February 9, 2018

Provisional translation only

Fukuoka REIT Corporation
1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City
Etsuo Matsuyuki
CEO & Representative Director(Securities Code: 8968)
Asset Management Company:
Fukuoka Realty Co., Ltd.
1-2-25 Sumiyoshi, Hakata Ward, Fukuoka City
Etsuo Matsuyuki
CEO & Representative Director
Inquiries:
Keishi Tamura
General Manager of Finance Department
TEL: +81-(0)92-272-3900
Notice on Issuance of New Investment Units
Fukuoka REIT Corporation (FRC) announces it has resolved at the Board of Directors Meeting held today to issue
new investment units, as described below.
1. Issuance of New Investment Units through Public Offering(1) Number of units to be offered:

49,000 units(2) Issue price (offer price):

To be determined
The issue price (offer price) of the public offering
shall be provisionally determined by multiplying theamount whereby 3,470 yen of forecast dividend perunit for the 27th fiscal period ending February 2018 isdeducted from m the Tokyo Stock Exchange (TSE)
regular transaction closing price of FRC’s investmentunits (the “Investment Unit”) on any date between
February 21, 2018 (Wed.) and February 23, 2018
(Fri.) (hereafter “Pricing Date”) (or the closing priceon the day immediately preceding the Pricing Date in
the event that there is no closing price) by a factor of0.90 to 1.00 (amounts less than ¥1 to be roundeddown), in consideration of demand and other factors.)(3) Paid-in amount (issue value):

To be determined(The price shall be determined by a resolution of theBoard of Directors Meeting on a date (the “pricingdate”)(4) Total paid-in amount (issue value):

To be determined(5) Offering method:

The investment units shall be offered as a public
offering, and underwritten in full by SMBC Nikko
Securities Inc. (“Lead Manager”), as well as Nomura
Securities Co., Ltd., Mizuho Securities Co., Ltd.,
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.,
Nishi-Nippon City Tokai Tokyo Securities Co., Ltd.,and Fukuoka Securities Co., Ltd. (These six

Disclaimer: This document is a press release to publicly announce the issuance of new investment units, and has not been prepared for the purpose ofenticing investment. When applying to purchase investment units issued by Fukuoka REIT Corporation, please do so based on your own
judgment and responsibility, without failing to read the Prospectus on issuing new investment units and its corrections (if any) preparedby Fukuoka REIT Corporation.

-1-

companies, collectively with Lead Manager, as“Underwriters”).
(6) Underwriting agreement:

The Underwriters shall purchase and underwrite theInvestment Units at the paid-in amount (issue value)
determined on the Pricing Date, and conduct offering
at a different price (issue price) from the paid-inamount (issue value). Underwriters shall pay FRC thetotal paid-in amount (issue value) on the payment
date mentioned under (9) below. The difference
between the total amount of issue price (offer price)and the total paid-in amount (issue value) in the
public offering shall be the proceeds to be taken by
the Underwriters. FRC will pay no underwriting
commission to the Underwriters.

(7) Subscription unit:

One unit or more in multiples of one unit

(8) Subscription period:

February 22, 2018 (Thu.) to February 23, 2018 (Fri.)
Subject to demand and other factors, the subscription
period may be brought down. In that case, the latest
subscription period shall be February 26, 2018 (Mon.)
to February 27, 2018 (Tue.)(9) Payment date:

A day between March 1, 2018 (Thu.) and March2, 2018 (Fri.). However, it will be on March 1,2018 (Thu.) when the pricing date is either
February 21, 2018 (Wed.) or February 22, 2018(Thu.), March 2, 2018 (Fri.) when the pricing
date is February 23, 2018 (Fri.)(10) Delivery date:

Next business day after payment date(11) The issue price (offer price), the paid-in amount (issue value), and other necessary items relating tothe issuance of new investment units shall be decided at a future Board of Directors Meeting.
(12) The aforementioned items shall be subject to the effectiveness of the Securities Registration
Statement in accordance with the Financial Instruments and Exchange Act.
2. Total Number of Investment Units Outstanding after New IssuanceTotal number of investment units outstanding
Number of new investment units to be issued through the public offering
Total number of investment units outstanding after the public offering

747,000 units
49,000 units
796,000 units

3. Purpose and Reason for Issuance
As a result of examining market trends, dividend levels and other factors, FRC has decided to issue newinvestment units in order to realize external growth through acquisition of new specified assets (assets depicted inArticle 2-1 of the Act on Investment Trusts and Investment Corporations; the same applies below). (Note)(Note) For the outline of the new asset, please refer to “Fukuoka REIT Concludes Agreement to Purchase and Lease New
Properties” separately announced today. The same applies below.

4. Amount of Funds to be Procured, Use and Scheduled Payment(1) Total amount to be procured (approximate net balance)
8,230,000,000 yen

Disclaimer: This document is a press release to publicly announce the issuance of new investment units, and has not been prepared for the purpose ofenticing investment. When applying to purchase investment units issued by Fukuoka REIT Corporation, please do so based on your own
judgment and responsibility, without failing to read the Prospectus on issuing new investment units and its corrections (if any) preparedby Fukuoka REIT Corporation.

-2-(Note) The above figure is as estimated amount calculated as of January 26, 2018 (Fri.) from regular transaction on theTokyo Stock Exchange (TSE) on the pricing date.

(2) Specific use of the funds to be procured and scheduled payment
The proceeds will be allocated to funds for acquisition of new specified assets (including acquisitioncosts).
(Note) Funds will be deposited in financial institutions until payment.

5. Designation of Distribution Destinations
None
6. Future Outlook
Please refer to “Notice on Revision to Forecast of Performance for Fiscal Period Ending August 2018”
separately announced today.
7. Operating Results of Past Three Fiscal Periods and Status of Equity Financing(1) Operating results of past three fiscal periods
Fiscal Period Ended
August 2016
Profit per unit (Note)
1,256 yen
Dividend per unit
3,479 yen
Actual payout ratio
100.0%Net assets per unit
123,267 yen

Fiscal Period Ended
February 2017
5,621 yen
3,398 yen
60.5%
125,410 yen

Fiscal Period Ended
August 2017
3,422 yen
3,422 yen
100.0%
125,434 yen(Note) Profit per unit has been calculated by dividing profit by the average number of investment units weighted by thenumber of days.

(2) Recent status of investment unit priceI) Status in the past three fiscal periods (High and low prices in comparison with the closing prices ofrespective trading days in the covered trading months)(yen)Fiscal Period Ended
Fiscal Period Ended
Fiscal Period Ended
August 2016
February 2017
August 2017
Opening price
193,400
187,000
177,600High
214,500
192,000
182,800
Low
186,100
169,000
162,100
Closing price
186,100
177,100
164,300
II) Status in the last six months (High and low prices in comparison with the closing prices of respective
trading days in the covered trading months)(yen)
SeptemberOctoberNovember December
January
February20172017
2017
2017
2018
2018
Opening price
164,000
160,200
161,200
169,100
168,100
182,800
High
164,000
164,300
168,800
169,900
183,400
179,600
Low
160,200
157,500
158,500
167,300
168,900
171,800
Closing price160,200
161,300
168,800
168,200
183,400
178,500(Note) Invest unit price in February 2018 is figured as of February 8, 2018.

III) Investment unit price on the business day preceding the resolution day of the issuance

Disclaimer: This document is a press release to publicly announce the issuance of new investment units, and has not been prepared for the purpose ofenticing investment. When applying to purchase investment units issued by Fukuoka REIT Corporation, please do so based on your own
judgment and responsibility, without failing to read the Prospectus on issuing new investment units and its corrections (if any) preparedby Fukuoka REIT Corporation.

-3-

Opening price
HighLow
Closing price(yen)
February 8, 2018
174,500
178,500
174,500
178,500(3) Status of equity financing in the past three fiscal periods
None
8. Other (Limitations on Sale, Additional Issuances, etc.)(1) Fukuoka Jisho Co., Ltd. is a unitholder owning 66,075 of the Investment Units as of February 9, 2018.
Upon the public offering, Fukuoka Jisho Co., Ltd. has agreed with the Lead Manager that it will not sell
the 66,075 investment units it has owned prior to the public offering, for a period from the pricing date
and the date three months without obtaining prior written consent from the Lead Manager.
(2) Upon the public offering, FRC has agreed with the Lead Manager that it will not issue Investment Units
for a period from the pricing date and the date 90 days after the payment date, without obtaining priorwritten consent from the Lead Manager.
(3) Even in each of the aforementioned cases, the Lead Manager has the right to terminate agreed toconditions in part or in whole, or reduce the period of limitation, at its own discretion during thelimitation period.
*This document was distributed to Kabuto Club (press club within the Tokyo Stock Exchange), Press Club for the Ministry ofLand, Infrastructure, Transport and Tourism, Construction Trade Paper Press Club for the Ministry of Land, Infrastructure,
Transport and Tourism, Fukuoka Economic Press Club, and Fukuoka Securities Finance Press Club
*Fukuoka REIT Corporation’s website is http://www.fukuoka-reit.jp/eng/

Disclaimer: This document is a press release to publicly announce the issuance of new investment units, and has not been prepared for the purpose ofenticing investment. When applying to purchase investment units issued by Fukuoka REIT Corporation, please do so based on your own
judgment and responsibility, without failing to read the Prospectus on issuing new investment units and its corrections (if any) preparedby Fukuoka REIT Corporation.

-4-