Profile

Fukuoka REIT Overview
ProfileProfile【Name】【Asset Manager】【Sponsors】【Listed Date】

Investment
Investment Unit
Unit Price
Price
Fukuoka REIT Corporation
Fukuoka Realty Co., Ltd
Fukuoka Jisho, Kyushu Electric Power,
The Bank of Fukuoka,
The Nishi-Nippon City Bank,
Nishi-Nippon Railroad, Saibu Gas,
Kyudenko, Kyusyu Railway,
Development Bank of Japan Inc.,
Royal Holdings
June 21, 2005 (TSE, FSE)

125.2 billion yen (as of February 28, 2009)51.9 billion yen (as of February 28, 2009)
S&P A- (Stable)
R&I A+ (Stable)【LTV (Interest-bearing liabilities/total assets) 】 41.4％

Dividend
Dividend Information
Information【The 9th Fiscal Period End】
【Dividend (actual)】【Asset management period】【Dividend Yield】【Spread vs. JGB】

343,000 yen (as of February 27, 2009)
107,050 units
36.7 billion yen(unit price × outstanding units as of February 28, 2009)【Historical high】【Historical low】
【Net Asset Value Per Share】【Market Net Asset Value Per Share】

1,300,000 yen (February 26, 2007)
297,000 yen (November 20, 2008)
562,955 yen (as of February 28, 2009)
679,396 yen (as of February 28, 2009)Market Net Asset Value Per Share = {(Total Appraisal Value at the end of period based on appraisal
reports-Total Book Value at the end of period based on Balance Sheet) +Net Asset at the end of
period}/ Outstanding Units as of the end of period

Portfolio
Portfolio Summary
Summary

Financial
Financial Highlights
Highlights【Total Assets】【Total Debt 】【Credit Ratings】【Unit Price】【Outstanding Units】【Market Capitalization】

Retail 64.9％, Office 32.3％, Residence 2.8％
Fukuoka Metropolitan Area 68.6％,
Other Kyushu Area 31.4％【Total Leasable Area at End of Period】 348,496.42 ㎡
99.2 ％【Occupancy Rate at End of period】【Asset Type】【Target of Asset Location】

Figures have been calculated based on owned properties (but the preferred limited (JapaneseTokumei kumiai) partnerships interest) as of February 28, 2009. Figures of Leasable Area andOccupancy Rate are calculated as of February 28, 2009.

February 28, 2009 (semi-annual periods ending every February and August)
18,049 yen per unit
181 days
10.6％ { (Dividend for the 9th fiscal period / length×365) / Investment Unit Price}
9.3％ (Comparison with 10-year JGB as of February 27, 2009）3

Profile

J-REIT specialized in Fukuoka / Kyushu area4

Table of Contents

5Financial statements

Financial highlights
3rd fiscal period

4th fiscal period

5th fiscal period

6th fiscal period

7th fiscal period

8th fiscal period ①

9th fiscal period ②

September 1, 2005
to February 28, 2006

March 1, 2006
to August 31, 2006

September 1, 2006
to February 28, 2007

March 1, 2007
to August 31, 2007

September 1, 2007
to February 29, 2008

March 1, 2008
to August 31, 2008

September 1,2008
to February 28, 2009

4,050
2,654
562
1,751
1,698
1,697

4,496
2,855
619
1,983
1,716
1,715

4,870
3,171
688
2,210
1,866
1,856

5,232
3,395
741
2,362
1,966
1,965

5,179
3,441
763
2,382
1,981
1,980

5,483
3,596
847
2,441
1,968
1,966

5,466
3,597
864
2,405
1,933
1,932

（16）
＋0
＋17
（36）
（35）
（34）

18,438 yen

18,632 yen

17,341 yen

18,360 yen

18,499 yen

18,373 yen

18,049 yen（324）

92,05092,050107,050

107,050

107,050

107,050

107,050（mm yen）

94,593

104,183

117,259

117,815

121,654

125,954

125,222（mm yen）

50,86550,75462,022

62,13962,10062,231

62,196

181

184

181

184

182

184

181

7

8

11

11

14

15

15

181

250

314

327

325

381

404

350,382.95 ㎡

348,496.42 ㎡

99.4％

99.2％

Category
Total operating revenues（mm yen）

Property's ＮＯＩ (*1)

（mm yen）

Depreciation（mm yen）

Operating income（mm yen）

Ordinary income（mm yen）

Net income（mm yen）

Dividend per unit
Number of investment units(as of end of period )Total assets(as of end of period )Net assets(as of end of period )Asset management period
Number of properties owned(as of end of period ) (*2)

Number of tenants(as of end of period ) (*3)

Leaseable floor space(as of end of period )Occupancy rate
(as of end of period ) (*4)

262,979.61 ㎡ 277,580.44 ㎡ 304,024.87 ㎡ 328,071.73 ㎡ 340,061.83 ㎡
99.0％

99.4％

99.4％

99.7％

98.8％

Variation（② - ①）(*1) “Property's ＮＯＩ ” is obtained by the following calculating formula: “Rental revenue – Expenses related to rent business + Depreciation.”(*2) The number of properties owned does not include limited partnership (Japanese Tokumei kumiai) interest.
(*3) The number of tenants shown is based on the total number of sections stipulated in the tenancy agreements 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.
(*4) “Occupancy rate” is the percentage of total leased areas to total leasable areas as of the end of the period.

Maintaining high dividend payment exceeding 18,000 yen
7

Financial statements

Comparison of the statement of income① Operating revenues : NOI② NOI : Ordinary income(million yen)

Operating revenues（16.7）

Real estate leasing revenues（58）

Full contribution of properties newly acquired during the previous fiscal period(K’s Denki Kagoshima)

Increase in rents of a resident property (City House Keyaki Dori)

10

Increase in office vacancies (1% decline in average occupancy rate during the fiscal period.)（11）

Decline in revenues related to renewal of Canal City Hakata（73）

Other revenues from real estate leasing
Revenues related to renewal of Canal City Hakata(expenses related to restoration to an original condition and increase in sales promotion expenses received)

42
40

Depreciation and amortization expenses

36.6
17

Renewal of Canal City Hakata

6

Floor extension of Park Place Oita

9

Other

2

Sales management cost
Rating expenses
Increase in expenses related to IR activities

Decrease in special factors related to Park Place Oita in the previous fiscal period（15）(exhibition at an investment fair targeted at individual investors)

Seasonal factors for water, electricity and heating bills

（13）

Other

Other special factors (penalty received and etc.)30

Operating income

Operating expenses

19
6
8
5

（36.3）（17.1）

Real estate leasing expenses (before depreciation)

NOI

16

Other operating expenses（17）
Non-operating revenues

3（9）Interest received and etc.

3

Decrease in LM fees (related to floor extension of Park Place Oita and etc.)（26）

Non-operating expenses

2

Expenses related to restoration to an original condition and etc.

29

Increase in repairing expenses

16

Other (decrease in sales promotion expenses, fixed property tax and etc.)（15）

Decrease in management fees (PM fees and etc.)（12）

Seasonal factors for water, electricity and heating bills

0.3

Financing costs(Refinancing a committed line of credit of 2.0 billion yen into longer-term bonds)

Other

Ordinary income

7（5）（35.4）

Securing NOI at the same level as the previous fiscal period8Financial statements

Difference between forecast and result

Category

Result for the 9th
fiscal period ①

Forecast for the
9th fiscal period ②announced on
October 9, 2008

Primary factors for difference between forecast and result

Difference(① – ②）(Unit：million yen)

Ordinary
Ordinary income
income (in(in comparison
comparison toto thethe forecast)
forecast) +26+26

Exceeding of the budgeted NOI for the existing
properties

Operatingrevenues
Operatingincome5,466 million yen

2,405 million yen

5,486 million yen

2,394 million yen(19） million yen+11 million yen

Increase in rents of a resident property＋11＋3(City House Keyaki Dori)Contribution of unused repairing expenses
reserve to NOI
Other

＋9
（1）

Other factors for fluctuations in operating income+1

Increase in depreciation and amortization
expenses
Reduction in expenses related to IR activities（5）＋6(IR activities at abroad)

Ordinary income

1,933 million yen

1,907 million yen+26 million yen

Factors for fluctuations in ordinary income
Increase in non-operating revenues(Interests of time deposits and etc.)

Reduction in financing costs

Net income

1,932 million yen

1,906 million yen

+14
＋4
＋10

+26 million yen

Dividend payment
exceeds the forecast by
Dividend
per unit

18,049 yen

17,800 yen+249 yen

249 yen.

Reporting actual results exceeding the forecast steadily
9Financial statements

History of occupancy rate by property (Retail)(*1) The occupancy is the percentage the leased area comprises of the leasable area(*2) The information used for each data is that for the end of each month.

Retail：Continuing the stable occupancy rate
10

Financial statements

History of occupancy rate by property (Office, Others)(*1) The occupancy is the percentage the leased area comprises of the leasable area(*2) The information used for each data is that for the end of each month.

Office, residence：Keeping the high occupancy rate although the market is not in good situation
11

Financial statements

History of NOI by property (Retail)(*) Shown NOI actual price by each property at the every fiscal period(*) The numbers below million yen rounded downPark Place Oita & K’s Denki Kagoshima supported the decrease of NOI by the renovation at Canal City Hakata
12Financial statements

History of NOI by property (Office, Others)(*) Shown NOI actual price by each property at the every fiscal period(*) The numbers below million yen rounded down

Keeping the stable NOI
13

Business forecast・New acquisition property

Business forecasts

Category

3rd fiscal
period4th fiscal
period5th fiscal
period6th fiscal
period7th fiscal
period8th fiscal
period9th fiscal
period10th fiscal
period11th fiscal
period（Feb. 2006）（Aug. 2006）（Feb. 2007）（Aug. 2007）（Feb. 2008）（Aug. 2008）（Feb. 2009）（Aug. 2009）（Feb. 2010）

ResultResultResultResultResultResultResultForecast

Forecast

Operatingrevenues（mm yen）

4,050

4,496

4,870

5,232

5,179

5,483

5,466

5,594

5,569

Operating profit（mm yen）

1,751

1,983

2,210

2,362

2,382

2,441

2,405

2,310

2,342

Ordinary profit（mm yen）

1,698

1,716

1,866

1,966

1,981

1,968

1,933

1,789

1,767

Net profit（mm yen）

1,697

1,715

1,856

1,965

1,980

1,966

1,932

1,787

1,766

Asset management period

181 days

184 days

181 days

184 days

182 days

184 days

181 days

184 days

181 days

Dividend per unit ①

18,438 yen

18,632 yen

17,341 yen

18,360 yen

18,499 yen

18,373 yen

18,049 yen--

Latest forecast ②

16,700 yen

18,200 yen

17,000 yen

17,600 yen

17,700 yen

17,800 yen

17,800 yen

16,700 yen

16,500 yen＋1,738 yen ＋432 yen＋341 yen＋760 yen＋799 yen＋573 yen+249 yen--

Difference(① - ②)(*) The Company forecasted dividend per unit would be 17,000 yen in the 10th fiscal period when announcing the result for 8th fiscal period.
The above forecast figures are calculated based on certain assumptions. The forecast should not be construed as a guarantee of actual performancesince actual operating revenues, ordinary profit, net profit, and dividend per unit may differ due to variations in the business environment.

Dividend result continues to exceed the forecast
16

Business forecast・New acquisition property

Basic assumption for business forecast
Comparison of forecast for the 10th fiscal period
and result of the 9th fiscal period

Comparison result of
the 9th fiscal period

Operating revenues

128

Increase in revenues by acquisition of a property (Higashi Hie Business Center)

264

Sales in retail properties are expected to decrease.

（51）

Office vacancies are expected to increase.

（83）

Operating expenses (real estate leasing expenses before depreciation)

138

Increase in expenses for Higashi Hie Business Center

110

Payment of property tax and city planning tax related to properties acquired inthe 7th and 8th fiscal periods

15

Increase in property tax and city planning tax related to Canal City Hakata andPark Place Oita

9

Increase in repairing expenses

36

Increase in water, electricity and heating bills

15

Decrease in management fees due to decrease in revenues（47）(decrease in PM fees, LM fees and etc.)

NOI(million yen)

Other operating expenses

85

Depreciation and amortization expenses for Higashi Hie Business Center

69

Depreciation and amortization expenses for the existing properties

12

Other operating expenses

4

Operating income（95）

Non-operating profit or loss

（48）

Financing costs related to the acquisition of Higashi Hie Business Center（40）

Other financing costs（8）

Ordinary income

（144）

（9）

Comparison of forecast for the 10th and 11th fiscal period
Fluctuations in NOI

Comparison forecast
for the 10th fiscal period

42(million yen)

Operating income

32

Full contribution of Higashi Hie Business Center to NOI

54

Contribution of retail properties to NOI

25

Non-operating profit or loss

（54）

Office vacancies are expected to increase（35）

Increase in financing costs

（63）

10

Other

9

Increase in depreciation and amortization expenses

3

Ordinary income（21）

Other operating expenses

7

Other operating expenses

Conservative assumptions for business forecasts
17

Business forecast・New acquisition property

Acquisition of Higashi Hie Business Center

Favorable Location, High Occupancy rate, High Specification
18

Business forecast・New acquisition property

Favorable location with convenience of access

Satisfies needs of big companies whose sales persons drive company cars to meet customers
19Financial strategy

Basic financial policy and state of achievement in the 9th fiscal period

Enhansing Strategic Financial Structure22

Financial strategy

Measures in the 9th fiscal period

Continuing to strength its financial structure23

Financial strategy

Dispersion of repayment period and average interest rates during period

The dispersion of repayment period completed. Average interest rates remained unchanged24

Financial strategy

The percentage of fixed-rate debts to total debts and duration

Aiming for further stabilization
25

Financial strategy

Itemization of borrowings(As of February 28, 2009)
Type

LenderLong-term debt payable due
within one year

Amount (JPY)

Development Bank of Japan Inc.

12,000,000,000

SubtotalLong-term debt

Repayment maturity(*1)

Payment
methodNovember 9, 2004

August 31, 2009

Lump sum uponmaturity

Borrowing date

Annual interest

Interest

Description

1.39000％

Fixed

No collateral
No guarantee

12,000,000,000

Mizuho Corporate Bank, The Norinchukin Bank, Shinkin Central Bank, The Hiroshima Bank,The Iyo Bank, The Bank of Saga, The Yamaguchi Bank, The Higo Bank, The Shinwa Bank

10,000,000,000

August 25, 2006

July 30, 2010

Lump sum uponmaturity

1.92250％ (*2)

Fixed

The Bank of Fukuoka

2,000,000,000

August 25, 2006

July 29, 2011

Fixed

2,000,000,000

August 25, 2006

July 29, 2011

2.05174％

Fixed

The Dai-ichi Mutual Life Insurance

1,000,000,000

August 25, 2006

July 29, 2011

Shinsei Bank

1,000,000,000

August 25, 2006

July 29, 2011

The Sumitomo Trust and Banking

1,000,000,000

September 29, 2006

July 29, 2011

The Nishi-Nippon City Bank

2,500,000,000

February 27, 2008

February 28, 2013

The Sumitomo Trust and Banking

2,000,000,000

February 27, 2008

February 28, 2013

Mizuho Corporate Bank

2,000,000,000

February 29, 2008

February 28, 2013

Mitsubishi UFJ Trust and Banking

2,000,000,000

February 29, 2008

February 28, 2013

Aozora Bank

1,000,000,000

February 29, 2008

February 28, 2013

Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity

2.05174％

The Nishi-Nippon City Bank

The Bank of Fukuoka, The Nishi-Nippon City Bank, Oita Bank, The Miyazaki Bank, TheShinwa
Bank, The Iyo Bank, The Bank of Saga,The Eighteenth Bank, The Yamaguchi Bank

6,000,000,000

June 23, 2008

June 29, 2012

Aozora Bank

1,000,000,000

June 30, 2008

June 28, 2013

The Bank of Fukuoka

1,500,000,000

June 30, 2008

December 30, 2010

The Bank of Fukuoka

1,500,000,000

June 30, 2008

Resona Bank

2,000,000,000
Subtotal

2.05174％

Fixed

2.00174％

Fixed

1.80296％

Fixed

1.69226％

Fixed

1.69226％

Fixed

1.69226％

Fixed

1.59226％

Fixed

1.54226％

Fixed

Lump sum uponmaturity

1.25167％ (*3)

Floating

1.25167％ (*3)

Floating

1.20167％ (*3)

Floating

December 30, 2011

Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity

1.25167％ (*3)

Floating

October 7,2008

September 28,2012

Lump sum uponmaturity

1.71212％Fixed

No collateral
No guarantee

38,500,000,000

The Bank of Fukuoka, Resona Bank,
Kumamoto Family Bank, The Shinwa Bank ％ (*5)

700,000,000

January 30, 2009

April 30, 2009

Lump sum uponmaturity

1.08167％ (*4)

Fixed

No collateral
No guarantee

The Nishi-Nippon City Bank ％ (*6)

700,000,000

January 30, 2009

Apri 30, 2009

Lump sum uponmaturity

1.08167％ (*4)

Fixed

No collateral
No guarantee

Commitment line

Subtotal

1,400,000,000

Total

51,900,000,000

Status of forming of commitment lines
Type

LenderCommitment line agreement (1)The Bank of Fukuoka, Resona Bank,
Kumamoto Family Bank and The Shinwa Bank

5,000,000,000

Commitment line agreement (2)The Nishi-Nippon City Bank

5,000,000,000

Total

Credit Limit (JPY)10,000,000,000

Start

Commitment PeriodEnd

Description

August 1, 2008

July 31, 2009

No collateral
No guarantee

March 27, 2008

February 28, 2009

March 1, 2009

February 28, 2010

No collateral
No guarantee(*1) Repayment maturity is included non-operating day.
(*2) A swap agreement has been concluded to fix the interest rate on
variable interest debt and the indicated interest rate is the rate
when the swap agreement is incorporated(*3) From December 30, 2008 to March 31, 2009 (not including theconcerned date)(*4) From January 30,2009 to April 30, 2009 (not including theconcerned date)(*5) The debt under commitment line agreement1(*6) The debt under commitment line agreement2

Keeping the relationship with primary financial institutions
26

Appraisal value

List of property prices

Property nameAmountrecognized
Acquisition
Latestin balanceappraisalPricesheet at end(mm yen)value
of period(*1)(mm yen)(mm yen)Acquisition Appraisal cap
cap rate
rate(NCF basis)(NCF basis)

(*3)

(*4)

Appraisal company

LatestLatest appraisal value by the DCF method(mm yen) (* 6)appraisal value
by the direct
capitalization
Appraisal
Discount
Periodical
methodvalue
rate
cap rate(mm yen)(mm yen)

(*2)

(*5)

Retail properties

Canal City Hakata

32,00031,83736,000

6.0％

5.0％

Tanizawa Sogo Appraisal

37,10035,500

5.1％

5.3％

Park Place Oita

15,70017,08318,900

6.5％

6.0％

Japan Real Estate Institute19,20018,600

5.7％

6.2％

SunLiveCity Kokura

6,633

6,441

7,610

6.5％

6.3％

Japan Real Estate Institute

7,680

7,540

5.7％

6.2％

Square Mall Kagoshima Usuki

5,300

5,129

5,040

6.1％

6.8％

Japan Real Estate Institute

5,050

5,020

6.5％

7.0％

Kumamoto Intercommunity SC

2,400

2,339

2,460

6.4％

6.5％

Japan Real Estate Institute

2,490

2,460

6.3％

6.8％

Hara SATY

5,410

5,566

5,330

6.6％

7.0％

Japan Real Estate Institute

5,360

5,290

6.0％

8.1％

Hanahata SC

1,130

1,127

1,170

6.0％

6.0％

Tanizawa Sogo Appraisal

1,200

1,150

6.0％

6.3％

Kurume Higashi Kushiwara SC

2,500

2,493

2,540

5.7％

6.0％

Tanizawa Sogo Appraisal

2,600

2,510

6.0％

6.3％

3,550

3,592

3,420

5.6％

5.9％

Tanizawa Sogo Appraisal

3,450

3,410

5.6％

6.2％

74,62375,60982,470---84,13081,480--Canal City Business Center Building

14,60014,35016,400

6.2％

5.2％

Tanizawa Sogo Appraisal

16,70016,3005.2％

5.5％

Gofukumachi Business Center

11,20010,65813,500

6.2％

5.2％

Tanizawa Sogo Appraisal

13,60013,400

5.3％

5.5％

Sanix Hakata Building

4,400

4,460

5,220

5.9％

5.2％

Japan Real Estate Institute

5,260

5,180

5.0％

5.4％

K’s Denki Kagoshima
Total of retail properties
Office buildings
Residence

7,000

6,917

7,150

5.7％

5.7％

Japan Real Estate Institute

7,200

7,090

5.5％

5.9％

37,20036,38642,270---42,76041,970--City House Keyaki Dori

1,111

1,144

1,050

5.2％

5.6％

Daiwa Real Estate Appraisal

1,060

1,050

5.4％

5.8％

Amex Akasakamon Tower

2,060

2,053

1,870

5.3％

5.7％

Daiwa Real Estate Appraisal

1,900

1,850

5.5％

5.9％

-

2,960

2,900

-

-

Taihaku Street Business Center
Total of office buildings

Total of residence

3,171

3,198

2,920

-

-

Total or weighted average of all properties

114,994

115,195

127,660

6.12％

5.57%

(*1) “Acquisition costs” do not include fees, public charges and expenses.
(*2) Numbers below million yen rounded down.
(*3) “Acquisition CAP rate (NCF basis)” is calculated by dividing the direct capitalization method NCFs in the appraisal at the time of property acquisition by theacquisition cost.
(*4) “Appraisal CAP rate (NCF basis)” are calculated under the direct capitalization method in the appraisal at the end of period as of the end of period.
(*5) Latest appraisal values by the direct capitalization method are based on the direct capitalization method recorded in appraisal reports for each owned property as ofFebruary 28, 2009.
(*6) Latest appraisal values by the DCF method are based on the DCF method recorded in appraisal reports for each owned property as of February 28, 2009.

Appraisal value – Book value = 12.4 billion yen
28Appraisal value

Analysis of causes for changes in direct capitalization values
9th fiscal period
Property name

Difference from the previous fiscal period

Difference factor
CF factor
ratio

CR factor
ratio

Direct capitalization values

Cap rate

Direct capitalization values

Cap rate

Canal City Hakata

37,1005.0％（1,100）

0.20％

400

（1,500）（36.4％）

136.4％

Park Place Oita

19,2006.0％（2,200）

0.50％

（500）

（1,700）

22.7％

77.3％

SunLiveCity Kokura

7,680

6.3％

（1,100）

0.70％

（140）

（960）

12.7％

87.3％

Square Mall Kagoshima Usuki

5,050

6.8％

（750）

0.90％

20

（770）

（2.7％）

102.7％

Kumamoto Intercommunity SC

2,490

6.5％

（70）

0.20％

0

（70）

0.0％

100.0％

Hara SATY

5,360

7.0％

（410）

0.50％

10

（420）

（2.4％）

102.4％

Hanahata SC

1,200

6.0％

（40）

0.20％

0

（40）

0.0％

100.0％

Kurume Higashi Kushiwara SC

2,600

6.0％

（100）

0.30％

40

（140）

（40.0％）

140.0％

K’s Denki Kagoshima

3,450

5.9％

（190）

0.30％

0

（190）

0.0％

100.0％

84,130-（5,960）-（170）（5,790）--Canal City Business Center Building

16,700

5.2％

（700）

0.20％

0

（700）

0.0％

100.0％

Gofukumachi Business Center

13,600

5.2％

（500）

0.20％

0

（500）

0.0％

100.0％

Sanix Hakata Building

5,260

5.2％

（390）

0.40％

50

（440）

（12.8％）

112.8％

Taihaku Street Business Center

7,200

5.7％

（980）

0.50％

（290）

（690）

29.6％

70.4％

42,760-（2,570）-（240）（2,330）--City House Keyaki Dori

1,060

5.6％

（90）

0.40％

0

（90）

0.0％

100.0％

Amex Akasakamon Tower

1,900

5.7％

（200）

0.50％

（20）

（180）

10.0％

90.0％

2,960

-

（290）

-

（20）

（270）

-

-

129,850-（8,820）-（430）（8,390）

4.9％

95.1％

(million yen)

Total of retail properties

Total of office buildings

Total of residence
Grand total(million yen)

CF factor(million yen) (*1)

CR factor(million yen)(*2)(*1) The figures are obtained by dividing net income used for calculation of direct capitalization values at the end of 9th fiscal period by the direct capitalization yield at the end of 8th fiscal period, and deducting the quotientfrom the direct capitalization value at the end of 8th fiscal period.
(*2) The figures are obtained by deducting the figure calculated in the above from the difference in the direct capitalization values between at the end of 9th fiscal period and at the end of 8th fiscal period.

Decline in valuations caused by cash flow factor (5%) and CAP rate factor (95%)
29

Strategy of retailVariation in sales of three properties under active management policy

Recorded better results under a harsh business environment
31

Strategy of retail

Canal City Hakata: Renovation works in the 9th fiscal period and the future renovation project

Renovations：Managing various challenges 100％ occupancy
32Strategy of retail

Retail property under passive management policy：Maintaining stable NOI(*) Shown NOI actual price by each property at the every fiscal period
The numbers below million yen rounded down(*) The phrase “in principle” is used, since there exists a provisional exception that allows early cancellation in the case the tenant introduces a succeeding tenant that concludes a contract on the same condition.

Managing well portfolio although having long term contract33

Strategy of retail

Breakdown of tenant rent types for retail properties(*5) This represents the total for the fixed rent of “Fixed rent tenants” minimum
guarantee for “Percentage of sales with minimum guarantee tenants” and fixed rents
for “Fixed rent +percentage of sales tenants”(*6) This represents the total for the rent of “Entire percentage of sales tenants”
amount in excess of the minimum guarantee for “minimum guarantee
rent with percentage of sales tenants” and the percentage of sales rents for the“Fixed rent” percentage of sales tenets.”(*1) “Fixed rent tenants” are those whose monthly rent are fixed. Moreover, the indicated ratios are figures obtained by dividing the actual rent for the 9th fiscal period from the tenants with fixed rent housed inretail properties owned by Fukuoka REIT as of February 28, 2009 . by the total of actual rents for the 9th fiscal period from those properties.
(*2) Entire percentage of sales tenants are those whose monthly rents shall be calculated by multiplying their monthly sales amount by a certain percentage. Moreover, the indicated ratios are figures obtained by
dividing the actual rent for the 9th fiscal period from the tenants with rent entirely linked to sales housed in retail properties owned by Fukuoka REIT as of February 28, 2009 by the total
amount of actual rent the 9th fiscal period from those properties.
(*3) Percentage of sales with minimum guaranteed tenants are tenants whose monthly rents are fixed and who are required by contract to pay extra rents that are calculated by multiplying the excess sales
amounts, when their sales exceed certain amounts, by percentage. The indicated ratios are figures obtained by dividing the actual rent for the 9th fiscal period from the tenants with percentage of sales andminimum guarantee housed in in retail properties owned by Fukuoka REIT as of February 28, 2009 by the total amount of actual rent for the 9th fiscal period from those properties.
(*4) Fixed rent + percentage of sales tenants are those whose monthly rents are fixed and who are (except for certain tenants) required by contract to pay extra rents that are calculated by multiplying their sales
amounts by the percentage of sales. The indicated ratios are obtained by dividing the actual rent for the 9th fiscal period from the tenants with fixed + percentage of sales housed in by the total amount of
actual rent for the 9th fiscal period from those properties.

Base rents, which are not influenced by floating sales, is exceeded by 90％
34

Strategy of retail

Simulation of rents from sales assumption (Three active retail properties)

Although Sales decreases 10％ from the current situation, Rents decreases only 4.5％35

Strategy of retailTop 10 tenants in the portfolio
Rank
1

Name of tenant (Name of shop)
Jusco
Park Place Oita

Contractor

Park Place Oita

3

SunLiveCity Kokura

SPORTS DEPO, GOLF5

Total leased
areas （㎡）

Alpen Co., Ltd

SunLiveCity Kokura

27,580.75
61,450.22

Square Mall Kagoshima Usuki

6,684.81

Kumamoto Intercommunity SC

6,838.16

Kurume Higashi Kushiwara SC

6,467.80

17.8％

Remaining
contract years

Rent structure

Contract
type

Fixed

Ordinary
lease

13.2

Fixed + Floating (*1)

Fixed-term
lease

10.0

Fixed + Floating (*1)

Ordinary
lease

16.3

24.9％
Hara SATYSunLIveShare

58,588.34

AEON Kyushu

Hara SATY
2

Property name

Fixed
5.8％

Fixed

(years) (*2)

17.6
Fixed-term
lease

Fixed

17.8
18.8

4

K’s Denki
Mr. consent

K’s Holdings Corporation

Park Place Oita

13,705.32

4.0％

Fixed

Ordinary
lease

13.1

5

Washington Hotel

Canal City and Fukuoka Washington
Hotel

Canal City Hakata

12,831.17

3.7％

Fixed + Floating (*1)

Ordinary
lease

7.1

Canal City Hakata

4,557.26

Fixed + Floating (*1)

Fixed-term
lease

2.7

Fixed

Ordinary
lease

3.1

6

SPORTS AUTHORITY

MegaSports Co., Ltd.

2.4％
Park Place Oita

3,717.04

7

UNITED CINEMA
Canal City 13

UNITED CINEMA Co., Ltd.

Canal City Hakata

7,303.80

2.1％

Fixed + Floating (*1)

Ordinary
lease

7.1

8

K’s Denki Kagoshima

Kyushu K’s Denki Co., Ltd.

K’s Denki Kagoshima

7,296.17

2.1％

Fixed

Fixed-term
lease

13.8

9

T-Joy

T-Joy Co., Ltd

Park Place Oita

5,729.25

1.7％

Fixed + Floating (*1)

Ordinary
lease

13.2

10

OPA (Lavoon)

Canal City OPA Co., Ltd

Canal City Hakata

5,615.51

1.6％

Fixed

Ordinary
lease

7.1

Other than top 10 tenants

117,479.11

34.0％

Total of portfolio holdings

345,844.71

100.0％(*1) Percentage lease with a minimum rental guarantee(*2) Remaining contract years as of February 28, 2009

Keeping an eye on business performance of top 10 tenants
36Strategy of office

Fukuoka office market vacancy rate

Source：CB Richard Ellis Research Institute

Increasing vacancy rates of major cities
38

Strategy of office

Variation in demand and supply balance

Source：CB Richard Ellis Research Institute

Vacancy rate deteriorates due to mass supply of office spaces, but it seems to have hit a peak in 200839

Strategy of office

New office space supply trends ① Hakata, Gion, and Gofukumachi areas

Superior to location and specification of our owned properties
40

Strategy of office

New office space supply trends ② Tenjin and Yakuin areas

Non-local companies offices will be completed
41

Strategy of office

Analysis on vacancy rate for new buildings and existing buildings

Source：CB Richard Ellis Research InstituteSource：CB Richard Ellis Research Institute

Newly constructed office buildings are still struggling to find tenants.
42

Strategy of office

Analysis on vacancy rate for “A”- class office buildings

Source：CB Richard Ellis Research InstituteThe vacancy rate for the existing “A”- class office buildings has remained stable
43

Strategy of office

Simulation on rents for owned properties and assumed occupancy rate(*) The occupancy rate is the percentage the leased areas comprise of the leasable areas. Higashi Hie Business Center is not included in the data, since it was not acquired as of the end of the previous
fiscal period.

Estimating the risk conservatirely by vacancy rate
44

Strategy of officeRents in Fukuoka office building market

Source：CB Richard Ellis Research InstituteThe volatility of rents has been smaller in Fukuoka City
45

Strategy of officeMarket situation and future prospects

Maintaining the current management stance to come through a hard time caused by a massive supply46

Total strategy

Fukuoka REIT’s perception of the current J-REIT market environment

Responsing to market fluctuations with the beliefs of “Act Local Think Global”
48

Total strategy

Strategies for future growth

Keeping steady management
49

Appendix

Balance sheet（unit：thousand）

9th fiscal period

8th fiscal period(as of February 28, 2009)(as of February 28, 2009)

Category
Balance sheets
AssetsCash and deposits
Cash and deposits in trust
Accounts receivable-trade
Prepaid expenses
Deferred tax assets
Other
Total current assets
Current assets
Non-current assets
Buildings in trust
Accumulated depreciation
Building in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net

value

value

Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Intangible assets
Investments and other assets
Investments and other assets
Investment securities
Guarantee deposits
Total investments and other assets
Total noncurrent assets
Deferred assets
Deferred organization expense
Investment unit issuance expense
Total deferred assets
Total assets（unit：thousand）

variation
value

2,570,213
3,479,265
284,700
122,925
17
34,9786,492,099

1,931,769
4,378,955
302,233
165,58161
33,531
6,812,132

638,444(899,690)(17,533)(42,656)(44)
1,447(320,033)

50,430,314(5,424,456)
45,005,858
768,153(121,612)
646,540
338,698(72,003)
266,695

50,046,206(4,647,080)
45,399,125
757,968(93,683)
664,284
338,209(61,978)
276,230

384,108(777,376)(393,267)
10,185(27,929)(17,744)489(10,025)(9,353)683,096(217,572)
465,523
68,810,414
115,195,033

578,558(168,271)
410,286
68,810,414
115,560,343

104,538(49,301)
55,237(365,310)

3,421,633
10,00095,666
3,527,300
118,722,333

3,421,633
10,000127,759
3,559,393
119,119,736(32,093)(32,093)(397,403)

8,412
8,412
125,222,845

5,595
16,82522,420125,954,289(5,595)(8,413)(14,008)(731,444)

Category
Liabilities
Account payable
Short-term loans payable
Current portion of long-termloans payable
Account payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Tenant security deposits in trust
Total noncurrent liabilities
Total liabilities
Net assets
Shareholder’s equity
Shareholder’s capital
Surplus
Unappropriated retained
earnings (undisposed loss)
Total surplus
Total shareholder’s equity
Total net assets
Total liabilities and net assets

9th fiscal period

8th fiscal period(as of February 28, 2009)(as of February 28, 2009)

value

value

Variation
value

353,1131,400,000

320,244
3,400,000

32,869(2,000,000)

12,000,000

12,000,000-

16,867323,764331
110,935
602,580493,649
15,301,242

14,720327,108572
40,854
708,189
803,691
17,615,381

2,147(3,344)(241)
70,081(105,609)(310,042)(2,314,139)

38,500,000
9,225,045
47,725,045

36,500,000
9,607,644
46,107,644

2,000,000(382,599)
1,617,401

63,026,288

63,723,025(696,737)

60,264,380

60,264,380-

1,932,176

1,966,884(34,708)

62,196,556
125,222,845

1,966,884
62,231,264
62,231,264
125,954,289(34,708)(34,708)(34,708)(731,444)

52

Appendix

Statement of income（unit：thousand）

Category
Operating revenue
Rental revenue

9th fiscal period（①）

8th fiscal period（②）

Variation(September 1, 2008-February 28, 2009)(March 1, 2008-August 31, 2008)

（①－②）

Value

Value
5,111,304

5,169,535

Other rental revenue

219,007

177,472

Limited partnership (Japanese Tokumei kumiai) distribution

136,000

136,000

Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Director’s compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Amortization of deferred organization expenses
Amortization of investment unit issuance expenses
Borrowing related expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes

5,466,311

5,483,008

2,597,820
336,157
10,93035,711
9,600
70,865
3,061,085
2,405,225

2,597,412
336,50210,70233,7249,600
53,564
3,041,506
2,441,502

9,513
2,453
11,967

7,863
861
8,724

3,243

414,387
5,595
8,412
55,592483,987
1,933,205
1,933,205

410,487
5,595
8,412
52,6004,542
481,637
1,968,589
1,968,589

2,350(35,383)(35,383)

1,039

1,778

43
1,083
1,932,122
54
1,932,176

(43)
1,734
1,966,854
29
1,966,884

Income taxes-current
Income taxes-deferred
Total Income taxes
Net income
Retained earnings brought foward
Unappropriated retained earnings (undisposed loss)(16,697)

19,579(34,732)
24(34,707)53

Appendix

Cashflow statement（unit：thousand）

Category
Net cash provided by operating activities
Income before income taxed
Depreciation and amortization
Amortization of deferred organization expenses
Amortization of investment unit issuance expenses
Interest income
Interest expenses
Increase (decrease) in accounts receivable-trade
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in account payable-trade
Increase (decrease) in account 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
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by operating activities
Net cash provided by investment activities
Payment for acquisition of tangible assets in trust
Proceeds from tenant security deposits in trust
Payment of tenant security deposits in trust
Proceeds from restricted bank deposits in trust
Net cash provided by investment activities
Net cash provided by financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Dividends paid
Net cash provided by financing cash flow
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9th fiscal period (181days）(September 1, 2008-February 28, 2009)8th fiscal period（184days）(March 1, 2008-August 31, 2008)

1,933,205
864,630
5,595
8,412(9,513)414,387
17,53370,08187,594
4,422(3,040)(67,815)(310,186)
42,65532,093(1,016)
3,089,038
9,513(414,690)(29,673)
27,5632,681,751

1,968,589
847,195
5,595
8,412(7,863)
410,487(69,450)
50,60840,854
31,188(1,280)10,68250,260313,729(61,727)(37,950)
5,690
3,565,021
7,863(400,237)(29,056)
14,284
3,157,875(553,500)
95,125(515,517)
488,662(485,230)(4,409,606)
287,371(330,175)(4,452,409)

6,200,000(8,200,000)
2,000,000(1,969,105)(1,969,105)
227,415
5,822,063
6,049,478

30,100,000(29,600,000)
10,000,000(6,600,000)(1,979,389)
1,920,610
626,076
5,195,986
5,822,063

54

Appendix

Portfolio map

56

Appendix

Portfolio overview（*1） Limited partnership (Japanese Tokumei kumiai) distribution is not included.
（*2） It’s calculated the figures as of February, 2009.

57

Appendix

Ratio by properties（*） It is calculated the figures as of February, 2009.

58

Appendix

Portfolio table
Property name

Age
(* 1)

Acquisition
price(mm yen) (* 2)

Acquisition
timingSource (* 3)

Number oftenants at
end of period

Primary tenants at end of period(Top 2 tenants of the relevant property)

Leasable floor
areas at end of
period (㎡)Occupancy
rate at endof period

Retail properties

Canal City Hakata

12yr10m

32,00011.9.2004

Sponsor49

Washington Hotel and COMME ÇA STORE

45,982.41

100.0％

Park Place Oita

6yr11m

15,70011.9.2004

Sponsor99

JUSCO and K's Denki

103,963.32

99.9％

SunLiveCity Kokura

3yr11m

6,633

7.1.2005

External

1

SunLive

61,450.22

100.0％

Square Mall Kagoshima Usuki

2yr5m

5,300

9.28.2006

Sponsor

11

Sports Depo/Golf 5 and Best Denki

14,661.72

100.0％

Kumamoto Intercommunity SC

2yr3m

2,400

11.30.2006

Sponsor2

Sports Depo/Golf 5 and Starbucks Coffee

6,968.66

100.0％

Hara SATY

32yr4m5,410

3.1.2007

Sponsor

1

SATY

27,580.75

100.0％

Hanahata SC

1yr7m

1,130

9.3.2007

Sponsor2

BON REPAS and Matsumotokiyoshi

2,801.15

100.0％

Kurume Higashi Kushiwara SC

1yr2m

2,500

2.1.2008

Sponsor1

Sports Depo/Golf 56,467.80

100.0％

K’s Denki Kagoshima

1yr3m

3,550

3.27.2008

External

1

K's Denki

7,296.17

100.0％－

74,623－－－－12yr10m

14,60011.9.2004

Sponsor43

Total of retail properties
Canal City Business Center Building
Office buildings－－

TOTO and Bell System24

23,017.20

97.8％

Sanyo Shinpan Finance and
NTT West Japan-Kyushu

19,906.22

97.9％

Gofukumachi Business Center

5yr4m

11,20011.9.2004

Sponsor20

Sanix Hakata Building

7yr11m4,400

9.30.2005

External

14

SANIX and Idemitsu Kosan

6,293.77

100.0％

14,641.03

92.9％

－

－

Taihaku Street Business Center
Total of office buildings

6yr11m7,000

3.16.2006

Sponsor58

NTT COMWARE and Tokio Marine &Nichido Jimu Outsourcing－

37,200－－－－Residence

City House Keyaki Dori

1yr3m

1,111

12.20.2007

External

41－

2,710.86

97.2％

Amex Akasakamon Tower

3yr7m

2,060

9.1.2006

External

61－

4,755.14

90.4％

－

3,171

－

－

－

－

－

－

9yr5m

114,994

－

－

404

－

348,496.42

99.2％

Acquisition cost
(mm yen)Acquisition
yimingEstimated IRR

3,400

2.27,2006

8.0％ (*5)

Total for residence

Total or weighted average of all properties (* 4)Issue
OthersPreferred limited partnership (Japanese Tokumei – kumiai)
distribution of CCH Bridge LLC
Total of portfolio

118,394(*1) “Age” as of the end of the 8th fiscal period(*2) Acquisition costs do not include fees, public charges and expenses.
(*3) Properties acquired through arrangement by a sponsor company are indicated with “sponsor” inthe column of seller.
(*4) “Age” is obtained by dividing the total ages of the above properties by the total acquisition costs.
“Occupancy rate” is obtained by dividing the total leased areas by the total leasable areas of theabove properties as of the end of the 9th fiscal period.
(*5) The estimated IRR is a figure listed on the “Survey on Investment Profitability Value of Preferred
Equity” by Japan Real Estate Institute.

59

Appendix

Construction confirmation inspection agencies / PML
Property name

Canal City Hakata

Park Place Oita

Construction nameNew construction andrenovation work

New construction andextension work

Completion date

4.15.1996

3.26.2002
4.17.2002
4.28.2004
4.9.2007

Design company

Fukuoka Jisho First Class Architect’s Office,FJ Urban Development, Takenaka Corporation and
Zenitaka Corporation Design Consortium (*2)
Asanuma Corporation Kyushu Branch First Class
Architect’s Office,Fujita Corporation Kyushu Branch First Class Architect’s
Office,Iwakiri Sekkei Co., Ltd.

SunLiveCity Kokura

New construction

3.17.2005

Matsui and Kono Joint Design Venture

Gofukumachi Business Center
Building

New construction

10.16.2003

Institute of New Architecture Inc.

New construction andrenovation work

4.15.1996

Fukuoka Jisho First Class Architect’s Office,FJ Urban Development First Class Architect’s Office

Sanix Hakata Building

New construction

3.31.2001

Taihaku Street Business Center

New construction

Square Mall Kagoshima Usuki
Kumamoto Intercommunity SC

Canal City Business Center Building

Contractor

Construction
confirmation agency

PML value(*3)A) 8.0Canal City Hakata
New Construction Zone 1
Construction Joint Venture,
Takenaka Corporation

Fukuoka City

Asanuma Corporation,
Fujita Corporation,
Hashimoto Construction Co., Ltd

Oita City
Japan ERI Co., Ltd.

Penta-Ocean Construction Co.,
Ltd.
Canal City Business Center
Building

Construction
confirmation
inspection agency

Fukuoka CityB) 7.6C) 5.3D) 11.1
A) 14.5

Oita City
Japan ERI Co., Ltd.

B) 11.2
C) 11.3

Japan ERI Co., Ltd.

Japan ERI Co., Ltd.

6.7

Fukuoka City

Fukuoka City

4.0

Canal City Hakata
New Construction Zone 2
Construction Joint Venture,
Zenitaka Corporation

Fukuoka City

Fukuoka City

6.9

Maeda Corporation First Class Architect’s Office

Maeda Corporation
Kyshu Branch

Fukuoka City

Fukuoka City

4.3

3.7.2002

Yamashita Sekkei, Inc

Takenaka Corporation

Fukuoka City

Fukuoka City

7.5

New construction

9.19.2006

Yamashita Sekkei, Inc

Fujita Corporation

Kagoshima City

Kagoshima City

9.6

New construction

11.15.2006

Kajima Corporation

Kajima Corporation

Japan ERI Co., Ltd

Japan ERI Co., Ltd

16.3

Japan ERI Co., Ltd

Japan ERI Co., Ltd

11.6

Amex Akasakamon Tower

New construction

7.26.2005

Masaki Architect & Associates

Tada Corporation
Kyushu Branch

City House Keyaki DoriNew construction

11.17.2007

Planning Office LECS Co., Ltd

Daiho Corporation
Kyushu BranchJapan ERI Co., Ltd

Japan ERI Co., Ltd

1.9

Hara SATY

New construction

10.26.1976

Pal Corporation

Obayashi Corporation

Fukuoka City

Fukuoka City

13.2

Hanahata SC

New construction

7.10.2007

Nishimatsu Construction Co., Ltd.

Nishimatsu Construction Co., Ltd.

Japan ERI Co., Ltd

Japan ERI Co., Ltd

6.0

Kurume Higashi Kushiwara SC

New construction

12.3.2007

Azusa Sekkei Co., Ltd.

Toyo Construction Co., Ltd.

Kurume City

Kurume City

9.9

K’s Denki Kagoshima

New construction

11.17.2007

Futaba Sekkei LLC.

Daiwa House Industry Co., Ltd.

Kagoshima City

Kagoshima City

7.3

Portfolio PML value (*1)

4.8(*1) Of multiple assumed earthquake scenarios, the portfolio PML values of Fukuoka REIT have been calculated by assuming the central part of Fukuoka City as the earthquake epicenter.
(*2) This consortium is a joint design venture by the designers of each zone.
(*3) Zones A through D of Canal City Hakata are classified by building status surveys. A indicates the Washington Hotel building, and B the amusement building, C the mega store building and D the common areas. Zones A,
B, and C of Park place Oita are classified by building status surveys. B indicates Seven Eleven, C Magnolia Court, and A the area other than B and C.

60

Appendix

Analysis on length of tenant’s occupancy（*） It is calculated tenant’s contracted period as of the end of 9th fiscal period (4owned properties). It is shown the contracted floor area by each period.

“Tenant’s relation” is important in the office building market in Fukuoka City.
61

Appendix

Rental portfolio (including common expenses)(*1) Ratios indicated in the pie graphs are figures obtained by dividing the rents for the 9th fiscal period, as totaled for each remaining contract period of tenants at Canal City Business Center Building,Gofukumachi Business Center, Taihaku Street Business Center and Sanix Hakata Building, by total rents for the 9th fiscal period from those properties.
(*2) Ratios indicated in the pie graphs are figures obtained by dividing the rents for the 9th fiscal period, as totaled for each remaining contract period of tenants at Canal City Hakata, Park Place Oita, SunLiveCity
Kokura, Square Mall Kagoshima Usuki and Kumamoto Intercommunity SC, Hara SATY, Hanahata SC, Kurume Higashi Kushiwara SC, K’s Denki Kagoshima by total rents for the 9th fiscal period from those
properties.

63Appendix

Leasing business income and expenditure by properties (Retail)(unit：mm yen)
Category

Canal City Hakata

Park Place
Oita

SunLive City
KokuraSquare Mall
Kagoshima Usuki

Kumamoto
Intercommunity
SC

Hara SATY

Hanahata SC

Kurume Higashi
Kushiwara SC

K's Denki
Kagoshima

181days181days181days

9th fiscal period (September 1, 2009 – February 28, 2009)(Length)181days① Total Leasing business181days181days181days181days181days

1,365

994

292

257

90

212

40

88

111

1,297

976

292

227

89

212

40

88

111

67

18

-

30

0

0

-

-

-

439

468

49

89

11

21

6

4

3

Outsourcing fees

301

301

8

33

2

6

1

2

1

Maintenance expenses

16

27

-

0

0

-

-

-

-

Expenses for restoration toformer state

-

-

-

-

-

-

-

-

-

Tax and public charges

72

80

37

18

6

12

3

-

-

Insurance premiums and trustcompensation

7

6

2

1

0

0

0

0

0

Other expenses

41

51

0

35

1

0

0

0

0

③ NOI ( = ①－②)

925

525

243

168

78

191

34

83

107

④ Depreciation

186

163

45

46

18

26

7

22

30

⑤ Leasing business profit ( = ③－④)

739

361

197

121

59

164

27

61

77

5.8％

6.7％

7.4％

6.4％

6.5％

7.1％

6.2％

6.7％

6.1％

367

99

-

1

0

-

-

-

-

Real estate leasing revenues
Other real estate leasing
revenues② Total leasing business expenses⑥ NOI yield⑦ Capital expenditures(*) Figures have numbers below a million yen rounded down.

64Appendix

Leasing business income and expenditure by properties (Office, Others, Total portfolio)(unit：mm yen)
Canal City
Business Center
Building

Category

Gofukumachi
Business Center
Building

Taihaku Street
Business Center
Building

Sanix Hakata
Building

Amex
Akasakamon
Tower

City House
Keyaki DoriTotal

9th fiscal period (September 1, 2009 – February 28, 2009)

9th

8th

Variation

181days184days(Length)181days① Total Leasing business181days181days181days181days181days

707

553

203

306

67

38

5,330

5,347

（16）

Real estate leasing revenues

695

482

189

306

62

38

5,111

5,169

（58）

Other real estate leasing
revenues

12

70

14

0

5

0

219

177

41

260

203

55

95

18

6

1,733

1,750

（17）

193

71

19

61

5

2

1,014

1,034

（20）

Maintenance expenses

1

11

0

3

0

0

62

46

16

Expenses for restoration toformer state

3

20

-

-

2

-

26

2

23

Tax and public charges

46

37

16

25

4

2

365

369

（3）

Insurance premiums and trustcompensation

5

3

1

1

0

0

33

33

0

Other expenses

9

59

18

3

5

1

231

263

（31）

③ NOI ( = ①－②)

447

349

148

211

48

32

3,597

3,596

0

④ Depreciation

86

94

36

65

21

12

864

847

17

⑤ Leasing business profit ( = ③－④)

360

255

112

145

26

19

2,732

2,749

（17）

6.1％

6.3％

6.8％

6.0％

4.7％

5.8％

6.3％

6.2％

4

0

4

2

4

-

486

745

② Total leasing business expenses
Outsourcing fees

⑥ NOI yield⑦ Capital expenditures（258）(*) Figures have numbers below a million yen rounded down.

65Appendix

Relation between depreciation expense and capital expenditures (incl. repairing expenses)(*) The numbers below thousand yen rounded down.

66

減価償却範囲内でのクオリティコントロール

Appendix

Assumption for the 10th and 11th fiscal period

67

Appendix

Investor attributes and volume ownership reports

69Appendix

History of investment unit price70

Appendix

Highlights of financial indicators(*) Figures are calculated based on the result for the 8the fiscal period. Investment unit price at the end of the 9the fiscal period (343,000 yen as of February 28,2009) The forecast dividend per unit is based on
the forecast for the 10th fiscal period (ending February 28. 2009)71