188,976

1,777,637

1,774,294

Intangible assets
Leasehold right in trust
Other intangible assets in trust
Total intangible assets
Investment and other assets
Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

100,000

110,000

Long-term prepaid expenses

411,366

456,882

Total investment and other assets

521,366

576,882

159,786,874

172,993,240

Investment corporation bond issuance expenses

17,357

16,375Investment unit issuance expenses

11,08434,538

Total deferred assets

28,44250,913

167,369,896

181,597,763

Total noncurrent assets
Deferred assets

Total assets

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

Account

21st fiscal period(as of February 28, 2015)(thousands of yen)
22nd fiscal period(as of August 31, 2015)

Liabilities
Current liabilities
Operating accounts payable

507,169

726,913

12,850,000

11,650,000

Accounts payable-other

24,80732,134

Accrued expenses

330,419

351,432

734

1,744

Accrued consumption taxes

168,301－

Advances received

930,019

1,014,843

Deposits received

673,421

1,049,290

15,484,873

14,826,359

Investment corporation bonds

2,000,000

2,000,000

Long-term debt payable

55,925,000

58,750,000

316,031331,243

11,832,568

11,885,673

70,073,599

72,966,916

85,558,472

87,793,276

79,441,236

91,142,766

Unappropriated surplus

2,370,187

2,661,720

Total surplus

2,370,187

2,661,720

Total unitholders’ equity

81,811,423

93,804,487

Total net assets

81,811,423

93,804,487

Total liabilities and net assets

167,369,896

181,597,763

Current maturities of long-term debt

Income taxes payable

Total current liabilities
Noncurrent liabilities

Tenant leasehold and security deposits
Tenant leasehold and security deposits received intrust
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015(2) Statements of income(thousands of yen)Account

21st fiscal period(September 1, 2014 to
February 28, 2015)

22nd fiscal period(March 1, 2015 toAugust 31, 2015)

7,342,920

7,902,500

Operating revenues
Leasing revenues-real estate
Other leasing revenues-real-estate

446,484

7,789,404

520,821

8,423,321

Operating expenses
Expenses related to leasing business

4,350,094

4,651,490

454,652

486,520

Asset custody fees

6,241

6,327

Administrative service fees

47,80047,767

Director’s compensations

9,600

9,600

Other operating expenses

60,246

Asset management fees

Operating income

4,928,634

54,6002,860,769

5,256,307
3,167,014

Non-operating revenues
Interest received

660

Others

1,675

706
2,336

1,302

2,009

Non-operating expenses
Interest expenses

365,592374,293

Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance expenses
Amortization of investment unit issuance expenses

13,09813,296

982

982

5,542

10,219Financing related expenses

107,117106,699

Others15492,34815

505,506

Ordinary income

2,370,757

2,663,517

Net income before income taxes

2,370,757

2,663,517

Income taxes-current

867

Income taxes-deferred18

Net income

1,886
885

(53)

1,833

2,369,872

2,661,683

Surplus brought forward

314

37

Unappropriated surplus

2,370,187

2,661,720

9

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015(3) Statement of changes in net assets
21st fiscal period (September 1, 2014 to February 28, 2015)(thousands of yen)
Unitholders’ Equity
Item

Unitholders’capitalBalance as of September 1, 2014

Surplus
UnappropriatedsurplusTotal
unitholders’equityTotal
net assets

79,441,236

2,262,134

81,703,371

81,703,371

Dividend of surplus—(2,261,820)(2,261,820)(2,261,820)

Net income—

2,369,872

2,369,872

2,369,872—

108,052

108,052

108,052

79,441,236

2,370,187

81,811,423

81,811,423

Changes in the current fiscal period

Total of changes in the current fiscal period
Balance as of February 28, 2015

22nd fiscal period (March 1, 2015 to August 31, 2015)(thousands of yen)
Unitholders’ Equity
Item

Balance as of March 1, 2015

Unitholders’capitalSurplus
UnappropriatedsurplusTotal
unitholders’equityTotal
net assets

79,441,236

2,370,187

81,811,423

81,811,423

11,701,530—

11,701,530

11,701,530

Dividend of surplus—(2,370,150)(2,370,150)(2,370,150)

Net income—

2,661,683

2,661,683

2,661,683

Total of changes in the current fiscal period

11,701,530

291,533

11,993,063

11,993,063

Balance as of August 31, 2015

91,142,766

2,661,720

93,804,487

93,804,487

Changes in the current fiscal period
Issuance of new investment units

10Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

(4) Dividend statement
Account

21st fiscal period(September 1, 2014 to
February 28, 2015)

22nd fiscal period(March 1, 2015 toAugust 31, 2015)

I. Unappropriated surplus

2,370,187 thousand yen

2,661,720 thousand yen

II. Total

2,370,150 thousand yen

2,661,561 thousand yen(3,435 yen)

(3,563 yen)

37 thousand yen

159 thousand yen(Dividend per investment unit)

III. Surplus brought forward
Method for calculating dividends

The amount of dividends shall be decided The amount of dividends shall be decidedin accordance with the dividend policyin accordance with the dividend policy
stipulated in Article 38-1-1 of FRC’s
stipulated in Article 38-1-1 of FRC’s
Articles of Incorporation and must exceed Articles of Incorporation and must exceed
90% of FRC’s distributable profits as
90% of FRC’s distributable profits as
stipulated in Article 67-15 of the Special stipulated in Article 67-15 of the Special
Taxation Measures Act. Following theTaxation Measures Act. Following theabove policy, FRC shall decide toabove policy, FRC shall decide to
distribute 2,370,150 thousand yen, which distribute 2,661,561 thousand yen, whichis almost the entire amount ofis almost the entire amount of
unappropriated surplus, as earnings
unappropriated surplus, as earnings
dividends. Moreover, dividend in excess dividends. Moreover, dividend in excessof earnings as stipulated in Article 38-2 of of earnings as stipulated in Article 38-2 of
FRC’s Articles of Incorporation will not FRC’s Articles of Incorporation will not
be provided.
be provided.
(Note) Concerning amounts other than dividend per investment unit, fractions of 1,000 yen are omitted.

11

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

(5) Cash flows statements

21st fiscal period(September 1, 2014 to
February 28, 2015)

Account(thousands of yen)
22nd fiscal period(March 1, 2015 toAugust 31, 2015)

Net cash provided by (used in) operating activities
Net income before income taxes

2,370,757

2,663,517

Depreciation and amortization expenses

1,390,656

1,458,153

982

982

Amortization of investment unit issuance expenses

5,542

10,219Interest received

(660)

(706)

Interest expenses

378,691

387,590

Decrease (increase) in operating accounts receivables

83,640(115,889)

Amortization of investment corporation bond issuance expenses－(246,657)

Increase (decrease) in accrued consumption taxes

53,196(168,301)

Increase (decrease) in operating accounts payable

39,903

159,326

Increase (decrease) in accounts payable-other

6,930(8,290)

Increase (decrease) in accrued expenses

2,084

20,828

Increase (decrease) in advances received

5,759

84,824

Increase (decrease) in deposits expenses(369,533)

375,869

Decrease (increase) in prepaid expenses

52,187(19,723)

Decrease (increase) in long-term prepaid expenses

97,625(45,515)865(1,630)4,118,629

4,554,594

Decrease (increase) in consumption taxes receivable

Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid

660

706

(382,901)(387,405)(1,295)(876)

3,735,093

4,167,019(1,473,781)(14,543,468)

Proceeds from tenant leasehold and security deposits

30

21,096

Repayments of tenant leasehold and security deposits(667)(5,884)

Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment in trust

Proceeds from tenant leasehold and security deposits in trust

84,091

837,785

Repayments of tenant leasehold and security deposits in trust(59,648)(784,680)－(10,000)

5,754

5,534

Payments of tenant leasehold and security deposits in trust
Proceeds from restricted trust deposits
Payments for restricted trust deposits(8,406)(8,890)(1,452,627)(14,488,507)－

21,500,000

Decrease in short-term debt payable(500,000)(21,500,000)

Proceeds from long-term debt payable

500,000

7,900,000

Repayments of long-term debt payable(375,000)(6,275,000)－

11,701,530

Net cash provided by (used in) investment activities
Net cash provided by (used in) financial activities
Proceeds from short-term debt payable

Proceeds from issuance of investment units－(22,261)

Dividends paid

(2,260,823)(2,369,757)

Net cash provided by (used in) financial activities(2,635,823)

10,934,511

Payment of investment unit issuance expenses

Net increase (decrease) in cash and cash equivalents(353,356)

613,023

Balance of cash and cash equivalents at beginning of period

7,273,713

6,920,356

Balance of cash and cash equivalents at end of period

6,920,356

7,533,380

12

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015(6) Notes on the going concern assumption
No relevant items.
(7) Significant accounting policies
The disclosure is omitted, since there are no significant changes from contents disclosed by the latest securities
report (submitted on May 26, 2015).
(8) Notes to financial statements
FRC omits the disclosure of notes to balance sheets, statements of income, statements of changes in net assets, andcash flows statements, as well as notes on lease transactions, financial instruments, securities, derivativetransactions, related-party transactions, tax-effect accounting, retirement benefits, asset retirement obligations,rental properties, segment information and equity method income, etc. since it does not find substantial need fordisclosure in the earnings briefing.
(Per unit information)
21st fiscal period
22nd fiscal period(September 1, 2014 to(March 1, 2015 toFebruary 28, 2015)
August 31, 2015)
Net assets per investment unit:
118,567 yen
Net assets per investment unit:
125,574 yen
Net income per investment unit: 3,434 yen
Net income per investment unit: 3,649 yen
Note 1: Net income per investment unit is calculated by dividing net income by the weighted average number of investment units
outstanding during the fiscal period. Diluted net income per investment unit is not shown since there are no potential
investment units.
Note 2: Calculation of net income per investment unit is based on the following.
21st fiscal period(September 1, 2014 to
February 28, 2015)

Account
Net income (thousands of yen)Amount not attributable to common shareholders (thousands of yen)
Net income attributable to common investment units (thousands of yen)
Average number of investment units during the fiscal period (units)(Significant subsequent events)
No relevant items.

13

22nd fiscal period(March 1, 2015 toAugust 31, 2015)

2,369,872

2,661,683——

2,369,872

2,661,683

690,000

729,342

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

(9) Change in the number of investment units outstanding
Changes in unitholders’ capital from the incorporation of FRC to the end of the current fiscal period are as follows.
Date

Item

Number of investment units
issued and outstanding (units)
Increase
BalanceUnitholders’ capital(millions of yen)
Increase
Balance

Remarks

Established through private
125 (Note 1)
250
250
125
placement
Additional issue of investment
82,80083,05041,40041,525 (Note 2)
November 8, 2004
units through private offering
Additional issue of new
investment units throughJune 20, 2005
7,000
90,0505,944
47,469 (Note 3)
initial public offering
Additional issue of new
investment units through thirdJuly 21, 2005
2,000
92,0501,698
49,167 (Note 4)
party allotment
Additional issue of new
September 7, 2006 investment units through15,000107,050
11,09660,264 (Note 5)
public offering
Additional issue of new
March 1, 2011
16,000123,050
8,913
69,177 (Note 6)
investment units throughpublic offering
Additional issue of new
March 1, 2013
14,950138,000
10,26379,441 (Note 7)
investment units throughpublic offering
March 1, 2014
Split of investment units
552,000
690,000—
79,441 (Note 8)
Additional issue of new
April 27, 2015
investment units through57,000747,000
11,701
91,142 (Note 9)
public offering
Note 1: FRC was established with an issue of investment units at 500,000 yen per unit.
Note 2: New investment units were issued through private offering at the issue price of 500,000 yen per unit for the purpose of
procuring funds for acquiring new properties, etc.
Note 3: New investment units were issued through public offering at the issue price of 880,000 yen per unit (purchase price of
849,200 yen) for the purpose of procuring funds for acquiring new properties, etc.
Note 4: New investment units were issued through third-party allotment at the issue price of 849,200 yen per unit.
Note 5: New investment units were issued through public offering at the issue price of 766,360 yen per unit (purchase price of
739,772 yen) for the purpose of procuring funds for acquiring new properties, etc.
Note 6: New investment units were issued through public offering at the issue price of 576,083 yen per unit (purchase price of
557,078 yen) for the purpose of procuring funds for acquiring new properties, etc.
Note 7: New investment units were issued through public offering at the issue price of 710,580 yen per unit (purchase price of
686,529 yen) for the purpose of procuring funds for acquiring new properties, etc.
Note 8: FRC implemented a 5-for-1 split of its investment units.
Note 9: New investment units were issued through public offering at the issue price of 212,257 yen per unit (purchase price of
205,290 yen) for the purpose of procuring funds for acquiring new properties, etc.
July 2, 2004

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

4. Change in Directors(1) Change in directors in FRC
No relevant items.
(2) Change in directors in Fukuoka Realty Co., Ltd.
Seiji Yagi resigned from the post of Director (as of June 23, 2015).
Masaru Ito was newly appointed as Director (as of June 23, 2015).
Officers of FRC as of October 14, 2015 are listed below.
(as of October 14, 2015)
Title
CEO &
Representative
Director

Name
Etsuo
Matsuyuki

Career Summary
April 1980
June 2004
April 2005
July 2006
July 2009

August 2010

June 2011
January 2012
June 2012
May 2014
Managing
Director

Hidenori Hara

April 1985
June 1990
August 2005
August 2009
June 2012
June 2014
September 2014
September 2014
February 2015

Director

Hiroshi
Shimuta

October 2000
December 2003
April 2004
April 2005
June 2007
June 2007
September 2013

Director

Masaru Ito

April 1985
July 1994
October 1996
September 2003
July 2009

Joined Japan Development Bank (currently
Development Bank of Japan)
Appointed as Manager, Human Resources
Division
Appointed as General Manager, Management
Division
Seconded to Fukuoka Jisho Co., Ltd.
Appointed as Deputy General Manager,
Development Business Group
Joined Fukuoka Jisho Co., Ltd.
Appointed as Executive Officer and Deputy
General Manager, Development Business Groupand General Manager, Building Division
Appointed as Executive Officer and General
Manager, Accounting & Finance Division and in
charge of General Affairs Division and Finance
Division
Appointed as Managing Director and Head ofPlanning Dept., Fukuoka Realty Co., Ltd.
Appointed as Managing Director and Executive
Officer, Fukuoka Jisho Co., Ltd.
Appointed as CEO & Representative Director,
Fukuoka Realty Co., Ltd. (current position)
Appointed as CEO & Representative Director,
Fukuoka REIT Corporation (current position)
Joined the Bank of Fukuoka
Joined Sumitomo Realty & Development Co.,
Ltd.
Joined Fukuoka Jisho Co., Ltd.
Appointed as General Manager, Development
Business Group
Appointed as Executive Officer and General
Manager, Housing Business Division
Appointed as Executive Officer in charge of
Housing Business Division
Appointed as Executive Officer (current
position)
Seconded to Fukuoka Realty Co., Ltd.
Appointed as Managing Director
Appointed as Managing Director and Head ofPlanning Department (current position)
Registered as attorney in law
Appointed as Auditor, Fukuoka Realty Co., Ltd.
Appointed as Head of Compliance OfficeAppointed as Head of Compliance Dept.
Joined Nishimura Tokiwa Law Office (currently,
Nishimura Asahi Law Office)Appointed as Director, Fukuoka Realty Co., Ltd.
(current position)
Appointed as General Manger, Fukuoka Jisho
Co., Ltd. Legal Division (current position)
Joined Nichiboshin, Ltd.
Joined FJ. Toshi Kaihatsu Co.
Joined Fukuoka Jisho Co., Ltd.
Appointed as General Manager, Accounting &Finance Division
Appointed as General Manager, Finance

15

Number ofunits owned
0

0

0

0

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

August 2011

Division Appointed as General Manager,
President’s Office and concurrently as General
Manager, Finance Division
June 2012
Seconded to FJ. HOTELS Co., Ltd.
Appointed as Managing Director
June 2014
Appointed as General Manager, Fukuoka Jisho
Co., Ltd. Finance Division (current position)
June 2015
Appointed as Director, Fukuoka Realty Co., Ltd.
(current position)
Director
Naofumi Sato
April 1976
Joined Kyushu Electric Power Co., Inc.
0
July 2000
Appointed as Deputy Head of Saga Branch andManager of Planning and Administration Office
July 2004
Appointed as Deputy General Manager ofGeneral Affairs Division
June 2007
Appointed as General Manager of General
Affairs Division
June 2009
Appointed as Trustee, Kyushu Electric PowerCo, Inc. and seconded to Kyushu Rinsan, Co.,
June 2011
Inc.
Appointed as President of Kyushu Rinsan
Appointed as Executive Officer and General
Manager of Business Administration Group,
June 2012
Kyushu Electric Power Co., Inc.
Appointed Director, Senior Executive Officer
and General Manager of Business
June 2014
Administration Group
Appointed Director, Fukuoka Realty Co., Ltd.
June 2014(current position)
Appointed as Executive Vice President, Kyushu
Electric Power Co., Ind. (current position)
AuditorMasanori
April 1978
Joined Fukuoka Sogo Bank, Ltd. (currently, The
0
TasakaNishi-Nippon City Bank, Ltd.)
August 2000
Appointed as Deputy General Manager ofPlanning Division
July 2003
Appointed as General Manager of Planning
Division and Manager of Risk Management
October 2004
OfficeAppointed as Senior Manager supporting
April 2005
Business Planning Division
Seconded to NCB Management Information
Service Co., Ltd. (currently, NCB Research &Consulting Co., Ltd.) and appointed as General
April 2006
Manager of Business Alliance Division
Opened Masanori Tasaka Tax & Accounting
June 2006
Office (current position)
Appointed as Auditor, Fukuoka Realty Co., Ltd.
(current position)(Note) Etsuo Matsuyuki concurrently serves as CEO & Representative Director of Fukuoka Realty Co., Ltd., the asset
management company for FRC, and as CEO & Representative Director of FRC. A notification regarding the concurrent
office has been filed to the Commissioner of the Financial Services Agency, based on the provisions of Article 31-4-1 of
the Financial Instruments and Exchange Act.

16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015

5. Reference Information(1) Investment situation(as of August 31, 2015)
Type of asset

Location(Note 1)

Purpose

RetailReal estate in
Trust

Total value of
properties held
(mm of yen)
(Note 2)

Office buildings

OthersPercentage of
total assets(%)(Note 3)

Fukuoka urban area

70,643

38.9

Other Kyushu areas

36,13919.9

Fukuoka urban area

43,983

24.2

Other Kyushu areas——

Fukuoka urban area

18,911

10.4

Other Kyushu areas

2,728

1.5

172,406

94.9

9,191

5.1

181,597100.0(172,416)(94.9)

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

Note 1: “Fukuoka urban area” refers to cities, towns and villages where 10% or more of the population commute to Fukuoka City
for school and work, according to the 2010 census, which states “the number of workers and students aged 15 years orolder (students including those aged 14 years or younger: particular reference) including commuting between their homes
and places of work or school” conducted by Fukuoka City and the Statistics Bureau of the Ministry of Internal Affairs
and Communications. “Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka urban area).
Note 2: “Total value of properties held” is based on the value on the balance sheet (the value of real estate in trust is the bookvalue 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 held in effect to thetotal amount of assets.
(as of August 31, 2015)
Percentage of total amount of assets(%)

Value on balance sheet(mm of yen)
Total amount of liabilities

87,793

48.3

Total amount of net assets

93,80451.7(2) Investment assets(i) Primary issues of investment securities
No relevant items.
(ii) Real estate investment portfolio
No relevant items.

17

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015(iii) Other primary investment assets(a) Values and investment ratios at end of period are as follows.
Acquisitionvalue(mm of yen)
(Note 1)

Value on balancesheet(mm of yen)

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

Canal City Hakata

32,00030,62232,700Canal City Hakata･B

28,70028,396

29,600Park Place Oita (Note 4)

16,29018,01017,934

SunLive City Kokura

6,633

5,959

7,760

Square Mall Kagoshima Usuki

5,300

4,659

5,210

Kumamoto Intercommunity SC

2,400

2,104

2,610

AEON Hara Shopping Center

5,410

5,293

4,500

Hanahata SC

1,130

1,036

1,210

Kurume Higashi Kushiwara SC

2,500

2,205

2,700

K’s Denki Kagoshima

3,550

3,198

3,620

Marinoa City Fukuoka (Marina
Side Building)Retail subtotal:
Canal City Business Center
Building

5,250

5,294

5,390

109,163

106,783

113,234

14,60013,57014,800Gofukumachi Business Center

11,2009,535

12,900Sanix Hakata Building

4,400

4,022

5,020

Taihaku Street Business Center

7,000

6,480

7,120

Higashi Hie Business Center

5,900

4,931

6,320

Tenjin Nishi-Dori Center Building

2,600

2,709

2,870

Tenjin North Front Building

2,800

2,734

3,230

Real estate property name

Office buildings subtotal:

48,50043,98352,260Amex Akasakamon Tower

2,060

1,808

1,830

City House Keyaki Dori

1,111

990

1,020

Aqualia Kego

2,800

2,683

3,590

Aqualia Chihaya

1,280

1,231

1,570

D-WING TOWER

2,800

2,811

3,220

Hotel FORZA Oita

1,530

1,461

1,660

Tosu Logistics Center

1,250

1,266

1,320

Granfore Yakuin Minami

1,100

1,186

1,210

LOGIPORT Island-city Hakata

8,150

8,199

8,270

Investment
ratio
(%)
(Note 3)(as of August 31, 2015)
Real estate appraiser

Sogo
17.8 Tanizawa
Appraisal Co., Ltd.

Sogo
16.0 Tanizawa
Appraisal Co., Ltd.
Real Estate
9.1 Japan
Institute

Real Estate
3.7 Japan
Institute

Real Estate
2.9 Japan
Institute

Real Estate
1.3 Japan
Institute
Real Estate
3.0 Japan
InstituteSogo
0.6 Tanizawa
Appraisal Co., Ltd.
Sogo
1.4 Tanizawa
Appraisal Co., Ltd.

Sogo
2.0 Tanizawa
Appraisal Co., Ltd.

Sogo
2.9 Tanizawa
Appraisal Co., Ltd.

60.7

Sogo
8.1 Tanizawa
Appraisal Co., Ltd.
Sogo
6.2 Tanizawa
Appraisal Co., Ltd.
Real Estate
2.4 Japan
Institute

Real Estate
3.9 Japan
InstituteSogo
3.3 Tanizawa
Appraisal Co., Ltd.
Real Estate
1.4 Japan
Institute

Real Estate
1.6 Japan
Institute

27.0

Real Estate
1.1 Daiwa
Appraisal Co., Ltd.
Real Estate
0.6 Daiwa
Appraisal Co., Ltd.

Real Estate
1.6 Japan
Institute

Real Estate
0.7 Japan
InstituteSogo
1.6 Tanizawa
Appraisal Co., Ltd.
Real Estate
0.9 Japan
Institute

Real Estate
0.7 Japan
InstituteSogo
0.6 Tanizawa
Appraisal Co., Ltd.
Sogo
4.5 Tanizawa
Appraisal Co., Ltd.

Others subtotal:
22,081
21,63923,69012.3
Total
179,744
172,406
189,184
100.0
Note 1: “Acquisition value” refers 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
with the method and standards for asset evaluation stipulated in FRC’s Articles of Incorporation and rules stipulated by
the Investment Trusts Association, Japan.
Note 3: “Investment ratio” is obtained by dividing each property’s acquisition value by the total acquisition value. The total ofindividual percentages in the above table may not equal 100%, since the figures are rounded off to one decimal place.
Note 4: The figures include those for the property’s adjacent land that FRC acquired on May 28, 2015. The same shall apply
hereafter.

18

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2015(b) Summary of the real estate leasing business

Real estate property name
Canal City Hakata
Canal City Hakata･B
Park Place Oita
SunLive City Kokura
Square Mall Kagoshima Usuki
Kumamoto Intercommunity SC
AEON Hara Shopping Center
Hanahata SC
Kurume Higashi Kushiwara SC
K’s Denki Kagoshima
Marinoa City Fukuoka (Marina
Side Building)Retail subtotal:
Canal City Business Center
Building
Gofukumachi Business Center
Sanix Hakata Building
Taihaku Street Business Center
Higashi Hie Business Center
Tenjin Nishi-Dori Center
Building
Tenjin North Front Building
Office buildings subtotal:
Amex Akasakamon Tower
City House
Keyaki Dori
Aqualia Kego
Aqualia Chihaya
D-WING TOWER
Hotel FORZA Oita
Tosu Logistics Center
Granfore Yakuin Minami
LOGIPORT Island-city Hakata

Totalleased floor
space
(m2)

(as of August 31, 2015)
Percentage of
Total
total
leasingleasing revenues
revenues(%)(mm of yen)
(Note 5)(Note 4)
1,470
17.5
1,611
19.1
1,166
13.8
292
3.5
256
3.0
90
1.1
212
2.5
40
0.5
88
1.0
111
1.3

Number oftenants(Note 1)

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

1 [46]
1 [49]
1 [105]
1
13
2
1
2
1
1

99.5
99.6
99.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0

46,483.22
68,806.66
109,588.00
61,450.22
14,602.88
6,968.66
27,313.53
2,801.15
6,467.80
7,296.17

46,233.72
68,559.07
109,459.56
61,450. 22
14,602.88
6,968.66
27,313.53
2,801.15
6,467.80
7,296.171

100.0

33,069.82

33,069.82

118

1.4

25 [222](Note 2)

99.8

384,848.11

384,222.58

5,459

64.8

1 [61]

100.0

23,030.44

23,030.44

649

7.7

36
18
1 [68]
1 [23]

99.5
95.8
98.8
100.0

19,905.34
6,293.76
14,677.27
13,674.96

19,802.20
6,027.06
14,506.18
13,674.96

521
196
298
328

6.2
2.3
3.5
3.9

1

100.0

3,339.32

3,339.32

86

1.0

13
71 [220](Note 2)
1 [66]

100.0

5,252.39

5,252.39

132

1.6

99.4

86,173.48

85,632.55

2,213

26.3

98.5

4,821.25

4,749.72

66

0.8

1 [40]

95.5

2,710.86

2,588.58

38

0.5

1 [124]96.0
7,415.36
7,115.16
115
1.4
1 [101]
95.7
5,619.69
5,380.61
57
0.7
1 [128]92.1
7,187.58
6,621.49
112
1.3
1
100.0
5,785.44
5,785.44
63
0.7
1
100.0
4,173.29
4,173.29(Note 6)(Note 6)
1 [96]
97.0
2,496.06
2,421.34
39
0.5
2
100.0
43,233.72
43,233.72(Note 6)(Note 6)10 [559]
Others subtotal:
98.4
83,443.25
82,069.35749
8.9(Note 2)
106
Total
[1,001]
99.5
554,464.84
551,924.48
8,423
100.0
(Note 2)
Note 1: “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 Business Centeris an office building with a residential tower. Its number of tenants comprises 12 offices and 56 residences.
Note 2: 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 inthe totals column for “Number of tenants.”
Note 3: “Occupancy rate” refers to the percentage of total leased floor space to total leasable floor space and the figures arerounded off to one decimal place.
Note 4: “Total leasing revenues” are the total of real estate leasing revenues and other revenues from real estate rent in the current
fiscal period.
Note 5: “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.
Note 6: The figures are not disclosed as no consent to disclosure has been obtained from the tenants.

(3) Investment target
The disclosure is omitted, since there are no significant changes from the “Investment target” disclosed by the latest
securities report (submitted on May 26, 2015).

19