Provisional translation only
April 9, 2012EARNINGS BRIEFING
FOR THE PERIOD ENDED FEBRUARY 2012
URL: http://www.fukuoka-reit.jp/eng/
Stock listings: Tokyo Stock Exchange, andFukuoka Stock Exchange

Real estate investment trust: Fukuoka REIT Corporation (FRC)
Code number: 8968
Representative: Masayasu Saki
CEO &Representative
Director

Asset manager: Fukuoka Realty Co., Ltd.
Representative: Masayasu Saki
CEO & Representative Director
Contact: Etsuo Matsuyuki Managing Director
Phone: +81-92-272-3900
Expected date for submitting securities report:
May 29, 2012
Expected commencement date of dividend payments: May 18, 2012
(Figures rounded down to nearest million yen.)

1. PERFORMANCE AND SITUATION OF ASSETS FOR THE PERIOD ENDED FEBRUARY 2012
(September 1, 2011 to February 29, 2012)(1) Performance
Operating revenues
Millions of%yen
Period ended
February 2012
Period ended
August 2011

Operating income
Millions of
%
yen

6,931

(1.6)

2,637

(3.4)

2,046

(1.8)

2,045

(1.8)

7,045

24.4

2,729

17.8

2,083

18.1

2,082

18.1

Net income
per unit
Period ended
February 2012
Period ended
August 2011(% shows percentage change from previous period)
Ordinary income
Net income
Millions of%Millions of
%
yen
yen

Ratio ofordinary income tototal assets

Return on
net assets

Ratio ofordinary income tooperating revenues

16,621 yen

2.9%

1.3%

29.5%

16,922 yen

3.1%

1.4%

29.6%

(2) Dividends
Dividend
per unit(excl. dividendin excess ofearnings)
Period ended
February 2012
Period ended
August 2011

Dividendin excess ofearnings
per unit

Total
dividend

Total
dividendin excess ofearnings

Payoutratio

Ratio ofdividend to
net assets

16,621 yen

2,045 million yen

0 yen

0 million yen

100.0%

2.9%

16,922 yen

2,082 million yen

0 yen

0 million yen

100.0%

2.9%(3) Financial condition
Total assets
Period ended
February 2012
Period ended
August 2011

Net assets

Ratio ofnet assets to total assets

Net assets per unit

155,792 million yen

71,222 million yen

45.7%

578,812 yen

155,657 million yen

71,259 million yen

45.8%

579,113 yen(4) Cash flows condition
Cash flows fromoperating activities
Period ended
February 2012
Period ended
August 2011

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at endof period

3,677 million yen(566) million yen(2,153) million yen

8,154 million yen

3,294 million yen(20,086) million yen

17,548 million yen

7,197 million yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

2. FORECAST OF PERFORMANCE FOR THE PERIOD ENDING AUGUST 2012
(March 1, 2012 to August 31, 2012) AND THE PERIOD ENDING FEBRUARY 2013
(September 1, 2012 to February 28, 2013)(% shows percentage change from previous period)
Dividend
Net
Dividend
Operating revenues Operating income Ordinary income
per unit
incomein excess of(excl. dividend
earnings
Millions ofMillions ofMillions ofMillions of%%%% in excess of
per unit
yen
yen
yen
yen
earnings)
Periodending
7,103
2.5
2,576
(2.3)
1,969
(3.7)
1,968
August2012
Periodending
7,224
1.7
2,622
1.8
1,982
0.6
1,981
February
2013(Reference) Forecast net income per unit: Period ending August 2012
16,000 yen
Period ending February 2013 16,100 yen(3.7)

16,000 yen

0 yen

0.6

16,100 yen

0 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 issued and outstanding(i) Number of investment units issued and outstanding at end of period (including treasury investment units):
123,050 units at end of February 2012
123,050 units at end of August 2011(ii) Treasury investment units at end of period:—
units at end of February 2012—
units at end of August 2011
Note: Regarding the number of investment units, a basis for calculating net income per unit, please refer to “Perunit information,” on page 13.

* 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 August 2012 (March 1, 2012 to August 31, 2012) and the period ending February 2013
(September 1, 2012 to February 28, 2013),” on page 6.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

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 “Guidance for Preparation of Earnings Briefing for Listed Real Estate
Investment Trusts” (August 2009) released by Tokyo Stock Exchange, Inc.

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 November 25, 2011).

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 November 25, 2011).
(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 “Investment
Trust and Investment Corporation Law of Japan” (Law No. 198 in 1951 including later revisions,
hereinafter the “Investment Trust Law”) and listed on the Tokyo Stock Exchange Group Inc. (hereinafter
the “TSE”) and the Fukuoka Stock Exchange (hereinafter the “FSE”) on June 21, 2005 as the nation’s firstreal estate investment trust specializing in regional properties (code number: 8968). FRC invests in realestate throughout all of Kyushu (including Okinawa Prefecture), with a central focus on Fukuoka City, andYamaguchi Prefecture (hereinafter the “Fukuoka/Kyushu area) by turning rationality, characteristics in thereal estate industry, into strengths.
FRC started asset management activities on November 9, 2004 after acquisition of four properties such ascommercial facilities in Canal City Hakata (excluding some areas of specialty shops, hotels, theaters,
offices and common space), a commercial complex where specialty shops, cinema complex, theaters,amusement facilities, hotels and offices are integrally developed (hereinafter “Canal City Hakata”). FRC
now manages a total of 17 properties comprising ten commercial facilities, five office buildings and two
residential properties as of the end of the current fiscal period (February 29, 2012).
(b) Investment environment and portfolio performance
The Japanese economy as a whole stayed mostly flat in the fifteenth fiscal period, as domestic demand led
by consumer spending remained strong while external demand was depressed by the slowdown inoverseas economies, which were impacted by the European sovereign debt problem and other issues, andby high appreciation of the yen in the foreign exchange market, among other things. In Kyushu, the prime
investment area for FRC, the employment and income situations continue to remain harsh. Nevertheless,an upturn is seen in production and consumer spending and the region as a whole is anticipated to get backon track to recovery. According to the 2012 Land Price Survey, land prices have fallen for four
consecutive years for both commercial and residential land, though the rate of decrease has tended to slow.
In Fukuoka City, a core investment target area for FRC, commercial land prices decreased by 1.6% andresidential land prices decreased by 0.9% compared to the previous year. However, there was an increase
from the previous survey in the number of surveyed sites where the price rose or remained flat, reflecting
strong housing demand and the Kyushu Shinkansen (bullet train) starting full operations throughout its full
span.
Under such circumstances, FRC poured continuous efforts into operations to enhance competitiveness andcustomer drawing power at major commercial facilities such as Canal City Hakata. FRC also endeavoredto maintain and raise the occupancy rates of owned properties. As a result, the average occupancy rate
marked 98.1% for all properties FRC owns as of the end of the fifteenth fiscal period.
When analyzing FRC’s portfolio (on an acquisition value basis) by geographic location, properties in the
Fukuoka urban area occupy 75.9% of its portfolio; when analyzing by property type, commercial facilities,
office buildings, and residential properties account for 69.1%, 28.8% and 2.1%, respectively.
(c) Summary of fundraising
In the current fiscal period, FRC refinanced 4,000 million yen in its short-term debt under committed lineof credit (totaling 4,500 million yen) into long-term debt from the viewpoint of diversification of debt
maturities and prolonged residual maturity of borrowings. For the 1,500 million yen in long-term debt thatmatured in December 2011, FRC conducted refinance of the entire amount with a loan period of 6 years.
3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

As a result, the balance of debt outstanding at the end of the current fiscal period totaled 69,425 million
yen, with the loan-to-value ratio at end of period at 44.6%. Moreover, with regard to the commitment linesthat were set up as backup lines for fund procurement, FRC renewed a commitment line that was to expire
in February 2012, with a credit limit of 6,000 million yen and commitment period of 2 years (in contrast to
5,000 million yen and one year before the revision).
To reduce refinancing risks, FRC will continue to disperse the debt repayment dates and increase theaverage length of time until debt maturity.
Furthermore, the credit ratings assigned to FRC as of the end of the current fiscal period are as follows.
Credit Rating Agency
Standard & Poor's Ratings
Japan K.K. (S&P)
Rating and Investment
Information, Inc. (R&I)
Japan Credit Rating Agency,
Ltd. (JCR)

Rating Type
Long-term Corporate Credit Rating

Rating Outlook
StableShort-term Corporate Credit Rating
Issuer Rating

RatingA−
A−2
A+

Long-term Senior Debts Rating

A A−

StableStable(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 6,931 million yen and operating
income after excluding operating expenses such as expenses related to rent business and asset
management fees totaled 2,637 million yen. Ordinary income was 2,046 million yen and net income was
2,045 million yen.
Management decided to make a dividend of 16,621 yen per investment unit to meet the requirements ofspecial tax measures for an investment corporation (as stipulated in Article 67-15 of the Special Taxation
Measures Law of Japan [Law No. 26 in 1957 including later revisions, hereinafter the “Special Taxation
Measures Law”]). Under this law, an investment corporation is allowed to deduct the maximum amount ofdividends paid to investors from its taxable income.
(ii) Forecast for the next fiscal period(a) Portfolio management policy
FRC will increase management and rent capabilities by cooperating with property management companies
including sponsor companies even in a worsening consumer spending environment and maintain the stable
operation of the properties by making the most use of their advantages.
FRC will invest 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“high growth potential markets.” By geographic location, of all of Kyushu and Yamaguchi Prefecture,
FRC invests 60% to 90% of its assets in the Fukuoka urban area, since the Fukuoka urban area is expected
to have a high population growth rate in the future. In addition to the Fukuoka urban area, management
has decided to actively acquire properties in major cities, if there are regions or properties where FRC 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 August 2012 (March 1, 2012
to August 31, 2012) and the period ending February 2013 (September 1, 2012 to February 28, 2013).
Concerning preconditions for the forecast, please refer to “Preconditions for the performance forecast forthe period ending August 2012 (March 1, 2012 to August 31, 2012) and the period ending February 2013
(September 1, 2012 to February 28, 2013),” on page 6.
Period ending August 2012
Operating revenues

7,103 million yen
4Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

Ordinary income
Net income
Dividend per unit
Dividend in excess of earnings per unit

1,969 million yen
1,968 million yen
16,000 yen
0 yen

Period ending February 2013
Operating revenues
Ordinary income
Net income
Dividend per unit
Dividend in excess of earnings per unit

7,224 million yen
1,982 million yen
1,981 million yen
16,100 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.
(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 November 25, 2011).

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

Preconditions for the performance forecast for the period ending August 2012 (March 1, 2012 to August 31, 2012) andfor the period ending February 2013 (September 1, 2012 to February 28, 2013)
Item
Calculation period
Assets undermanagement

Preconditions
16th fiscal period: from March 1, 2012 to August 31, 2012 (184 days)
17th fiscal period: from September 1, 2012 to February 28, 2013 (181 days)
 It is assumed that there will be 19 properties which is the sum of 17 properties FRC owned
as of February 29, 2012 plus Aqualia Kego and Aqualia Chihaya it acquired on March 1,
2012.
 In practice, they may fluctuate due to changes in assets under management.

Number of It is assumed that there will be no issuance of new investment units until the end of theinvestment units
fiscal period ending February 2013.
issued and outstanding The balance of interest-bearing debt outstanding on February 28, 2013 is expected to total
73,275 million yen, an increase of 3,850 million yen from the end of the current period(February 29, 2012). The loan-to-value ratio (interest-bearing debt  total assets  100) is
expected to stand at around 46.0% (as of February 29, 2012, the loan-to-value ratio stands
at 44.6%).
 In the period ending August 2012, FRC newly borrowed long-term debt of 2,000 million
yen and short-term debt totaling 2,000 million yen on March 1, 2012, and refinanced 1,400
Interest-bearing debt
million yen out of 2,500 million yen in short-term debt into long-term debt on March 30, 2012.
and refinancing
Furthermore, it is assumed that FRC will refinance long-term debt of 6,000 million yenthat will become due for repayment in June 2012 into long-term debt.
 In the period ending February 2013, it is assumed that FRC will refinance short-term debt
totaling 1,100 million yen into long-term debt and that it will refinance long-term debt
totaling 2,600 million yen that will become due for repayment in September 2012 as well
as long-term debt totaling 9,500 million yen that will become due for repayment in
February 2013 into long-term debt respectively.
 Of real estate rent revenues, revenues from properties FRC has already acquired are
calculated based on tenancy agreements that are valid as of today by taking into accountthe competitiveness of the properties and the market environment.
Operating revenues
Of real estate rent revenues, revenues from percentage lease contracts are calculated basedon past results by taking into account sales fluctuation factors of the relevant tenants.
 Concerning real estate rent revenues, 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 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 August 2012 and February 2013. Actual repair costs may differ significantly fromthe estimated amounts since there is the possibility that repair costs are incurred urgently
Operating expenses
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 1,482 million yen for the period
ending August 2012 and 1,489 million yen for the period ending February 2013.
 Concerning taxes and other public charges, FRC anticipates 562 million yen for the period
ending August 2012 and 561 million yen for the period ending February 2013.
 Concerning depreciation and amortization expenses, FRC anticipates 1,255 million yen forthe period ending August 2012 and 1,291 million yen for the period ending February 2013.
 Concerning interest payment and expenses related to financing, FRC anticipates 640
Non-operating
million yen for the period ending August 2012 and 638 million yen for the period ending
expensesFebruary 2013.
 Dividend (dividend per unit) is calculated based on the dividend policy stipulated in
FRC’s Articles of Incorporation.
Dividend per unit
 Dividend per unit may fluctuate due to fluctuations in rent revenues caused by changes in
assets under management and tenants or various factors including unexpected occurrencesof repair.
Dividend in excess
 Dividend in excess of earnings (dividend in excess of earnings per unit) is not planned atof earnings per unit
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.
Other It is also assumed that there will be no significant unexpected changes in general
economic conditions and the real estate market.

6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

3. Financial Statements(1) Balance sheets(thousands of yen)Account

14th fiscal period(as of August 31, 2011)

15th fiscal period(as of February 29, 2012)

AssetsCurrent assets
Cash and deposits

2,568,007

3,386,507

Cash and deposits in trust

4,629,187

4,768,082

Operating account receivable

359,285

277,337

Prepaid expenses

312,106

274,218

Consumption taxes receivable

451,247—

Deferred tax assets
Other
Total current assets

20

19

42,984

12,162

8,362,839

8,718,329

Noncurrent assets
Property, plant and equipment
Buildings in trust, netAggregate of accumulated depreciation
Structures in trust, netAggregate of accumulated depreciation
Machinery and equipment in trust, netAggregate of accumulated depreciation
Tools and fixtures in trust, netAggregate of accumulated depreciation

66,104,394(9,927,723)

66,859,921
56,176,670

1,103,529(262,904)

840,624Lands in trust(292,831)

812,425

351,944
228,402

1,035,745(500,302)

55,867,119

1,105,256

351,214(122,812)(10,992,802)(133,265)

218,679

1,072,411
535,442(567,688)

504,72287,057,619

87,057,619

Construction in progress in trust

7,350

215,660

Total property, plant and equipment

144,846,109

144,676,226

1,765,318

1,765,318

17,38521,0401,782,704

1,786,358

Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

100,000

100,000

Long-term prepaid expenses

533,100

484,124

Total investment and other assets

643,100

594,124

147,271,914

147,056,709

Investment unit issuance expenses

22,394

17,915

Total deferred assets

22,394

17,915

155,657,148

155,792,953

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

Total noncurrent assets
Deferred assets

Total assets

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

(thousands of yen)Account

14th fiscal period(as of August 31, 2011)

15th fiscal period(as of February 29, 2012)

Liabilities
Current liabilities
Operating accounts payable

410,201

543,922

Short-term debt

4,500,000

500,000

Current maturities of long-term debt

7,650,000

18,250,000

Account payable-other

10,296

15,822

Accrued expenses

296,215

301,798

Income taxes payable

751

944

Accrued consumption taxes—

150,990

Advances received

845,995

794,980

Deposits received

949,491

671,675

Total current liabilities

14,662,952

21,230,134

57,350,000

50,675,000

331,515331,545

12,052,750

12,333,382

69,734,265

63,339,927

84,397,218

84,570,061

69,177,628

69,177,628

2,082,302

2,045,264

Total surplus

2,082,302

2,045,264

Total Net Assets

71,259,930

71,222,892

Total net assets

71,259,930

71,222,892

Total liabilities and net assets

155,657,148

155,792,953

Noncurrent liabilities
Long-term debt payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits received intrust
Total noncurrent liabilities
Total liabilities
Net assets
Net Assets
Shareholders’ capital
Surplus
Unappropriated surplus

8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012(2) Statements of income(thousands of yen)
14th fiscal period(March 1, 2011 toAugust 31, 2011)

Account

15th fiscal period(September 1, 2011 to
February 29, 2012)

1. Operating revenues
Rent revenue- real estate
Other rental revenue-real-estate

6,826,999
218,505

6,682,912
7,045,505

249,029

6,931,942

2. Operating expenses
Expenses related to rent business
Asset management fees

3,803,541

3,757,328

405,509413,246

Asset custody fees

5,009

5,805

Administrative service fees

38,766

46,049Director’s compensations

9,600

9,600

—

575

Bad debt expenses
Other operating expenses

53,628Operating income

4,316,055

61,912

2,729,450

4,294,518
2,637,423

3. Non-operating revenues
Interest received

674

Other

521

744
1,196

2,705

3,449

4. Non-operating expenses
Interest payment

497,140

474,736

4,478

4,478

Amortization of investment unit issuance expenses
Financing related expenses

107,705

Other

37,933

115,350647,257—

594,565

Ordinary income

2,083,388

2,046,307

Net income before tax

2,083,388

2,046,307

Income taxes-current

1,110

Income taxes-deferred(0)

Net income

1,092
1,110

0

1,093

2,082,278

2,045,214

Retained earnings brought forward

23

50

Unappropriated retained earnings

2,082,302

2,045,264

9

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012(3) Statement of changes in net assets
14th fiscal period (March 1, 2011 to August 31, 2011)(thousands of yen)
Net Assets
Item

Balance as of March 1, 2011

Retained earnings

Shareholders’capitalUnappropriatedretained earnings

Total
Net Assets

Total
net assets

60,246,380

1,762,601

62,026,981

62,026,981

8,913,248—

8,913,248

8,913,248

Dividend of retained earnings—(1,762,578)(1,762,578)(1,762,578)

Net income—

2,082,278

2,082,278

2,082,278

Total of changes in the current fiscal period

8,913,248

319,700

9,232,948

9,232,948

Balance as of August 31, 2011

69,177,628

2,082,302

71,259,930

71,259,930

Changes in the current fiscal period
Issuance of new investment units

15th fiscal period (September 1, 2011 to February 29, 2012)(thousands of yen)
Net Assets
Item

Balance as of September 1, 2011

Retained earnings

Shareholders’capitalUnappropriatedretained earnings

Total
Net Assets

Total
net assets

69,177,628

2,082,302

71,259,930

71,259,930

Dividend of retained earnings—(2,082,252)(2,082,252)(2,082,252)

Net income—

2,045,214

2,045,214

2,045,214—(37,037)(37,037)(37,037)

69,177,628

2,045,264

71,222,892

71,222,892

Changes in the current fiscal period

Total of changes in the current fiscal period
Balance as of February 29, 201210

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

(4) Dividend statement

I. Unappropriated retained earnings

2,082,302 thousand yen

15th fiscal period(September 1, 2011 to February 29,
2012)
2,045,264 thousand yen

II. Total

2,082,252 thousand yen

2,045,214 thousand yen(16,922 yen)

(16,621 yen)

50 thousand yen

50 thousand yen

Account

14th fiscal period(March 1, 2011 to August 31, 2011)(Dividend per investment unit)

III. Retained earnings brought forward
Method for calculating dividends

The amount of dividends shall be decidedin accordance with the dividend policy
stipulated in Article 38-1-1 of FRC’s
Articles of Incorporation and must exceed
90% of FRC’s distributable profits as
stipulated in Article 67-15 of the Special
Taxation Measures Law of Japan.
Following the above policy, FRC shalldecide to distribute 2,082,252 thousand
yen, which is almost the entire amount of
unappropriated retained earnings, asearnings dividends. Moreover, dividend inexcess of earnings as stipulated in Article38-2 of FRC’s Articles of Incorporation
will not be provided.

The amount of dividends shall bedecided in accordance with thedividend policy stipulated in Article
38-1-1 of FRC’s Articles ofIncorporation and must exceed 90% of
FRC’s distributable profits as stipulated
in Article 67-15 of the Special Taxation
Measures Law of Japan. Following theabove policy, FRC shall decide to
distribute 2,045,214 thousand yen,which is almost the entire amount of
unappropriated retained earnings, asearnings dividends. Moreover, dividendin excess of earnings as stipulated in
Article 38-2 of FRC’s Articles ofIncorporation will not 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 February 2012

(5) Cash flows statements(thousands of yen)
14th fiscal period(March 1, 2011 toAugust 31, 2011)

Account
I. Net cash provided by (used in) operating activities
Net income before taxes
Depreciation expenses
Amortization of investment unit issuance expenses
Interest received
Interest payment
Decrease (increase) in operating account receivables
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating account payable
Increase (decrease) in account payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in advance received
Increase (decrease) in deposits expenses
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest received
Interest payment
Income tax paid
Income tax refund
Net cash provided by (used in)operating activities

15th fiscal period(September 1, 2011 to
February 29, 2012)

2,083,388
1,164,305
4,478
(674)
497,140
123,469(451,247)(29,669)(4,657)(10,354)
36,571
181,596
430,574(104,861)(167,350)
38,493
3,791,114
674(496,431)(42,479)
41,392
3,294,270

2,046,307
1,177,245
4,478
(744)
474,736
81,947451,247
150,990(50,262)
2,342
2,947
(51,015)(277,815)
37,887
48,976
9,261
4,108,532
744(472,101)(900)
41,374
3,677,649

II. Net cash provided by (used in) investing activities
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
Repayment of tenant leasehold and security deposits in trust
Redemption of investment securities
Net cash provided by (used in) investment activities(29,805,063)(18,704)30(30)
3,606,951(269,641)
6,400,000(20,086,457)(841,554)(5,606)120(90)473,209(192,577)—(566,499)

III. Net cash provided by (used in) financing activities
Increase in short-term debt payable
Decrease in short-term debt payable
Proceeds from long-term debt payable
Repayment of long-term debt payable
Proceeds from issuance of investment units
Dividends paid
Payment of investment unit issuance expenses
Net cash provided by (used in) financing activities

31,500,000(27,000,000)
1,300,000(7,075,000)
8,913,248(1,762,440)(26,872)(17,548,935)

17,000,000(21,000,000)
5,500,000(1,575,000)—(2,078,755)—(2,153,755)

IV. Net increase (decrease) in cash and cash deposits

756,747

957,395

V. Balance of cash and cash deposits at beginning of period

6,440,447

7,197,195

VI. Balance of cash and cash deposits at end of period

7,197,195

8,154,590

12

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012(6) Notes on the going concern assumption
No relevant items(7) Significant accounting policies
The disclosure is omitted, since there are no significant changes from contents disclosed by the latest securities
report (submitted on November 25, 2011).
(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 andrental properties, since it does not find substantial need for disclosure in the earnings briefing.
(Per unit information)
14th fiscal period(March 1, 2011 to August 31, 2011)
Net assets per investment unit:
579,113 yen
Net income per investment unit: 16,922 yen

15th fiscal period(September 1, 2011 to February 29, 2012)
Net assets per investment unit:
578,812 yen
Net income per investment unit: 16,621 yen

Net income per investment unit is calculated by dividing
net income by the weighted average number of investment
units issued and outstanding during the fiscal period.

Net income per investment unit is calculated by dividing
net income by the weighted average number of investment
units issued and outstanding during the fiscal period.

Diluted net income per investment unit is not shown since
there are no potential investment units.

Diluted net income per investment unit is not shown since
there are no potential investment units.

Note: Calculation of net income per investment unit is based on the following.
14th fiscal period(March 1, 2011 toAugust 31, 2011)

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)
15th fiscal period(September 1, 2011 to February 29, 2012)

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

4. Change in Directors(1) Change in directors in FRC
No relevant items(2) Change in directors in Fukuoka Realty Co., Ltd.
No relevant items

13

15th fiscal period(September 1, 2011
to February 29, 2012)

2,082,278

2,045,214——

2,082,278

2,045,214

123,050

123,050

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012

5. Reference Information(1) Investment situation(as of February 29, 2012)
Type of asset

Real estate in
Trust

Location(Note 1)

PurposeCommercial
facility
Office building
Residential
property

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

Percentage of
total assets(%)(Note 3)

Fukuoka urban area

66,718

42.8

Other Kyushu areas

35,82323.0

Fukuoka urban area

40,68826.1

Other Kyushu areas——

Fukuoka urban area

3,016

1.9

Other Kyushu areas——

146,246

93.9

Subtotal

Deposits and other assets
9,546
6.1
Total amount of assets
155,792
100.0(Note 4)(146,462)(94.0)
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 2005 census, which states “the number of workers and students aged 15 years orolder 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) and Yamaguchi Prefecture.
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 numbers 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 February 29, 2012)
Percentage of total amount of assets(%)

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

84,57054.3

Total amount of net assets

71,22245.7(2) Investment assets(i) Primary issues of investment securities
No relevant items

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012(ii) Real estate investment portfolio(a) Values and investment ratios at end of period are as follows.
(as of February 29, 2012)
Acquisition
value(millions ofyen)(Note 1)

Value onbalancesheet(millions ofyen)

Period-end
appraisal value(millions ofyen)(Note 2)

Investment
ratio
(%)
(Note 3)

Canal City Hakata

32,00031,22232,200

21.4

Tanizawa Sogo Appraisal
Co., Ltd.

Park Place Oita

15,70016,646

16,700

10.5

Japan Real Estate Institute

SunLive City Kokura

6,633

6,166

7,360

4.4

Japan Real Estate Institute

5,300

5,010

4,850

3.5

Japan Real Estate Institute

2,400

2,230

2,430

1.6

Japan Real Estate Institute

5,410

5,445

4,680

3.6

Japan Real Estate InstituteHanahata SC

1,130

1,084

1,170

0.8

Kurume Higashi
Kushiwara SC

2,500

2,360

2,520

1.7

K’s Denki Kagoshima

3,550

3,409

3,400

2.4

Canal City Hakata B

28,70028,96628,80019.2

103,323

102,542

104,11069.1

14,60014,02514,8009.8

11,200

10,132

12,800

7.5

4,400

4,253

4,700

2.9

Japan Real Estate Institute

7,000

6,798

6,650

4.7

Japan Real Estate Institute

5,900

5,478

6,040

3.9

Tanizawa Sogo Appraisal
Co., Ltd.

43,10040,68844,990

28.8

2,060

1,947

1,670

1.4

City House Keyaki Dori

1,111

1,068

1,020

0.7

Residential properties
subtotal:

3,171

3,016

2,690

2.1

Total

149,594

146,246

151,790

100.0

Name of property

Square Mall
Kagoshima Usuki
Kumamoto
Intercommunity SC
AEON Hara Shopping
CenterCommercial facilities
subtotal:
Canal City BusinessCenter Building
Gofukumachi
Business Center
Sanix Hakata Building
Taihaku Street
Business Center
Higashi Hie
Business Center
Office buildings
subtotal:
Amex
Akasakamon Tower

Real estate appraiser

Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.

Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.

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 numbers are rounded off to one decimal place.
.

15

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012(b) Summary of the real estate rental business

Name of property

Number oftenants(Note 1)

Occupancy
Total
Total
rate
leasable space leased space
(%)
(m2)
(m2)
(Note 3)(as of February 29, 2012)
Percentage of
Total
total
rental revenues
rental revenues(millions of yen)(%)
(Note 4)(Note 5)
1,245
18.0

Canal City Hakata

1 (47)

89.1

46,012.98

41,004.78

Park Place Oita
SunLive
City Kokura
Square Mall
Kagoshima Usuki
Kumamoto
Intercommunity SC
AEON Hara Shopping
CenterHanahata SC
Kurume Higashi
Kushiwara SC
K’s Denki Kagoshima
Canal City Hakata B(Note 6)
Commercial
facilities subtotal:
Canal City BusinessCenter Building
Gofukumachi
Business Center
Sanix Hakata
Building
Taihaku Street
Business Center
Higashi Hie BusinessCenterOffice buildings
subtotal:
Amex
Akasakamon Tower
City House
Keyaki DoriResidential
properties subtotal:

1

99.5

103,836.54

103,300.71

978

14.1

1

100.0

61,450.22

61,450.22

293

4.2

11

100.0

14,602.59

14,602.59

226

3.3

2

100.0

6,968.66

6,968.66

89

1.3

1

100.0

27,580.75

27,580.75

212

3.1

2

100.0

2,801.15

2,801.15

40

0.6

1

100.0

6,467.80

6,467.80

88

1.3

1

100.0

7,296.17

7,296.17

111

1.6

1 (49)

99.7

63,706.69

63,492.96

1.628

23.5

22 (218)(Note 2)

98.3

340,723.55

334,965.79

4,915

70.9

1

98.6

23,032.64

22,708.03

598

8.6

25

90.6

19,907.87

18,029.36

481

6.9

19

100.0

6,293.76

6,293.76

192

2.8Note 1:

Note 2:
Note 3:Note 4:Note 5:Note 6:

(103)

(58)

1

(70)

99.6

14,653.97

14,598.92

302

4.4

1

(19)

100.0

13,695.51

13,695.51

338

4.9

47 (191)(Note 2)

97.1

77,583.75

75,325.58

1,914

27.6

1

(65)

98.3

4,755.14

4,672.93

63

0.9

1

(41)

97.8

2,710.86

2,650.06

38

0.6

2 (106)98.1
7,466.00
7,322.99102
1.5(Note 2)71 [515]
Total
98.1
425,773.30
417,614.36
6,931
100.0
(Note 2)
“Number of tenants” is based on the total number of sections stipulated in the tenancy agreements for commercial andoffice buildings among relevant properties. For the number of tenants in pass-through master leasing properties, the numberof sections 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 tenants comprises 12 offices and 58 residents.
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.”“Occupancy rate” refers to the percentage of total leased space to total leasable space and the numbers are rounded off to
one decimal place.
“Total rental revenues” are the total of real estate rent revenues and other revenues from real estate rent in the current fiscal
period.
“Percentage of total rental revenues” is obtained by dividing each property’s total rental revenues by the total amount of
total rental revenues. The total of individual percentages in the above table may not equal 100%, since the numbers arerounded off to one decimal place.
In the table above, figures in the “Total leasable space” represent the area of exclusive spaces that can be leased, and thosein the “Total leased space” represent the total contracted area of exclusive spaces indicated in the lease agreements.
Furthermore, the calculation base for rents in some lease agreements may include the area of common spaces that areclosely related to the exclusive spaces for lease. When the areas of such common spaces are included, the total leasable
space is 68,797.98m2 while the total leased space is 68,584.25m2.

16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2012(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 November 25, 2011).

17