Contents

01 Introduction
01 Corporate Profile / Characteristics
02 Relationship with Fukuoka Realty Co., Ltd.
04 Macroeconomic Environment around Fukuoka City
08 J-REIT Mechanism and Fukuoka REIT Corporationʼs Business Model
10 History and Business Performance
12 Overview of Properties Owned
14 Financial/Non-Financial Highlights (5-Year Graph)

16 Value-Creation Activities
16 CEOʼs Message
20 Message from the Executive Director
22 Strategies of Each Department
26 Risks and Opportunities
28 Financial Strategies and TSR（Total Shareholder Return）

30 Foundation Underpinning Management
30 Sustainability Policy and Materiality
32 Environmental Issues
36 Social Issues
39 Organizational Issues

42 Data Section
42 Financial/Non-Financial Highlights (11-Year/22-Period Summary)
44 Glossary
Editorial Policy（Retail）
Canal City Hakata（Office buildings）
Gofukumachi Business Center（Logistics）
LOGICITY Hisayama

Introduction（Residence）
D-Wing Tower

With the aim of conveying details of the Investment Corporationʼs value creation
process in an easy-to-understand manner, we have issued this Integrated Report since
fiscal 2019. In editing this report, the editors adopt clear and accessible language,
with reference to the International Integrated Reporting Framework of the International
Integrated Reporting Council (IIRC) and the Guidance for Collaborative Value Creationof Japanʼs Ministry of Economy, Trade and Industry (METI). We consider that this andsubsequent reports will lead to active dialogue with investors and other stakeholders.

Corporate Profile / Characteristics
Ta k i n g ad va nt a g e of o u r s tre n g th i n k n ow i n g th e l o c a lcharacteristics of real estate, which is a region-specific business, toinvest in the wider Kyushu region with a focus on Fukuoka, on June21, 2005, Fukuoka REIT Corporation (FRC) was listed as the firstregion-specific REIT in Japan. FRC believes that attracting excellent
domestic and foreign investment funds to regional financial markets
will stimulate community development in the Fukuoka and Kyushu
areas. Moreover, we believe that possibilities for regional growththrough urban development will provide FRC with a continuous
stream of investment opportunities as well as income fromassets under ownership for FRC while at the same time deliveringprofitable returns to unitholders.

Corporate Profile

FRCʼs Characteristics

Name

Fukuoka REIT Corporation

Securities code

8968

Listed dateJune 21, 2005 : FRC listed on Tokyo Stock
Exchange and Fukuoka Stock Exchange

Accounting periods

February, August

Asset managementcompany

Fukuoka Realty Co., Ltd.

Sponsors

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

1 Japanʼs First Region-Specific
REIT
Taking advantage of our strength in knowing the local
characteristics of real estate, which is a region-specificbusiness, we invest in real estate for rent in the Fukuoka
and Kyushu areas, where growth potential exists. By
appropriately managing the invested real estate, we
continue to secure stable earnings over the medium tolong term while providing stable dividends.

4 Stable Financial Base
FRC conservatively controls its LTV and diversifies repayment
periods over time. In addition, the Investment Corporation
continue s to maintain good re lationships with f ina ncial
institutions including its three sponsor banks.

2 Excellent Portfolio

3 Support Structure Comprises

To build its portfolio, FRC selectively
invests in a variety of investment
property types, including retail facilities, office buildings, and logistics
properties , etc., with a focus on the
Fukuoka metropolitan area, which
has significant growth potential.

Powerful companies that lead the business worldin Fukuoka and Kyushu, and accept our way of
thinking, participate as shareholders of Fukuoka
Realty Co., Ltd. FRC proactively utilizes the support
from its sponsor companies while aiming to steadily
expand its asset scale.

Sponsor Companies

5 Payment of Stable Dividends Continuing Since Listing
Utilizing its sponsor pipeline and other advantages, FRC continues to distribute stabledividends per unit through the acquisition of carefully selected excellent properties andeffective asset management in the Fukuoka and Kyushu areas.

Fukuoka REIT Corporation 2021

01

■ Introduction

Relationship with Fukuoka Realty Co., Ltd.

FRCʼs Basic Policy□ Value-Creation Activities□ Foundation Underpinning Management□ Data Section

Corporate Profile of Fukuoka Realty Co., Ltd.

【Our Mission】
Taking advantage of our strength in knowing the local characteristics of real estate, which is a region-specific business, we invest
in real estate for rent in the Fukuoka and Kyushu areas. By appropriately managing the invested real estate, we will achieve stableearnings over the medium to long term while making efforts tokeep providing stable dividends for the future.
【Act Local】
We - FRC and Fukuoka Realty Co., Ltd. - are currently the only
listed real estate investment corporation and asset managementcompany registered outside the Tokyo metropolitan and Kansai
areas under the provisions of the Act on Investment Trusts andInvestment Corporations as well as the Financial Instruments andExchange Act. As a region-specific REIT, FRC seeks differentiationin the selection of investment target properties and the management of owned assets through the enhancement of its information
gathering ability and ability to discern the profitability of properties

by utilizing its speed and depth of information based on knowledgeof local land and a broad network centering on local governments
and the business world.
【Think Global】
We will proactively engage in IR activities to fulfill our accountability to global capital markets. In conjunction, we will take heed of
Fukuoka Realtyʼs corporate governance and compliance. Regarding real estate and financial markets, FRC will keep closely tracking
movements occurring across the whole of Japan and the entire
world, taking into consideration the logic of capital markets with
global ideas, and appropriately reflecting such in our asset management.
We will also keep diligently pursuing dialogue with investors,focusing on fulfilling our accountability, and utilizing Fukuoka Realtyʼsfund management skills for investors under a strict compliancepolicy.

Listed on the real estate investment trust sections of the Tokyoand Fukuoka stock exchanges, Fukuoka Realty Co., Ltd., is FRCʼs
asset management company. Having only one Executive Director
and two Supervisory Directors, FRC outsources operations that
include the selection of the real estate to be invested in, asset
management, and other general affairs to outside experts. Amongthe experts to which operations are entrusted, an important roleis played by the asset management company. Generally, FRC
entrusts Fukuoka Realty Co., Ltd., see with surveys of new real es-

tate acquisitions, property selection, the post-acquisition management of real estate management companies outlined by Fukuoka
Realty Co., Ltd., and real estate sales.
Located in Fukuoka City and comprising 40 employees witha variety of experience in real estate, finance, and other fields,
Fukuoka Realty Co., Ltd., possesses a high level of expertise andmakes full use of information unique to the local area in managing
FRCʼs assets.

Real Estate Investment Trust

Fukuoka REIT Corporation

Real Estate

Investors［ Securities code:8968 ］
Holdings

Investments

Rents, etc.

Dividends

FRC and Fukuoka Realty Co., Ltd., believe that attracting domestic and foreign excellent investment funds to regional real estate
financial markets will stimulate community development in the
Fukuoka and Kyushu areas. Although we are not directly involvedin community development or real estate development, we expect
our acquisition of properties to lead to new funds passing to sellers
and part of those funds being directed to new development, etc.
With funds injected into FRC from Japan and abroad, new investment funds will flow to the Fukuoka and Kyushu areas as a whole.

Based on this perspective, we believe that we can contribute toregional revitalization and community development in the Fukuoka
and Kyushu areas.
Funds will be returned to unitholders by distributing the earnings
from owned assets.
Through the promotion of community development and the revitalization of regional economies in the Fukuoka and Kyushu areas,
we will aim for FRC earnings stability.

Investment Policy

Act Local
Real estate is a local business・Distinctive capability for gathering
qualitative information on the real estatemarket (speed, in-depth information)
・Specialization in local properties
・Solid network among local governments
and the business world

Our Mission
Region-Specific REIT
Featuring our expertise on
local real estate markets,
Fukuoka and Kyushu, maximize
profits of investors

Think Global
Capital market theory
・A ccountability and transparent
dialogue with investors
・Decent policy to comply
・Fund management skills

Investment target areas

Investment typeFukuoka
metropolitan area

Retail

60%- 90%
Other Kyushu areas(including Okinawa andYamaguchi prefectures)

10%- 30%
Others0 10%%-

40%-70%
Office buildings

20%- 50%
Others(Hotel, Residence,
Logistics, etc.)

0%- 30%Company
entrusted withasset
management

Introduction

Introduction

Contribution to Regional Revitalization and Development of Attractive Communities

Asset management company

Fukuoka Realty Co., Ltd.
For more details : See pp.8–9

Leading companies in Fukuoka and the Kyushu region that are
in agreement with FRCʼs concept participate as shareholders（sponsors）
of Fukuoka Realty Co., Ltd. FRC is aiming to achievesustainable growth as a REIT through the expanded scale of its
assets through the contribution of excellent properties from among
our sponsors and by actively leveraging their support, including theprovision of relevant information.
With regard to the properties owned and developed by thesponsor companies, Fukuoka Jisho Co., Ltd., FRC, and Fukuoka
Realty Co., Ltd., have concluded a pipeline support memorandumof understanding（MOU）
to seek stable and continuous acquisition
opportunities.

5%

5%

5%

THE BANK OFFUKUOKA, LTD.

THE NISHI-NIPPONCITY BANK, LTD.

Development
Bank of Japan Inc.

55%
Fukuoka Jisho
Co., Ltd. ＊Directors

Fukuoka Realty Co., Ltd.

Outsidedirectors

10%
Kyushu ElectricPower Co., Inc.

(Asset Manager)

Fukuoka Jisho Co., Ltd. overview : See p.25

5%

5%

5%

5%

SAIBU GASHOLDINGS CO., LTD.

Kyudenko
Corporation

Nishi-Nippon
Railroad Co., Ltd.

Kyushu Railway
Company* Concluded MOU with FRC and Fukuoka Realty Co., Ltd., concerning pipeline support.

02

Fukuoka REIT Corporation 2021

Fukuoka REIT Corporation 2021

03

■ Introduction

Macroeconomic Environment around Fukuoka City

□ Value-Creation Activities□ Foundation Underpinning Management

Total population of Fukuoka City

□ Data Section

Population growth ratio(Thousands)

（%）

1,650

1.4
1.12

1,600

0.99 1.02

0.99

Fukuoka Cityʼs Standing: From Regional City to an Asian Economic Metropolis

Hong Kong

1,000km

1,500km

Fukuoka City Initiatives■ Total Population and Population Growth Ratio of Fukuoka City

Fukuoka Cityʼs Activities to Attract “Growth Fields and Head Office Functions”

70

TEAM FUKUOKA attracting international financial functions

60

3,000

40

1,450

2,000

30
20

1,417

1,000

10
0

立地企業数 80

No. of persons employed

雇用者数

70

2016

2017

2018

2019

2020

58

57

57

53

50

2,989

1,041

1,334

1,058

665

（人）
5.00004.0000

60

1,430

1,441

1,454

1,466

1,482

1,497

1,541

1,512 1,526

0.95

1,582

1,614 1,620
1.18

0.84

1.2
1.0

0.90 0.77
0.8
0.6

1,400

0.4

1,350

0.2

0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

0

Note: Total population for 2021 indicates the population as of November 1, and therefore does notreflect the population growth rate.
Source: Prepared by Fukuoka Realty Co., Ltd., based on data from Fukuoka City Estimated Population
and Fukuoka City Registered Population, published by Fukuoka City

Fukuoka

Kyoto
Sendai

17.0

KawasakiOkayama
NagoyaHiroshima

15.0

Saitama
Yokohama

SapporoNiigata

Kobe
Sakai

Tokyo
Metropolitan
area

Sagamihara

Osaka

Kumamoto

16.0

Chiba

Nationwide

Hamamatsu

14.00

No. of companies relocated （社）

0.89

0.89 0.82
0.78

0.99 1,556 1,570

1,595

0

Kitakyushu

57.0

・Youth population
14.5%
・Working-age population 60.0%

Shizuoka

58.0

59.0

60.0

61.0

62.0

63.0

64.0

65.0

66.0 （%）

Working-age population(Percentage of city population aged 15 to 64)

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from the Ministry of Internal Affairs andCommunications, Statistics Bureau Population Census of Japan.

3.000040

Fukuoka: A Balanced
City That Continues to Grow
30

2.000020

According to “Japan Power Cities: Profiling Urban Attractiveness
10
2021,” a survey conductedby the Mori Memorial Foundation,0which analyzes the urban vitality of 138 cities in Japan from relative
2016年
2017年
2018年
2019年
2020年
and multifaceted
perspectives,
Fukuoka
City consistently
received 50社
立地企業数
58社
57社
57社
53社
high marks
as the largest
city in the
Kyushu1.334人
region that1.058人
combines 665人
雇用者数2.989人
1.041人economic vitality and ease of living. In terms of its “daily life and livability” functions, Fukuoka ranked first in the whole country. Aiming
to create a leading city in Asia in which people, the environment,
and urban vitality are in harmony, Fukuoka continues to grow as abalanced city.
■ Category Rankings/Standard Deviation
Economics/Business

75

Transportation/Access

50
2550-point standard deviation line（）
Figures in parenthesis indicate
last yearʼs rankings

Research/Development

6th 80.6 (5th)0（%）

Fukuoka
as a Compact ・City
Youth population
18.0

17.4% (1st)・Working-age population 64.8% (3rd)

Fukuoka

Kyoto

As a compact city, the air, sea, and landSendai
transportation access
17.0
Kawasakipoints of Hakata Station, the Port of Hakata/Chuo Wharf, and FuOkayama
Tokyo
Sagamihara
kuoka Airport are located withina three-kilometerradius of Tenjin,
Osaka
Kumamoto
Metropolitan
16.0
area
NagoyaSaitama
Fukuoka City's central business district. Traveling by the Fukuoka
Yokohama
Hiroshima
City Subway from Fukuoka Airport to theSapporo
city center, it takes about
15.0

Kobe
Sakai

Niigata

Nationwide

Fukuoka City

Chiba

Hamamatsu

14.0

Kitakyushu

ShizuokaIsland City
・Youth population
14.5%
・Working-age population 60.0%
65.0

66.0 （%）

Culture/Exchange

5th 74.1 (5th)Lifestyle/Residence 1st 73.3 (6th)Source: Prepared by Fukuoka Realty Co., Ltd., based on data from
“Japan Power Cities: Profiling
Urban Attractiveness 2021,”
a survey conducted by the Mori Memorial Foundation.

Hakata Station

Fukuoka Airport

Na

Tenjin Station

kag

aw

a（r

Ta
ih

ak

Kushida Shrine Station

ive

r）

ro

i-do

uta
Kok
Tenjin-minami Station

Gion Station

Nakasu Kawabata Station
Hak
ata
Riv
er

r）

Environment

Tenjin Station

Nanakuma Subway Line Extension Project
An intermediate station on the Nanakuma Line extension project that will connect Tenjin and Hakata Station,
Kushida Shrine Station is planned to be adjacent to
Canal City Hakata, FRC's flagship property.

rive

0
57.0
58.0
59.0
60.0
61.0
62.0
63.0
64.0
LegendWorking-age population
JR（Conventional lines）(Percentage of city population aged 15 to 64)
Shinkansen
Nishi-Nippon Railroad
Fukuoka Municipal Subway
Fukuoka Urban Expressway
Nishi Kyushu Expressway
Port of Hakata/Chuo Wharf

0

63rd 51.3 (91st)

five minutes to Hakata and about 10 minutes to Tenjin.
About 60% of commuting times are less than 30 minutes, which
is about half that of Tokyo. In 2022, the Nanakuma Subway Lineextension project will connect Tenjin and Hakata Station, and thusincreased convenience is expected.

awa（

3rd 77.7 (3rd)Standard Deviation by Category

5th 71.1 (2nd)1.0000hink
in-S

Fukuoka REIT Corporation 2021

0.99 1.02
0.89

1,550

0.8

・Youth population
17.4% (1st)・Working-age population 64.8% (3rd)

18.0

u
Yak

Source:“Restoring Vitality!”―Overview of the Initial Budget Proposal for Fiscal 2021 issued by
the Finance Bureau of the City of Fukuoka on February 16, 2021, and press release
issued by the Economy, Tourism & Culture Bureau of the City of Fukuoka on February
12, 2021

1.12

1,500

50

Examples of TEAM FUKUOKA Successes（1）
First success, MCP Holdings Limited attracted from Hong Kong
（2）
CapBridge Financial Pte. Ltd. attracted from Singapore（3）
DHARMA.CAPITAL K.K., the first FinTech company, attracted
from Tokyo

1.4

4,000

1,497

（%）

1,650

0.99

5,000

1,482

Compared to other
1,454 cities, the population composition of Fukuoka
0.6
1,441
1,430
City 1,417
is characterized
by a higher proportion of young people. Of
1,400
the cities listed in the chart below, the ratio of young people in 0.4
Fukuoka City（the proportion of a cityʼs total population accounted
1,350
0.2
for by people ages 15 to 29）
ranks first at 17.4%. Fukuoka Cityʼs
2006 2007 20082009 2010 201120122013 proportion
2014 2015 2016of2017
2019 total
2020 2021
0
working-age
population
ratio
（the
the2018
cityʼspop-0
ulation made up of people ages 15 to 64）
ranks third at 64.8%.
1,450

Population growth ratio

（%）

1,600

(Persons)

80

50

The Japanese government, as a pillar of its growth strategy, aims
to gather financial talent, funds, and information from overseas andto establish Fukuoka as an international financial city. In response,
TEAM FUKUOKA, a promotional organization of industry-academia-government collaboration throughout Fukuoka, was established on September, 2020.
In aiming to attract international financial functions to the city,
TEAM FUKUOKA's efforts included the opening of the Global
Finance Center, a one-stop support portal specializing in international finance, and the appointment of a Fukuoka City international
financial ambassador. The first success, the entry into the market of Hong Kong asset management company MCP Holdings
Limited, was announced in February 2021. In July, the companyʼs
Japanese head office, MCP Japan Holdings, was established.
TEAM FUKUOKA is deciding on many other corporate moves into
the Fukuoka City market.

04

No. of persons employed

1.0■ Young People and Working-Age Population ratios of Nationwide andMajor Cities（2015）(Thousands)

Youth population

Japanet Holdings Co., Ltd., launched its JAPANET@FUKUOKA
project, which features Fukuoka City as one of its new major bases.
In addition to relocating 12 departments, including personnel andaccounting, mid-career recruitment will be strengthened, and theplan is to have commenced operations by the end of 2021.

No. of companies relocated(Companies)

0.84

1,541

1.2

Introduction

Introduction

Example of Major Function Relocation

Total population of Fukuoka City

■ Fukuoka City: Trends in head office function/growth fields company
relocations(Percentage of city population aged 15 to 29)

Having promoted the attraction of “growth fields and head office
functions,” Fukuoka Cityʼs track record in company relocations has
exceeded 50 companies annually for eight consecutive years. With
the progress of risk diversification and telework in the centralized areaof Tokyo, more companies are considering opening bases in regional
cities. Even when impacted by COVID-19, the willingness of companies to enter the market has not diminished. Fukuoka City will thus
continue to make efforts to further establish companies and create
employment by utilizing active PR and incentives.

1.18

1,512 1,526

Legendu-doriCanal City Hakata

Hak

ata-

ekimae-dori

Extension section
Tenjin-minami ~Hakata station
Operating sections
Nanakuma Line
Airport Line

Sumiyoshi-dori

Fukuoka
500km

1,466

Subway Lines（City Center）

Taipei

The total population of Fukuoka City has increased consistently
since 1985, and as of May 1, 2020, the estimated population
exceeded 1.60 million. This total population makes the city the fifth
most populous among government-designated cities, following
Yokohama, Osaka, Nagoya, and Sapporo. According to estimates from the National Institute of Population and Social Security
Research, the population of Fukuoka City is expected to continue
growing until 2035.

Youth population

Tokyo
Busan Osaka

Shanghai

1,500

Blessed with a history and culture nurtured by the sea, an abundant natural environment, extensive urban functions, diverse human resources, and various other assets, Fukuoka City is recognized around the world as a livable city.
Under the “Fukuoka City Comprehensive Plan,” the basic strategy for city management focuseson creating a virtuous cycle of “urban growth” and “greater quality of life.” In aiming to become a“leading Asian city in which people, the environment, and urban vitality are harmonized,” Fukuoka
City is advancing urban planning that recognizes its presence within Asia as a compact, sustainable city that balances economic growth with a safe, secure, high quality of life.

0.89

0.89 0.82

1,595

1,582

Fukuoka Has
0.78a Large Youth Population 0.95 0.90 0.77

(Percentage of city population aged 15 to 29)

Beijing Seoul

0.89

1,550

Population Continues to Grow in Fukuoka City

0.99 1,556 1,570

1,614 1,620

Hakata Station

Source: C reated by Fukuoka Realty Co., Ltd. based on data from Fukuoka
City Transportation Bureau’s Nanakuma Subway Line Extension
Project Leaflet（April 2019）.

Fukuoka REIT Corporation 2021

05

■ Introduction

Macroeconomic Environment around Fukuoka City

□ Value-Creation Activities□ Foundation Underpinning Management□ Data Section

Tenjin Big Bang and Hakata Connected Projects
The Tenjin district of Fukuoka City received special authorization
to relax Civil Aeronautics Act–related building height restrictions
following its designation as a National Strategic Special Zone for
Global Startups & Job Creation. In addition, Fukuoka City has been
advancing the Tenjin Big Bang project to create new spaces andemployment, implementing original policies to deregulate floor area
ratios, and working to significantly improve urban functions.
In the cityʼs Hakata district, the Hakata Connected project has
started to better link the vitality and prosperity of Hakata Station
to the surrounding area. In the area surrounding Hakata Station,
which serves as the overland gateway to the Kyushu region,
municipal functions are being improved via transport infrastructureenhancements, including an extension to the Nanakuma subway
line and the redevelopment of Hakata Ekimae Street. Through suchfactors as the deregulation of floor area ratios, the project will alsoseek to encourage the reconstruction of older buildings as highly
earthquake-resistant, high-tech buildings.

■ Targeted certifications■ Relaxation of height restrictions

Tenjin Big Bang

• Buildings scheduled to be completed by December 31, 2024
• Working on infectious disease countermeasures, buildings
scheduled to be completed by December 31, 2026
（two-year
extension from initial period）
Hakata Connected

Kushida Shrine Station

Nishitetsu Fukuoka(Tenjin) Station

Canal City Hakata

Tenjin Big Bang
Hakata Connected
Note: Focus areas

Tenjin Big Bang

• Around Fukuoka City Hall

Tenjin Big Bang884
0 2014年

Examples of height restriction relaxation• Tenjin, Meiji-dori district（west of the center of Watanabe-dori）
approx. 115 m（26 floors）• Tenjin, Meiji-dori district（east of the center of Watanabe-dori）
approx. 76 m
（17 floors）
to approx. 100 m（22 floors）• Tenjin 1-chome district
approx. 80 m
（18 floors）
to approx. 96 m
（21 floors）

Hakata Connected（1）Creation of spaces to wander that create a connection withand expand on the surrounding area
（2）
Creation of attractive plaza spaces that create a lively atmosphere, for example, by being used for events（3）
Promotion of tree shade and flowers that enrich the town, andeye-catching greening（4）
Consideration given to Universal Design■ Number of buildings to be rebuilt（number of building certification
applications）
Tenjin Big Bang

52 buildings（Construction completed: 42 buildings）
Note: February 2015 to February 2021

Hakata Connected

15 buildings（Construction completed: 7 buildings）
Note: January 2019 to February 2021

Tenjin Big Bang bonus

Maximum floorarea ratio

Hakata Connected bonus

50％

Completed floor space (total floor space)

2018年

2017年

（224千人）中国 6.7%

2018年（坪）
50,000130

Vacancy rate

Net absorption (absorption demand)

120 Fukuoka
（%）
（%）
120
20（%） 110（Tsubo）

As of Oct.
2021
Net absorption (absorption
demand)50,000floor space (total floor space)Completed40,000SendaiCentral Tokyo (5 wards)

40,000
15.38

15.38
14.72

400,000

13.23

6.30%
6.47%

30,00020,000

10.99

11.98

14.72

13.23

10.99

20

12

20,000
10.99

7.70

10.86

7.70

12

6.30

7.706.30

20,000 10,000

4.26

4.26
4.263.07

10,00010,000

0

3.07

2.04

4.66
4.66

3.79

4

2.09

2.04

0

3.79

2.09

2.04

Office/hotel building（25aboveground floors）

2008

2009

2010

2011

2012

2013

2014

2015

Community building（11 aboveground floors）

2016-20,000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
0
Note: The figures from 2005 to 2020 are based on the figures as of December.
Source: Prepared by Fukuoka Realty Co., Ltd., based on data from Miki Shoji Co., Ltd., Office Market Data.

Leasable / Floor space

2.09（Provisional
name）（Provisional
name）
Utilization
project
formerUtilization
project
for forthetheformer2017Daimyo
2018 Elementary
2019 2020 School
2021 2022
site
DaimyoElementary
Schoolsite(Planned)(Planned)

800,000
Leasable / Floor space

Leasable / Floor space

2019

2020

2021 2022

Occupancy floor space

Occupancy floor space（Tsubo）

800,000
400,000
800,000

600,0000 2005
600,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: Prepared by Fukuoka Realty Co., Ltd., based on data from Miki Shoji Co., Ltd., Office Market Data.
400,000
400,000

0 20052018

Occupancy floor space（Tsubo）
600,000

0 200520172014 2015
2015 20162016 20172017 20182018 20192019 2020 20202021 2021

（Tsubo）

Event hall（One aboveground floor）-20,000

2014

2013

40

TenjinBusiness
CenterTenjinBusiness
CenterOffices 5th to 16th floors
Rentable area: Approx. 30,000 m2-10,000 -20,000-10,0002013■ Trends in Leasable Floor Space and Occupancy Floor Space

0（Provisional name）
0
Utilization project for the former
Daimyo Elementary School site

Building Overview（Note）

2012
2012

84

Tenjin Business Center

0 -10,000

1000
2010 20112005 2005 20062006 20072007 20082008 20092009 2010
2011
0
90

4.668

3.79

3.07

6.30

8

11,166 yen

Central Tokyo (5 wards) 20,804 yen(Yen/Tsubo)

110
90
90

16 16

10.86

11.98

As of October. 2021
Fukuoka

130
110

Osaka
4.45%
16
40,00011.982010年 2011年 10.86
2006年 2007年 2008年 2009年
2012年
2013年 2014年 2015年 2.80%
2016年 2017年 2018年 2019年 12
2020年
0 2005年
Sapporo30,00015.38

Central Tokyo (5 wards)120（%） 100
100

4.66%

Fukuoka

13.23

20

Vacancy rate

5.39%

Nagoya

14.72■
FukuokaBusiness District/Average Asking Rents（Y2005=100）
Fukuoka
Central Tokyo (5 wards)（%）The average
Fukuoka askingCentral(5 wards)business district rose 4.8% from January 2020 to October 2021
rent ofTokyo
the Fukuoka
130（%）

Vacancy rate

Net absorption (absorption demand)

Completed floor space (total floor space)（Tsubo）
賃貸可能面積稼働面積（Examples of relaxation of floor space ratios）• Tenjin 1-chome south block
800％→1,400％（maximum）• Tenjin 2-chome south block（along Meiji-dori Ave.）700％→1,300％（maximum）• Tenjin 1-chome north block（14th block） 600％→1,250％（maximum）

47.2■ Fukuoka Business District/Vacancy Rates and Supply and Demandof Office Buildings

30,000Hakata Connected

2017年

2016年

prefecture, including Japanet Holdings Co., Ltd. See p.4 , andoperations have started at a high occupancy rate. In addition,
Fukuoka Jisho Co., Ltd., is proceeding with the redevelopmentof the adjacent Tenjin MMT Building, and the group represented
by Fukuoka Jisho Co., Ltd., hasその他地域
obtained3.1%
preferential
negotiation
タイ 1.1%（38千人）（１０３千人）rightsfor thesite of Fukuoka City Hallʼs former north annex. In
欧州
・米国・豪州
2.6%（87千人）
collaboration
with THE NISHI-NIPPON CITY BANK, LTD., Fukuoka
香港
5.9%（１97千人）
Jisho Co., Ltd., is also advancing a series of redevelopments of
台湾
9.6%（322千人）theBankʼsaging main branch, mainbranchannex,and head ofタイ 1.1%
（38千人）
その他地域
3.1%
（１
０３千人）
タイ
1.1%
（38千人）
その他地域 3.1%
（１０３千人）欧州・
米国
・豪州 2.6%（87千人）
fice buildings
under
the Hakata Connected
initiative.
外国航路（不定期船）
韓国
香港（１97千人）
欧州・米国
・
豪州 2.6%In5.9%
thisway, （87千人）
FRC and sponsor Fukuoka Jisho Co., Ltd., are
上陸人員数
香港 5.9%（１97千人）%actively
involvedin the redevelopment of urban areas in Fukuoka
台湾 9.6%（322千人）23.8%（800千人）（1,584千人）
台湾（322千人）City9.6%
andare promoting
initiatives that will leadto our contributions
外国航路（不定期船）
韓国
上陸人員数
to boostingtheattractiveness中国%（224千人） and revitalization
外国航路（不定期船）
韓国
6.7
47.2of%Fukuoka and23.8region,%（800千人）
上陸人員数
the Kyushu
as stated in the materiality.
（1,584千人）
47.2%
23.8%（800千人）（1,584千人）
中国 6.7%（224千人）The office building market in Fukuoka remains solid, and demand for logistics facilities is robust.

50,000600,000

2006

2006

2007

2007

2008

2008

2009

2009

2010

2010

2011

2011

2012

2012

2013

2013

2014

2014

2015

2015

2016

2016

2017

2017

2018

2018

2019

2019

2020

2020

Northern Kyushu Logistics Facility Supply and Demand Trends(Planned) (Planned)2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2022

(Planned) (Planned)■ Efforts toward becoming a city designed to control
infection
Tenjin Big Bang

Hakata Connected

Completed floor area (total floor area) includes the floor area for common spaces, etc., and therefore differsfrom the leasable floor area.
全国

Check

Infectious disease controls newly added to the existing system torelax floor area ratio（Policy to Encourage the Upgrading of Central
Urban Functions in Fukuoka City）（Formerly）
Global competitiveness（New）
Global competitiveness/
Infection controls

Fukuoka REIT Corporation 2021

2016年

2015年

（Tsubo）

Buildings that contribute to an increase in activity, including thosewith plazas and other areas, which facilitate linkages and ripple
effects, to be granted a maximum floor area ratio of 50%
Current floor area
ratio relaxation
system

2015年

2014年

Business Center is helping to attract companies from outside the

Fukuoka Office and Logistics Facility Market Conditions

800,000■ Expansion of floor area ratio relaxation policy（Policy to Encourage the Upgrading of Central Urban Functions in Fukuoka City）
Tenjin Big Bang

Concerning the Tenjin Nishi-Dori Business Center（Land withleasehold interest）
acquired by FRC on June 1, 2021, we will beable to obtain stable rental income from sponsor and lessee Fukuoka Jisho Co., Ltd., during the redevelopment of the existingbuilding on the property and for the period until either the end of
February博多港利用
or the endofAugust,whichever comes first after nine
福岡空港利用
外国航路（不定期船）
上陸人員数（千人）months elapse following the completion of the redevelopment
4,000（the date certification of inspection is obtained）. Once that period
has elapsed, rental income in line with market fluctuations
will be800
842
3,000 obtained.
Due tothis acquisition,
wewill capture the growthof the福岡空港利用博多港利用
外国航路（不定期船）
上陸人員数
143
167
847上陸人員数（千人）
福岡空港利用
外国航路（不定期船）
area
arising博多港利用
fromTenjinBig
Bang and contribute to boosting the574（千人）4,000
161
2,000
attractiveness and
183 revitalization of the city as a landowner. Main
4,000210
800
2,205 842 the 2,414
193
sponsorTenjinBusi3,000 Fukuoka Jisho Co., Ltd., also completed
143
1,631
800
1,000
1,392
842167847
3,000
884 Center, the first property deregulated by Tenjin Big 143
ness
Bang,
in
574
167
2,000
847161
183 property
SeptemberAs
theis equippedwith Fukuokaʼs
first
2102021.
574
2014年
2015年
2016年
2017年
2018年
2,414
0
161
2,205
2,000
193
1,631 and the incorporates mealarge-scale
seismic183isolation
structure
1,000
1,392
210
2,414
2,205
193 884
1,631
sures to address suchdiseases as COVID-19, the Tenjin
1,000
1,392 infectious0

None■ Certification requirements

・Contributions to boosting the attractiveness and revitalization of Fukuoka and Kyushu

Related Materiality

approx. 67 m
（15 floors）

Hakata Connected（1）
High design quality buildings, including lower zones and public
open spaces（2）
Building design that considers continuity with surrounding
buildings（3）
Promotion of tree shade and flowers that enrich the town, andeye-catching greening（4）
Consideration given to Universal Design

06

JR Hakata Station

FRC and Main Sponsor Fukuoka Jisho Co., Ltd.ʼs Initiatives in Tenjin Big Bang / Hakata Connected

Introduction

Introduction

Buildings scheduled to be completed by December 31, 2028

Nanakuma Subway
Line Extension(scheduled to start its
operation in the FY2022)

TOPIC aximum 50%
Mfloor area ratio relaxation
Maximum 50%
floor area ratio relaxation

福岡市

政令指定都市

九州・沖縄

Notes: 1.Vacancy rates from 2008 to 2020 are based on the figures as of December 31.
（%）

Notes: 2.Office building–related data for each city are the data for areas and buildings included
6
in surveys conducted by Miki Shoji Co., Ltd.
4
Notes:
3.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 De2
cember 31 of the previous year from the occupied floor space on December 31 of the0applicable year
（data for 2021 is based on figures as of the end of August）. Completed-2
floor space（total floor space）
figures for 2021 and 2022 have not been finalized, and-4
the floor space and expected completion dates are subject to change.
Source:Prepared by Fukuoka Realty Co., Ltd., based on data from Miki Shoji Co., Ltd., Office
2010年 Data.
2011年
2012年
2013年
2014年
2015年
2016年
2017年
2018年
2019年
MarketNote: Prepared by Fukuoka Realty Co., Ltd., based on press releases from Fukuoka City andthe operating entity.

■ Logistics Facility Supply/Demand and Vacancy Rates
New supply

New demand

Vacancy rate

（Tsubo）
60,000（%）
12

50,00010

40,000830,000

6

20,0004

10,000

2

2020
2016
2017
2018
2019
0
Note: The figures are covered total floor spaces (more than 5,000m²) which owned by the 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.

0

Fukuoka REIT Corporation 2021

07

■ Introduction

J-REIT Mechanism and Fukuoka REIT Corporationʼs Business Model□ Value-Creation Activities□ Foundation Underpinning Management□ Data Section

To contribute to the revitalization of Fukuoka and Kyushu and attractive urban

J-REIT Characteristics

development, FRC selects and procures funds for investment by utilizing local
government and business networks as well as its information-gathering ability

J-REIT Mechanism① Enables efficient diversified investment
in real estate

and know-how.

Real estate properties

In addition, we place the utmost emphasis on dialogue with stakeholders and④ Enables daily trading on stock exchanges

promote sustainable management that takes into account economic, social⑤ Full and ample information disclosureand environmental concerns by incorporating ESG issues into our investment
management process as a part of our business model.

Asset warehousing company
Company entrusted withbusiness

F

Management ofassetsOwned real estate for
rent

Payments ofprincipal and interest

Financial institutions
Bond investors

Investment

CapitalDividends

Outsourcing
Entrustment of asset
management services

Real estate managementcompany

Main Management Resources (Inputs)

Fund procurement(debt)

Borrowings/bonds
Property management③ Corporate taxes highly advantageous due
to conduit statusearnings over the medium- to long-term.

Investment corporation

Rental income② Relatively stable high yields

We aim to maximize the profits of investors by providing them with stable

Investments

Investors

Commissioned
remuneration

Asset management company

Investment

Sponsor companies

Financial
Strategy

cial Strategy
inan

Total 32 properties

See p.24

Created Value (Outcomes)

See pp.12-13(As of August 31, 2021)

Our Mission

Act Local
Think Global
Management

em

en

t (fi

na

nc e

Office buildings 10 properties

re
c
o
a ti
or m

n

d

Residences 5 properties

08

Fukuoka REIT Corporation 2021

40,761 million yen
1.0×

Human resource capital• Number of IR interviews during the year In Japan 166, Abroad 38 (including
telephone conferences)• Track record of winning awards
IR Excellent Company Encouragement Award (2014) /Nikko Excellent IR Website Award (2020)

Social relationship capital

Sustainability Policy

Logistics 4 properties

See p.30

Environmental Issues

Social Issues

Organizational Issues

See p.32

See p.36

See p.39

Natural capital• Land in properties held in the Fukuoka and Kyushu areas (57.4 ha)• Energy, water, air, and other natural resources used in the operation of properties owned• Natural environment and biodiversity in the areas around properties owned• Unrealized gain
• P/NAVIntellectual capitalis c

Response to
ESG issues

Social relationship capital

5,336 million yen
5.4%• Number of qualification holders: Real estate brokers 28 /ARES Certified Masters 25 / Certified building administrators 4• Average paid leave acquisition rate (FY2020) 64.4%

su
In f

)

Annual rate 8.5%
0.69%
3,539 yen
4.0%
JCR: AA- (stable), R&I: A+ (stable)

lo

c

ur

• A varied skill set formed through human resource training• Experience and knowledge of IR activities based on long years of practical implementation• Gathering of information deeply rooted in local communities• Co-creative and trusting relationships with tenants• Cooperative framework with property management (PM) companies• Coordination with local society, local communities• Maintenance of good relationships of trust with sponsors

Valuation
Sales

o
pr

Intellectual capital

Researchd• Number of officers and employees 40(Male: 20 / Female: 20)• Number of qualification holders:
Real estate appraisers 3 / Attorney 1 /First-class registered architects 3 / MBA 2nFu• Excellent human resources withspecialized skills• Support framework for flexible working
styles• Support system for career development• NOI• NOI yielduni

Human capital• TSR for past 10 years• Average interest rate paid
• Dividend per unit
• Dividend yield• Credit Ratings

Manufacturing capitalo n (IR・SR)

Contribution to regional
revitalization and developmentof attractive communities

Retail 11 properties

cati• Total leasable area
572,215.71m2• Total acquisition price 202,019 million yen

See p.23

ManagementommFinding excellent properties that cangenerate stable cash flow over the longterm

Acquisition

See p.22

Introduction

Manufacturing capital

Financial capitalManagement
Strategy

Investment
Strategya g eme n t S t r a t e g y• Total liabilities
98,049 million yen• Net assets
101,755 million yen• Total assets
199,804 million yen• Total debt
82,400 million yen• Average remaining
duration to maturity
5.7 years
• LTV
41.2%

Ma n

Introduction

Building of a solid financial base throughconservative control of LTV(As of August 31, 2021)

tment Strategy
Inves

Financial capital• Implementation of COVID-19 tenant support measures (assistance withvaccinations as requested and other support)• Participation in local cleanup activities *289 times in total (as of October 15, 2021)• Human resource exchanges with sponsors (4 people dispatched tosponsors, 2 people accepted from sponsors)

Natural capital
Hotels 2 properties• Green building certification rate (total floor space basis) 78.8％• Reduction of electricity usage and water consumption at in properties owned

Fukuoka REIT Corporation 2021

09

■ Introduction

History and Business Performance□ Value-Creation Activities□ Foundation Underpinning Management□ Data Section

Carefully selecting and investing in properties that can generate stable cash flow over the years, FRC is working tocontinuously expand the scale of its assets. In addition to retail and office buildings, we are diversifying investment types by
expanding the scope of investment into such properties as residences, hotels and logistics facilities.
■ Retail■ Office buildings■ Residence■ Logistics(Acquired properties)
Canal City Hakata
Canal City Business Center Building
Park Place Oita
Gofukumachi Business Center
SunLive City Kokura■ HotelNumber of properties
Tosu Logistics Center

32,00014,60015,700
11,200
6,633

Tenjin Nishi-Dori Center Building

2,800
1,530
2,800

Konoha Mall Hashimoto
10,000Higashi Hie Business Center II 4,230
Park Place Oita (adjacent land)
860

2,600

Aqualia Kego
2,800
Aqualia Chihaya 1,280

Taihaku Street Business Center

7,000

LOGICITY Hisayama

2,060
5,300
2,400

Higashi Hie Business Center III
LOGICITY Wakamiya
Park Place Oita (Home Plaza Nafco)

Park Place Oita (Sports Club NAS) 1,470
Aeon Hara Shopping Center (sold) (5,410)
Aqualia Kego (sold)(2,800)200,000
Amex Akasakamon Tower
Square Mall Kagoshima Usuki
Kumamoto Intercommunity SC

Tenjin Nishi-Dori Business Center（Land with leasehold interest）7,700
Canal City Hakata・B Grand Building（88.28％ co-ownership）（sold）（7,640）（Note）

1,100

LOGICITY Minato Kashii
8,150
Marinoa City Fukuoka (Marina Side Building) 5,250
Park Place Oita (adjacent land)
590

1,250

D-Wing Tower
Hotel FORZA Oita
Tenjin North Front Building

Sanix Hakata Building
4,400
Kominedai Community Mall
740
Acquisition Price(Millions of yen)

Granfore Yakuin Minami

Canal City Hakata・B

Tissage Hotel Naha

3,290
1,700
990

（Number of properties）

2,835

40

5,050

28,700

Aeon Hara Shopping Center
5,410
Kominedai Community Mall (Sold) (740)Hanahata SC
City House Keyaki Dori
Kurume Higashi Kushiwara SC
150,000

1,130
1,111
2,500

Kʼs Denki Kagoshima

32
31

31

3,550
Higashi Hie Business Center

5,900

27

28

27

27

29

25

30

29

26

26

25

29

24
23

23

20

100,000

20

17

17
16
15

14

16

16

Introduction

Introduction

19

16

15

11

11

50,000

10
8
7
5
4

0

Listed

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

11th

12th

13th

14th

15th

16th

17th

18th

19th

20th

21st

22nd

23rd

24th

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Jun. 2005

Aug. 2005

Feb. 2006

Aug. 2006

Feb. 2007

Aug. 2007

Feb. 2008

Aug. 2008

Feb. 2009

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. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

Fukuoka REIT
Corporation andFukuoka Realty Co.,
Ltd. events• 1 st Public Offering (September)
Number of investment units: 15,000 (before 5:1 unit split)
Offer price (per unit): 766,360 yen (before 5:1 unit split)
Total issue price: 11,096 million yen• Canal City Hakata South Building renovation• 3 rd Public Offering (March)
Number of investment units: 14,950 (before 5:1 unit split)
Offer price (per unit): 710,580 yen (before 5:1 unit split)
Total issue price: 10,263 million yen• 2 nd Public Offering (March)
Number of investment units: 16,000 (before 5:1 unit split)
Offer price (per unit): 576,083 yen (before 5:1 unit split)
Total issue price: 8,913 million yen• Facebook launched (March)• CSR study groups begin (April)• Volunteer support for disaster-affected areas (July)• IR Kyushu subcommittee established (November)• Fukuoka Urban Growth Strategy Project established (April)• Canal City Hakata communal area environment renewal (treeplanting, additional benches, etc.)

Note: The amount is the appraisal value at the time of transfer.

10

Fukuoka REIT Corporation 2021

• Etsuo Matsuyuki appointed as President and CEO of AssetManagement Company（current position: Advisor）• 4th Public Offering (April)
Number of investment units: 57,000
Offer price (per unit): 212,257 yen
Total issue price: 11,701 million yen• Second issue of investment
corporation bonds (July)• F irst issue of investment corporation bonds (December)• 5:1 investment unit split implemented (March)• Canal City Hakata 20th anniversary• Japan’s largest 3D projection mapping and new Aqua

•1st Integrated Report issued• 5th Public Offering (March)
Number of investment units: 49,000
Offer price (per unit): 164,414 yen
Total issue price: 7,795 million yen

0•2nd Integrated Report issued• 15th anniversary of FRC’s listing• 9th General Meeting of Unitholders• f-JOY app released for use at four retailfacilities of the Fukuoka Jisho Group• Asset size reached 200 billion yen

Panorama fountain installed at Canal City Hakata• Third issue of investment corporation bonds (July)• F irst course donated to Fukuoka
University held (September)See p.20• IR briefing held for Platinum WOMAN individual investors (August)• Incorporated into the FTSE EPRA/NAREIT Global Real Estate Index (September)• Receives the IR Excellent Company Encouragement Award (December)• Fukuoka International House opens (April)• Second course donated to Fukuoka University held (August)• Fukuoka Realty Co., Ltd. 10th anniversary (December)• 10th anniversary of FRC’s listing• T ax exemption procedure counter and free Wi-Fi set up for inboundcustomers at Canal City Hakata• C anal City Hakata inbound continues to perform well, sets new visitor records (17.02 million in fiscal 2017)• Formulation of sustainability policy (January)• Park Place Oita 15th anniversary renovation• Zenji Koike appointed as President and CEO
of Asset Management Company

See p.16

Fukuoka REIT Corporation 2021

11

■ Introduction

Overview of Properties Owned

FRC carefully selects and invests in properties with the potential to generate stable cash flow over the long term. It owns
properties with widely divergent uses, mainly retail and office buildings, to diversify risks within the region.
Asset Ratio (As of August 31, 2021)□ Foundation Underpinning Management□ Data Section■ Other properties (Hotel, Residence, Logistics): 11
22

23

24

25

26

27

Amex Akasakamon Tower (Residence)
1/9/2006/2,060

City House Keyaki Dori (Residence)
20/12/2007/1,111

Aqualia Chihaya (Residence)
1/3/2012/1,280

D-Wing Tower (Residence)
1/3/2013/2,800

Granfore Yakuin Minami (Residence)
4/11/2014/1,100

Hotel FORZA Oita (Hotel)
1/3/2013/1,530

28

29

30

31

32

Tissage Hotel Naha (Hotel)
7/12/2018/2,835

Tosu Logistics Center (Logistics)
28/3/2014/1,250

LOGICITY Minato Kashii (Logistics)
27/3/2015/8,150

LOGICITY Hisayama (Logistics)
1/6/2017/5,050

LOGICITY Wakamiya (Logistics)
30/6/2020/1,700

See p.24■ Investment Areas (Acquisition price based on)■ Investment Type (Acquisition price based on)
RetailOffice buildings

OthersFukuoka metropolitan area

Other Kyushu area

54.2%

31.5%

14.3%

76.6%

23.4%

Number of properties owned:

32

Total acquisition price:

202,019 million yen

Note: Acquisition price data
is rounded down to thenearest million yen.

Property name / acquisition date / acquisition price (millions of yen)32

■ Retail: 11
1□ Value-Creation Activities

29
2

3

4

5

31

30
27

6

24

Sta.

Sta.

Canal City Hakata
9/11/2004/32,000

Canal City Hakata・B
2/3/2011/21,060

Park Place Oita
9/11/2004/19,610

SunLiveCity Kokura
1/7/2005/6,633

Konoha Mall Hashimoto
1/3/2018/10,000

7

8

9

10

11

Square Mall Kagoshima Usuki
28/9/2006/5,300

28

Across Kyushu

FUKUOKA
PayPay DOME

Sta.

22 25

Sta.
Sta.

Sta.

Sta.

21

Hanahata SC
3/9/2007/1,130

Kurume Higashi Kushiwara SC
1/2/2008/2,500

Kʼs Denki Kagoshima
27/3/2008/3,550

Sta.

Sta.

BEST DENKI
Stadium

Sta.
Sta.

Sta.
Sta.

Sta.

Sta.

23

Kumamoto Intercommunity SC
30/11/2006/2,400

Introduction

Introduction

Sta.

26

Sta.

Marinoa City Fukuoka (Marina Side Building)
1/5/2015/5,250
Sta.

■ Office buildings: 10
12

13

Fukuoka City
14

15

16

17

■ Trends in Appraisal Value and Unrealized gain
Period-end book value (note)

Unrealized gain = (Period-end appraisal value – Period-end book value (note))(millions of yen)
Canal City Business Center Building
9/11/2004/14,600

Gofukumachi Business Center
9/11/2004/11,200

Sanix Hakata Building
30/9/2005/4,400

Taihaku Street Business Center
16/3/2006/7,000

18

19

20

21

Higashi Hie Business Center13/3/2009/5,900

Tenjin Nishi-Dori Center Building
1/2/2013/2,600

250,000
16,777 19,830 24,255 21,152 22,878 25,541

200,000
150,000
100,000

18,742

20,7996,498

21,07012,465

9,300

8,953

9,394

5,543

6,006

6,989 146,621 146,246 150,603

13,955120,299 119,486 118,686 118,411
1,893 7,894
112,001 115,560 115,195
103,025 107,338-411
93,556
86,777
81,771

6,522

8,243

9,138

11,097 14,434

152,422 158,851 158,007 159,128 159,246

172,406 171,555 168,902

164,527 169,031 168,138

40,761
36,923 37,648 37,927
29,467 31,804 34,087
182,352 184,715 183,532 182,336 187,891 186,972 186,088

50,0000Tenjin North Front Building
28/3/2013/2,800

12

Fukuoka REIT Corporation 2021

Higashi Hie Business Center II
1/3/2018/4,230

Higashi Hie Business Center III
29/5/2020/3,290

Tenjin Nishi-Dori Business Center (Land withleasehold interest) 1/6/2021/7,700

2nd

3rd

4th

5th

6th

7th

8th

9th

10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th

Aug.
2005

Feb.
2006

Aug.
2006

Feb.
2007

Aug.
2007

Feb.
2008

Aug.
2008

Feb.
2009

Aug.
2009

Feb.
2010

Aug.
2010

Note: Period-end book value does not include trust construction in progress.

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

Aug.
2020

Feb.
2021

Aug.
2021

Fukuoka REIT Corporation 2021

13

■ Introduction

Financial/Non-Financial Highlights（5-Year Graph）

Financial Highlights(Millions of yen)
9,730(Note 1)
8,122

9,178

□ Foundation Underpinning Management□ Data Section

Non-Financial Highlights

Total Operating Revenues
10,000□ Value-Creation Activities

9,242

9,231

Profit

9,162
8,518

8,194

8,904

8,867

8,000

Asset Management Company: Number of officers and employees (Note 3)(Millions of yen)（People）

5,000

５0

（%）
60

4,198(Note 1)

40

38

４０

4,000
2,860

2,934

2,939

2,899

2,675

2,816

3,000

4,000

2,000

20

2,000

1,000

10

2,623

2,586

39

38

42

41

41

41

41

40

45.0

44.7

44.7

46.2

46.3

46.3

47.6

51.2

51.2

50.0

45

30

6,000

2,556

Asset Management Company Officers and Employees: Percentage of female employees (Note 4)

30

0

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

0

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

NOI
(Yen)
5,493
5,010

4,998

5,591

5,633

5,596

5,079

5,307

5,347

5,336

4,500

0

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021(Years/Months)

4,000
3,398

3,422

3,512

3,593

3,687

3,693

3,642
3,250

3,361

3,539

10

8.10

8.6

7.11

7.10

7.7

8

3,000

28th

29th

30th

31st

32nd

33rd

34th

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

8.10

200
169
149

148

160

6.11

6.9

Number of IR Meetings in Japan and Abroad (Note 6)

126

120

133

129
116

114

1,000

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

0

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

80

2

40

0

LTV

(Millions of yen)

1,474

1,500

1,602

1,622

1,651

1,660

1,623

1,552

40

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

70.1％

50
1,686

25th
Feb. 2017

Power Consumption (Note 7)

（%）

2,000

1,455

4

38.1

39.3

38.9

39.1

39.7

39.7

39.8

41.4

41.3

41.2

（Data coverage）（Mwh）
90,000 81,339

70.1％

79,47470.2％（Mwh/m²） （m3）
190 800,000

71,192

184（Data coverage）

607,352

175

1,000

70.1％

70.2％

（m³/m²）2.00

596,007

1.50
1.37

1.35

405,366

1.00

400,000

20

0.91

30,000500

70.1％

600,000

180

60,00030

Water Consumption (Note 7)

160

160
200,000

10

0.50

0

54

Introduction

Introduction

27th
Feb. 201890

Depreciation and Amortization Expenses

1,500

26th
Aug. 2017

2,000

1,500

0

25th
Feb. 2017(Meetings)

9.6

9.1

6
3,000

0

Asset Management Company: Average number of years of employment(Note 5)

Dividend per Unit (Note 2)(Millions of yen)

6,000

15

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

Notes: 1.Due to differences in accounting and tax treatment, the gain and loss on sale of AEON Hara Shopping
Center and Aqualia Kego transferred in the 25th fiscal period were handled as follows:(1) The amount of impairment loss for AEON Hara Shopping Center recorded in the profit and loss
statement for the 24th fiscal period was recorded as reserve for temporary difference adjustments.
(2) The gain on sale of Aqualia Kego was recorded in the income statement for the 25th fiscal period.
(3) Reversal of reserve for temporary difference adjustment was recorded in the statement on cash
dividend for the 25th fiscal period.
Notes: 2.The dividend per unit for the 25th period was calculated as follows:
Dividend for the 25th term: Profit - Reversal of the reserve for temporary difference adjustments - Surplus brought forward
Notes: 3. The number of officers and employees indicates the total number of directors and auditors, permanent
employees, contract employees, temporary employees, secondees, etc., who are employed on a fulltime basis at Fukuoka Realty Co., Ltd.
Notes: 4. The percentage of female employees is calculated as the ratio of women to the number of directors,
auditors, and employees.
Notes: 5. Average number of years of employment is calculated as the average service years of permanent andcontract employees of Fukuoka Realty Co., Ltd.
Notes: 6. The number of IR meetings in Japan and abroad shows the total number of IR meetings, based on
the dates on which they were held, with institutional investors and analysts through interviews andtelephone conferences generally regarding the results for the previous period.
Notes: 7. Total value for 11 properties, including four retail facilities and seven office buildings. Per unit is calculated
by adjusting the total floor area（m2）by the occupancy rate. Data coverage is the area ratio of properties
subject to data aggregation as compared to all properties, and is calculated at the end of the fiscal period.
The figure for Canal City Hakata, Canal City Hakata B, and Canal City Business Center Building reflects total
electricity and water usage for all buildings, including electricity and water usage by some theater areas not
owned by the Investment Corporation. The figure for Park Place Oita covers only the main building sectionand excludes the section for independently run stores.
•

0

14

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

Fukuoka REIT Corporation 2021

0

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

Feb. 2017

Aug. 2017

Feb. 2018

Aug. 2018

Feb. 2019

Aug. 2019Feb. 2020

Aug. 2020Feb. 2021

Aug. 2021

028th・29th

March 2018February 2019

30th・31st

March 2019February 2020

32nd・33rd

145

March 2020February 2021

028th・29th

March 2018February 2019

30th・31st

March 2019February 2020

32nd・33rd

0.00

March 2020February 2021

Fukuoka REIT Corporation 2021

15