Security code

Overview of the 31st fiscal period performance［8968］September 1st,2019〜February 29th,2020

Topics of the 31st fiscal period or later
New Acquisition properties [scheduled]
Financial statements
Business forecasts
Portfolio overview
Financial strategy
Appraisal value
Situation of Fukuoka and Kyushu
Sustainability
Appendix

1
3
7
9
11
18
21
23
27
28

＊Regarding rounding of amounts, percentage, and ratios : unless otherwise noted, in these materials,
monetary amounts are rounded down to the nearest whole unit, and percentages and ratios arerounded off to one decimal places.

Overview of the 31 fiscal period performancest［Security code 8968］September 1st,2019〜February 29th,2020

These materials may contain future performance, plans,management targets and strategies. These forward-looking
descriptions are based on present assumptions on future eventsand trends in the business environment, but such assumptions
may not necessarily be accurate. Actual results may differ materially due to various factors. Neither Fukuoka REIT Corporation
nor Fukuoka Realty shall be liable for the accuracy, rationality
and completeness of information contained in these materials,
whether they were prepared by Fukuoka REIT Corporation or
Fukuoka Realty or provided by a third party. These materials
have not been prepared to entice investment. When applying topurchase investment units issued by Fukuoka REIT Corporation,
do so based on your own judgment and responsibility.

Topics of the 31st fiscal period or later

New acquisition properties [The 32nd FP]

Owned properties [The 31st FP]◎Two new properties to be acquired in the 32nd fiscal period [total: 4,990 million yen]

◎Retail
Canal City Hakata （＊1）
Year-on-year comparison of sales

Other three active retail properties（＊2）
Year-on-year comparison of sales

96.5％■ Fewer tourists from South Korea plus self-restraint on going out and fewer
inbound tourists due to COVID-19 infection since late February impacted sales.

97.7％■ Sales dropped slightly year-on-year, affected by consumption
tax hike and weak apparel sales due to warm winter, etc.

Office building

Logistics＊Year-on-year changes for March 2019 through February 2020 are described.
（＊1）Combined sales of Canal City Hakata and Canal City Hakata・B.
（＊2）The properties refer to Park Place Oita, SunLiveCity Kokura and Konoha Mall Hashimoto.

◎Office buildings
The weighted average occupancy
rates during the fiscal period
Rate of increase in rent per unit area
at tenant replacement
Increase in monthly rent
at rent revision
Rent gap （＊3）

99.1％ ■Maintained high occupancy rate
＋17.8％

Property name

Higashi Hie Business Center Ⅲ

LOGICITY Wakamiya

Acquisition date（scheduled）

May 29, 2020

Jun. 30, 2020

■ New move-ins occupying approx. 700 tsubo [approx. 2,314㎡ ]＋3.4 mm yen ■ Upward rent revision for 7 straight fiscal periods（30.4）％■ Market rent continued to rise mildly. Promoted upward rent revision
to close the gap with portfolio rent.

SourceSponsorOutside party

LocationHakata Ward, Fukuoka City, Fukuoka

Miyawaka City, Fukuoka

Acquisition price

3,290 mm yen

1,700 mm yen

NOI yield （＊6）

4.4%

6.7%

（＊6）The indicated figure is based on the NOI described in the appraisal report.

（＊3）Rent gap indicates the gap between current rent : contract rent with common charges and market rent, and is calculated as "current rent - market rent / current rent".

（yen）

4,000

Financial Management [The 31st FP]◎Lengthened the period of the committed line of credit agreement from 2 years to 3 years with The
Nishi-Nippon City Bank serving as the agent. The credit limit of committed line set at 13,000 mm yen.
Fixed rate

Average remaining
duration to maturity

LTV （＊4）

92.4％

6.1 years

39.8％

J-REITs' average：4.3 years（＊5）

3,512

3,593

3,687

3,693

3,642

3,650
3,150

3,000

◎Promoted long-term, fixed-interest rate debt financing and kept LTV at a conservative level.

31st

3,422

J-REITs' average：44.1% （＊5）（＊4）LTV is calculated as Interest-bearing debt amount divided by Total assets.
（＊5）Indicates the average value of the latest account settlement figures of all investment corporations as of December 2019,calculated by Fukuoka Realty based on their disclosure materials.

2,000
1,000
0

26 th

Aug. 2017

27 thFeb. 2018

28 thAug. 2018

Dividend per unit
The actual of the 31st FP [Feb. 2020]

29 thFeb. 201930 th

Aug. 2019

3,642 yen

31stFeb. 2020
compared withprevious fiscal period
compared with forecast

32ndAug. 2020[forecast]

33rd

Feb. 2021[forecast]（51） yen [（1.4） ％]（8） yen [（0.2） ％]Topics of the 31st fiscal period or later

1

Actual fixed and variable rents for the 31st FP and projections for the 32nd and the 33rd FP
Expected to be affected by the new COVID-19 infections in the rent assumptions for the 32nd and the 33rd fiscal periods
Year-on-year comparison of fixed and variable rents for the 31st fiscal period◎Breakdown of fixed and variable rents
29 th

Variable rent s 1,109[12.9%]

Fixed rent s 7,495[87.1%]

Feb. 2019

Fixed rent s 7,540[88.6%]

Feb. 2020
0

1,000

2,000

◎Breakdown of variable rents
29 th

3,000
Canal City Hakata/
Canal City Hakata・B

628

Feb. 2019

4,000

Konoha Mall Hashimoto

6,000
Park Place Oita

7,000

8,000

SunLive City Kokura

219

31st

505
0

208

Parking fee 299
200（＊）Tissage Hotel Naha was acquired in December, 2018.

400

9,000

（mm yen）

Tissage Hotel Naha

27

21

32nd

33rd

Feb. 2021

（＊）

1,000

2,000

1,200

（mm yen）

Mar.
2019

Apr.
2019

May
2019

Jun.
2019

Jul.
2019

Aug.
2019

Sept.
2019

Oct.
2019

Nov.
2019

Dec.
2019

Jan.
2020

Feb.
2020

200,000

Total of Fukuoka Airport and Port of Hakata [excl. cruise ships]

The Kumamoto Earthquake

150,000

Retail100,000

Office Buildings

Others

2,261

836

（368）

＋105

（13）

2,366

＋73

5,274

2,439

4,000

5,000

6,000

0

888
53

New Acquisition[LOGICITY Wakamiya]

7,000

8,000

1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 （m）
2016
2017
2018
2019
2015

● Since February 2020, impact on variable rents linked to sales and earnings of owned properties
surfaced due to the government’ s request for self-restraint and restrictions on travel from abroad, etc.
due to the global spread of COVID-19 infection.

＋65
91

Impact of COVID-19

Source: Prepared by Fukuoka Realty based on data from Statistics on Legal Migrants （Ministry of Justice） .

823

43

＋226

Drop in the number oftourists from South Korea

50,000

5,416

3,000

（30）

（thousand people）

1,000

New Acquisition[Higashi Hie Business Center �]
0

（20）

rd

5,048

Aug. 2020

0

Change in number of overseas visitors （Fukuoka Airport and Port of Hakata [excl. cruise ships]）

32

Rents' assumption for the 32 and the 33 FP

Feb. 2020

10

250,000

800

nd

31st

SC Sales Statistic [nationwide]

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from SC Sales Statistics Survey Report by the Japan Council of Shopping Centers.

（＊）

208

600

◎Breakdown of rents by investment type

Other three active retail properties

212
18

Feb. 2020

Canal City Hakata/
Canal City Hakata ・ B

（10）

5,000

Parking fee 296

（%）
30
20

Variable rent s 974[11.4%]

31stYear-on-year changes in monthly sales of active retail properties （＊1）

9,000（mm yen）● Rents for the 32nd and 33rd fiscal periods are projected assuming that the impact ofself-restraint on going out and fewer inbound tourists, etc. on sales and earnings of owned
properties will continue through around December 2020.

＊ "Rent" is indicated the total amount of leasing revenues-real estate＊ "Fixed rent" is indicated the amount of "leasing revenues-real estate" - "variable rents".
＊ "Variable rents" are the sum of the portion of rents collected from tenants with variable and GOP rents that varies as a function of the tenants’ sales.Variable rents are included Canal City Hakata, Canal City Hakata・B, Park Place Oita, SunLive City Kokura, Konoha Mall Hashimoto and Tissage Hotel Naha.
（＊1） Active retails are five owned properties as large retail facilities, Canal City Hakata, Canal City Hakata・B, Park Place Oita, SunLive City Kokura, Konoha Mall Hashimoto, that is affected by fluctuations in sales of leasing revenues-real estate.

Topics of the 31st fiscal period or later

2

New acquisition property for the 32nd FP
Higashi Hie Business Center III ~a new office building with high specifications near "Higashi Hie" Station〜◎Overview of the property

FLEX
21博多2

〒

堅粕1

May 29, 2020

Acquisition price（planned）

3,290 mm yen

SourceFukuoka Jisho Co., Ltd.
（Sponsor）

Location

4-45 Higashi-hie, Hakata Ward,
Fukuoka City

Built timing

March 2020

Tenants

4 （＊1）NOI yield

4.4％ （＊2）● Close to the entrance of the "Higashi Hie"S t a t i o n, w hi c h i s l o c a t e d b e t w e e n t h e"Hakata" Stn. and the "Fukuoka Airport" Stn.
of the Fukuoka City Subway Kuko Line, andhas an excellent accessibility.

completed in March 2020

空港北

福岡空港

順心寺

豊2

551

Higashi Hie Business Center Ⅱ

榎田1

Higashi Hie Business Center �e
JR Kagoshima Lin

EnokidaHigashi Hie Business Center Ⅱ

Hotel FORZA Hakataeki
Chikushi-guchi Ⅱ

45

Acquired from sponsor （＊3）
福岡管区気象台
福岡空港測候所

15 /31at the end of
マナベインテリアハーツ

下臼井

Yodobashi
Camera385

Higashi Hieubwa
Nakahiey Kuko Li n e

C

Park

Higashi Hie Business Center �

200m

June 2020

200,969mm yen

日本通運福岡（支）博多中央（支）SponsorOutside party

Fukuoka
local goverment
oﬃce
S

SUNLIFE No.3
Building

78,969mm yen榎田2

Higashi Hie Business Center

The Basics
Fukuoka

39.3％ 60.7％

3

Higashi上臼井
Hie Business Center

122,000
mm yen（＊3）Because the Higashi Hie Business Center that was acquired in the 10th FP,
August 31, 2009, was acquired from both outside parties and sponsors, thepurchase price has been added to the purchase prices from outside parties andthe purchase prices from sponsors after calculation on a per capita basis.
Furthermore, with regard to the number of properties, one property has been
added to the number of properties acquired from sponsors.

通りJR Hakataminami
Line

HakataSanix Hakata
Building

橋

JR Hakata CityW e w ill c o n t inue t o a c quir e e x c e llen t p r o p er t i e sdeveloped by the sponsor. Asset size reached 200 billion
yen (acquisition price) for the 32nd fiscal period.

properties

Hakataeki higashi
Hotel FORZA Hakataeki
Chikushi-guchi Ⅰ

Hotel FORZA
Hakataeki
Hakata-guchi

The Nishi-Nippon
City Bank
Head Office KITTE
Hakata3

百年

Hakata Bus
Terminal

Hakatahie
Post office

Subway Kuko Line
Higashi Hie Stn.

榎田2

◎Strong Sponsor Commitmente

The Nishi-Nippon
City Bank
Head Office Annex

an in
rb jo La U anok K
ku ay
Fu ssw
e
pr

ri A
-do
ko
u
K

.
ve

Ex

Area map

loc a t ed has seen se v er al o f fic e building
developments in addition to the property since
the completion of Higashi Hie Business Centerin February 2009, on top of these, gaining
competitiveness as an office area.

● A new office building with high specifications

堅粕

アンピール
空港通り2

豊JCT

卍

● The Higashi-Hie area where the property is（＊1） The number of tenants is indicated as of April 1, 2020.
(＊2) The indicated figure is based on the NOI福岡空港
described in the appraisal report as of April 1, 2020.

豊1

市営ニュー堅粕住宅
第9棟

Acquisition date（scheduled）

New Acquisition properties [scheduled]3New acquisition property for the 32nd FP
LOGICITY Wakamiya 〜Property acquisition by seizing the need to sell logistics facilities for own use〜
Shimonoseki

10km

approx.40 min
by car from
Kitakyushu City

3
495

Kitakyushu

495

approx.40 min
by car from
Fukuoka City

Akama Stn.

Munakata

JR

3

3

osh

Kag

Area map

飯塚市

1,700 mm yen

Renovation cost （planned）

400 mm yen [Restoration: 100 mm yen, Renewal: 300 mm yen]

Location

1406 Shimoaruki, Miyawaka-City, Fukuoka

322

TOYOTA496 MOTORKYUSHU
Miyata Plant

嘉麻市

Tsukasa Kigyou
Miyata Office

Fukuoka Urban
Expressway

Wakamiya IC
S.Y.Promotion
Fukuoka OfficeShrine Express

KyushNishida Shoun
Wakamiya Office

34,827.68㎡

Total floor space （＊1）

17,799.76㎡

Built timing

Feb. 2005 [new construction], Sept. 2012 [expansion]

NOI yield （＊2）

6.7％

Tenant’s name

Tsukasa Kigyou Co.,Ltd

Contract term

10 years [Nov. 2020〜Oct. 2030]

Renovation Work

Early cancellation andrent revision

Not available

Tenant leaseagreements （＊4）

Miyata Smart IC
TOYOTSULOGISTICS SERVICE（Kyushu Center）

TOYOTA BOSHOKU KYUSHU
Miyata Plant

9

Saga

TOYOTA
TRANSPORTATION
Miyata Office

LOGICITY Wakamiya

Tsukasa Kigyou
Wakamiya Office

Tsukasa Kigyou Wakamiya Inter Office

87

463

KARITSU211
Miyata Logistics Center

JR Chikuhi LineLand area（＊1） The figure indicates the area of the main building and may change due to the renovation work to be conducted later.
（＊2） The indicated figure is based on the NOI described in the appraisal report “NOI / acquisition price (planned) + renovation cost (planned) .”田川市

FukuokaAcquisition date（scheduled） Jun. 30, 2020
Acquisition price （planned）

Yukuhashi

201
200m

● The warehouse floor is a single-story building, with berths on three sides to perform distributionfunctions and all-purpose specifications as to floor load and ceiling height, etc.

◎Overview of the property

201

200

TOYOTA MOTOR
KYUSHU
Kanda Plant

po
ip ne
N Li
JR ainM

nSa

Miyawaka

an

ink

h
oS

y

tenant leasing.

10

322

Higashi Kyushu
Expressway

Koga● A long-term [10-year], stable fixed-term lease agreement [contract slip] has been concluded throughay

直方市
LOGICITY
Wakamiyanse

TOYOTA MOTOR KYUSHU
Kokura Plant

ressw

u Exp

Kyush

Fukutsu● Located in an industrial park that is near Kyushu Expressway Wakamiya Interchange and has aconcentration of logistics providers’ warehouses along with Toyota Motor Kyushu’s automobile plant, theproperty can operate around the clock.

r b anhu U yak y us
K it a pr e s s w
Ex

e

Lin
ima

Shinmoji
port

NBS Nippo Logistics
Green co-op
Wakamiya Logistics Center
TOYOTA RIC KYUSHU
463
LOGICOM
Fukuoka
9
The Nishi-Nippon Shoko Center
Miyata Officeu Express way◎Outline of the schedule until the start of leasing contract with new tenants
32nd FP
Acquisition of
the Property （＊3）

Mar.
Apr.
May
Jun.
Forward Commitment Term
Settlement / Delivery

33 rd FP
Jul.

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Restoration &Renewal Construction
Lease agreement starts（＊3） The real estate sales agreement was already concluded in November 2019.
（＊4） The contract slip for lease agreement with the tenant was already concluded in October 2019.

New Acquisition properties [scheduled]4Logistics market in northern part of Kyushu
The supply and demand balance remains tightMajor logistics area

LOGICITY Minato Kashii

LOGICITY Hisayama

Kaizuka3
68 JR

Fukutsu
3

322

31

崎
方
面

至
長

496

Omuta Line

3

ssway

Tosu JCT

Tosu Logistics Center大分県
Green Logistics Park
Tosu

鳥栖市役所

Ogori

246

至熊本

88

Supply and demand of logistic facilities and vacancy rates
新鳥栖

長崎本線

（tsubo）

50,000new supply

new demandvacancy rates

2017

2018

2019

40,00020,00010,0002015

2016

Terihakita Elementary
SchoolGeneral Gymnasium
development area （Open in April 2019）

LOGICITY Minato Kashii

金印公園
TerihaElementary andJunior High School

Nishitetsu Bus
Island City OfficeInternational
Container Terminal

Island City Ramp（provisional name）

FukuokaChildren’ s
Hospital

Park
Souseikai
Fukuoka Mirai Hospital

Fukuoka Urban Expressway
Route 6（Island city Line）（Scheduled in the end of FY 2020）

Source: Fukuoka Realty, based on Island City Outline Pamphlet (Fukuoka City, Port and Harbor Bureau)

Internal growth results from re-contracting for LOGICITY Minato Kashii（The 30th fiscal period）

轟木工業団地30,0000

Vegefru stadium(Fresh produce market)

＋9.7％

31

サガハイマット(planned)

Island City Habataki“island eye”:
Park development areaa multi-use facility（Opened in March 2020）◎Rent increase achieved through re-contracting with a large tenantTosu JCT area

200m

線

e
in Line鳥栖
ki E
ki Lin
JR Kudai Ma
asa R Nagasa 産業技術総合研究所九州センター
KurumeJ
Nag

New quay wall

Town Area （about191.8ha）

Subdivision completed (including the project plan decision-maker)
Zone for creation of a waterfront logistics center
Under construction
Owned by Fukuoka Jisho Co., LTD （As of February 29, 2020）
Nishitetsu Tenjin

AsakuraOita
Expressway

ne500
Tashiro386

Oita Expre

131

Kyushu Expressway

xpr

新幹

way
ress久留米基山筑紫野道路
Exp

nsen

y Tosu

wa
ess

500

211
205

17

ki
asa y
Nag esswar
E xp

Kag JRosh
Line ima

shu

322
34

17

hinka
hu S
九州

323

34

Fukuoka Pref.

Kyu

Kyus
385

Tosu

弥生が丘

88

Li

Kama

Fukuok a U
E xpre ss wrban
aySaga Pref.

329

至長崎

Fukuoka

山浦PA

TagawaFukuoka

JR Chikuhi Line

Iizukan

201（planned）

ai

200

n
Sa

Itoshima

201

17

New
Container
Terminal

M

ns

ka

hin

S
yo

Yukuhashi
u
po
sh
ip
N
yu y
iK wa
sh ss
ga re
Hi Exp

福津市
Hakata Port, Fukuoka
IC area10

Kitakyushu areaenIsland City Logistics Development Project（Scheduled in FY 2020）

JR

Hakata Stn.

ysswa
xpre Nogata
hu E
s
u
y
K
Miyawaka

Koga

Fukuoka Airport
1km

Urban
ushu
K it ak y re s s w ay
E xp

LOGICITY Wakamiya

Sasaguri Line
607

天神北

3

Munakata

201

Fukuoka IC

Port Area （about209.5ha）

Under
Construction

Kitakyushu

495

Kyushu Expresway

21

Island City
（401.3ha）

3

495

35

Sanyo ShinkansenFuku
E x p ok a Ur
r es
s w abanyHakataPort
HakataBay

3

Shimonoseki

10km

JR ii
h
KasineL

FukuokaUrban Expressway
Island-city Line
（maintenance）
KashiiHama

Development of the Island City area

（％）

12
10
8
6
4
2
0

（year）＊The figures are covered total floor spaces (more than 5,000㎡) which owned by real estate investment company and real estate development company in Fukuoka and Saga.
Source: Prepared by Fukuoka Realty Co., Ltd., based on data of CBRE

Previous rent

Rent after
re-contracting

New Acquisition properties [scheduled]5Historical trends of asset’s size by investment type [based on acquisition price]
Asset size will reach 200 billion yen for the 32nd fiscal period
RetailFuture external growth strategy

Office buildings

Residence

Logistics

Hotel

LTV

◎Expand the asset size, which will reach 200 billion yen in the 32nd fiscal period, aiming at 250 billion yen going forward while dispersing risks by diversifying
the investment types; flexibly consider property replacement upon favorable opportunities.
◎Conduct carefully selected investments focused on Office buildings and Logistics facilities, etc., taking the advantage of specializing in regional properties
and utilizing sponsor pipelines.
（mm yen）（%）

200,00080

180,000
160,00070

140,000
120,000

60

100,000

LTV

80,00043.8％ 43.8％

60,00042.4％ 42.4％ 42.4％ 42.3％

41.2％ 41.4％

41.0％

40,00044.7％ 44.6％ 44.6％ 44.6％

50

46.0％ 46.5％

39.9％ 39.9％ 40.1％

39.5％

38.1％

37.6％ 37.4％

39.3％ 38.9％ 39.1％ 39.7％ 39.7％ 39.8％

40

35.6％

20,000
30.4％

0

2nd

Aug.
2005

3rd

Feb.
2006

4th

Aug.
2006

5th

Feb.
2007

6th

Aug.
2007

7th

Feb.
2008

8th

Aug.
2008

9th

Feb.
2009

10th

Aug.
2009

11th

Feb.
2010

12th
Aug.
2010

13th
Feb.
2011

14th
Aug.
2011

15th
Feb.
2012

16th
Aug.
2012

17th
Feb.
2013

18th
Aug.
2013

19th
Feb.
2014

20th
Aug.
2014

at the end 30
of JuneFeb.
2020
2020 (scheduled)

21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st
Feb.
2015

Aug.
2015

Feb.
2016

Aug.
2016

Feb.
2017

Aug.
2017

Feb.
2018

Aug.
2018

Feb.
2019

Aug.
2019

＊As the senior equity interest in an anonymous partnership managed by CCH Bridge Y.K. was redeemed in the 14 th FP, it is excluded from total acquired assets from the 14 th FP onward. Since interest in the anonymous partnership managed by Limited Liability Company
FRC1 was redeemed on in the 26 th FP, it is excluded from total acquired assets from the 26 th FP on ward.

New Acquisition properties [scheduled]6Statements of Income （compared with the previous fiscal period）
Dividend per unit was 3,642 yen for the 31st FP: （1.4） % compared with the previous period
Sign indicates impact on profit（unit : mm yen）

- unit : mm yen （Figures rounded down to the nearest mm yen）

Account

31st B〜Feb 29, 2020

■Operating profit and loss

Difference
B－A① Canal City Hakata

Total operating revenues

9,231

9,162

Leasing revenues-real estate

8,530

8,515

（15）

700

647

5,913

5,888

Other leasing revenues-real estate

Ordinary profit and loss

Operating profit and loss

Total operating expenses
Expenses related to leasing business
Asset management fees
Asset custody fees

①

（68）

＋4

（53）

Park Place Oita

（6）

（24）

Konoha Mall Hashimoto

5,250

5,226

540

534

（5）

7

7

（0）

②

（23）

Non-Operating
profit and loss

55

55

（0）

Director’s compensations

9

9

-

Other operating expenses

50

55

5

Operating income

3,318

3,273

（44）

Total non-operating revenues

0

0

0

Total non-operating expenses

379

374

（4）

（incl. investment corporation bonds）

279

275

（4）

Financing related expenses

93

93

（0）

Others

5

5

-

2,939

2,900

（39）

2,939

2,900

（39）

0

1

0

Profit

2,939

2,899

（40）

Total dividends

2,939

2,899

（40）

Dividend per unit（yen）

3,693

3,642

（51）

Interest expenses

Profit before income taxes
Total income taxes（8）［ -of which, a seasonal factor of variable rents ＋12]

Canal City Hakata・B

Administrative service fees

Ordinary income

Dividend

30th A〜Aug. 31, 2019

［ -of which, a seasonal factor of variable rents ＋15]

［ -of which, decrease in income from utilities （14）]［ -of which, decrease in income from utilities

Canal City Business Center Building
Office buildings（others）

（13）
（9）]

（18）
＋1

［ -of which, increase in leasing revenues-real estate ＋13]
［ -of which, decrease in income from utilities, etc.

Tissage Hotel Naha
Others

（12）]

（19）
（9）
Total : （68）＋12
② Decrease in outsourcing expenses＋44
Decrease in expenses from utilities
Increase in depreciation and amortization expenses （8）（25）
Increase in other expenses
Total : ＋23

Financial statements

7

Statements of Income （compared with the forecast）
Impacted by expanded infection of COVID-19 at Canal City Hakata- unit : mm yen （Figures rounded down to the nearest mm yen）

Account
Total operating revenues

9,270

9,162
8,515

Other leasing revenues-real estate

647

Ordinary profit and loss

Operating profit and loss

Total operating expenses

5,989

Expenses related to leasing business■Operating profit and loss

Difference
B－A

Leasing revenues-real estate

5,888

①

（108）

②

（100）

5,226

Asset management fees

534

Asset custody fees

7

Administrative service fees

55

Director’s compensations

9

Other operating expenses

55

Non-Operating
profit and loss

3,281

3,273

（7）

Total non-operating revenues

0

0

（0）

Total non-operating expenses

375

374

（0）

Interest expenses（incl. investment corporation bonds）

275

Financing related expenses

93

Others

5
2,907

2,900

（7）

2,907

2,900

（7）

1

1

（0）

Profit

2,906

2,899

（6）

Total dividends

2,905

2,899

（6）

Dividend per unit（yen）

3,650

3,642

（8）

Profit before income taxes
Total income taxes（18）① Canal City Hakata
Canal City Hakata・B（44）
SunLive City Kokura（5）
Konoha Mall Hashimoto（6）
Canal City Business Center Building（26）＋7
Office buildings（others）（14）
Tissage Hotel Naha
（2）
OthersTotal : （108）② Decrease in repair & maintenance expenses ＋69＋31
Decrease in other expenses
Total : ＋100

Operating income

Ordinary income

Dividend

31st B〜Feb. 29, 2020

31st A
Previous Forecast

Sign indicates impact on profit（unit : mm yen）

Financial statements

8

Business forecast （the 32nd fiscal period, Aug. 2020）
Decrease in revenues due to the impacted by the infection of COVID-19
Forecast in the 32nd fiscal period- unit : mm yen （Figures rounded down to the nearest mm yen)Account

Operating revenues

31st
Actual32nd
Forecast
at 30th

32nd
Forecast
at 31st

31st
Actualdifference

32nd
Forecast
difference

A

B

C

C-A

C-B

9,162

9,350

8,893

①

（269）

Sign indicates impact on profit （unit : mm yen）

■Difference between the 31st FP actualand the 32nd FP forecast① Acquired properties at the 32nd FP＋43（Higashi Hie Business Center Ⅲ Acquired in May 2020）（100）
Canal City Hakata（457）［ -of which, a seasonal factor of variable rents（12）]

Canal City Hakata・B（109）［ -of which, a seasonal factor of variable rents

Operating expenses

5,888

6,041

6,006

Operating income

3,273

3,309

2,887

②

117

（35）

（386）

（422）

Non-operating revenues

0

0

0

0

-

Non-operating expenses

374

379

378

4

（0）

Park Place Oita
Konoha Mall Hashimoto
SunLive City Kokura
Office buildings（excl. Higashi Hie Business Center �）

2,900

2,930

2,509

（390）

（421）

Profit

2,899

2,929

2,508

（390）

（421）

Total dividends

2,899

2,929

2,507

（391）

（421）

Dividend per unit （yen）

3,642

3,680

3,150

（492）

（530）

（59）
（79）
（18）
＋71

［ -of which, increase in leasing revenues-real estate＋61]［ -of which, increase in income from utilities, etc.

＋10]

Tissage Hotel Naha
Others（17）（1）
Total : （269）② Increase in expenses from utilities
Increase in repair & maintenance expenses
Increase in depreciation and amortization expenses［ -of which, Higashi Hie Business Center Ⅲ

Ordinary income（15）]

Increase in other expenses

（21）
（48）
（30）
（12）]

（18）
Total : （117）Business forecasts

9

Business forecast （the 33rd fiscal period, Feb. 2021）
Contributed newly acquired 2 properties in the 32nd FP
Forecast in the 33 rd fiscal period- unit : mm yen （Figures rounded down to the nearest mm yen)Account

32nd
Forecast
at 31st

33rd
Forecast
at 31st

32nd
Forecast
difference

A

B

B-A

■Variance from updated the 32 nd FP forecast

Operating revenues

8,893

9,240

①

346

Operating expenses

6,006

5,951

②

（54）

2,887

3,288

401

Non-operating revenues

0

0

-

Non-operating expenses

378

382

3

Operating income

Sign indicates impact on profit （unit : mm yen）

① Acquired properties at the 32nd FP＋53（LOGICITY Wakamiya）Leasing contract will start in Nov. 2020
（Full-period contribution of Higashi Hie Business Center Ⅲ） ＋48（17）
Canal City Hakata＋109
Canal City Hakata・B＋64
Park Place Oita
＋69
Konoha Mall Hashimoto＋15
Office buildings（excl. Higashi Hie Business Center �）［ -of which, increase in leasing revenues-real estate＋25]［ -of which, decrease in income from utilities, etc.

（10）]

Tissage Hotel Naha
Others② Decrease in outsourcing expenses
Decrease in expenses from utilities
Increase in repair & maintenance expenses
Decrease in depreciation and amortization expenses

2,509

2,906

397

Profit

2,508

2,905

397

Total dividends

2,507

2,905

398

Dividend per unit （yen）

3,150

3,650

500

＋15
＋23
（40）
＋55

［ -of which, LOGICITY Wakamiya（11）]［ -of which, Higashi Hie Business Center Ⅲ（6）]

Decrease in other expenses

Ordinary income＋12（7）Total : ＋346

＋1
Total : ＋54

Business forecasts

10Perspectives on business environment surrounding owned properties and future policies
Use of property

Overall
RetailCanal City Hakata

Perspective on business environment
Short term

Consumption trends are changing due to self-restraint on going out, etc.
in the face of COVID-19 infection.

Medium tolong term

Need to respond to opening of competing facilities and changes inpurchase behaviors, tastes and preferences of consumers.

Short term

The number of foreign tourists visiting Japan, which had been increasing
through 2018, is dropping sharply.
A new station on the Subway Nanakuma Line and directly connected to the facility
will open in FY2022. The number of inbound tourists will increase, and diversificationof destination cities will continue due to reinforced functions of Fukuoka Airport.

Medium tolong term

Flight slots of Fukuoka Airport will further increase due to service of a parallel taxiway commencing inJanuary 2020 and an additional runway to come in FY2024; a larger number of destination cities will increase
the number of inbound tourists: mitigating the risk of concentration on South Korea.

Office buildings

Logistics

Residence

Hotel

Short term

Tight conditions for supply and demand continue, sustaining the trends of low
vacancy rates and higher rents.

Medium tolong term

Supply will increase in 2021 and thereafter through large-scale redevelopment projects.
→Leading to further vitalization of the Fukuoka office market

Short term

Demand remains strong for suitable logistics locations near Fukuoka,
keeping vacancy rates of rental logistics facilities at a low level.

Medium tolong term

Supply of large-scale logistics sites in suitable logistics areas is limited.

Short term

Population inflow into Fukuoka City continues and the supply of rental condominiums
continues at a certain level: population was 1,595 thousand people
in December 2019, up 134 thousand people year-on-year.

Medium tolong term

While population is assumed to continue growing, supply will also be maintained,
keeping occupancy rates and rent levels stable.

Short term

RevPAR is falling along with a drop in human migration due to COVID-19 infection: business trips and tours, etc.
The number of inbound tourists will increase, and diversification of destination
cities will continue due to reinforced functions of Fukuoka Airport.
With the addition of the second runway completed, Naha Airport will see more
visiting tourists.

Medium tolong term

Future policies● Closely monitor the impact of COVID-19 infection and work to reinforce tenant relationships.
Take necessary measures such as review of sales promotion measures, infection
countermeasures and shortening of business hours.
● Investigate renovations designed for vitalizing and differentiating the facilities.
Conduct regular tenant replacement to improve facility attractiveness.
● Study tenant response policy in consideration of the maturity of fixed-term lease agreements.
● Study measures to better motivate domestic and foreign customers for facility visits: provide experiential value.
● Review tenant composition for the opening of new subway station, strengthen entertainment,
revitalize common areas, and enhance coordination with local communities.
● Reinforce ability to respond to overseas customers in preparation for diversificationof inbound tourists● Work to maintain and improve building competitiveness to achieve continuous increase in rents.
● Promote cost reductions by replacing facilities with more energy-efficient ones.

● Consider measures for value enhancement aligned with the timing of maturity andrenewal of lease agreements.

● Maintain property competitiveness through endeavors both in terms of know-how andfacilities that address the needs of residents.

● Collect information to analyze the current situation, and work to maintain and enhanceoccupancy rates through coordination with operators.
● Consider measures to improve earnings in preparation of the lifting of request for
self-restraints on going out and the return of inbound tourists.

Portfolio overview

11Situation of active retail ①●Canal City Hakata●Canal City Hakata・B

Sales（annual total（＊1））
Mar. 2019 - Feb. 2020

29.9 bn yen

YoY （3.5）%

Sales were strong at stores newly opened through tenant replacement,but overall building sales dropped due to the closing of the OPA section
2nd floor for renovation (through end of October 2019) and were
impacted by a decrease in visitors due to the Japan-South Korea
relationship and expanded infection of the novel coronavirus.

●Park Place Oita

Sales（annual total）
Mar. 2019 - Feb. 2020

24.7 bn yen

YoY （1.6）%

Conducted renovation of specialty shops featuring product offerings thatare among the largest in Kyushu and continued to hold events with highcustomer drawing ability like inviting Oita Trinita, a J1 league soccer team,and other topical guests. Charging equipment for electric vehicles and free
Wi-Fi service were also introduced in an effort to improve the facilities.

●Konoha Mall Hashimoto

Sales（annual total（＊2））
Mar. 2019 - Feb. 2020

15.6 bn yen

YoY （3.1）%

Held a thanksgiving festival as cumulative number of visitors surpassed 50
million in the 9th year since opening. The consumption tax rate hike andsluggish apparel sales due to warm winter temporarily dropped sales, but theproperty remains supported by customers as a community-based retail facility
and achieved better rent terms upon re-contracting with existing tenants.

●SunLive City Kokura

Sales（annual total（＊3））
Mar. 2019 - Feb. 2020

ーProperty name

Occupancy rate

Tenants

as of Feb. 29, 2020

Canal City Hakata

99.8％

48

Canal City Hakata・B

99.5％

46

Park Place Oita

99.9％

103

Konoha Mall Hashimoto

98.7％

124

SunLive City Kokura

100.0％

1◎Measures to prevent spread of COVID-19 infection●Shorter business hours and temporary closure, etc. （as of April 10, 2020）

Property name

Canal City Hakata
Canal City Hakata・B

Park Place Oita

Contents
Feb. 21〜 Suspended events

Mar. 4〜 Stores ▶ Operate 2 hours shorter
Restaurants▶ Operate 1 hour shorter
Apr. 9〜 Temporarily closed excl. some stores（for the time being）
Mar. 4〜 Stores ▶ Operate 1 hour shorter
Restaurants▶ Operate as usualMar. 13〜 Suspended events

Restaurants▶ Operate 1 hour shorter

YoY （2.0）%

Sales declined, impacted by the consumption tax rate hike andsluggish apparel sales due to warm winter. Conducted visitor
surveys and discussions with tenants as to tenant replacement,
renovation and other initiatives in order to vitalize the facilities
going forward.
＊Sales figures are rounded down to the nearest 100 mm yen.
（＊1）Combined sales of Canal City Hakata and Canal City Hakata・B, properties owned by Fukuoka REIT.
（＊2）Sales figures exclude sales at temporary shops set up in common areas during special events.
（＊3）Sales figures are omitted because SunLive did not consent to their disclosure.

◎Almost 100% occupancy rates in active retail properties

Feb. 21〜 Suspended events

Konoha Mall Hashimoto

SunLive City KokuraMar. 4〜 Stores ▶ Operate 1 hour shorter
Restaurants▶ Operate 1 hour shorter
Apr. 9〜 Temporarily closed excl. some stores（for the time being）
Some events suspended, etc.

Portfolio overview

12Situation of active retail ②
Canal City Hakata

Park Place Oita

Konoha Mall Hashimoto■Remarkable tenants■Remarkable tenants■Cumulative number of visitors surpassed 50 million!

◎First in Kyushu area
『THE GUNDAM BASE FUKUOKA』 『GUNDAM Café』◎Renewal open of SPORTS AUTHORITY◎September 19, 2019

THE GUNDAM BASE FUKUOK A, with its offerings among the largest in Japan andfocused on exclusive products, is a flagship shop to demonstrate GUNPL A’ s
attractiveness, including Build Room （for assembling GUNPLA ） and an exhibitionzone of pro-modelers’ works, while GUNDAM Café, an official GUNDAM café full ofentertainment, offers the joy of the GUNDAM world atmosphere.

■Canal Aqua Panorama in Christmas version

Fully introduced topical items and new corners including Football Specialty, a soccer
specialty shop that is among the largest in Kyushu with wide product of ferings;
CORNERS, a select shop for enjoying cutting-edge sport and fashion goods; andoutdoor apparel shops.

■Events information◎『Christmas Panorama～ Santa Claus is coming to Canal City Hakata ～』At Canal Aqua Panorama featuring an interlink of images （projection mapping） ,water shows, music and light, a special per formance limited to the Christmas
season was performed, with Santa Clause appearing on the stage.

■Exhibiting at Travel Expo
Participated in "ITF 2019" in Taipei, Nov. 2019 and "JAPAN EXPO THAILAND
2020" in Jan. 2020. Distributed pamphlets and coupons at the booth.

JA's festival hold in Nov. 2019
New year event [DRUM TAO]
[1st event collaborated with JA Oita]

Cumulative number of visitors
surpassed 50 million in the
9th year since opening.

Held “Thanksgiving Sale for Surpassing 50
Million,” “General Elec tion for Autumn
Umak amon,” “A ut umn G our me t LINE
Coupon Delivery” and other events over 3
days. In the “General Election for Autumn
Umak amon,” 10 delic ious eat er ie s at
Konoha Mall Hashimoto par ticipated in a
popularity vote as a campaign pledge.

■Situation of tenants◎Improvement in tenant rent terms
Subject for revision

Tenant with improved terms

65 tenants

14 tenants■Events information
Held many events planned by stores■Facility improvement
Installed charging equipment for electricvehicles on Dec. 16 to enhance
convenience of users of such vehicles●Location parking lot G : undergroundparking of AEON supermarket●Number of installed equipment
5 ordinary chargers●Available hours 6:00-24:00/up to 180 minutes for a single charge

Free Wi-Fi service became available
within the building

Grimm Land Presents
TOMICA & PLARAIL
Festival

SunLive x Koikeya
Potato Chips Class
for Parent & Child

New-Year Offeringof Deliciousness

A c or ner f or playing withTOMICA products for a fee
was set up in Garden Court,
attracting over 800 people intwo days.

Held a class, first in Kyushu,
for experiencing potato chipseasoning and learning thehistory and taking quizzes on
how potato chips are made.

Offered Benihoppe strawberries
to visitors free of charge, withthe c ooper ation of Ueki
Greengrocer, to contribute to thebustle around the Marche.

Portfolio overview

13

Situation of HotelOver view of hotel

Canal City Hakata ／ Canal City Hakata ・ B

Grand Hyatt Fukuoka Fukuoka Washington Hotel[Canal City Hakata・B][Canal City Hakata]

Hotel FORZA Oita

Tissage Hotel Naha

◎Average year-on-year comparison of RevPAR （＊1） ◎Change in total number of foreign lodgers in Fukuoka

Hotel

Type
Leasing Form

Specialized foraccommodation

Full-service
Fixed＋Variable rents

Fixed＋Variable rents

Specialized foraccommodation
Fixed rents

Fixed＋Variable rents

Fukuoka City

Fukuoka City

Oita City

Naha City

Rooms

370

423

205

132

Composition ratioby type based onleased floor space

7.6％

37％

Full-service

63％

The 31st FP
Breakdownof rents

3,000

16,0002,500

15,0002,000

14,0001,500＊The f igur e is c alculated as the aver age value f or Gr and Hyat t
Fukuoka and Canal City Fukuoka Washington Hotel.
（＊1）Revenue Per Available Room = Total accommodation-categor ysales over a certain period of time divided by the total number ofguest rooms available for sale for the same period.

13,0001,000

12,000500

11,0000Foreign lodgers

10,0002019[prompt report]
Source: Prepared by Fukuoka Realty based on Statistical Survey on
Overnight Travel（Japan Tourism Agency）
2015

2016

2017

2018

Tissage Hotel Naha

Variable rents
Specialized foraccommodation

3,500

thousandLodgers from South Korea （ people ）18,000Total number of lodgers [right axis]
17,000

4,000（4.7） ％

Specialized foraccommodation

Area（thousandpeople ）Mar. 2019〜Feb. 2020
YoY RevPAR （＊1）

29th（Feb. 2019）

92.4％

year-on-year

86.6％

81.0％

（5.6） ％ADR （＊2）

9,378 yen

8,403 yen（975） yen

RevPAR （＊1）

8,123 yen

6,807 yen

（1,316） yen

Room occupancy rates

Fixed rents

31st（Feb. 2020）（＊2） Average Daily Rate = Total accommodation-category
sales over a certain period of time divided by the total
number of guest rooms sold over the same period.

◎Change in total number of foreign lodgers in Okinawa ◎Change in number of tourists to Okinawa（thousandpeople ）New supply of hotel guestrooms by city
（thousand rooms）

7,000

（％）

（A） Existing guestrooms [2018]

160

60

（B） New guestrooms [2019 ～ 2021]

140（B）÷（A） Ratio of new supply to existing guestrooms: right axis

120
100
80
60
40
20
0

Kyoto

Osaka

Tokyo

Sapporo Fukuoka Nagoya Hiroshima

Source: Prepared by Fukuoka Realty Co., Ltd., based on BZ Space Autumn 2019 Issue by CBRE.

Naha

Sendai6,000

thousandLodgers from South Korea （ people ）28,000Total number of lodgers [right axis]
26,000Foreign lodgers

24,000

50

5,000

40

4,000

20,00030

3,000

18,000

20

2,000

10

1,000

0

10,0002019[prompt report]
Source: Prepared by Fukuoka Realty based on Statistical Survey on
Overnight Travel（Japan Tourism Agency）

22,00016,00014,0000

12,000
2015

2016

2017

2018

Plans to increase the number of annual takeoffs and landings
from 135,000 to about 240,000 [initial target was 185,000]
with construction of a second runway at Naha Airport[opened on Mar. 26, 2020]

thousand（10 people
）
1,200
1,000

Domestic
Foreigners [by air]Foreigners [by sea]

800
600
400
200
0
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2021
TargetSource: Prepared by Fukuoka Realty Co., Ltd. based on data from Target
the Okinawa Prefectural Government’s Statistical Overview of Tourist Visits to the Region,
the 2019 Visit Okinawa Plan, and the Okinawa Tourism Promotion Roadmap.

Portfolio overview

14Trends in the Fukuoka office market
Vacancy rate below 3%, rent has risen for 32 consecutive months
Fukuoka business district / Vacancy rates and supply and demand of office buildings（tsubo）

Completed floor space（total floor space）［left axis］

15.38

40,00035,00030,000Net absorption（absorption demand）［left axis］

16

14.72
Sendai

Nagoya2. 21％
Osaka
1.94％
Sapporo1.62％
Central Tokyo（5 wards）1.49％

10.86

25,00020,000

4.42％

Fukuoka 2.29％

11.98

7.70

14

(provisional name)

10

5,000

2.04

2.09

2.29

0

（5,000）（10,000）（15,000）

As of Dec. 2019
Fukuoka
Central Tokyo
Osaka

10,547
22,206
11,794（yen／tsubo）

100
90
80

6

4

3.07

Central Tokyo（5 wards）

110

4.26
10,000Fukuoka
Osaka

130
120

8

6.30

Average asking rent of the Fukuoka business district rose 6.6% in the 12 months from February 2019 to February 2020.

12Tenjin BusinessCenter

15,000◎Average asking rents during the past year [Y2005=100](%)

As of Feb. 2020

13.23
10.99

Vacancy rate［right axis］ (％)

Fukuoka business district / Average asking rents

20

Impact of tenant move-outs before closing of large-scalebuildings associated with redevelopment
Completed floor space（total floor space）isdifferent from total leased floor spaceas the former includes common areas etc.

2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021（year）＊Statistics from 2008 to 2019 are based on the figures at the end of December.
（scheduled） （scheduled）＊Office building-related data for each city are data for areas and buildings included in surveys conducted by Miki Shoji Co., Ltd.
＊Net absorption（absorption demand）shows the change in the occupied floor space during a specific period. It is calculated by subtracting the occupied floor space on December 31 of
the previous year from the occupied floor space on December 31 of the applicable year.Completed floor space（total floor space）figures for 2020 and 2021 havenot been finalized, and the floor space and expected completion dates are subject to change.
Source: Prepared by Fukuoka Realty Co., Ltd based on data from “Office Market Data” Miki Shoji Co., Ltd2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

＊The figures as of December 31 each year.
Source: Prepared by Fukuoka Realty Co., Ltd based on data from “Office Market Data” Miki Shoji Co., Ltd（year）

Fukuoka business district /Trend of leasable floor space and occupancy floor space（tsubo）

800,000

Leasable floor space

Occupancy floor space

700,000

600,000

500,000

400,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Prepared by Fukuoka Realty Co., Ltd based on data from “Office Market Data” Miki Shoji Co., Ltd

Portfolio overview（year）

15

Historical and projected office buildings’ occupancy rates
Maintaining high occupancy levels while steadily increasing rent per unit area（％）

1

Canal City BusinessCenter Building
Total leasable floor space：23,029.92㎡

2

Gofukumachi Business Center
Total leasable floor space：19,905.34㎡

3
4
5

Sanix Hakata Building

100.0
90.0

80.0

Tenjin North Front
Building
Higashi Hie
Business Center Ⅱ
Total leasable floor space：6,214.77㎡

Average occupancy rates（historical and projected）

Total leasable floor space：88,900.02㎡

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

90.0

100.0
90.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

80.0
100.0
90.0
80.0
100.0

100.0

90.0

100.0

100.0

100.0

100.0

Major indicators of owned properties（＊2）
Total amountof acquisition

52,730 mm yen

Investment ratio

26.9％

Average age

17 years 3 months

Tenants

225

Total leasing
revenues-real estatein the 31st FP

2,261 mm yen

Rent gap（30.4）％ （＊3）（＊2）The figures are indicated as of February 29, 2020.
（＊3）Rent gap indicated the gap between current rent: contract rent with common
charges and market rent, and is calculated as “current rent – market rent / current rent”.
Moreover, market rent indicated average of assumed newly closed rent
assessed by CBRE as of Feb. 2020.

Trend in rent unit price index
of owned properties （＊4）（index）

105.0

80.0
100.0

100.0

90.0

100.0

100.0

100.0

100.0

104.0
103.0

80.0

102.0

100.0

100.0

90.0

99.0

99.1

100.0

100.0

101.0
100.0

80.0
（Tsubo）

Move-in/move-out floor space

96.5

80.0

Total leasable floor space：11,249.92㎡

Total leasable floor space：5,252.41㎡

8

90.0

100.0

Total leasable floor space：3,339.32㎡

7

100.0

Taihaku Street
Business Center （＊1）

Tenjin Nishi-Dori
Center Building

96.1

80.0

80.0

Higashi Hie
Business Center

99.8

90.0

Total leasable floor space：6,293.75㎡

Total leasable floor space：13,614.59㎡

6

100.0

367

0
Move out 45

709

29

30

Move in

737

350

31

99.0

0
0

0
0

32

33rd

th
th
st
nd
＊Occupancy rates are calculated as a weighted average during period.
〜Feb. 28, 2019
〜Aug. 31, 2019〜Feb. 29, 2020
〜Aug. 31, 2020
＊Total leasable floor space is figured as of the end of period.
＊Percentages and ratios are rounded off to the second decimal place.（＊1）Residential floor spaces are removed from the total leasable floor space of Taihaku Street Business Center. （forecast）〜Feb. 28, 2021
（forecast）

24th 25th 26th 27th 28th 29th 30th 31st

Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb.
2016 2017 2017 2018 2018 2019 2019 2020（＊4）The rent unit price index is based on the average rent per unit area at the end ofeach fiscal period compared with the rent per unit area at the end of the 24th
fiscal period（August 2016）, which is set as 100. This covers all office building
properties excluding Higashi Hie Business Center �（But, for Canal City BusinessCenter, only the spaces from the 2nd floor and above are covered）.

Portfolio overview

16Office building rent revisions and tenant replacement situation
The amount of rent expanded from the 30th fiscal period
Change in monthly rent due to rent revisions and tenant replacements （＊1）

Newly occupied floor space and number of new occupants（tsubo）（thousand yen）

5,500

Change due to tenant replacements
Change due to rent revisions

（＊2）

5,000

4,500

4,000

800
700
600
500
400
300
200
100
0

Number of
new occupants

3,500

Rent’s rateof increase/decrease（＊3）
Average freerent period（＊4）

3,000

Newly occupied floor space

28th

29th

30th

31st

32nd

Aug. 31, 2018

Feb. 28, 2019

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020（forecast）

2

0

6

7

0

（2.2）％

-

32.0％

17.8％

-

0.0 month-

0.3 month

0.2 month-（＊3） Based on calculation of the rate of change in rent with respect to the contract rent with the previous tenant at the time of tenant replacement.
（＊4） Based on calculation of the average over the free rent period of new contract.

2,500

Floor space subject to rent increase and number of properties subject to rent increases（＊1）（tsubo）

2,000

4,500

1,500

3,500

Floor space subject to rent increase

（＊2）

4,000
3,000
2,500

1,000

2,000
1,500

500

1,000
500

0
（100）

0

28th

Aug. 31, 201829th

Feb. 28, 201930th

Aug. 31, 201931st

Feb. 29, 2020

Aug. 31, 2020
（forecast）.
＊Covers all office buildings owned at the end of each fiscal period（However, for Canal City Business Center, only the spaces from the 2nd floor and above are covered）（＊1）There were no revisions to the rent reductions.
（＊2） For the 32nd fiscal period, only the figures where a tenancy agreement has been entered into as of the announcement of financial results or agreement
regarding changes has been reached with tenants as of the announcement of financial results are stated.

28th

29th

30th

31st

32nd

Aug. 31, 2018

Feb. 28, 2019

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020（forecast）

Number ofrent increase

11

6

16

10

12

Rent’s rateof increase/decrease（＊5）

8.2％

5.7％

4.8％

8.2％

9.3％

32nd

（＊5） Rate of increase/decrease calculated based on previous rent at rent revision.

Portfolio overview

17

Financing condition
Establishment of stable financial base
LTV

Average interest rate （＊1） and duration

（％）

（％）

1.3

50

Average interest rate
（％）

1.2
1.1

45

6.3

6.4

38.9

39.1

39.7

39.7

39.8

5

0.73

0.73

0.73

0.72

77,500

2

0.6

1
27th
Feb. 28, 2018

28th
Aug. 31, 201829th
Feb. 28, 201930th
Aug. 31, 2019

mm yenat the end of
the 31st FP

3

0.71

0.7

0.5

27th
28th
29th
30th
31st
Feb. 28, 2018 Aug. 31, 2018 Feb. 28, 2019 Aug. 31, 2019 Feb. 29, 2020

7.6％

6

6.1

4

0.8

35

Floating

7

0.9

40

30

6.0

Fixed and floating rate

8

Duration（years）

6.0

1. 0

（years）

31st
Feb. 29, 2020

Fixed

92.4％

0

（＊1）Interest rates are rounded off to the second decimal place.

A regional bank transaction network

Breakdown of debt by lenders
Sponsor banks

Investment
corporation bonds 6.5％
Other financial
institutions

2.6％

The Bankof Fukuoka

Regional banks（ex sponsor banks）

The Norinchukin
Bank

3.2％

Resona Bank

4.4％

Sumitomo Mitsui
Trust Bank

4.3％

MUFG Bank

5.7％

Sumitomo Mitsui
Banking Corporation 3.4％
Mizuho Bank

8.0％

13.5％

12.9％
77,500mm yenThe
Nishi-Nippon
City Bank

14.6％

at the end of
the 31st FP

Development
Bank of Japan

21.0％

Credit ratings （＊2）◎Sharing of information networks unique to regional banks toutilize for our investment strategy in the area Borrowings:（mm yen）
The Bank ofFukuoka

10,000

The Bank of Saga

500

The Oita Bank

1,500

The Eighteenth Bank

700

The Shinwa Bank

800

The Higo Bank

1,300

The Miyazaki Bank

700

The Kagoshima Bank

300

The Nishi-Nippon
City Bank

11,300

The Kitakyushu
Bank

1,700

JCR

AA-

（Stable）

R&I

A＋（Stable）
The Hiroshima Bank 2,000
The Iyo Bank

1,000

＊As of February 29, 2020（＊2）JCR: long-term issuer rating obtained fromJapan Credit Rating Agency, Ltd.
R&I: issuer rating obtained from Rating andInvestment

Financial strategy

18

Key financing events in the 31st fiscal period
Achievement of both interest cost reduction, borrowing term extension and diversification
New financing and repayment results

Extension of commitment line agreement period◎Changed the period of the commitment line agreement to 3 years◎Long-term debt for the 31st fiscal period ended February 2020
Repayment summary

New financing summary

Difference

Total
repayment
amount4,700 mm yen

Total
repayment
amount4,700 mm yen

Averageinterest rate

0.673%

Averageinterest rate

0.458%

Averagedebt
durationwith The Nishi-Nippon City Bank serving as the agent

Averagedebt
duration

6.8 years

Lenderー（0.214）%

9.9 years

PeriodCredit Limit

Start

End

Committed
line ofcredit 1

The Bank of Fukuoka
Resona Bank

6,000 mm yen

Aug. 1, 2018

Jul. 31, 2021

Committed
line ofcredit 2

The Nishi-Nippon City Bank
Resona BankThe Oita Bank
The Bank of Nagasaki
The Bank of Saga

7,000 mm yen

Mar. 2, 2020Feb. 28, 2023

Total

13,000 mm yen+3.1 years＊Amounts are totals, and terms and interest rates are weighted averages. Interest rates are rounded off to the second decimal place.

Diversification of debt maturities（As of February 29, 2020）（mm yen）

Floating

14,00013,00012,000

Fixed

Investment corporation bonds

Committed line of credit 13,000 mm yen

10,000
8,000
6,000

2,000

4,000

6,300

5,600

2,000
0

1,000
32nd
2020

0

0
33

400

rd

34

th

2021

35

th

36

th

2022

5,900
0
37

th

38

th

2023

2,500

4,200

2,000

700

2,000

1,900

300

39

40

41

42

43

th

th

2024

st

nd

2025

rd

6,600

4,400

7,000

7,000
4,900

700

1,500
44

th

2026

45

th

1,200

46

th

2027

47

th

48

th

2028

49

th

4,200
2,200
50

th

2029

2,000
51

st

56th

1,000
68th

2032

2038

Financial strategy

19

List of Interest-bearing debt
The current maturity of long-term debt is only 1,000 million yen■List of borrowings
Category
Current
maturity oflong-term debt

（As of February 29, 2020）

LenderAozora Bank

SubtotalMizuho Bank, and others （＊1）
Development Bank of Japan
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank
Development Bank of JapanThe Bank of Fukuoka
The Nishi-Nippon City Bank
Development Bank of JapanThe Bank of Fukuoka
The Nishi-Nippon City Bank
Mizuho Bank
Shinsei Bank
Sumitomo Mitsui Trust Bank
Development Bank of Japan,
and others （＊3）
The Bank of Fukuoka

Long-term
debt

Resona Bank
The Higo BankMUFG Bank
The Bank of Fukuoka,
and others （＊4）
Development Bank of JapanThe Bank of Fukuoka
The Nishi-Nippon City Bank
The Nishi-Nippon City Bank,and others （＊5）
Resona Bank
The Bank of Fukuoka
Development Bank of JapanThe Nishi-Nippon City Bank
Sumitomo Mitsui Trust BankMUFG Bank
Resona Bank
Development Bank of Japan
MUFG Bank
The Nishi-Nippon City Bank
The Bank of Fukuoka

Balance

Drawdown
Date

Repayment
Date

1,000
1,000
6,300
4,000

Jun.28, 2013

Jun.30, 2020

Jul.31, 2014

Jul.30, 2021

Aug.29, 2014

Aug.31, 2022

1,600

Jun.30, 2015

1,500
4,000
400
400
2,000
2,000
2,000
500
700
300

Jul.31, 2015
Aug.31, 2015

Aug.31, 2023

Aug.31, 2015

Aug.31, 2022

Aug.31, 2015

Aug.31, 2023

Feb.29, 2016

Feb.28, 2025

Feb.29, 2016

Feb.29, 2024

Feb.29, 2016

Feb.29, 2024

Feb.29, 2016

Feb.29, 2024

Jul.29, 2016

Jul.31, 2024

Sept.30, 2016

2,100

（mm yen）

Term

Fixed/ Average Interest（year） Floating
Rate
7.0 Floating 0.46727%

7.0
8.0

Fixed

Jun.30, 2022

7.0

Jul.31, 2023

Category

LenderMizuho Bank
Sumitomo Mitsui Banking
Corporation

Fixed

0.83500% （＊2）
1.01000%

MUFG Bank

Fixed

0.79000% （＊2）

The Oita Bank

Sept.30, 2025

8.0 Fixed
8.0 Fixed
7.0 Floating
8.0 Fixed
9.0 Fixed
8.0 Floating
8.0 Fixed
8.0 Fixed
8.0 Fixed
9.0 Floating

0.56400% （＊2）
0.88000%
0.41909％0.87000％ （＊2）
0.62000％
0.41909％0.44000％ （＊2）
0.44000％ （＊2）
0.40000％
0.41127％

Dec.30, 2016

Dec.30, 2025

9.0

Fixed

0.71750％

1,500
600
300
800

Dec.30, 2016

Dec.30, 2026

0.41727％0.65846%
0.48130%
0.48130%

Mar.31, 2017

Mar.31, 2027

Mar.31, 2017

Mar.31, 2025

Mar.31, 2017

Mar.31, 2025

10.0 Floating
10.0 Fixed
8.0 Fixed
8.0 Fixed

6,000

Jun.30, 2017

Jun.30, 2026

9.0

Fixed

0.77677%

1,800
2,000
2,000

Jun.30, 2017

Dec.31, 2026
Jul.31, 2027

Jul.31, 2017

Jul.31, 2027

9.5
10.0
10.0

Fixed

Jul.31, 2017

Fixed

0.65000%
0.79195%
0.89195%

1,500

Aug.31, 2017

Aug.31, 2027

10.0

Fixed

0.84952%

2,000
1,500
500
1,900
1,100
1,500
600
2,500
600
600
500

Sept.29, 2017

Sept.30, 2027
Dec.30, 2027

Dec.29, 2017

Dec.30, 2027

Feb.28, 2018

Feb.29, 2028

Feb.28, 2018

Feb.26, 2027

Feb.28, 2018

Feb.27, 2026

Feb.28, 2018

Feb.29, 2028

Mar. 1, 2018

Mar. 1, 2028

Mar.30, 2018

Mar.31, 2026

Mar.30, 2018

Mar.31, 2028

Mar.30, 2018

Mar.31, 2028

10.0
10.0
10.0
10.0
9.0
8.0
10.0
10.0
8.0
10.0
10.0

Fixed

Dec.29, 2017

Fixed

Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed

Sumitomo Mitsui Trust Bank
The Hiroshima Bank
Shinsei Bank
Sumitomo Mitsui Banking
Corporation
MUFG Bank

Long-term
debt

The Nishi-Nippon City Bank
The Bank of Fukuoka
The Oita Bank
The Kagoshima Bank
The Higo Bank
Resona Bank
Mizuho Bank, and others （＊6）
The Norinchukin BankMUFG Bank
The Nishi-Nippon City Bank
Mizuho Bank

Subtotal
Total

Balance（mm yen）

Drawdown
Date

500

Mar.30, 2018

Repayment Term Fixed/ Average Interest（year） Floating
Date
Rate
Fixed
0.63000%
Mar.31, 2028 10.0

500

Mar.30, 2018

Mar.31, 2025

7.0

Fixed

0.50400% （＊2）

500
400
400
400
300

Mar.30, 2018

Mar.31, 2027

Fixed

Mar.30, 2018

Mar.31, 2027

Mar.30, 2018

Mar.31, 2028

Mar.30, 2018

Mar.31, 2028

Mar.30, 2018

Mar.31, 2025

9.0
9.0
10.0
10.0
7.0

Fixed

0.49000%
0.57600% （＊2）
0.64630%
0.64630%0.40000%

500

Jan.31, 2019

Jan.31, 2029

10.0

Fixed

0.65528%

Jan.31, 2019
Jan.31, 2028500
Jan.31, 2019
Jan.31, 2029
400
Jan.31, 2019
Jan.31, 2029
300
200 Feb.28, 2019 Feb.27, 2026
200 Feb.28, 2019 Feb.27, 2026
200 Feb.28, 2019 Feb.27, 2026
200 Feb.28, 2019 Feb.28, 2029
Jul.31, 2019
Jul.31, 2029
2,200
Jul.31, 2019
Jan.29, 2027
1,500
500 Sept. 25, 2019 Sept.29, 2028
2,500 Feb. 28, 2020 Feb. 28, 2030
1,700 Feb. 28, 2020 Feb. 28, 2030
71,50072,500

Fixed
Fixed
Fixed

9.0 Fixed
10.0 Floating
10.0 Floating
7.0 Fixed
7.0 Fixed
7.0 Fixed
10.0 Fixed
10.0 Fixed
7.5 Fixed
9.0 Fixed
10.0 Fixed
10.0 Fixed

0.59000%
0.41909%0.41909%
0.33380%
0.33380%
0.33380%
0.48845%（＊2）
0.52100% （＊2）
0.30300%
0.48000%
0.48000% （＊2）
0.42000%■Investment corporation bonds
Issue date

Maturity
Date（year）

Term

Coupon （year）

2,000

Dec.30,2013

Dec.29, 2023

10.0

1.32000％

The second series of unsecured
0.49350% （＊2）
2,000
bonds
0.81209%
The third series of unsecured
1,000
bonds
0.68000%
Total
5,000
0.75000% （＊2）
0.60000% （＊2） ■Committed line of credit
0.50000%
Credit Limit
Category
Lender（mm yen）
0.56700% （＊2）
Committed line The Bank of Fukuoka,
0.72000%
6,000
and others （＊7）
of credit 1
0.48000％
Committed line The Nishi-Nippon City Bank
7,000
of credit 2
and others （＊8）
0.80219%
13,000Total
0.80219%

Jul.31, 2017

Jul.30, 2032

15.0

1.00000％

Jul.31, 2018

Jul.30, 2038

20.0

1.20000％

Category
Investment
corporation
bonds

Issue
The first series of unsecured
bonds

Balance（mm yen）

Start

PeriodEnd

Aug.1, 2018

Jul.31, 2021

Mar.2, 2020Feb.28, 2023

＊ For floating-rate debts, the interest rates applicable as of February 29, 2020 are indicated. ＊All debts have been borrowed with no collateral and no guarantee, to be repaid in lump-sum upon maturity.
（＊1） The lenders are Mizuho Bank・The Norinchukin Bank・The Hiroshima Bank・The Kitakyushu Bank・The Iyo Bank・The Higo Bank （＊2） FRC has concluded a swap agreement to practically fix interest rate on debt. The indicated interest rate reflects the effect of the swap agreement.
（＊3） The lenders are Development Bank of Japan・The Oita Bank・The Kagoshima Bank・The Kitakyushu Bank・The Eighteenth Bank・The Shinwa Bank・The Hiroshima Bank （＊4） The lenders are The Bank of Fukuoka・The Nishi-Nippon City Bank・The Oita Bank・The Kitakyushu Bank・The Miyazaki Bank・The Shinwa Bank・The Iyo Bank・The Eighteenth Bank （＊5） The lenders are The Nishi-Nippon City Bank ・ The Bank of Fukuoka ・The Oita Bank・The Kitakyushu Bank・The Eighteenth Bank・The Shinwa Bank・The Hiroshima Bank（＊6） The lenders are Mizuho Bank・The Bank of Saga ・The Higo Bank （＊7） The lenders are The Bank of Fukuoka・Resona Bank （＊8） The lenders are The Nishi-Nippon City Bank・ Resona Bank・ The Oita Bank・The Bank of Nagasaki・The Bank of Saga

Financial strategy

20Appraisal value
Maintained unrealized gains for all properties （＊1）
- unit : mm yen （Figures rounded down to the nearest mm yen）

Difference

Appraisal value
Property nameAcquisition
price

Acquisition
cap rate（＊2）

RetailOffice buildings
OthersCanal City Hakata
Canal City Hakata・B
Park Place Oita
SunLive City Kokura
Konoha Mall Hashimoto
Square Mall Kagoshima Usuki
Kumamoto Intercommunity SC
Hanahata SC
Kurume Higashi Kushiwara SC
K’s Denki Kagoshima
Marinoa City Fukuoka （Marina Side Building)
Total of retail
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
Higashi Hie Business Center Ⅱ
Total of office buildings
Amex Akasakamon Tower （Residence）
City House Keyaki Dori（Residence）
Aqualia Chihaya（Residence）
D-Wing Tower（Residence）
Granfore Yakuin Minami（Residence）
Hotel FORZA Oita
（Hotel）
Tissage Hotel Naha
（Hotel）
Tosu Logistics Center（Logistics）
LOGICITY Minato Kashii（Logistics）
LOGICITY Hisayama（Logistics）
Total of others
Total properties

Feb. 29, 2020

Aug. 31, 2019

30th

Book value
at 31st

31st

Direct capitalization values

From
Appraisalvalue at 30th
①-②

From
Book value
at 31st①-③

31st
Cap rate

30th
Cap rate

Difference

④

⑤

④-⑤

Appraiser①②③

32,0006.0%

31,80032,00029,743

（200）

2,056

4.5%

4.5%

0.0%

Tanizawa Sogo Appraisal

28,7005.4%

29,90030,10028,831

（200）

1,068

4.7%

4.7%

0.0%

Tanizawa Sogo Appraisal

18,6206.0%

20,20019,80019,321

400

878

5.4%

5.5%

（0.1）%

Japan Real Estate Institute

6,633

6.6%

8,460

8,340

5,535

120

2,924

5.8%

5.9%

（0.1）%

Japan Real Estate Institute10,0005.3%

10,50010,50010,041

0

458

5.1%

5.1%

0.0%

Tanizawa Sogo Appraisal

5,300

6.3%

5,450

5,630

4,343

（180）

1,106

5.7%

5.8%

（0.1）%

Japan Real Estate Institute

2,400

6.5%

2,860

2,860

1,980

0

879

5.6%

5.6%

0.0%

Japan Real Estate Institute

1,130

6.4%

1,250

1,250

978

0

271

5.4%

5.4%

0.0%

Tanizawa Sogo Appraisal

2,500

6.1%

2,790

2,790

2,042

0

747

5.5%

5.5%

0.0%

Tanizawa Sogo Appraisal

3,550

5.7%

3,710

3,710

2,974

0

735

5.4%

5.4%

0.0%

Tanizawa Sogo Appraisal

5,250

5.5%

6,080

6,080

5,430

0

649

4.8%

4.8%

0.0%

Tanizawa Sogo Appraisal

123,000

123,060

111,224（60）

11,775116,083

-

-

-

-

14,600

6.3%

16,40015,90013,046

500

3,353

4.4%

4.5%

（0.1）%

Tanizawa Sogo Appraisal

11,2006.3%

14,60014,300

8,908

300

5,691

4.3%

4.4%

（0.1）%

Tanizawa Sogo Appraisal

4,400

5.9%

6,400

6,360

3,767

40

2,632

4.1%

4.2%

（0.1）%

Japan Real Estate Institute

7,000

6.0%

8,650

8,640

5,851

10

2,798

4.4%

4.5%

（0.1）%

Japan Real Estate Institute

5,900

6.0%

8,000

7,650

4,486

350

3,513

4.5%

4.6%

（0.1）%

Tanizawa Sogo Appraisal

2,600

5.4%

3,100

3,170

2,675

（70）

424

3.9%

4.0%

（0.1）%

Japan Real Estate Institute

2,800

6.1%

4,360

3,990

2,502

370

1,857

4.1%

4.2%

（0.1）%

Japan Real Estate Institute

4,230

4.9%

4,590

4,440

4,105

150

484

4.5%

4.6%

（0.1）%

Tanizawa Sogo Appraisal

66,10064,45045,344

1,650

20,75552,730

-

-

-

-

2,060

5.4%

1,840

1,840

1,684

0

155

4.5%

4.5%

0.0%

Daiwa Real Estate Appraisal

1,111

5.5%

1,140

1,140

910

0

229

4.5%

4.5%

0.0%

Daiwa Real Estate Appraisal

1,280

6.8%

1,820

1,780

1,182

40

637

4.8%

4.9%

（0.1）%

Japan Real Estate Institute

2,800

5.9%

3,560

3,570

2,681

（10）

878

4.5%

4.5%

0.0%

Tanizawa Sogo Appraisal

1,100

5.6%

1,320

1,310

1,108

10

211

4.4%

4.4%

0.0%

Tanizawa Sogo Appraisal

1,530

6.6%

1,890

1,860

1,409

30

480

5.1%

5.2%

（0.1）%

Japan Real Estate Institute

2,835

5.3%

2,990

3,020

2,877

（30）

112

4.9%

4.9%

0.0%

Tanizawa Sogo Appraisal

1,250

5.9%

1,420

1,430

1,177

（10）

242

5.2%

5.2%

0.0%

Japan Real Estate Institute

8,150

5.2%

8,910

8,900

7,862

10

1,047

4.4%

4.4%

0.0%

Tanizawa Sogo Appraisal

5,050

5.1%

5,270

5,260

4,873

10

396

4.6%

4.6%

0.0%

Tanizawa Sogo Appraisal

27,166-30,16030,11025,768

50

4,391

-

-

-

195,979-

219,260

217,620

182,336

1,640

36,923---（＊1） It does not include “construction in progress in trust” in book value in balance sheet at the end of period.
（＊2） “Acquisition price” does not include fees, public charge and expenses.

Appraisal value

21

Historical appraisal values （unrealized gains）
Maintained continuously since the 3rd fiscal period （Unrealized gains 36,923 mm yen, 20.3% ratio of unrealized gains at the 31st FP ）（＊1）

Historical appraisal values
Book value at the end of period( * 2)（mm yen）

250,000

Unrealized gains = (latest appraisal value – book value at the end of period( * 2))

29,467200,000

24,255
16,777 19,830

8,243
6,498

5,543

6,066

9,138

11,097

21,15231,804 34,087

36,92322,878 25,541

14,434

6,522

150,000
20,79921,07012,465 9,300

18,742

8,953

9,394

6,989

13,955
7,894
100,000
（411）

1,893
146,621 146,246 150,603

50,00081,771

0

2nd

Aug.
2005

86,777

3rd

Feb.
2006

93,556

4th

Aug.
2006

103,025 107,338

5th

Feb.
2007

6th

Aug.
2007

112,001 115,560 115,195

7th

Feb.
2008

8th

Aug.
2008

9th

Feb.
2009

152,422

158,851 158,007 159,128 159,246

172,406 171,555 168,902

182,352 184,715 183,532 182,336
164,527 169,031 168,138

120,299 119,486 118,686 118,411

10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st
Aug.
2009

Feb.
2010

Aug.
2010

Feb.
2011

Aug.
2011

Feb.
2012

Aug.
2012

Feb.
2013

Aug.
2013

Feb.
2014

Aug.
2014

Feb.
2015

Aug.
2015

Feb.
2016

Aug.
2016

Feb.
2017

Aug.
2017

Feb.
2018

Aug.
2018

Feb.
2019

Aug.
2019

Feb.
2020

( * 1)Ratio of unrealized gains = (latest appraisal value – book value at the end of period( * 2))／book value at the end of period.
( * 2)Book value at the end of period does not include construction in progress.

Appraisal value

22

The condition of suburb area in Fukuoka
CE

Island City Logistics Development Project

JR

oka

Infrastructure

Fukuoka Urban Expressway
Route 6 （Island City Line）

S
Nanakubway
uma L

ine

Fukuoka
University
Hospital

FY 2021
Completion of Marine Messe Fukuoka
Building B

Hanahata SC
8816

Fukuoka Airport

uO

mu

ta

Ka

go

sh

Lin

e

im

Best Denki
StadiumaL

ine

FY 2024

FY 2025 and beyond●Addition of runways at Fukuoka Airport●Extension of Fukuoka Urban

Nanakuma Line

●Redevelopment of waterfront
district

Expressway Route 3 （Airport Line）●Demolition to start for Tenjin Core Building

Redevelopment（Hakata area）●Demolition to start for The Nishi-Nippon●Completion of Hakata-Eki Higashi 1-chome

City Bank Head Office Main Building

Development Project: provisional nameCenter

FY 2023●Extension of the subway’s

Redevelopment（Tenjin area）

and Tenjin Daiichi Meiten Building:Tenjin Vivre●Tenjin IMS to close●Completion of Tenjin Business

FY 2022

19

JR

ets

Fukuoka
University

Fukuoka Urban Expressway
Kanjo Line

●Waterfront district

14

Canal City Hakata
Nis

Nanakuma subway line
extention projectis owned by Fukuoka Jisho Group（ As of February 29, 2020）.

FY 2020●Completion of construction of

24

Hakata Stn

2 １ １2an
rb y
a U wa eok s inku res u L
Fu xp zaif
E aD

＊Please refer to P49 regarding the number of properties.
＊ is owned by Fukuoka REIT Corporation（ As of February 29, 2020）.＊

Tenjinenlegend17

hit

Konoha Mall Hashimoto
5

Ruins of
Fukuoka 21
Castle

18

kans

3

Nishi Kyushu
Expressway

Ohori
Park

The Residential
Suites Fukuoka

JR Chikuhi Line

JR （Kagoshima Line/Sasaguri Line/Kashii Line/Chikuhi Line/Uminonakamichi Line）
Shinkansen（Kyushu Shinkansen/Sanyo Shinkansen）
Nishi-Nippon Railroad （Tenjin-Omuta Line/Kaizuka Line）
Fukuoka Municipal Subway （Kuko Line/Hakozaki Line/Nanakuma Line）
Fukuoka Urban Expressway（Kanjo/Dazaifu/Kuko/Kasuya/Kashii）
Kyushu Expressway
Nishi Kyushu Expressway
Redevelopment Project in Fukuoka City

13 15

FUKUOKA Subway K
uko Line 20 23
PayPay DOME

Fukuoka IC

sen
kan
hin
S
nyo JR Sasagu
Sari LineShin

Marina Town

TORIUS
Hisayamanrba
a U ayokesswLineuk
FuExprport
Air

Fukuoka Urban
Expressway Kanjo Line

Seaside Momochi
Beach Parkka Urban
Kasuy Expressway
a Lineshu

11

Marinoa City Fukuoka(Outlet Building)

Kyushu University
Ito Campus

Kyushu University
Hakozaki Campus Site

Fu
ku

Chuo
Port

Marinoa City Fukuoka(Marina Side Building)

Fukuo

Kyu

Waterfront District

esswaye

HakozakiPort

NokonoshimaIslandBoth bustling and relaxing spaces that take advantage of the seafront location will becreated by encouraging the relocation of private facilities to the district and leveraging
the area’s unique characteristics and charms, all the while working to strengthen MICE
(Meetings, Incentives, Conferencing, and Exhibitions) and cruise-related functions withthe aim of building them into drivers of growth for Fukuoka City.

22

Lin

2

LOGICITY Hisayama

Kyushu Expr

Aqualia Chihaya

Hakata Bay

NokonoshimaIsland Park

29

ii
sh

Will Mark
Kashiihama

Hakata Connected
Urban functions in the Hakata Station area will be enhanced through redevelopment including
construction of highly earthquake-resistant buildings and expansion of the network ofpedestrian routes, along with enhancement of transport infrastructure such as extension of
the Nanakuma subway line to Hakata Station and redevelopment of Hakata Ekimae Street.
Target area: 500-meter radius around the Hakata Station (about 80 ha).

500m

Ka

The Tenjin Big Bang Project aims to encourage, through special Fukuoka City government
measures, rebuilding by the private sector to generate fresh employment opportunities andcreate urban new spaces, taking advantage of relaxed regulations in the Tenjin area as partof a National Strategic Special Zone initiative. The Fukuoka City government has received
special permission to relax Civil Aeronautics Act-related building height regulations and has
also relaxed regulations on floor-space ratios etc. Work on the first building of the project,
Tenjin Business Center(provisional name), started in January 2019.

LOGICITY Minato Kashii

1km

Kyushu Sangyo
University

Fukuoka Urban
Expressway Route 6（Island city Line）maintenance

28

JR

Uminonakamichi
Seaside ParkF

Vegefru stadium(Fresh produce market)u
ts ne
ite Lish ka
Ni izuKa

ShikanoshimaIsland《Redevelopment Project in Fukuoka City》
The Tenjin Big Bang Project1

DUr
Ka banshi Exi Li preHa Su
ne ssw
ko bw
ay
za ay
ki
Lin
e

B

Um
ino
na
Lin kamicehiA●Completion of Tenjin IMS site●Completion of Daimyo

construction work

Elementary School site
redevelopment construction work

●Opening of Tenjin 1-chome 11th Block
Development Project: provisional name●Completion of new facilities for the
Fukuoka Higashi General Prefectural
Office Building Site Utilization Project●Completion of The Nishi-Nippon
City Bank New Head Office Building●Demolition to start for The Nishi-Nippon
City Bank Head Office Annex and
Administrative Head Office Building

Source: Prepared by Fukuoka Realty Co., Ltd. based on press releases of local government or each company.

Situation of Fukuoka and Kyushu

23

Functional Enhancement of Fukuoka Airport
Initiatives to increase runway handling capacity and expand number of routes
Fukuoka Airport

Domestic
terminal building

Newly built
parallel taxiway

Domestic terminal building
being reconstructedcompleted[ Construction]in Jan. 2020

completed[ Construction]in Jan. 2020

Internationalterminal building

Current runway

2,800m×60m

Existing
parallel taxiway

Expanded runway

2,500m×60m

Current status of Fukuoka Airport◎ Ranking by number of arrivals and departures ◎International flights' schedule in summer 2020and number of passengers in FY2018●Number of arrivals and departures [international and domestic]
Airport1

TOKYO[Haneda]

Annual

455,000

2

TOKYO[Narita]

257,000

3

OSAKA [Kansai]

189,000

4

FUKUOKA

181,000

5

OKINAWA [Naha]

163,000

Runway handling
capacity enhancement （＊2）
◎Scheduled completion ofparallel taxiway duplication[the end of January 2020]

Fukuoka

9

Naha

0

Shinchitose

0

Total

International routes
22routes

Helsinki（Only in summer）

Dalian25 countries ・67routes

23 cities ・26 routes

23 cities ・26 routes

30 cities ・33 routes

Source: Prepared by Fukuoka Realty Co., Ltd. based on the Master Plan of Fukuoka International Airport Co., Ltd.

Amami Oshima（＊3）

Taipei

500km
250km

1,000km
1,500km

Ishigaki
Honolulu

Kaohsiung（As of December 2019）

Narita500km

Naha
Hong Kong
Macao

Haneda13 countries ・26 routes

Fukue
Amakusa
Kagoshima

Shizuoka
Chubu

10 countries ・18 routes

Domestic
routes188,000 ／per year
～ 211,000 ／per year

Izumo
Osaka Komaki
Matsuyama

Yakushima[the end of March 2025]

After expansion

Daegu
Busan
Tsushima

Sendai

Komatsu MatsumotoIbaragi

KansaiTokushima
Kochi

InternationalroutesShanghai

Wuhan

HanamakiNiigata
Seoul

Miyazaki

FY2048 [Targets]◎Scheduled opening ofadditional runway

Shin-Chitose

Nov. 27, 2019 ～➡Honolulu route

Beijing

170,000 ／per year

FY2023 [Targets]

Jul. 1, 2019〜➡Muan, Jeju route732 flights/week 370 flights/day

Qingdao

March 2018

Mar. 1, 2019〜➡Kuala Lumpur route

Domestic routes
27routes

After expansion

Future increase in number of routes and countries served

456（As of March 28, 2020）
Source: Prepared by Fukuoka Realty based on data from the “Overview ofInternational flights' schedule in summer 2020” of the Ministry of Land,
Infrastructure, Transport and Tourism

Current 164,000 ／per year

Photo provided by: Fukuoka City Office （Panorama of Fukuoka Airport from south to north）

0

Others

Source: Prepared by Fukuoka Realty based on data from the “FY2018 Airport
Ranking Table” of the Ministry of Land, Infrastructure, Transport and Tourism（＊1） The number of arrivals and departures is calculated by multiplying thenumber of arrivals by two.

Scheduled to commence[ operationsin March 2025 ]

219.5
184.5
36
7
9

TOK YO [Narita]
TOK YO [Haneda]
OSAK A [Kansai]
NAGOYA [Chubu]
Regional cities

Number of arrivals
and departures （＊1）

Rank

Number of arrivals anddepartures ［frights/week]

Airport ［tourists］

Singapore Bangkok Ho Chi Minh Hanoi Manila
City

Guam

Source: Prepared by Fukuoka Realty Co., Ltd. based on the Medium-term Business Plan（FY2019-2023）of Fukuoka International Airport Co., Ltd.
and data from Fukuoka City Port and Airport Bureau（＊2） The upper limit of the number of arrivals and departures that can be stably handled by the runways without congestion or delays.
（＊3） Increase in landing slots to be considered after gaining understanding of the community and taking into account future demand trends

Situation of Fukuoka and Kyushu

24Redevelopment in Tenjin area （Tenjin Big Bang）
Preparation made for functional renewal of buildings in the Tenjin district◎Creation of an attractive environment that promotes Tenjin as a start-up location① Deregulation of floor space ratios① Problem of existing noncompliant buildings（use exceeding the current designated floor space ratio）

Tenjin Northfront
Building■ Owned by Fukuoka Jisho （＊）■ Completed before 1978

●Tenjin Meiji-dori district
approx.76ｍ→From the
Watanabe-dori Street center line

●Waterfront district
approx.70～90ｍ→approx.100ｍ●Former Daimyo
Elementary School Siteapprox.76m→ approx.115ｍ【West side】approx.115ｍ【East side】approx.76〜100ｍ

To be reconsidered in light of surrounding
existing buildings at the time ofsubmission of a specific zone

Tenjin Riverfront Business Center●Area surrounding Hakata Station

Tenjin Business Center （provisional name） floor map
PHF/RF●Bank of Japan
Fukuoka Chuo Post Office
●

e.
i Av
dor
betanaWa

Tenjin 2-chome south block along Meiji-dori Ave.
(relaxation of floor space ratio restriction)de】【West sive.
dori A
Meiji-

D-WingTower

Tenjin Nishi-DoriBusiness Center

100m●Tenjin Meiji-dori district
approx.67ｍ→ approx.76ｍ

AEON Shoppers Fukuoka(Creation of office space for new tenants)

Tenjin Meiji-dori district(relaxation of height restriction)

Former Daimyo
Elementary School Site（relaxation of height
and floor space ratio）

×●Former Daimyo Elementary School Siteapprox.450％→800％②Problem of building height restrictions
under the Civil Aeronautics Act

Scheduled to be completed in Dec. 2022
Use: Office, hotel, and others
Relaxation of floor space:approx. 79,260㎡
24 aboveground floors, basement 1 floor②Relaxation of restrictions

through a district development plan
●Tenjin 1-chome south block 800％→1400％●Tenjin 2-chome south block along Meiji-dori Ave.
700％→1300％

Issues pertaining to functional renewal
in the Tenjin district

Tenjin Nishi-Dori
CenterBuildingde】【East siFukuoka Kogin Building

ipal
Munic LineakoFuku ay Kuk o
Subw

Lower level
floor

Lower zone
(retail and office）

Fukuoka
City Hall●

Tenjin MMT Building
Scheduled to be opened in summer 2024
Use: Office, shops, hotel
Total floor space:approx. 138,000㎡
19 aboveground floors, basement 4 floors
・Fukuoka Building: closed Mar. 31, 2019・Tenjin Vivre: closed Feb. 11, 2020・Tenjin Core: closed Mar. 31, 2020

Office zone●
Acros
FukuokaS t n.
Ten jin Tenjin 1-chome
11th Block
Development Project（provisional name）

Higher level
floor

Tenjin 1-chome south block(relaxation of floor space ratio restriction)

Office entrance
AtriumRetail zone

◎Tenjin Business Center （provisional name）

天神中央公園●Tenjin MM Building（IMS）
To be closed Aug. 31, 2021

EntityFukuoka Jisho Co.,Ltd

Location

1-Chome, Tenjin, Chuo Ward, Fukuoka City

Land area

3,917.18㎡

Floors19 aboveground floors,
penthouse 2 floors, basement 2 floors

Use

Office, shops, parking etc.
approx. 89ｍ

Total floor
space（image）

Tenjin Business Center（provisional name）（＊） Includes properties co-owned with other companies
Source: Prepared by Fukuoka Realty Co., Ltd. based on Tenjin Meiji-dori Avenue Grand Design 2009 authored by the Tenjin Meiji-dori Development Council and each company.

SubwayTenjin Stn.

19F
18F
17F
16F
15F
14F
13F
12F
11F
10F
9F
8F
7F
6F
5F
4F
3F
2F
1F
B1F
B2F

HeightCompletion

61,116.98㎡

September 2021（scheduled）

Situation of Fukuoka and Kyushu

25Redevelopment in Hakata area（Hakata Connected）
Initiative to expand the vitality and bustle of Hakata Station area out further to the surroundings

Project for effective utilizationof the Fukuoka Prefecture
East General Office site

（approx. 500m radius from the station, covering about 80 hectares）◎Hakata Connected Bonus①Expansion of floor area ratio relaxation policy（Policy to Encourage the Upgrading of Central Urban Functions in Fukuoka City）●Buildings that contribute to an increase in bustle including those withplazas etc. that facilitate linkages and ripple effects, to be granted amaximum floor area ratio of 50%●From the perspective of further creation of bustle and pedestrian
movement, even roofed plazas to be given maximum 250% increasein public open space evaluation

Hakata Connected target area

■J
ote
nji
-do
ri A
ve
.

②Prioritized introduction of certified
buildings to tenants③Promotion of certified buildings
by the administration④Dedicated Hakata Connected
Bonus financing products

Successive redevelopment of buildings
owned by The Nishi-Nippon City Bank・May 2025: Demolition to start for The Nishi-Nippon
City Bank Head Office Annex and Administrative■ National Strategic Road Occupancy Project
Head Office Building
・Sept. 2028: Completion of The Nishi-Nippon City
Bank Head Office Annex and Administrative
Head Office
AnnexAdministrative Head Office Building
OfficeHead■T
Canal City Hakata／
BuildingaCanal City Hakata・B

Chukan Stn.(provisional name）
Canal City Hakata
East Building

iha
ku
-d
or
iA
ve
.

Hotel FORZA Hakataeki
Chikushi-guchi Ⅰ

Subwaye

JR Hakata Stn.
Hakata-ekimae
Business Center

The Nishi-Nippon City Bank
Head Office Main Building
・Jun. 2020: Demolition to start・Feb. 2025: New head officebuilding to complete

Canal City BusinessCenter Building

■

.
ve
ri A
o
i-d
sh
yo
i
m
Su

e.

Nanakuma subway line:
scheduled to commence
operations in FY2022■ Ta
keshita-dori Av■Hakata-ekimae-dori Ave.

Kuko Lin

0m
50
.
ox
pr
p
a

◎Special approval pertaining
to Civil Aeronautics Act
building height restrictions
Municipal support for special approval
pertaining to Civil Aeronautics Act
building height restrictions for eachindividual plan

. Majority of the buildings around Hakata
ve Station were constructed between the timeAof relocation of the station in 1963 and theridoopening of the Sanyo Shinkansen in 1975.
ok
u
K
■

s
diu
ra

Development of high-performance officebuilding that would energize area to theeast of Hakata Station●Composition of the group of companies
Representative company: Kyushu Railway Company
Members: Fukuoka Jisho Co., Ltd., ASO Corporation＊Currently, these companies are Preferred Negotiation Right Holders
but the project has not been finalized.

●Land owner: Fukuoka Prefecture[Lease period: 70 years]

Hotel FORZA Hakataeki
Chikushi-guchi Ⅱ

Higashi Hie
Business Center■Chikushiguchi
chuo-dori Ave.

Sanix Hakata Building■C
SUNLIFE
hikus No.3 Building
hido
ri A
ve
.

Higashi Hie
Business Center Ⅱ＊Subject to change depending on future negotiations, etc.

Higashi Hie Business Center �

To be acquired by FRC on May 29, 2020

Hakata-Eki Higashi 1-chome
Development Project: provisional nameCompletion [scheduled] / June 2022
Use / Office, shops, parking
Total floor space / approx. 29,300㎡
Floors / 10 aboveground floors, penthouse 1 floor

Completion

March - April 2024（scheduled）

Use

Office, shops, parking

Land area

2,638.64 ㎡

Total floor space approx.18,700㎡
100m

Floors11 aboveground floors,
basement 1 floor

Source: Prepared by Fukuoka Realty based on press releases of local government or each company.

Situation of Fukuoka and Kyushu

26

Sustainability
Publication of “Integrated Report 2019”: first in the J-REIT industry
FRC published the “Integrated Repor t 2019,”
which integr ally pr ovides it s f inancial andnon-financial information and encompasses its
initiatives for sustainable growth and medium-to
long-term corporate value creation, as of January
6, 2020.
Aimed at demonstrating FRC’s value-creation
process in an easy-to-understand manner, theRepor t pr esent s it s histor y, management
philosophy, value-creation activities and thefoundations underpinning management, etc.
This r epor t was c ompiled in r ef er enc e to“International Integrated Reporting Framework” by
the International Integrated Reporting Council■J-REIT Mechanism and Fukuoka REIT Corporation's Business Model（IIRC）and “Guidance for Collaborative Value
Creation” by the Ministry of Economy, Trade andIndustry.
■Please refer to the Integrated Report 2019.

URL : www.fukuoka-reit.jp/eng/ir/pdf/
integrated_report_print.pdf

External evaluation

Institution of signatory
Signing of the PRI and PFA21 as of September 2018

◎Principles for Responsible
Investment （PRI）◎The GRESB survey 2019

◎Principles for Financial Action
towards a Sustainable Society◎Green Building certificate acquisition ratio [as of February 29, 2020]
Green Building certification obtained for 82.1% of entire portfolio● DBJ Green Building certification（Principles for Financial Action for the 21st Century）: total 11 properties

Certificatedproperties

Received the rating of “Green Star”
and “4 star” in the GRESB survey 2019

● BELS : total 4 properties

82.1％（based on total floor space）

Sustainability

27

サステナビリティへの取り組み

Appendix28

Profile
Special features of Fukuoka REIT Corporation

1
2
3
4
5

Proven track record over 31 fiscal periods as a region-specific REIT

Portfolio summary （＊1）

Asset management leveraging our in-depth knowledge of the real estate environmentof Fukuoka and Kyushu region, one of our greatest strengths

Number of properties /Asset size （＊2）
Of which,acquisition from sponsors （＊3）

14 / 118,710 mm yen

Excellent portfolio centered on Fukuoka metropolitan area

Unrealized gains

36,923 mm yen

A portfolio of carefully selected investments in the high growth area of Fukuoka City
attention from around Japan and overseas

Total leasable floor space

580,662.77 ㎡

Occupancy rate

99.7％

Solid support from a sponsor company involved in property development
Asset portfolio expansion and high occupancy rates facilitated through coordination
with our sponsors

Establishment of stable financial baseConservative control of interest-bearing debt ratio, long-term diversificationof repayment deadlines

DPU kept at a constant level ever since the IPO
Maintain and improve of the dividend provision through effective
asset management

Overview of Fukuoka REIT Corporation（based on acquisition price）

Others29 / 195,979 mm yen

Financial highlight （＊1）
Total debt

77,500 mm yen

LTV

39.8％

Fixed rate

92.4％

Average interest rate

0.71％

Credit ratings◎Investment type

JCR AA−（Stable）
R &I A＋ （Stable）

13.9％
Office buildings

26.9％

Retail59.2％◎Investment area（based on acquisition price）

Other
Kyushu areas

22.8％

Fukuoka
metropolitan area

77.2％

Investment unit price （＊1）
Unit price

Name

Fukuoka REIT Corporation

Outstanding units

Security code

8968

Market capitalization

Listed dateJune 21, 2005 （Tokyo Stock Exchange, Fukuoka Stock Exchange）

Net assets value per unit

Fiscal period

February ・ AugustMarket net assets value per unit （＊4）

Asset manager

Fukuoka Realty Co., Ltd.

Dividend （actual）

Sponsors

Fukuoka Jisho Co., Ltd., Kyushu Electric Power Co., Inc.,
Nishi-Nippon Railroad Co., Ltd., ROYAL HOLDINGS Co., Ltd.,THE BANK OF FUKUOKA, LTD., THE NISHI-NIPPON CITY BANK, LTD.,SAIBU GAS CO., LTD., Kyudenko Corporation,
Kyushu Railway Company, Development Bank of Japan Inc.

Dividend yield

167,900 yen
796,000 unit
133,648 mm yen （unit price ＊ outstanding units）
127,937 yen
170,680 yen
3,642 yen per unit （Days in fiscal period 182days） at the 31st FP
4.4％ { （Dividend / days in fiscal period ＊ 365） / Unit price}（＊1） The figures are as of February 29, 2020 (excl. average interest rate) （＊2）The figures are total of acquisition price.
（＊3） Because the Higashi Hie Business Center that was acquired in the 10th fiscal period （period ended August 31, 2009） was acquired from both outside parties andsponsors, the purchase price has been added to the purchase prices from outside parties and the purchase prices from sponsors after calculation on a percapita basis. Furthermore, with regard to the number of properties, one property has been added to the number of properties acquired from sponsors.

（＊4） Market net asset value per unit= {Total net assets + Unrealized gains - Total amount of dividends} / Total number of investment units outstanding

Appendix29

A real estate investment trust specializing in regional properties
Sponsors

Investment policy◎Investment area

THE BANK OF FUKUOKA

THE NISHINIPPON CITY BANK, LTD.

5％
THE BANK OFFUKUOKA, LTD.

50％
FUKUOKA JISHO
CO., LTD. （＊）

5％

5％

5％

THE NISHI-NIPPON
Development
CITY BANK, LTD. Bank of Japan Inc.

SAIBU GASCO., LTD.

Outsidedirector

Director

Fukuoka Realty Co., Ltd.
(Asset Manager)

10％60-90％

10-30％
0-10％

Other Kyushu areas（Including Okinawa and Yamaguchi prefectures）

Others◎Investment type

Kyushu ElectricPower Co., Inc.

Others（Hotel, Residence, Logistics, and Other facilities）

Office buildings

5％

5％

5％

5％

Kyudenko
Corporation

Nishi-Nippon
Railroad Co., Ltd.

Kyushu Railway
CompanyROYAL
HOLDINGS Co., Ltd.

（＊）Concluded MOU with Fukuoka REIT and Fukuoka Realty concerning pipeline support.

Fukuoka metropolitan area

Retail0-30％

20-50％

40-70％
Appendix30

Population movement of Fukuoka metropolitan area
The population of Fukuoka metropolitan area continues to increase
Number of population growth in Fukuoka City

Population trends of major metropolitan areas（index）

Actual figures

150

thousand（ people ）Future projection

140

1,600

National Institute of Populationand Social Security Research’s
medium-variant estimates
based on 2015 population data

130
120

1,553
1,538

1,540

1,524

1,520
1,500

Nagoya metropolitan area

100

1,567

1,560

Tokyo metropolitan area

110

1,592
1,579

1,580

Fukuoka metropolitan area

Census data

Number of population in Fukuoka City

1,480

1,509
1,494
1,480

1,460

Osaka metropolitan area

1,440

90

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from “Estimated Population”（Fukuoka City General Affairs and Planning Bureau）

80

1985

1990

1995

2000

2005

2010

2015

2020

2025

2030

2035

2040

（year）＊The graph was plotted taking the 1985 population of each urban area as 100.
＊“Fukuoka metropolitan area” refers to Fukuoka City, Chikushino City, Kasuga City, Onojo City, Munakata City, Dazaifu City, Koga City, Fukutsu City,
Itoshima City, Nakagawa City, Umi Town, Sasaguri Town, Shime Town, Sue Town, Shingu Town, Hisayama Town, and Kasuya Town.
“Greater Tokyo area” refers to Tokyo Metropolis, Kanagawa Prefecture, Saitama Prefecture, and Chiba Prefecture. “Nagoya urban area” refers to Aichi
Prefecture, Gifu Prefecture, and Mie Prefecture. “Osaka urban area” refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, and Nara Prefecture.
Source: Prepared by Fukuoka Realty Co., Ltd., based on data from the Ministry of Internal Affairs and Communications, Statistics Bureau “Population Census of Japan,”and National Institute of Population and Social Security Research “Population Projection for Japan by Prefecture” (2018 estimate), and March 2012 Fukuoka City General
Affairs and Planning Bureau “Fukuoka City as Seen by Data.”

Youth and working-age population ratios of nationwide and major cities [2015]

Youth population（ Percentage of city population aged 15 to 29）（％）

【Fukuoka City】Youth population: 17.4% （ranked 1 ）Working-age population: 64.8% （ranked 3rd）
st

18.0
17.5
17.0
16.5

Okayama

16.0
15.0

Kobe

14.5

Niigata

Sakai

14.0
13.0

Kumamoto Osaka
Nagoya15.5

13.5

Sendai

Kyoto

Kitakyushu
57.0

Shizuoka

58.0

59.0

Hamamatsu

Hiroshima
Chiba

Nationwide

Kawasaki
Sagamihara
Saitama
Yokohama

Interregional migration of university students in Kyushu（people）

University students
in Fukuoka

26,851
1,470

Fukuoka

Tokyo

Enrolled in universities in Saga

3,615
1,134

1,296
Enrolled in universities in Kumamoto

61.0
62.0
63.0
64.0
65.0
Working-age population（Percentage of city population aged 15 to 64）

Source: Prepared by Fukuoka Realty based on Ministry of Internal Affairs and Communications “Population Census of Japan”

43.6%

56.4%

Saga
Oita

Nagasaki
Kumamoto

66.0

（％）

7,480

4,887
Outside of Kyushu

1,071
Enrolled in universities in Oita

4,116
800

Enrolled in universities in Miyazaki

5,525【Nationwide】Youth population: 14.5%
Working-age population: 60.0%

60.0Students from
Students
outsideprefecture from within
prefecture
11,713
15,138Enrolled in universities in Nagasaki

Sapporo（year）

MiyazakiKagoshima

4,203
1,055

Enrolled in universities in Kagoshima

6,228

Source: Prepared by Fukuoka Realty Co., Ltd based on data from FY2019 School Basic Survey（Preliminary Results）（Statistic Bureau,
Ministry of Internal Affairs and Communications）

Appendix31

Condition of Inbound Tourists to Fukuoka
Number of overseas visitors from China and Southeast Asia increasing although decreased number of overseas visitors from South Korea
The total number of foreign lodgers and Hotel occupancy rate in 2019

Number of foreign tourists [by country]
thousand（ people ）1,600South Korea

TaiwanChina

Hong Kong◎Comparison of results in 2019 [year-on-year]
YoY change innumber of visitors

1,400
1,200
1,000
800
600
400
200
0

2015

2016

2017

2018

2019（year）

Difference

Malaysia

27,954327.7％

Thailand

20,35853.3％

Hong Kong

18,989

9.6％

China

17,736

7.9％

Philippines

13,35042.2％

Europe/U.S.A/Australia

11,091

12.6％

Vietnam

5,935

23.5％

Others

5,433

24.6％

Singapore

2,581

15.9％

Taiwan（1,890）（0.6）％

Korea（448,492）（28.3）％

Total（326,955）（12.8）％

Source: Prepared by Fukuoka Realty Co., Ltd., based on data from Fukuoka City Economy, Tourism & Culture Bureau “Fukuoka City Tourism / MICE”
2019 edition（Fukuoka City Tourism Statistics）

Change in number of overseas visitors

thousand（ people ）

3,500

3,000

842

2,500
2,000
1,500
1,000

847
574
183

167

1,392

800
143

2015

2017

6,000

81.6

5,000
3,508

3,000

Kyoto

80.0

78.6

1,661

77.7

Sapporo Fukuoka

78.0
76.0

1,253

1,000
Osaka

82.0

2,887

76.5

2,000

84.0

81.1
79.6

4,000

0

（%）

86.0
82.8

83.7

Nagoya

938
Naha

73.6

804

581

303

Yokohama Hiroshima Sendai

74.0
72.0

Source: Prepared by Fukuoka Realty based on Statistical Survey on Overnight Travel（Japan Tourism Agency）（＊2） The hotel occupancy rate is calculated by averaging the values for each month.

Thailand1.1％[38]

2,141Europe/U.S.A/
Australia
2.6％[87]

2,414

1,631

2016

Hotel occupancy rate（＊2）

7,000

89

（＊1）

500
0

Total number of foreign lodgers

7,296

Others
3.1％[103]

161
2,205

8,000

Breakdown of overseas visitors in 2018

Fukuoka Airport
Port of Hakata
Number of persons landing on ships on overseas
irregular service routes

thousand（ people ）

2018

2019

（year）

Source: Prepared by Fukuoka Realty based on data from Statistics on Legal Migrants（Ministry of Justice）and “Number of International Vessel Passengers,”
published by Fukuoka City Port and Airport Bureau（＊1） The number of landing passengers on irregular overseas routes in 2019 has not been publicized as of the announcement of financial results andthus is not indicated. The actual number of landing persons for 2019 through August decreased 9.1% year-on-year.

[thousand people]

South Korea

47.2％[1,584]

Hong Kong
5.9％[197]

Number of persons landing
on ships on overseas
irregular services routes

Taiwan
9.6％[322]

[800]

23.8％

China

6.7％[224]

Source: Prepared by Fukuoka Realty based on data from Statistics on Legal Migrants（Ministry of Justice）and Fukuoka City Port and Airport Bureau“Number of International Vessel Passengers”

Appendix32

Portfolio properties' occupancy rates
Maintained high occupancy rates
Historical occupancy rates [the weighted average during the period]
Fukuoka REIT Corporation（＊1）
（％）

100.0

99.8
99.0

99.4

99.2

99.7

J-REIT average（＊2）

99.2

99.3

99.1

99.0

99.0

99.1

99.0

99.3

99.3

99.1

98.9

98.7

99.1

99.5

99.5

99.6

99.6

98.6

98.7

98.6

98.7

98.1
98.4

98.4

98.4

98.5

98.3

98.1

97.9

97.6

97.2

97.2

97.0

97.1

97.4

97.6

97.6

97.9

98.1

98.5

98.5

99.4

98.7

99.8

99.7

98.8

99.0

99.6 99.7

99.6 99.6

99.2 99.2

99.2 99.3
（＊3）

（＊3）

95.0

90.0

2nd

Aug.
2005

3rd

Feb.
2006

4th

Aug.
2006

5th

Feb.
2007

6th

Aug.
2007

7th

Feb.
2008

8th

Aug.
2008

9th

Feb.
2009

10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st
Aug.
2009

Feb.
2010

Aug.
2010

Feb.
2011

Aug.
2011

Feb.
2012

Aug.
2012

Feb.
2013

Aug.
2013

Feb.
2014

Aug.
2014

Feb.
2015

Aug.
2015

Feb.
2016

Aug.
2016

Feb.
2017

Aug.
2017

Feb.
2018

Aug.
2018

Feb.
2019

Aug.
2019

Feb.
2020

（＊1） The investment corporation’ s occupancy rates in the 2nd fiscal period through the 4th fiscal period were the occupancy rates at the end of each fiscal period. For the 5th fiscal period through the 31st fiscal period, the occupancy rates are the weighted average occupancy rates during the fiscal periods.
The ratio of total leased floor area to leasable floor area is shown.
（＊2） The overall J-REIT occupancy rate is the occupancy rate at the end of each fiscal period based on the Association for Real Estate Securitization’ s AJPI-J-REIT Databook.
（＊3） The overall J-REIT occupancy rates for the 30th and 31st fiscal periods are preliminary figures. The figures for the 31st fiscal period are the figures for November 2019.

Occupancy rates [the weighted average during the period]
Category

Investment ratio（based on acquisition price）

27th〜 Feb. 28, 201828th

〜 Aug. 31, 2018

29th

〜 Feb. 28, 201930th

〜 Aug. 31, 201931st

〜 Feb. 29, 2020

Retail

59.2％

99.8％

99.8％

99.8％

99.8％

99.9％

Office buildings

26.9％

99.3％

99.5％

99.8％

99.0％

99.1％

Others

13.9％

99.3％

99.1％

99.1％

99.2％

99.2％

Total

100.0％

99.7％

99.6％

99.7％

99.6％

99.6％
Appendix33

Dividend and NAV per unit
■17th
Tenjin Nishi-Dori Center Building 2,600

Dividend per unit
■14th
Canal City Hakata・B 28,700■16th
Aqualia Kego
2,800
Aqualia Chihaya 1,280

（yen）

4,000

3,500

■18th
D-Wing Tower
2,800
Hotel FORZA Oita
1,530
Tenjin North Front Building 2,800

3,356

3,293

3,384

3,324

■22nd
■29th
LOGICITY Minato Kashii
Tissage Hotel Naha 2,835
8,150 ■26th
Marinoa City Fukuoka（Marina Side Building） 5,250
LOGICITY Hisayama 5,050
Park Place Oita（adjacent land）
590
■28th
■21st
■25th
Konoha Mall Hashimoto 10,000
Granfore Yakuin Minami 1,100
1,470Park Place Oita（Sports Club NAS））
Higashi Hie Business Center Ⅱ 4,230
AEON Hara Shopping Center（Sold）（5,410）（adjacent land）860
Park Place Oita
（2,800）Aqualia Kego（Sold）■20th
Tosu Logistics Center 1,250

3,238

3,257

3,291

3,243

3,278

16th

17th

18th

19th

20th

3,435

Cruise shippassenger
shopping sprees

3,563

3,574

Kumamoto
earthquake

3,479

3,398

3,422

25th

26th

3,512

3,593

3,687

3,693

3,642

29th

30th

31st

3,000

2,500

2,000

12th

13th

14th

15th

21st

22nd

23rd

24th

27th

28th

Aug. 2010 Feb. 2011 Aug. 2011 Feb. 2012 Aug. 2012 Feb. 2013 Aug. 2013 Feb. 2014 Aug. 2014 Feb. 2015 Aug. 2015 Feb. 2016 Aug. 2016 Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Aug. 2019 Feb. 2020

NAV per unit （＊）（yen）

200,000
180,000
160,000
140,000

130,141

120,000
100,000

12th

125,647 123,001 121,447 122,299 123,041 127,080

13th

14th

15th

16th

17th

18th

128,375 131,215

19th

136,051

20th

21st

144,472

22nd

148,558

23rd

152,259 150,328 152,639

24th

25th

26th

156,20427th

167,118
161,315 164,250

28th

29th

170,680

30th

31st

Aug. 2010 Feb. 2011 Aug. 2011 Feb. 2012 Aug. 2012 Feb. 2013 Aug. 2013 Feb. 2014 Aug. 2014 Feb. 2015 Aug. 2015 Feb. 2016 Aug. 2016 Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Aug. 2019 Feb. 2020

＊ A 5-for-1 split of investment unit was effectuated on March 1, 2014. A 5-for-1 split of dividends and NAV per units before the 19th FP.
（＊）Market net asset value per unit= {Total net assets + Unrealized gains - Total amount of dividends} / Total number of investment units outstanding

Appendix34

Earthquake risk in Fukuoka, etc
All properties owned by Fukuoka REIT are covered by earthquake insurance
Probabilistic earthquake prediction map
Probability of occurrence of an earthquake with a magnitude of nearly 6 orhigher in the next 30 years ［Average case / all earthquakes］ ［Reference date: January 1, 2018］［Updated in January 2019］

Example of measures taken by the Fukuoka City government against
other natural disasters [Fukuoka City flooding countermeasures]◎Storm water storage facilities●Capacity of storm water storage facilities
FY2018 128,300 ㎥

FY1999 No storm water storage facilities

Storm water management capacity increased from 59.1mm/h to 79.5 mm/h （city center）●List of storm water storage facilities
Chubu No.2 / No.7
main pipelines
Sanno storm water
regulating reservoir
Hie No. 9 main pipeline
Hie No. 12 main pipeline
Hie No. 13 main pipeline
Higashi Hie
regulating reservoir

Wards

capacity（㎥）

Chuo
ward
Hakataward
Hakataward
Hakataward
Hakataward
Hakataward

60,000Total

30,50015,8002,200
12,3007,500
128,300

Sanno storm water regulating reservoir（Sanno No.2）

Chubu No.2

Photo provided by: Fukuoka City Office◎Instances of building inundation in Fukuoka Cityof
（Numberbuilding ）3,000

Instances of building inundation
steadily declining

Storm water drainage
capacity has
increased significantly.

2,000
3,173
1,000
0

probability＊The mesh for zero probability based on the model calculation conditions is shown in white.
Source: Office of the Headquarters for Earthquake Research Promotion, Earthquake and Disaster-Reduction Research Division,
Research and Development Bureau, Ministry of Education, Culture, Sports, Science and Technology

1,721

June 29,
1999

Between
FY2000 and FY2018…

July 19,
2003

1,122
July 24,20093
August 30,
2013

Since the launch of
the project in FY2000…

Instances of inundation

have steadily declined
Maximum hourly
precipitation
79.5
104
116
72.5
（mm/h）＊Number of buildings: Total number of buildings inundated above and below floor level; Period: June 29, 1999 to December 31, 2018
Source: Prepared by Fukuoka Realty Co., Ltd. based on data from the “Storm Water Management Action Plan 2026” pamphlet about the Fukuoka City
Storm Water Emergency Control Plan.

Appendix

35

ESG Initiatives ［Basic Policy］
Identification of materially significant issues [as of September 2019]
Materially significant issues

Environment

Governance

Related SDGs

Reduction of environmental load

● Coordinate with Property Management and Building Management on promotion of management and reduction of energy
consumption, greenhouse gas emissions, water consumption, and waste output

Maintenance and enhancement ofenvironmental and construction performance● Carry out performance and function evaluation of properties on a regular basis and ameliorate any deterioration in performance, etc.
● Maintain and improve competitiveness by acquiring green building certifications and through visual representation of building performance

Asset manager● Improve quality of operations by enhancing and expanding employee education system and promoting acquisition of qualifications● Continue to improve office environments and work on providing pleasant working environments● Give consideration to work-life balance and boost employee satisfaction

Tenant● Promote improvement of employee satisfaction and work towards increasing job satisfaction of tenant employees

Creation of pleasant
workplaces

SocialPolicies and targets

Contribution to boosting attractivenessand vitalization of Fukuoka and Kyushu● Enhance dissemination of information regarding strengths and charms of Fukuoka and Kyushu● Support research and studies on local economy and industries and promote attractive urban development in collaboration with local
business circles

Involvement in local community● Deepen dialogue and collaboration with local community through participation in community activities and various initiatives
using properties under our management to grow and develop together with the local community

Information disclosure and dialogue
with stakeholders● Disclose financial and non-financial information to stakeholders in an appropriate and timely manner● Build relationships of trust through proactive dialogue with stakeholders and reflect stakeholder feedback in management strategy

Compliance / Risk management● Ensure thorough compliance including compliance with laws and ordinances and elimination of conflict of interest with interested
parties, and develop and operate an appropriate internal risk management system to maintain and improve corporate value

Certification from external organizations◎DBJ Green Building Certification◎BELS （Building-Housing Energy-efficiency Labeling System） Evaluation

Fukuoka REIT has obtained DBJ Green Building Certification, a system by Development Bank of Japan Inc.

This is a system in which a third party evaluates and announces the energy-conservation performance of
non-residential buildings based on the “Guidelines for Evaluation of Energy Conservation Performance of（DBJ）to certify real estate properties evincing high environmental and social awareness, for the following 11
properties it owns as "Properties with the best class（or exceptionally high）environmental & social awareness.
5-star
4-star
3-star
1-star●Canal City Hakata （2018） , ●Canal City Hakata ・B（2018）

Non-residential Buildings（2013）.” Four properties owned by the Fukuoka REIT corporation were certified.
Higashi Hie Business Center Ⅱ Higashi Hie Business Center

LOGICITY Minato Kashii

LOGICITY Hisayama●Park Place Oita（2018） , ●Canal City Business Center Building（2018） ,●LOGICITY Hisayama（2017） , ●Konoha Mall Hashimoto （2017）●Gofukumachi Business Center （2018） , ●Higashi Hie Business Center （2018） ,●Higashi Hie Business Center Ⅱ（2017）●SunLive City Kokura （2019） , ●Marinoa City Fukuoka（Marina Side Building）（2019）

Appendix36

ESG Initiatives ［Environment・ Society]
Environment Initiatives of owned properties■Retail■Office buildings■Others[Logistics]●Filtration System◎Progress with switch to LED lighting◎Utilization of renewable energy◎ At Canal City Hakata

Switch to LED lighting● Gofukumachi Business Center

Solar panels have been installed on the roofsof LOGICITY Minato Kashii and LOGICITY
Hisayama.

● Sanix Hakata Building

Solar panels

C anal Ci t y Hak a t a’ s s y mb o lic c anal ha s b o t h arecreational function and as a source of water to fightfires in the case of an emergency. At all times, this canalholds roughly 1,200 tons of water, and this water uses
rainwater in order to conserve resources.

（Interior shared spaces, some external areas, etc.）（Interior recessed lighting）● Taihaku Street Business Center（Entrance, interior shared spaces, etc.）●Greywater plant:

kitchen drainage reuse system◎ At Canal City Hakata and Konoha Mall Hashimoto
the kitchen drainage from restaurants are processed to
greywater and re-used as washing water for toilets
within the buildings.

LOGICITY Hisayama＊Example of Sanix Hakata Building

Initiatives for employees and tenants◎Initiatives for employees《Fukuoka Realty: Numbers of credentialed personnel》[As of February 29, 2020]◎Initiatives for tenants《Support for flexible working styles》●■The average number of years of continuous serviceof permanent employees: 8 years and 10 months●●■Full-time personnel: 42 [Male:22 Female:20] ＊47.6％ Female●●

Employees seconded from sponsors：2
Employees seconded to a sponsor：3

●

●

●

●

Real estate brokers : 28

Certified Building Administrators : 5

First-class registered architect : 2
Real estate appraisers : 2

ARES Certified Masters : 19

●

●

●

●

●

●

Regular lectures by Kyushu
Economic Research Center● Compliance training● ESG training● Nursing care training● Overseas inspection tour
（Shenzhen）● In-house recreation etc.
●

Attorneys : 1

MBA : 1

Administrative Scrivener : 1

SME management consultant : 1

●
●
●
●

●

Employee satisfaction survey
Self-assessment system
Career interview
Secondment system（dispatching of employees
to sponsor companies）
Promotion from contract employee topermanent employee status, etc.

●

●

●

Offering of training programs tailored to eachmanagement level
System for supporting acquisition of qualifications（Real Estate Securitization Master, Real EstateTransaction Agent, etc.）
Support for language learning etc.

●

Training for tenants’ employees

Held training sessions by foreign lecturers forcustomer service languages in role playing format:
English, Chinese and Korean●《Career development support》■Number of credentialed personnel●●

Child-rearing support（maternity leave,
childcare leave system）
Nursing care leave
Leave for voluntary work
No overtime days
Employee welfare（401K, cumulative
investment system, etc.）
Encouraging use of paid holidays etc.

《Training for employees》●

Emergency drills intended to improve tenantsafety and security
Conduct tenant satisfaction surveys
Distribute sustainability guidebooks
Hold events to improve sustainability
awareness, etc.

●●

Appendix37

ESG Initiatives ［Governance]
Matching unitholder interests and sponsor interests, etc.

Governance System
Fukuoka Realty has established a Basic Policy on Compliance, as well as compliance regulations
and other internal rules to prevent c onf licts of interest. We c onduct c onf lict of interest risk
management pertaining to our dealings with stakeholders in an appropriate manner based on theabovementioned rules and regulations with preliminary assessment carried out by the ComplianceDepar tment general manager and deliberations c onduc ted by the Complianc e Assessment
Committee (consisting of the Compliance Department general manager and three outside experts).

◎Decision-making process
Proposals by responsible department

Third-party assessment
by external experts［Real estate appraisals］

Inspection by Compliance Department
general manager■ Japan Real Estate Institute■ The Tanizawa Sogo Appraisal Co., Ltd.

■ Daiwa Real Estate Appraisal Co., Ltd.

・ Same-boat investment by sponsor

Fukuoka Jisho Co., Ltd., the main sponsor, has 9.09% of FRC’ s investment units
as of the end of the 31st fiscal period.
・ Cumulative investment system for investment units

A cumulative investment system for investment units was introduced for the AssetManager officers and employees in April 2015 in order to enhance their mindset for FRC’ sinvestment unit price and better performance as well as promote their assets formation.

Engagement with investors
・ Achievements in IR activities

Number of IR meetings in and outside Japan
Number of IR activities for individual investors＊Sum total for the period from March 1, 2019 to February 29, 2020

Deliberations by the Investment
Management Committee［Market reports］■ Analysis on trade areas andcompetition situation■ Adequate rent levels, etc.

Deliberations/resolution
by the Compliance Assessment Committee[Engineering reports]

282: 221 in Japan and 61 overseas
16 including unitholder briefings
on financial results

・ Disclosures

Won grand prize in the Fiscal 2019 All Japanese Listed Companies’ Website Ranking
announced by Nikko Investor Relations Co., Ltd.. Fukuoka REIT Corporation
won award for ten consecutive years from 2010.

■ Law abidance andearthquake resistance

Resolution/decision-making report
by Board of Directors

Fukuoka REIT Corporation Board
of Executive Officers■ Check of soil contamination,
toxic substance and use status■ Replacement market price,
expenses for long-term maintenanceand repairs, etc.

（＊） The prior consent of the investment corporation’ s Board of Directors is obtained in cases falling under the provisions of Article 201-2 (1)of the Act on Investment Trusts and Investment Corporations.

・ The Ministry of the Environment provides the ESG Dialogue Platform

Direct discussions with investors on ESG issues were conducted three times in fiscal 2019,associated with the publication of the Integrated Report 2019 as of January 6, 2020
Appendix38

Asset management company’s organization
Shareholders General Meeting

Corporate Profile
Established : December 26, 2003

Auditor

Paid-in capital ： 200 million yen
Certifications, etc. :◎Obtained license for real estatetransaction services
February 27, 2004／
License No.（4）15052 issued
by the Governor of Fukuoka（updated on February 28,2019）

Board of Directors

Compliance Department

Compliance Committee
・General manager of compliance department［Attorneys］
・Outside compliance committee members［Attorneys］［Certified Public Accountant and tax accountant］［Real estate appraisers］◎Certified as discretionary real estatetransaction agent under the Building Lots
and Buildings Transaction Business Act
April 27, 2004／
Certification No. 21 issued by the Ministerof Land,
Infrastructure, Transportation and Tourism

CEO & Representative Director◎Obtained certification to conduct businesses
related to investment trust management→ Consults on compliance-related matters

June 25, 2004／
Certification No. 31 issued
by the Prime Minister of Japan

Risk Management Committee→ Consults on risk management

Executive Committee→ Decision-making on management mattersin general

Investment Committee→ Decision-making on investments andmanagement of Fukuoka REIT’s assets◎Registered for a financial instruments business（investment management business）
September 30, 2007／
Registered No.
（Kinsho）10 registered by
the Director of Fukuoka Local FinanceBranch Bureau

Sustainability Promotion Committee→Decision-making on sustainability promotion

Property Management
Department

Investment Department

Finance Department

Planning Department
Appendix

39Unitholders’ data
No. of unitholders
and investment units held by unitholder categorystDistribution by investor category [breakdown of investment units]（units）

800,000

747,000
700,000

796,000

796,000

796,000

10.61%

10.82%

10.41%[84,462][95,542]

2.11%

12.33%[98,217）

2.58%[20,588]

9.92％

Foreign corporations

199

1.90％

115,855

14.55％

Other corporations

204

1.94％

103,148

12.95％

Stock brokers

21

0.20％

44,063

5.53％

Financial institutions

107

1.02％

453,96257.03％

13

0.12％

336,14542.22％

10,473100.00％796,000

100.00％12.34%[103,148]（Of which held by trust banks）

3.88%

4.70%

5.53%

Total

[98,295][30,940][102,039][37,482][44,063][15,783]

60.43%[451,485]

47.54%[355,162]

59.20%[471,244]

Major investors [at the end of the 31st FP]
58.11%[462,561]

57.85%[460,557]

57.03%[453,962]

44.66%[355,509]

42.27%[336,533]

40.15%[319,608]

42.22%[336,145]

100,000

0

78,97212.95%

300,000

200,000

94.92％

12.81%[115,855]

Percentage

9,942

14.19%[118,040]

14.55%

Percentage

Investment
units held

Individual

14.82%[113,013]（As of February 29, 2020）

No. of unitholders

9.92%[102,014]

12.79%

400,000[121,489][at the end of the 31 FP][78,972][82,176]

13.65%

500,000[82,909]

11.00%
15.26%

600,000[86,164]

796,000

27th
28th
29th
30th
February 28, 2018 August 31, 2018 February 28, 2019 August 31, 2019

Financial institutions

Of which held by trust banks＊Percentages and ratio are rounded off to two decimal places.

Stock brokers

Other corporations

31st
February 29, 2020

Foreign corporations

Individual

Rank

Name

（As of February 29, 2020）

Investment
units held

Percentage

1Japan Trustee Services Bank, Ltd.（Trust account）

161,985

20.34％

2

The Master Trust Bank of Japan, Ltd.（Trust account）

77,411

9.72％

3

Fukuoka Jisho Co., Ltd.

72,386

9.09％

4

The Nomura Trust and Banking Co., Ltd.
（Investment trust account）

38,213

4.80％

5Trust ＆ Custody Service Bank, Ltd.
（Securities investment trust account）

23,854

2.99％

6Mizuho Trust & Banking Co., Ltd.

13,247

1.66％

7

STATE STREET BANK WEST CLIENT - TREATY 505234

12,593

1.58％

8

NORTHERN TRUST CO.（AVFC） RE HCR00

10,261

1.28％

9MetLife, Inc.

10,2271.28％

10Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

10,105

1.26％

Appendix40Unit price chart
Investment unit price （＊1）

Turnover （＊2）：133,648 mm yen■Market capitalization（as of Feb. 29, 2020）（yen）（units）

300,00031st120,000

April 27, 2015
4th PO

250,000

100,000
June 21, 2005
ListedMarch 1, 2013
3rd PO

200,000

March 1, 2018
5th PO

80,000March 1, 2011
2nd PO

150,000

60,000
September 7, 2006
1st PO

100,000

40,00050,00020,00000Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, at the end
2005 2006 2006 2007 2007 2008 2008 2009 2009
2010
2010
2011
2011
2013
2012
2012
2013
2014
2014
2015
2015
2016 2016 2017 2017 20182018 20192019 2020 （ of Mar. ）2020（＊1） A 5-for-1 split of Fukuoka REIT investment units was effectuated on March 1, 2014. Accordingly, investment unit prices and issuance prices until February 25, 2014 have been divided by 5.
（＊2） Turnover by February 25, 2014 was multiplied by 5.

Appendix41

Financial highlights
Dividend per unit was 3,642 yen- unit : mm yen （Figures rounded down to the nearest mm yen）

Category

27th〜 Feb. 28, 201828th

〜 Aug. 31, 2018

29

30th

th

〜 Feb. 28, 2019

〜 Aug. 31, 2019A

31st

〜 Feb. 29, 2020
B

32nd

Difference
B−A

33rd

〜 Aug. 31, 2020
（forecast）〜 Feb. 28, 2021
（forecast）

Operating revenues

8,194

9,178

9,242

9,231

9,162

（68）

8,893

9,240

Leasing NOI

5,079

5,493

5,591

5,633

5,596

（37）

5,249

5,608

Depreciation and amortization
expenses

1,500

1,602

1,622

1,651

1,660

8

1,691

1,635

Operating income

2,965

3,238

3,306

3,318

3,273

（44）

2,887

3,288

Ordinary income

2,624

2,861

2,935

2,939

2,900

（39）

2,509

2,906

Profit

2,623

2,860

2,934

2,939

2,899

（40）

2,508

2,905

Dividend per unit （yen） ①
Latest dividend forecast
per unit （yen）②

3,512

3,593

3,687

3,693

3,642

3,470

3,570

3,600

3,680

3,650

3,150

3,650

Difference from forecast （yen） ① - ②
Total number of investment units（units）
outstanding（at period-end）

＋42

＋23

＋87

＋13

（8）

-

-

747,000

796,000

796,000

796,000

796,000

796,000

796,000

Total assets

177,283

193,112

195,433

195,106

194,795

Total liabilities（at period-end）（mm yen）

83,51791,31293,55993,22892,958（at period-end）（mm yen）

Total net assets

93,766

101,799

101,874

101,878

101,837

Days in fiscal period（days）

181

184

181

184

182

Number of investment properties

26

28

29

29

29

（＊1）
Number of tenants（at period-end）

879

1,003

1,011

1,020

1,007

（at period-end）（mm yen）（at period-end）

Total leasable floor space（at period-end）（㎡）

548,564.93㎡ 576,907.98㎡ 580,665.27㎡ 580,664.27㎡ 580,662.77㎡

（＊2）
（％）
Occupancy rate（at period-end）

99.6％

99.6％

99.7％

99.6％

99.7％

（＊3）
FFO （Funds from Operation）（mm yen）

4,123

4,462

4,557

4,591

4,559

FFO per unit（yen）

5,520

5,606

5,725

5,767

5,728

（＊1） The number of tenants shown is based on the total for properties Fukuoka
REIT owns. As for the number of tenants in pass-through master leasing
properties, the total number of sections stipulated in the tenancy
agreements with end tenants is shown.
（＊2） “Occupancy rate”=“Total leased floor space at period-end” ／ “Total
leasable floor space at period-end”（＊3） The FFO is calculated by the following method.
"FFO" = Profit + Loss on sale of real estate - Gain on sale of real estate +Depreciation

Appendix42Balance sheets （compared with the previous fiscal period）- unit : mm yen （Figures rounded down to the nearest mm yen）

Account

Aug. 31, 2019A

Feb. 29, 2020
B

11,047
5,417
4,664
659
288
19
183,704
176,771
69,586
1,101
931
218
104,918
15
5,580
5,545
34
1,351
0
10
327
1,014
43
194,795

Difference
B－A
813
1,454
（626）
（45）
16
14
（1,118）①（1,189）（1,168）
（23）
21
（19）
0
（5）
（5）
76
0
76
（5）
（310）

30th

31st

Total current liabilities
Operating accounts payable
Short-term debt
Current maturities of long-term debt
Account payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total non-current liabilities
Investment corporation bonds
Long-term debt
Tenant leasehold and security deposits

9,188
428
5,700
10
371
0
261
1,054
1,361
84,0395,000
66,800
392

4,148
614
1,000
19
372
1
191
1,082
867
88,8095,000
71,500403

Difference
B－A（5,039）186（4,700）
9
0
0
（70）
28
（493）
4,769
4,700
②
10

Tenant leasehold and security deposits
received in trust

11,847

11,90558

Total liabilities

93,22892,958（270）

Total unitholders’ equity
Unitholders’ capital
Surplus
Total net assets

101,878
98,9382,939
101,878

101,837
98,9382,899
101,837

（40）
（40）
（40）

Total liabilities and net assets

195,106

194,795（310）

Account

Net assets

10,234
3,962
5,290
704
271
5
184,822
177,961
70,755
1,124
909
237
104,918
15
5,586
5,545
40
1,274
0
10
327
937
49
195,106

31st

Liabilities

AssetsTotal current assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
OthersTotal non-current assets
Total property, plant and equipment
Buildings in trust
Structures in trust
Machinery and equipment in trust
Tools and fixtures in trust
Lands in trust
Construction in progress in trust
Total intangible assets
Leasehold right in trust
Other intangible assets in trust
Total investment and other assets
Deferred tax assets
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Total deferred assets
Total assets

30thAug. 31, 2019
A

■Assets■Liabilities and net assets＋465① Capital expenditures
Depreciation and amortization expenses （1,660）＋6
OthersTotal : （1,189）＋4,700② Refinancing of current maturities of long-term debt
Total :＋4,700

Feb. 29, 2020
B

Appendix

43Cash flow statements（compared with the previous fiscal period）- unit : mm yen （Figures rounded down to the nearest mm yen）

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

30th A

31st B

Difference〜Feb. 29, 2020

〜Aug. 31, 2019
4,863
2,939
1,651
2
3
（0）
279
（27）
62
（88）
（10）
1
10
258
25
34
（1）
5,141
0
（277）
（1）
（1,043）
（846）
（18）
28
（11）
183
（378）
6
（7）
（2,933）3,700（3,700）（2,933）
886
8,319
9,205

B－A

3,985
2,900
1,660
2
3
（0）
275
45
（70）
9
8
2
28
（493）
（16）
（76）
（14）
4,263
0
（277）
（0）
（220）
（289）
24
（13）
198
（139）
1
（2）
（2,938）4,700（4,700）（2,938）826
9,205
10,032

（877）
（39）
8
（0）
（4）
73
（133）
98
19
1
17
（752）
（42）
（111）
（13）
（877）
0
0
0
822
557
18
（4）
（2）
15
238
（5）
4
（4）
1,000
（1,000）
（4）
（59）
886
826

Appendix44Income and expenditure by properties （Retail）- unit : mm yen （Figures rounded down to the nearest mm yen）

Category

Canal City Hakata

Canal City Hakata・B

Park Place Oita

31st
Total
A

Konoha Mall
Hashimoto

SunLive City Kokura

30th
Total
B

Difference
A－B

184
days

（2）
days

5,137
4,685
452
2,474
1,470
78
411
30
343
138
2,663
888
1,775
5.6％
339

（28)
0
（29)
（21)
（11)
（2)
（0)
1
（27)
19
（6)
4
（11)
（0.0)％
（47)

30th
Total
B

Difference
A－B

184
days

（2）
days

Forecast Difference
C （＊）
A－C

31st FP （Sept. 1, 2019 〜Feb. 29, 2020）（Length）

Active retail①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures

Category

182 days
1,238
1,197
41
464
309
11
78
7
24
33
774
248
525
4.8％
80
Square Mall
Kagoshima
Usuki

1,586
1,537
48
784
536
13
161
13
49
9
801
276
525
5.6％
106

Kumamoto
Intercommunity
SC

Hanahata SC

821
661
160
543
306
13
42
2
95
81
278
87
190
5.6％
0

1,181
1,008
172
612
298
34
94
6
145
33
568
232
336
6.1％
104

281
281
0
48
8
2
34
1
0
233
47
185
7.0％
-

Kurume Higashi
Kushiwara SC

K’s Denki
Kagoshima

Marinoa City
Fukuoka（Marina Side Building）

5,108
4,685
422
2,452
1,458
75
411
32
315
158
2,656
892
1,763
5.5％
291
31st
Total
A

（73)

2,469

（16)

2,712

（56)

Forecast Difference
C （＊）
A－C

31st FP （Sept. 1, 2019 〜Feb. 29, 2020）（Length）

182 days︵ Others︶
Retail①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures

5,182

256
223
33
89
38
2
17
0
26
4
166
38
127
6.3％
1

90
89
0
10
2
1
5
0
0
79
12
67
6.6％
-

41
40
0
5
1
0
3
0
0
35
5
29
6.3％
-

89
88
1
11
2
1
5
0
1
78
16
61
6.2％
-

111
111
0
10
1
0
7
0
0
100
22
78
5.7％
-

178
177
1
25
1
4
18
0
0
153
21
131
5.8％
5

767
730
37
154
48
10
56
2
26
8
613
117
496
6.1％
7

765
728
36
155
48
14
56
2
29
4
609
117
492
6.1％
20

2
1
1
（1)
0
（3)
（0)
0
（2)
4
3
0
3
0.0％
（12)

764

2

161

（7)

602

10

（＊）Forecast at the financial results of the 30th fiscal period

Appendix45

Income and expenditure by properties （Office buildings・Others）- unit : mm yen （Figures rounded down to the nearest mm yen）

Category

Canal City
Business
CenterBuilding

Taihaku
StreetBusiness
CenterGofukumachi
Sanix Hakata
Business
Building
CenterHigashi Hie
Business
CenterTenjinNishi-Dori
CenterBuilding

Tenjin North
Front
Building

Higashi Hie
Business
Center Ⅱ

31
Total
A
st

30th
Total
B

Difference
A－B

184
days

（2）
days

Forecast
C （＊1）

Difference
A－C

2,425

（18)

808

（25)

1,617

6

31st FP （Sept. 1, 2019 〜Feb. 29, 2020）（Length）

182 days

Office buildings

545
481
63
176
73
5
36
3
51
5
368
103
264
6.6％
76

①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures

607
605
1
200
136
1
46
1
6
8
407
103
303
5.6％
17

Category

Akasakamon City House

Amex

Tower

205
190
15
58
19
0
21
0
14
1
146
40
106
6.7％
1

Aqualia
Keyaki Dori Chihaya

311
311
0
87
54
3
27
1
1
223
77
145
6.4％
0

Granfore
YakuinMinami

D-Wing
Tower

342
318
23
137
42
6
16
1
25
44
204
41
163
6.9％
44

86
86
17
1
0
14
0
0
69
9
59
5.3％
-

143
117
25
48
10
1
8
0
22
3
94
33
61
6.8％
-

Tosu
Hotel
Tissage
Logistics
FORZA
Hotel Naha
Center
Oita

164
150
14
55
19
10
0
13
11
109
40
68
5.2％
-

LOGICITY
LOGICITY
MinatoHisayama
Kashii

2,406
2,261
144
783
358
18
182
11
135
78
1,623
450
1,173
6.2％
140

31st
Total
A

2,424
2,262
161
786
357
23
182
10
146
65
1,637
446
1,191
6.2％
66

（17)
（0)
（17)
（3)
0
（5)
（0)
0
（11)
12
（14)
3
（17)
（0.1)％
74

30th
Total
B

Difference
A－B

184
days
904
854
50
181
33
6
8
83
5
31
12
723
199
523
5.3％
50

（2）
days
（25)
（17)
（7)
（5)
（0)
4
（4)
（0)
0
（2)
（1)
（19)
0
（20)
（0.1)％（25)

Forecast Difference
A－C
C （＊1）

31st FP （Sept. 1, 2019 〜Feb. 29, 2020）（Length）

Others①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures

182 days
65
64
1
16
5
1
1
5
0
0
1
49
19
30
4.8％
1

36
36
8
2
0
3
0
0
1
28
10
17
5.1％
3

59
58
0
12
3
1
0
4
0
0
1
46
12
34
7.3％
-

114
109
5
22
7
1
0
7
0
2
2
91
17
74
6.5％
6

39
38
0
7
2
0
0
2
0
0
1
31
10
21
5.7％
0

63
63
9
0
0
7
0
0
53
22
30
6.9％
13

68
68
7
0
0
5
0
0
61
24
37
4.3％
-

Nondisclosure

Nondisclosure

Nondisclosure

（＊2）

（＊2）

（＊2）

37
9
28
6.0％
-

186
37
148
4.6％
-

117
37
79
4.7％
0

879
836
42
176
33
11
3
83
5
28
10
703
200
502
5.2％
25

898

（18)

183

（7)

714

（11)

（＊1）Forecast at the financial results of the 30th fiscal period （＊2）Information is not disclosed because the permission of tenants has not been obtained.

Appendix46

Income and expenditure by properties （Total） /Repair and maintenance expenses, capital expenditures, and depreciation- unit : mm yen （Figures rounded down to the nearest mm yen）

30th
Total

31st
Total

Category

A

C （＊）

9,162

9,231

（68）

Leasing revenue-real estate

8,515

8,530

（15）

647

700

（53）

3,566

3,598

（31）

1,898

1,910

（12）

116

123

（6）

3

8

（4）

Tax and other public charges

734

734

（0）

Insurance premiums and trust compensation

51

49

1

Utilities expenses

505

550

（44）

Other leasing revenue-real estate

Total

Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state

255

221

34

③NOI（=①-②）

5,596

5,633

（37）

④Depreciation and amortization expenses

1,660

1,651

8

⑤Leasing business profit（=③-④）

3,935

3,981

（45）

⑥NOI yield （acquisition price）

5.7％

5.7％

（0.0）％

465

476

（10）

Other expenses⑦Capital expenditures

A－C（2） days①Total leasing business revenues②Total leasing business expenses

Difference

Forecast

A－B

184 days

182 days（Length）

Difference

B

9,270

（108）

3,624

（58）

5,646

（49）

（＊）Forecast at the financial results of the 30th fiscal period

Repair and maintenance expenses, capital expenditures, and depreciation- unit : mm yen（Figures rounded down to the nearest mm yen）

（mm yen）

1,800

1,500
1,217

1,200

600

0

1,691 1,635
1,602 1,622 1,651 1,660

947

251

220

221

27th

28th

29th

123

116

30th

31st

165

205

32nd

33 rd

（forecast）（forecast）

Repair and maintenance expenses

600

657

27th

28th

29th

911
476

465

30th

31st

Capital expenditures

32nd

33 rd

（forecast）（forecast）

27th

28th

29th

30th

31st

32nd

33 rd

（forecast）（forecast）

Depreciation
Appendix47

Portfolio table（As of February 29, 2020）

Age

Real estate property name（＊1）

Acquisition
price（mm yen）（＊2）

Investment
ratio

Acquisition
timingSource（＊3）

Total
leasable
floor space（㎡）

Occupancy Tenants
（＊4）
rate

Primary tenants

RetailOffice buildings

Canal City Hakata

23yr10m

32,00016.3％

Nov. 9, 2004

Sponsor46,604.75

99.8%

48

Washington Hotel and United Cinema

Canal City Hakata ・ B

23yr10m

28,70014.6％

Mar. 2, 2011

Outside party

68,826.37

99.5%

46

Grand Hyatt Fukuoka and OPA

Park Place Oita

17yr11m

18,6209.5％

Nov. 9, 2004

Sponsor

113,834.20

99.9%

103

SunLive City Kokura

14yr11m

6,633

3.4％

Jul. 1, 2005

Outside party

61,450.22

100.0%

1

Konoha Mall Hashimoto

8yr11m

10,0005.1％Mar. 1, 2018

Sponsor

22,121.04

98.7%

124

SunLive and The Super Sports XEBIOSquare Mall Kagoshima Usuki

13yr 5m

5,300

2.7％

Sept.28, 2006

Sponsor

14,602.88

100.0%

12

Sports Depo / Golf5 and Edion

Kumamoto Intercommunity SC

13yr 3m

2,400

1.2％

Nov.30, 2006

Sponsor

6,968.66

100.0%

2

Sports Depo / Golf5 and Starbucks Coffee

Hanahata SC

12yr 7m

1,130

0.6％

Sept. 3, 2007

Sponsor

2,801.15

100.0%

2

BON REPAS and Matsumoto Kiyoshi

Kurume Higashi Kushiwara SC

12yr 2m

2,500

1.3％

Feb. 1, 2008

Sponsor

6,467.80

100.0%

1

Sports Depo / Golf5

K’s Denki Kagoshima

12yr 3m

3,550

1.8％

Mar.27, 2008

Outside party

7,296.17

100.0%

1

K’s Denki

Marinoa City Fukuoka （Marina Side Building）

19yr 4m

5,250

2.7％

May 1, 2015

Sponsor

33,069.82

100.0%

Total or the weighted average of retail－

116,083

59.2％

－

－

384,043.06

99.8%

341

Canal City Business Center Building

23yr10m

14,6007.4％

Nov. 9, 2004

Sponsor

23,029.92

100.0%

63

Gofukumachi Business Center

16yr 4m

11,2005.7％

Nov. 9, 2004

Sponsor

19,905.34

100.0%

36

Sanix Hakata Building

18yr11m

4,400

2.2％

Sept.30, 2005

Outside party

6,293.75

100.0%

16

Taihaku Street Business Center

17yr11m

7,000

3.6％

Mar.16, 2006

Sponsor

14,677.30

99.1%

69

NTT COMWARE and Tokio Marine & Nichido Outsourcing Management

Higashi Hie Business Center

11yr 0m

5,900

3.0％

Mar.13, 2009

Outside party＋Sponsor

13,614.59

100.0%

27

Fujitsu and Forest Holdings

Tenjin Nishi-Dori Center Building

23yr 5m

2,600

1.3％

Feb. 1, 2013

Outside party

3,339.32

100.0%

1

The Nishi-Nippon City Bank

Tenjin North Front Building

10yr 1m

2,800

1.4％

Mar.28, 2013

Outside party

5,252.41

100.0%

11 Rakuten Card and Prudential

Higashi Hie Business Center Ⅱ

4yr 0m

4,230

2.2％

Mar. 1, 2018

Sponsor6,214.77

100.0%

2

Total or the weighted average of office buildings

AEON and K’s Denki
SunLive

1 Fukuoka Jisho Co.,Ltd－

TOTO and Bell System24
SMBC CONSUMER FINANCE and
Sumitomo Mitsui Banking Corporation
SANIX and The Nishi-Nippon City Bank

FUJITSU KYUSHU SYSTEMS LIMITED andSeven-Eleven Japan Co.,LTD

Others－52,730

26.9％

－

－

92,327.40

99.9%

225

－

Amex Akasakamon Tower（Residence）

14yr 7m

2,060

1.1％

Sept. 1, 2006

Outside party

4,821.25

95.0%

63

－

City House Keyaki Dori（Residence）

12yr 3m

1,111

0.6％

Dec.20, 2007

Outside party

2,710.86

93.3%

39

－

Aqualia Chihaya（Residence）

12yr 2m

1,280

0.7％

Mar. 1, 2012

Outside party

5,619.69

97.9%

103

－

D-Wing Tower（Residence）

14yr 0m

2,800

1.4％

Mar. 1, 2013

Outside party

7,187.59

97.7%

134

－

Granfore Yakuin Minami（Residence）

12yr 2m

1,100

0.6％

Nov. 4, 2014

Outside party

2,496.06

97.0%

96

－

Hotel FORZA Oita

（Hotel）

11yr 6m

1,530

0.8％

Mar. 1, 2013

Sponsor

5,785.44

100.0%

Tissage Hotel Naha

（Hotel）

2yr 0m

2,835

1.4％

Dec. 7, 2018

Outside party

3,758.76

100.0%

1 FJ Hotels
1 Nest Hotel Japan Corporation

Tosu Logistics Center（Logistics）

11yr 9m

1,250

0.6％

Mar.28, 2014

Outside party

4,173.29

100.0%

1non-disclosure

LOGICITY Minato Kashii（Logistics）

5yr10m

8,150

4.2％

Mar.27, 2015

Outside party

43,233.72

100.0%

2

Fukuoka Logistic System and F-LINE CORPORATIONLOGICITY Hisayama（Logistics）

KASEI inc. Co., Ltd

5yr 1m

5,050

2.6％

Jun. 1, 2017

Outside party

24,505.65

100.0%

1

Total or the weighted average of others－

27,166

13.9％

－

－

104,292.31

99.2%

441

－

Total or the weighted average of all properties

17yr 4m

195,979

100.0％－－

580,662.77

99.7%

1,007

－

（＊1） “Age” as of the end of the fiscal period.
（＊2） Acquisition price does not include fees, public charge and expenses.
（＊3） Properties acquired through arrangement by a sponsor company are indicate with “sponsor” in the column of seller.
（＊4） Parking contracts, etc., are excluded from “Number of tenants”.

Appendix48

Portfolio mapi-28

Marina-TOWN

Fukuoka
PayPay DOME
Nishijin Stn.

e

Nishikyūshū Expressway

Hashimoto Stn.

Su
Nana bway
kuma
Line

1km
263

500m

1 Canal City Hakata■Address ： 1-chome, Sumiyoshi,
Hakata Ward, Fukuoka City

2 Canal City Hakata・B■Address ： 1-chome, Sumiyoshi,
Hakata Ward, Fukuoka City

3 Park Place Oita

UrHa Subw
koz ayaki
LineNakasu13
Kawabata
15
Stn.
Gion Stn.
18
20 23
Hakata 19
1
Tenjin16
12
17
14
Akasaka Stn.
2
Higashi Hie
Tenjin Minami Stn.

Tōjinmachi Stn.

5 Konoha Mall Hashimoto■Address：2-chome, Hashimoto,
Nishi Ward, Fukuoka City

6 Square Mall Kagoshima Usuki■Address：2-chome, Usuki,

Kagoshima City

7 Kumamoto Intercommunity SC

Fukuoka IC

7

Nagasaki

Kumamoto
Miyazaki

202

21
Yakuin-odori
Stn.

Ropponmatsu Sakurazaka
Stn.
Stn.

Best Denki
Stadium

6

Yakuin Stn.

JR

Ten Nishjin itets
Om u
uta
Lin

Kagoshima
Ka

go

Ur

sh

im

e

8

9 Kurume Higashi Kushiwara SC■Address ： Higashi kushiwara,
Kurume City

10 K’s Denki Kagoshima■Address ： Tokai-cho, Kagoshima CityaL

13 Gofukumachi Business Center■Address ： Kami Gofukumachi,
Hakata Ward, Fukuoka City

14 Sanix Hakata Building■Address ： 2-chome, Hakataekihigashi,
Hakata Ward, Fukuoka City

11 Marinoa City Fukuoka（Marina Side Building） 15 Taihaku Street Business Centerineba
Da n E
za xp
ifu reLi ssw
ne ay

JR LineExpressway

21 City House Keyaki Dori

■Address ： 2-chome, Kego,
Chuo Ward, Fukuoka City

17 Tenjin Nishi-Dori Center Building■Address ： 2-chome, Tenjin,
Chuo Ward, Fukuoka City

18 Tenjin North Front Building■Address ： 4-chome, Tenjin,
Chuo Ward, Fukuoka City

19 Higashi Hie Business CenterⅡ

22 Aqualia Chihaya■Address ： 4-chome, Chihaya,
Higashi Ward, Fukuoka City

23 D-Wing Tower■Address：2-chome, Daimyo,
Chuo Ward, Fukuoka City

24 Granfore Yakuin Minami■Address：2-chome, Odo, Nishi Ward,
Fukuoka City

■Address ： Gokushomachi,
Hakata Ward, Fukuoka City

■Address ： 1-chome, Higashi-hie,
Hakata Ward, Fukuoka City

■Address ： 1-chome, Hirao, Chuo Ward,
Fukuoka City

4 SunLive City Kokura

8 Hanahata SC

12 Canal City Business Center Building

16 Higashi Hie Business Center

20 Amex Akasakamon Tower

25 Hotel FORZA Oita

■Address ： 1-chome, Sumiyoshi,
Hakata Ward, Fukuoka City

■Address ： 3-chome, Higashi-hie,
Hakata Ward, Fukuoka City

■Address ： 2-chome, Maizuru,
Chuo Ward, Fukuoka City

26

Kyushu Shinkansen■Address ： 1-chome, Kozono,
Higashi Ward, Kumamoto City

■Address： 4-chome, Hanahata,
Minami Ward, Fukuoka City

Okinawa

10

24

Fukuoka
University

Urban Expressw
Kanjo Line ay

Fukuoka
Airport■Address ： 2-chome, Koen Dori Nishi,
Oita City■Address ： 2-chome, Kami Kuzuhara,
Kokura Minami Ward, Kitakyushu City

25
3

Fukuoka Airport
Stn.

Stn.

Watanabe-dori Stn.

202

5

Oita

27
9

Ōhorikōen Stn.

Subwayne
Airport Li

uhi Lin

Urban
Ex
Kasuy pressway
a Line
sen
kan
hin
S
nyō
Sa
JR Sasaguri Line

Kaizuka Stn.

Kyu
/Hak shu Shinata Mkinam ansei LineJR Chik

Saga

ssway

11

Najima Stn. 3ywa
ss
pre inexL
n E rtba po
Ur AirChuo
Port

Fukuokae

Sea-Side
MOMOCHIUrban Expressway
Kanjo Line

Fukuoka City

Lin

Nokonoshima

29

hii

Hakata Bays
Ka

HakozakiPort

Chihaya Stn.

22

JR

ba
n
Ka Expsh resii L sw
ine ayUm

4u ExpreJR

Island City

Kyush

Uminonakamichi
Seaside Park

N
no-

ne

i Li

ich

m
aka

u
ets e
hit LinNis ukaiz
Ka

Fukuoka City

Shikanoshima■Address ： 1-chome, Chuo-machi,
Oita City

26 Tissage Hotel Naha

■Address：2-chome, Nishi, Naha City

27 Tosu Logistics Center■Address ： Himekatama-cho Aza,
Tosu City, Saga,

28 LOGICITY Minato Kashii■Address：2-chome, Minatokashi,
Chuo Ward, Fukuoka City

29 LOGICITY Hisayama■Address：Hisayama-machi, Kasuya-gun,
Fukuoka City

RetailOffice buildings
OthersAppendix49

Portfolio
Retail 11 properties

Canal City Hakata

Canal City Hakata・B

Park Place Oita

SunLive City Kokura

Konoha Mall Hashimoto Square Mall Kagoshima Usuki Kumamoto Intercommunity SC

Hanahata SC

Office buildings 8 properties

Kurume Higashi Kushiwara SC

K’ s Denki Kagoshima

Marinoa City Fukuoka（Marina Side Building） Canal City Business Center Building Gofukumachi Business Center

Sanix Hakata Building

Taihaku Street Business Center Higashi Hie Business Center

Others 10 properties
Residence

Residence

Tenjin Nishi-Dori Center Building Tenjin North Front Building Higashi Hie Business Center Ⅱ Amex Akasakamon Tower City House Keyaki Dori

Hotel

Hotel FORZA Oita

Hotel

Tissage Hotel Naha

Logistics

Tosu Logistics Center

Logistics

LOGICITY Minato Kashii

Logistics

LOGICITY Hisayama

Residence

Aqualia Chihaya

Total

29

Residence

D-Wing Tower

Residence

Granfore Yakuin Minami

Total acquisition priceproperties

195.9

bn yen（As of February 29, 2020）（＊）Figures round down to nearest 100 mm yen

Appendix50

Top tenants by leased floor area
Ordinary lease

LesseeTenantShare of totalleased space（＊1）

〜Aug. 31, 2021

Remaininglease term

(years) （＊2）

●Konoha Mall Hashimoto

11●Park Place Oita

2

●Canal City Hakata・B

4●Hotel FORZA Oita

8

●Marinoa City Fukuoka（Marina Side Building）

15●Canal City Hakata

3●Canal City Hakata・B

2

4.2％

●LOGICITY Hisayama

4

ー

4.0％

●LOGICITY Minato Kashii

4

ー

3.5％

●LOGICITY Minato Kashii

non-disclosure

SunLive

11.2％

2

AEON Kyushu Co., Ltd.

AEON

10.1％

3

FJ Hotels Co., Ltd

4

Fukuoka Jisho Co., Ltd.

ー

6.1％

5

Canal City OPA Co., Ltd.

OPA

4.5％

6

KASEI inc Co., Ltd.

ー7

Fukuoka Logistic System
Corporation

8

F−LINE CORPORATION

10 K’s Holdings Corporation〜Feb. 28, 2021

34th

5

SunLive Co., Ltd.

Alpen Co., Ltd.

〜Aug. 31, 2020

33rd

●SunLive City Kokura

1

9

32nd

Fixed-term lease

Grand Hyatt Fukuoka
Hotel FORZA Oita

Sports Depo,
Golf 5

K’s Denki

7.7％

（＊3）

3.2％

2.4％

（＊4）

●Square Mall Kagoshima Usuki

6●Kumamoto Intercommunity SC

6●Kurume Higashi Kushiwara SC

7●Park Place Oita

2（＊1）Share of total leased space is calculated using the formula “Leased floor area by tenant / Total leased floor space,” as of February 29, 2020 with residential space excluded from leased floor space by tenant.
（＊2）Remaining lease periods shown are the remaining periods of lease contracts as of February 29, 2020 with periods shorter than one year rounded down to the nearest whole year.
（＊3）The 6.1% includes a 0.3% office portion. [Six ordinary leases have been concluded for Canal City Business Center Building.]（＊4）Information is not disclosed because the permission of tenants has not been obtained.

Appendix51

Breakdown of variable rents
Breakdown of active retail rents by property
Fixed rents（＊1）

Variable rent s（＊2）（mm yen）

3,000（mm yen）

2,841

2,759
530

2,734

628
318

296

（＊3）

519

（＊3）

3,000

2,734
317

505

（＊3）

Portfolio overall◎The 31st FP◎The 30th FP

Variable rents

Variable rents（941 mm yen）

（1,003 mm yen）

20.1％

299

11.8％

（＊3）

2,000

2,000

2,229

2,212

2,214

2,229

1,000

0

Breakdown of active retail rents

1,000

28 th

29 th

〜Aug.31,2018〜Feb.28,
2019

30 th

0

31st

〜Aug.31,2019〜Feb.29,
2020

1,005

1,006

1,001

1,008

209

212

206

208

Fixed rents

Fixed rents

796

793

794

800

（3,744 mm yen）

（7,527 mm yen）

28 th

〜Aug.31,2018

Canal City Hakata／Canal City Hakata・B

29 th〜Feb.28,
2019

30 th

〜Aug.31,2019Park Place Oita

Breakdown of Tissage Hotel Naha
（mm yen）

3,000

3,000

88.2％

31st

〜Feb.29,2020（mm yen）（mm yen）

79.9％

1,000

◎The 31st FP
750

2,000

2,000

Variable rents

11.4％（974 mm yen）

500
1,000

1,000
292
0

262

28 th

〜Aug.31,
2018

30

289
262

29 th

27

〜Feb.28,
2019

284
262

21

30 th

〜Aug.31,
2019

SunLive City Kokura

281
262

31st

18

〜Feb.29,
2020

0

673

675

665

661

216

219

209

208

456

456

455

452

28 th

29 th

30 th

31st

〜Aug.31,2018〜Feb.28,2019〜Aug.31,2019〜Feb.29,2020

Konoha Mall Hashimoto

250
39
0

28 th

29 th

〜Aug.31, 〜Feb.28,
2018
2019

21
18

88

30 th

45
42

〜Aug.31,
2019

68

31st

32
36

〜Feb.29,2020

Fixed rents

88.6％（7,540 mm yen）

Tissage Hotel Naha

＊Variable rents are included Canal City Hakata, Canal City Hakata・B, Park Place Oita, SunLive City Kokura, Konoha Mall Hashimoto and Tissage Hotel Naha.
（＊1） "Fixed rent" is indicated the amount of "leasing revenues-real estate" - "variable rent".
（＊2）Variable rents are the sum of the portion of rents collected from tenants with variable and GOP rents that varies as a function of the tenants’ sales. （＊3）The figures are included parking fee in variable rents of Canal City Hakata / Canal City Hakata・B.

Appendix

52

The condition of Fukuoka city center
博多小学校

B
Naraya-machiShow
Av a-de. oriShiminkaikan-mae

Fukuoka Prefectural
Museum of Art

Shimokawabata-machi

nu
Na

Amex
Akasakamon
Tower

D-WingTower

Maizuru JHS

2

23

Homukyoku-mae

TenjinAve. Prime-dori
Meiji Nishitetsu

Chuo-kuyakusho

Subw

Akasaka Stn.

n-dori VIORO

SazaGrand Hotel

Chuo Ward
OfficeShinnippon Building

ay
Na
na

Nishitetsu Tenjin

a

m

ku
Denki

FY 2018

Subway Tenjin Stn. and Tenjin Minami Stn.

2018

Minami-yakuinaLi

Source: Prepared by Fukuoka Realty based on the Fukuoka City Statistics
2018 and the websites of respective transport operators.

ori
ui-d
300m

Jos

Fukuoka zoo-mae

100m※Please refer to P49 regarding the number of properties.
※ is owned by Fukuoka REIT Corporation（As of February 29, 2020）.
※ owned by Fukuoka Jisho Group（As of February 29, 2020）
.

m

602

Denki
Watanabe-dori
1chomeBuilding
Kyosokana-riSumiyoshi
ES

31

Oomiya24■Impact of Nanakuma subway line extension

Ch[scheduled to commence operations in FY2022]
Yutoria Hakata◎Estimated daily Nanakuma line passenger volume[including connecting passengers]（thousand people）

180

Takasago

Kiyokawa2chomeTakasago1chome

150

Minoshima-kita＋56,000（＋64％）

ikushSannoh Park

i-d

or

i

Sanno 1chome120

Inukai
ShrineMiyajima

Hakataeki-minami

Minoshima553

be
Scheduled to Harusumi
EScompleted the construction

60
Kiyokawa

30
0

Fukuokakobayashi
Post Office

575

90

602

Kiyokawa3chome

Hirao 1chome

Hakataeki
minami555

Shirogane

Granfore Yakuin Minamii385

FBS Fukuoka
Broadcasting

Hirao

do

Yanagibashi
Kiyokawa

Takasago

Takasago1chome

iy

or

ri
do

ka

Higashi Hie
Business Center �

ta

31Ta

Park

16

Hotel New Otani

Shiroganekindergarden

Tsuyukiri-hashi

Yakinkoban-mae

bw

177,802SUNLIFE No.3
Buildinghi

Higashisumiyoshi
JHS

Sumiyoshi Shogakko Mae

314,071

ne

a

N

tn.

Yakuin-ekimae

C

Stn.

Hakata 500m radius

Watanabe-dori Stn.

Watanabe-doriNishi

136,269
Yakuin Stn.

Hakata-ekimae
4chomeHigashihie

19ka

Sanix Hakata hikushBuilding
i-dHigashihie

Higashi Hie
Business Center Ⅱ

Hakataekihigashiek Fukuoka Eartheonoen- BuildingdoriNakahie

Na

14

Otowa

The Basics
Fukuokaishay

Jotobashi
Nishi

Passengers getting
on and off

JRJP Kamiyo
Hakata Hakata
Building Chuo
Building

Godochosha-mae

ke
Ta

um

k
na

Jotobashi

ri S

odo

uin-

Yak

oad

Building

Higashihie

Hakataeki(Chikushiguchi)

Hotel Clio

JR Hakata City Court Hakata

HEARTSBus Station

Higashi Hie
Business Center

Canal City Hakata 500m radius

i
or
i-d
ek .
ss ve
Ni A

Nishitetsu Fukuoka（Yakuin
Tenjin）Stn.

Yakuin-odori-nishi

Kogarasu
Shrineural R

Nishitetsu Yakuin Stn.

Chikushijogakuendaigakufuzoku
Kindergarden

Compilation
periodHaruyoshi
ES

ne

Li

Omuta LinerefectYakuin-Mutsukado

Su

Watanabe-dori Kita

Denki
Building North

Hakata Stn.
JR Hakata Stn.

Hakata-ekimae
3chomeHotel FORZA Hakataeki
Chikushi-guchi Ⅱ

385

Oriental Hotel Fukuoka
Hakata Station

Takeshita-dori

bw

shi P

e.
Av
ori
i-d
sh
iyo
m
Su

Sumiyoshi Shrine

412,995

Hakataeki higashi

Hotel FORZA Hakataeki
Chikushi-guchi Ⅰ

HakataKITTE Hakata Hankyu

Hakata-ekimae
Business Center

Canal City BusinessCenter BuildingSu

in the Tenjin area: daily average
Chiku

12

Sumiyoshi-jinja
MaeBivi Tenjin

AmuPlaza
HakataFukuoka
Center Building
The Nishi-nippon
City Bank

Watanabe-doririImaizumi
Park

Kego

uoka

4

UrbanBLD
TenjinTenjin 500m radius

31 FukHakata-ekimae-dori Ave. Hakata-ekimae
2chomeSmile Hotel
Hakata-ekimae
Crown Plaza
Ana Fukuoka

Shinkawa-bashi

Tenjin MENT
Building

Hakata-ekimae 1chome

NOF Hakata-ekimae
Building
Hakata Bus
Terminal

Hotel FORZA
Hakata Stn. Hakata exit

Hakatakuyakusho
Minamiguchi

Canal City Hakata

1

553

Haruyoshi

Building Shinkan◎No. of passengers getting on and off at stations
Denki

City House
Keyaki Dori

Canal City Hakata／
Canal City Hakata・B

160,596

Source: Prepared by Fukuoka Realty based on
JHS Fukuoka City Statistics 2018
Tokotheand the websites of respective transport operators.
（＊） For convenience,
the number of passengers on and off trains is calculated by
Katakasu ES
the number of people getting on trains3 x 2.

Hakata-ekimae
SquareHotel NIKKO
Fukuoka

Hakatakeisatsusho
IriguchiCanal City Hakata
East Building

252,426（＊）

FYKu 20182018

Toko-kita
Park

HakataKuyakusho
Iriguchi

Hakata Police Office2

Passengers getting
on andYutaka
off

r

do

ko

Subway Hakata Stn.

Gion-machi

Canal City Hakata Hakata Ward
East Building
Office202

Tenjin121 Building
Tenjin122
Building

Shokokaigisho
IriguchiJPR Hakata
Building

Haruyoshibashi
HigashiHaruyoshi

FukuokaTenjin Minami Stn.
Kego Park Mitsukoshi Watanabe-dori 4chomedori

Kego ESr

Compilation.
ve
periodiA

JR Hakata Stn. excl. Shinkansen

erToko 2chome

Mangyo-ji

Max
Value

Nakasu1chomeve

Sankoubashi

do
eab .
an AveImaizumi

iash

Kego KOBAN

Kego 2chome

21
Akasaka

ninb
Sho

.

Ave

Tenjin LUCE

ve.

Riv

Hakataekimae

at

ve.

-dori A

dori

aki-

Key

Daimaru

Fukuoka(Tenjin) Stn.

Kego-jinja Mae

A
doro

i-

202

Tenjin 1-chome 11th Block
Development Project: provisional name

SOLARIA
Plaza Nishitetsu

Ri

Nishinakasu

Tenjin Chuo
Park

Fukuoka

Building
Tenjin MMT
City Hall

Tenjinkirameki-dori building
TenjinNishi-dori
Square

uta
Kok

Kego

Iwataya
Main Storeasa

Joten-ji

W

Taisho3

Class
Keyaki Dori

eki

Kiram

17

Tenjin Nishi-Dori
Center Building
Daimyo-dori

Gionmachi
Nishi

ka

Fukuoka Shiyakusho-mae

KushidaShrineChukan Stn.
(provisional name）

NakasuNa

Acros
Fukuoka
Best Denki
Fukuoka Main Store

Hakata Gion
M-SQUARE

gate’sアクロス福岡前name）Tenjin Business Center（provisional

IMS

ResoraTenjinDimyo 1chome

Shimin Center
Taiikukan

Iwataya
Shinkan

Tenjinnjin
Te ishiN oridAkasaka
nishi

uko
ay K

Line

Su 15
Ta bwaiha yku Kuk-dor o Li Tocho-ji
i A neve.

Gion Stn.

Kamikawabata-machi

inkawanshkuiYa

Maizuru
2chomeMaizuru

Chuoyubinkyoku-mae
Tenjinbashi-guchi
Tenjin Nishi-Dori
Hinode Tenjin
Business Center The Bank of
Building

TenjinTenjin 1chome
Fukuoka Fukuoka Building
Maizuru
Tenjin Head Office
1chomeTenjin Stn.
Center Buildingve.
A
Fukuokari
a-doTenjin Mitsui
Fukuoka
BuildingShow
Building
Securities PARCO Fukuoka
Tenjin-nishi
Building
Shinkan PARCO

20

Mik

202

Reisen-machi

Yutaka JCTin the Hakata area: daily average

Gokusho-machi

Taihaku Street
Tenya-machiBusiness Center

Nishi-ohashi

Nishitetsu Inn Fukuoka

Katakasu◎No. of passengers getting on and off at stations

43

Nakasukawabata Stn.
NakasuF
552

Katakasu
1chomeGionmachi

18Bank ofJapan Fukuoka Kogin Building

Maizuru ES

Nagahama

Tenjin North
Front Building

Gofukumachi
Business Center
Shofuku-ji

Hakata-za
Hotel
Theater
Okura Fukuoka
HakataRiverain
Business Center

空港通

吉塚1丁目

E

福岡高校

Yutaka 1chome

Kamigofuku-machi

13

550

D

Gofuku-machi Stn

Higashinakajimabashi

Tenjin Reverfront
Ave

ori

-d
tsu

Gofuku machi

Ave.

Suzaki-machi

KBC
Kyushu Asahi Nanotsu-guchi
Broadcasting

Fukuoka Central wholesalemarket fish market

Meiji-DoriBusiness Center
Main building / Annex

Suzakikoen-mae

SuzakiPark

Fukuoka Dai-ichi
Building

Tsunaba-machi

KBC
Cinema 1・2

1

中呉服町

do
ri

天神北出入口

蔵本

C

M
ei
ji-

A

地
箱 下鉄
崎
線

Nanakuma subway line extension project will be completed by FY2022

2009 2017 2019（actual）（actual）
555

2020

2021

2022

2023

2024Hakata-ekiminami
2025
5chome2026

2027 2028 （FY）

Source: Prepared by Fukuoka Realty Co., Ltd. based on the Fukuoka City Transportation Bureau’ s FY2019 to FY2028 Fukuoka
Hirao-kita

Appendix53Office demand underpinning the thriving Fukuoka office market
Trend in average net absorption [absorption demand] for the past 10 years●Despite strong office demand, supply has been small since 2017 to keep net absorption low（tsubo）

25,000average for the past 10 years
9,831 tsubo （approx. 32,500㎡）

20,000

Impact of tenant move-outs before
closing of large-scale buildings
associated with redevelopment

15,000◎Establishment of new business premises [branches, head offices]
・New demand for IT-related business, call centers, shared office spaces, etc.

◎Expansion, relocation, floor space expansion
・Office expansion needs, relocation demand due to rebuilding

10,000◎Moving to better locations, etc. [from suburbs to city center]

5,000
0（5,000）

Office demand underpinning the office market

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

（year）

・Trend of relocating to city center from suburbs with an eye to ease of access andrecruiting human resources.
・Relocation from company-owned building

Source: Prepared by Fukuoka Realty Co., Ltd based on data from “Office Market Data” Miki Shoji Co., Ltd

Track record of Fukuoka City in attracting businesses

Fukuoka’s strengths and challenges◎Local government support for businesses establishing business premises in the area

[A subsidy program for businesses establishing business premises in Fukuoka City, etc.]●Number of businesses moving into Fukuoka City and the increase in number of persons newly employed by the businesses
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018

Number of companies
moving in

35

53

52

62

58

57

57

Number of employees

2,180

2,966

1,290

2,213

2,989

1,041

1,334

[Number of companies moving in by major industry category]◎Fukuoka’s strengths●Ease of hiring human resources（high population growth rate and high proportion of young people）●Abundant human resources due to large number of universities, junior colleges,
and professional schools●Low business costs（office rent, labor costs）●Highly livable city（living costs, living environments）

Creative industry

13

18

18

33

28

40

38

●High level of transport convenience（proximity to airport, gateway to Asia）

Call center

3

7

7

8

12

9

7

●Suitability as a backup base（Low earthquake risk, and low risk of disasters
occurring at the same time as in the greater Tokyo area）●Major companies that have moved in since FY2013
Creative industry●Startup assistance（National Strategic Special Zone for Global Startups and Job Creation）

Call center

Others

FY2018ZOZO Technologies, Inc.
GMO Payment Gateway, Inc.

Merpay, Inc.
transcosmos inc.

Accenture Japan Ltd
Yahoo Japan Corporation

FY2017

Ateam Inc.

--

●Drying up of space for rent due to tightening office supply

Akatsuki Inc.,SAKURA internet Inc.

Mercari, Inc.

-

LINE Corporation

Amazon Japan G.K. Massachusetts Mutual Life Insurance Company●Shortage of high-grade offices that meet the requirements of foreign-owned
businesses in terms of business continuity measures, etc.
➡Creation of new demand through redevelopment projects

FY2016Up to FY2015

Source: Prepared by Fukuoka Realty Co., Ltd., based on data from Fukuoka City Economy, Tourism & Culture Bureau◎Challenges

Appendix54

Sponsor pipeline （Fukuoka Jisho Group）
Major properties owned by Fukuoka Jisho Group

Overview of Fukuoka Jisho Co., Ltd.

Use

Fukuoka Jisho Co., Ltd.

Name
EstablishedIndustries
Representative

Total floor
space

1961

9,962㎡

1970

15,160㎡

1974（Main Building）/ 1986（Annex）

9,844㎡

Fukuoka Daiichi Building

2

Fukuoka Kogin Building

Real estate （comprehensive developer）

3

Meiji-Dori Business Center

4

Sun Life No. 3 Building

1978

8,262㎡

Ichiro Enomoto, President and C.E.O

5

Tenjin Nishi-Dori Business Center

1978

10,394㎡

Officebuildings

Net sales22.7 billion yen (period ended May 31, 2019）
4.2 billion yen (period ended May 31, 2019）
RetailDevelopment plan of Fukuoka Jisho Group

Property
nameYear of completion1

216 （as of May 31, 2019）plannedcompletion

Name

July 1961

Employees

Ordinary income

No.

FY2019FY2020Hotel FORZA Sapporo Ekimae Island City Logistics Center（provisional name）（provisional name）

FY2021
Tenjin Business Center（provisional name）■Tenjin Business Center（provisional name）
Officebuildings■Naha Business Center
Officebuildings

Tenjin MMT Building

1979

19,874㎡

Tenjin Riverfront Business Center

1999

4,106㎡

8

Hakata Ekimae Business Center

1999

23,542㎡

9

Naha Business Center

2018

8,994㎡

10

Tenjin Business Center（provisional name）

FY2021（scheduled）

61,116 ㎡

11

Marinoa City Fukuoka（Outlet Building）

12
13

Residence 14
Hotel
Logistics＊The fiscal year reflects the fiscal year of Fukuoka Jisho Co., Ltd.（June 1 - May 31）

6
7

2000
（Building Ⅰ）/ 2004
（Building Ⅱ）/
2007（Building Ⅲ）

46,663㎡

Tenjin Kirameki Dori Building

2003

24,525㎡

Canal City Hakata East Building

2011

18,534㎡

Class Keyaki Dori2008

6,500㎡

15

Hotel FORZA Hakataeki Chikushi-guchi Ⅰ

2012 / 2017（Annex Building）

16

Hotel FORZA Hakataeki Chikushi-guchi Ⅱ

20194,876㎡

17

Hotel FORZA Sapporo Ekimae（provisional name)

FY2019（scheduled）

11,344㎡

18

Island City Logistics Center（provisional name)

FY2020（scheduled）

47,150㎡

7,335㎡＊Includes properties owned by the Fukuoka Jisho Group and properties co-owned with other companies.

■Canal City Hakata East Building
Retail■Hotel FORZA Hakataeki Chikushi-guchi Ⅰ ■Island City Logistics Center (provisional name)
Hotel

Logistics（Image）（Image）＊Prepared by Fukuoka Realty based on data from Fukuoka Jisho Co., Ltd.

Appendix55