Provisional translation only
April 9, 2013EARNINGS BRIEFING
FOR THE PERIOD ENDED FEBRUARY 2013
URL: http://www.fukuoka-reit.jp/eng/
Stock listings: Tokyo Stock Exchange, andFukuoka Stock Exchange
CEO & Representative Director

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

Asset manager: Fukuoka Realty Co., Ltd.
Representative: Etsuo Matsuyuki CEO & Representative Director
Contact: Yoichi Nishio
Managing Director and Head of Planning Dept.
Phone: +81-92-272-3900
Expected date for submitting securities report:
May 29, 2013
Expected commencement date of dividend payments: May 17, 2013
Supplementary documents for earnings briefing
Yes
Analyst meeting (for institutional investors)
Yes(Figures rounded down to nearest mm yen.)

1. PERFORMANCE AND SITUATION OF ASSETS FOR THE PERIOD ENDED FEBRUARY 2013
(September 1, 2012 to February 28, 2013)(1) Performance
Operating revenues
mm of yen%
Period ended
February 2013
Period ended
August 2012

Operating income
mm of yen
%

7,200

1.5

2,622

1.0

2,005

0.0

2,004

0.6

7,094

2.3

2,595

(1.6)

2,005

(2.0)

1,992

(2.6)

Net income
per unit
Period ended
February 2013
Period ended
August 2012(% shows percentage change from previous period)
Ordinary income
Net income
mm of yen%
mm of yen%

Ratio ofordinary income tototal assets

Return on
net assets

Ratio ofordinary income tooperating revenues

16,288 yen

2.8%

1.3%

27.9%

16,193 yen

2.8%

1.3%

28.3%

(2) Dividends
Dividend
per unit(excl. dividendin excess ofearnings)
Period ended
February 2013
Period ended
August 2012

Dividendin excess ofearnings
per unit

Total
dividend

Total
dividendin excess ofearnings

Payoutratio

Ratio ofdividend to
net assets

16,289 yen

2,004 mm yen

0 yen

0 mm yen

100.0%

2.8%

16,193 yen

1,992 mm yen

0 yen

0 mm yen

100.0%

2.8%(3) Financial condition
Period ended
February 2013
Period ended
August 2012

Ratio ofnet assets to total assets

Total assets

Net assets

160,574 mm yen

71,182 mm yen

44.3%

578,480 yen

159,601 mm yen

71,170 mm yen

44.6%

578,384 yen

Net assets per unit

(4) Cash flows condition
Cash flows fromoperating activities
Period ended
February 2013
Period ended
August 2012

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at endof period

3,120 mm yen(3,067) mm yen(666) mm yen

7,024 mm yen

3,617 mm yen(6,016) mm yen

1,881 mm yen

7,637 mm yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

2. FORECAST OF PERFORMANCE FOR THE PERIOD ENDING AUGUST 2013
(March 1, 2013 to August 31, 2013) AND THE PERIOD ENDING FEBRUARY 2014
(September 1, 2013 to February 28, 2014)(% shows percentage change from previous period)
Dividend
Net
Dividend
Operating revenues Operating income Ordinary income
per unit
incomein excess of(excl. dividend
earnings
mm of yen
% mm of yen% mm of yen% mm of yen% in excess of
per unit
earnings)
Periodending
7,518
4.4
2,819
7.5
2,236
11.5
2,235
August2013
Periodending0.0
2,812 (0.2)
2,236
2,235
7,515 (0.0)
February
2014(Reference) Forecast net income per unit: Period ending August 201316,200 yen
Period ending February 2014 16,200 yen

11.5

16,200 yen

0 yen

0.0

16,200 yen

0 yen

3. Other(1) Changes in accounting policies, changes in accounting estimates and restatement of accounting errors(i) Changes in accounting policies accompanying amendments to accounting standards, etc.:
No(ii) Changes in accounting policies other than above (i):No
(iii) Changes in accounting estimates:No(iv) Restatement of accounting errors:No(2) Number of investment units outstanding(i) Number of investment units outstanding at end of period (including treasury investment units):
123,050 units at end of February 2013
123,050 units at end of August 2012(ii) Treasury investment units at end of period:—
units at end of February 2013—
units at end of August 2012
Note: Regarding the number of investment units, a basis for calculating net income per unit, please refer to “Perunit information,” on page 13.

* Statement on Implementation Status of Audit Procedure
This Earnings Briefing (“Kessan Tanshin” in Japanese) report is outside the scope of the auditing
procedure under the Financial Instruments and Exchange Act. As of the publication of this report, noauditing procedure under the Financial Instruments and Exchange Act has been completed for thefinancial statements.
* On the adequate use of performance forecasts and other items warranting special mention
Forecast figures are calculated based on information available on the date of release of the forecast andcontain uncertain factors to a large extent. Actual operating revenues, operating income, ordinary
income, net income, and dividend per unit may differ due to changes in the business environment. The
forecast should not be construed as a guarantee of actual dividend. Concerning details of thepreconditions for the above forecast figures please refer to “2. Portfolio Management Policy andManagement Situation, (2) Management situation – Preconditions for the performance forecast for theperiod ending August 2013 (March 1, 2013 to August 31, 2013) and the period ending February 2014
(September 1, 2013 to February 28, 2014),” on page 6.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

Concerning the contents hereinafter, items that FRC judges that “can be omitted from the disclosure from the standpointof importance” are not shown in conformity with the “Format and Guidance for Preparation of Earnings Briefing for
REITs” (April 2012).

1. Investment Corporation-Related Organizations
The disclosure is omitted, since there are no significant changes from the “Structure of the investment corporation”
disclosed by the latest securities report (submitted on November 28, 2012).

2. Portfolio Management Policy and Management Situation(1) Portfolio management policy
The disclosure is omitted, since there are no significant changes from “Investment policy,” “Investment target” and“Dividend policy” disclosed by the latest securities report (submitted on November 28, 2012).
(2) Management situation(i) Summary of the current fiscal period(a) Brief history of the investment corporation
Fukuoka REIT Corporation (hereinafter “FRC”) was established on July 2, 2004 based on the “Investment
Trust and Investment Corporation Law of Japan” (Law No. 198 in 1951 including later revisions,
hereinafter the “Investment Trust Law”) and listed on the Tokyo Stock Exchange Group Inc. and the
Fukuoka Stock Exchange on June 21, 2005 as the nation’s first real estate investment trust specializing inregional properties (code number: 8968). FRC invests in real estate throughout all of Kyushu (including
Okinawa Prefecture), with a central focus on Fukuoka City, and Yamaguchi Prefecture (hereinafter the“Fukuoka/Kyushu area) by turning regionality, characteristics in the real estate industry, into strengths.
FRC started asset management activities on November 9, 2004 after acquisition of four properties such as
Retail in Canal City Hakata (excluding some areas of specialty shops, hotels, theaters, offices andcommon space), a commercial complex where specialty shops, cinema complex, theaters, amusement
facilities, hotels and offices are integrally developed (hereinafter “Canal City Hakata”). On top of the 19
properties it owned as of the end of the previous fiscal period (August 31, 2012), FRC acquired an officeproperty in the fiscal period under review. As a result, FRC now manages a total of 20 properties
comprising ten Retail, six Office properties and four Others as of the end of the current fiscal period(February 28, 2013).
(b) Investment environment and portfolio performance
During the seventeenth fiscal period that ended February 2013, the slowdown of the Japanese economy
came nearer to a stop, as public spending continued to increase primarily for reconstruction from theearthquake disaster and housing investment showed a trend of picking up, although the employment andincome situations remained harsh. Looking ahead, the economy is expected to gradually head for recovery
backed by an improvement in the export environment and the positive impact of economic measures andmonetary policy. In Kyushu, the major investment target area of FRC, there were signs of picking up insome sections, with public spending increasing and the housing investment tending to pick up, despite thecontinued difficulty in the employment and the income situation.
As for the land price trend, a nationwide decline was still underway for the year from January 2012 but therate of decrease shrank and there was a significant increase in the number of survey sites where the pricesrose or remained flat, according to the 2013 Land Price Survey. A recovery trend was also observed in
Fukuoka City, the core investment target area for FRC, where commercial land prices increased by 0.7%
and residential land prices increased by 0.7% compared to the previous year, due to strong housing
demand and other factors.
Under such circumstances, FRC focused on stringently selective investment in accordance with its
investment policy. This led to the acquisition of Tenjin Nishi-Dori Center Building (acquisition price:
2,600 mm yen) on February 1, 2013. For existing properties, we continuously worked to enhancecompetitiveness and customer drawing power at major Retail such as Canal City Hakata, as well as
maintain and improve the occupancy rate of the portfolio. As a result, the average occupancy rate marked
99.3% for all properties FRC owns as of the end of the seventeenth fiscal period.
When analyzing FRC’s portfolio (on an acquisition price basis) by investment target area, the investment
ratio in the Fukuoka urban area accounted for 76.9% of its portfolio; when analyzing by property type,
Retail, Office property, and Others account for 66.1%, 29.2% and 4.6%, respectively.

3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013(c) Summary of fundraising
In the current fiscal period, FRC repaid 1,100 mm yen in borrowings by using cash on hand on October
31, 2012. Meanwhile, FRC procured 2,500 mm yen in borrowings on February 1, 2013 as acquisition
funds for the above mentioned Tenjin Nishi-Dori Center Building. For the 2,600 mm yen in long-term
debt that matured in September 2012, FRC refinanced the entire amount in long-term debt and, of the
9,500 mm yen in long-term debt that matured in February 2013, FRC refinanced 6,800 mm yen in longterm debt and 2,700 mm yen in short-term debt. As a result, the balance of debt outstanding at the end of
the current fiscal period totaled 74,675 mm yen, with the loan-to-value ratio (ratio of interest-bearing debt
to total assets) at 46.5%. To reduce refinancing risks, FRC will continue to disperse the debt repayment
dates and increase the average length of time until debt maturity.
Furthermore, FRC made a resolution on February 8, 2013 concerning issuance of new investment units(14,950 units) in order to procure funds for acquisition of new specified assets.
Moreover, the credit ratings assigned to FRC as of the end of the current fiscal period are as follows.
Credit Rating Agency
Standard & Poor's Ratings
Japan K.K. (S&P)
Rating and Investment
Information, Inc. (R&I)
Japan Credit Rating Agency,
Ltd. (JCR)

Rating Type
Long-term Corporate Credit Rating

Rating Outlook
StableShort-term Corporate Credit Rating
Issuer Rating

RatingA−
A−2
A+

Long-term Senior Debts Rating

A A−

StableStable(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 7,200 mm yen and operating income
after excluding operating expenses such as expenses related to rent business and asset management fees
totaled 2,622 mm yen. Ordinary income was 2,005 mm yen and net income was 2,004 mm yen.
Management decided to make a dividend of 16,289 yen per investment unit to meet the requirements ofspecial tax measures for an investment corporation (as stipulated in Article 67-15 of the Special Taxation
Measures Law of Japan [Law No. 26 in 1957 including later revisions, hereinafter the “Special Taxation
Measures Law”]). Under this law, an investment corporation is allowed to deduct the maximum amount ofdividends paid to investors from its taxable income.
(ii) Forecast for the next fiscal period(a) Portfolio management policy
FRC will further reinforce management and leasing capabilities by cooperating with property managementcompanies including sponsor companies even in a weak consumer spending environment, and secure andmaintain the stable operation of the properties by making the most use of their advantages.
FRC will make investments based on the basic policy stipulated in its Articles of Incorporation and its
basic philosophy: focusing on “specialized areas in which FRC can demonstrate its competitive edge” thatare in “high growth potential markets.” By geographic location, of Fukuoka and Kyushu areas, FRC will
invest 60% to 90% of its assets in the Fukuoka urban area, since the Fukuoka urban area is expected tohave a high population growth rate in the future. In addition to the Fukuoka urban area, management has
decided to actively acquire properties in major cities, if there are regions or properties where FRC cangenerate investment merits from community-oriented viewpoints. FRC will acquire high quality properties
with adequate use of its advantages, such as information gathering ability in the areas, good knowledge ofregional properties and close relations with the local business community and governments, so thatinvestors can continue to invest in FRC with assurance.
Meanwhile, FRC will build stronger relationships with financial institutions to realize stable fundraisingand try to maintain a solid financial structure.
(b) Significant events that have occurred after the end of the current fiscal period
No relevant items(Reference information)
FRC resolved at the Board of Directors Meeting held on February 8, 2013 to issue new investment units as
described below in order to procure funds for acquisition of new specified assets. Payment for the newinvestment units was completed on March 1, 2013.
4

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

As a result of the issuance, the unitholders’ capital totaled 79,441,236,550 yen as of the date of thisEarnings Briefing, with a total number of investment units outstanding at 138,000 units.
Issuance of new investment units through primary offering:
Total number of units offered:
14,950 units
Issue price (offer price):
710,580 yen
Total issue price (total offer price):
10,623,171,000 yen
Issue value (paid-in amount):
686,529 yen
Total issue value (total paid-in amount):
10,263,608,550 yen
Payment date:
March 1, 2013
Starting date of computation for cash distribution:
March 1, 2013(c) Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending August 2013 (March 1, 2013
to August 31, 2013) and the period ending February 2014 (September 1, 2013 to February 28, 2014).
Concerning preconditions for the forecast, please refer to “Preconditions for the performance forecast forthe period ending August 2013 (March 1, 2013 to August 31, 2013) and the period ending February 2014
(September 1, 2013 to February 28, 2014),” on page 6.
Period ending August 2013
Operating revenues
Operating income
Ordinary income
Net income
Dividend per unit
Dividend in excess of earnings per unit

7,518 mm yen
2,819 mm yen
2,236 mm yen
2,235 mm yen
16,200 yen
0 yen

Period ending February 2014
Operating revenues
Operating revenues
Ordinary income
Net income
Dividend per unit
Dividend in excess of earnings per unit

7,515 mm yen
2,812 mm yen
2,236 mm yen
2,235 mm yen
16,200 yen
0 yen

Note: The above forecast figures are calculated based on certain preconditions. The forecast should not
be construed as a guarantee of actual performance since actual operating revenues, ordinary
income, net income, dividend per unit and dividend in excess of earnings per unit may differ due
to changes in the business environment.

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

Preconditions for the performance forecast for the period ending August 2013 (March 1, 2013 to August 31, 2013) andfor the period ending February 2014 (September 1, 2013 to February 28, 2014)
Item
Calculation period
Assets undermanagement
Total number ofinvestment units
outstanding

Interest-bearing debt
and refinancing

Operating revenues

Operating expenses

Non-operating
expensesDividend per unit
Dividend in excessof earnings per unit
Other

Preconditions
18th fiscal period: from March 1, 2013 to August 31, 2013 (184 days)
19th fiscal period: from September 1, 2013 to February 28, 2014 (181 days)
 It is assumed that there will be 23 properties, comprising the 20 properties FRC owns as ofFebruary 28, 2013 plus D-WING TOWER and Hotel FORZA Oita it acquired on March 1,
2013 and Tenjin North Front Building it acquired on March 28, 2013.
 In practice, they may fluctuate due to changes in assets under management.
 It is assumed that there will be 138,000 investment units including the new investment
units (14, 950 units) for which payment was completed by March 1, 2013.
 The balance of interest-bearing debt outstanding on February 28, 2014 is expected to total
71,025 mm yen, a decrease of 3,650 mm yen from the end of the current period (February
28, 2013). The loan-to-value ratio (interest-bearing debt  total assets  100) is expected
to stand at around 42.2% (as of February 28, 2013, the loan-to-value ratio stands at
46.5%).
 In the period ending August 2013, it is assumed that FRC will repay short-term debt of
2,700 mm yen in total and prepay 800 mm yen in long-term debt. For the long-term debt
totaling 1,600 mm yen that will become due for repayment in March and June 2013, it isassumed that FRC will refinance the entire amount (into long-term debt).
 In the period ending February 2014, it is assumed that FRC will refinance long-term debt
of 1,200 mm yen that will become due for repayment in December 2013 (into long-termdebt).
 Of real estate rent revenues, revenues from properties FRC has already acquired are
calculated based on tenancy agreements that are valid as of today by taking into accountthe competitiveness of the properties and the market environment.
Of real estate rent revenues, revenues from percentage lease contracts are calculated basedon past results by taking into account sales fluctuation factors of the relevant tenants.
 Concerning real estate rent revenues, tenant vacancies are taken into account to a certain
extent. It is assumed that there will be no rent arrears or non-payments by tenants.
 When acquiring assets under management, the fixed property tax and city planning tax forthe assets will be proportionally calculated according to the holding period and adjustedwith the former owner. FRC will not write them off since it will include the relevant
adjusted amount in the acquisition cost.
 FRC writes off estimated repair costs for buildings for the calculation periods, the periods
ending August 2013 and February 2014. Actual repair costs may differ significantly fromthe estimated amounts since there is the possibility that repair costs are incurred urgently
due to damages to buildings caused by unforeseeable factors, repair costs generally differ
largely from period to period, and repair costs are not regularly incurred.
 Concerning outsourcing expenses, FRC anticipates 1,529 mm yen for the period ending
August 2013 and 1,523mm yen for the period ending February 2014.
 Concerning taxes and other public charges, FRC anticipates 555 mm yen for the period
ending August 2013 and 555 mm yen for the period ending February 2014.
 Concerning depreciation and amortization expenses, FRC anticipates 1,348 mm yen forthe period ending August 2013 and 1,368 mm yen for the period ending February 2014.
 Concerning interest payment and expenses related to financing, FRC anticipates 573 mm
yen for the period ending August 2013 and 566 mm yen for the period ending February
2014.
 Dividend (dividend per unit) is calculated based on the dividend policy stipulated in
FRC’s Articles of Incorporation.
 Dividend per unit may fluctuate due to fluctuations in rent revenues caused by changes in
assets under management and tenants or various factors including unexpected occurrencesof repair.
 Dividend in excess of earnings (dividend in excess of earnings per unit) is not planned at
the moment.
 It is assumed that there will be no significant revisions to laws and regulations, the tax
system, and accounting standards that may influence the forecast figures.
 It is also assumed that there will be no significant unexpected changes in general
economic conditions and the real estate market.

(3) Investment risks
The disclosure is omitted, since there are no significant changes from the “Investment risks” disclosed in the latest
securities report (submitted on November 28, 2012).

6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

3. Financial Statements(1) Balance sheets
16th fiscal period(as of August 31, 2012)

Account(thousands of yen)
17th fiscal period(as of February 28, 2013)

AssetsCurrent assets
Cash and deposits

2,370,735

2,134,854

Cash and deposits in trust

5,293,998

4,918,493

Operating accounts receivable

311,075

278,535

Prepaid expenses

308,190

236,013

Consumption taxes receivable

91,789—346

21

22,346

15,916

8,398,481

7,583,835

Deferred tax assets
OthersTotal current assets
Noncurrent assets
Property, plant and equipment
Buildings in trust, netAggregate of accumulated depreciation

70,749,251(12,115,804)

Structures in trust, net

71,580,539
58,633,447

1,132,278

Aggregate of accumulated depreciation(318,392)

Machinery and equipment in trust, net(147,112)

Tools and fixtures in trust, net

813,885(634,583)

Lands in trust(349,225)

794,364

434,262
279,916

1,108,673

Aggregate of accumulated depreciation

58,320,264

1,143,589

427,028

Aggregate of accumulated depreciation(13,260,275)(161,010)

273,251

1,116,342
474,090(667,938)

448,404

88,615,021

90,801,517

Construction in progress in trust

10,711—

Total property, plant and equipment

148,827,072

150,637,801

1,765,318

1,765,318

21,63918,987

1,786,957

1,784,305

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

10,00010,000

Lease and guarantee deposits in trust

100,000

100,000

Long-term prepaid expenses

465,396

449,429

Total investment and other assets

575,396

559,429

151,189,427

152,981,536

Investment unit issuance expenses

13,436

8,957

Total deferred assets

13,436

8,957

159,601,345

160,574,329

Total noncurrent assets
Deferred assets

Total assets

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

(thousands of yen)
17th fiscal period(as of February 28, 2013)

16th fiscal period(as of August 31, 2012)

Account
Liabilities
Current liabilities
Operating accounts payable

881,730

463,243

Short-term debt

1,100,000

2,700,000

Current maturities of long-term debt

13,850,000

3,750,000

Account payable-other

66,82232,873

Accrued expenses

314,557

311,485

5,527

983

—

157,514

Advances received

837,959

847,489

Deposits received

1,066,179

585,651

Total current liabilities

18,122,777

8,849,242

58,400,000

68,225,000

305,592

316,959

11,602,709

12,001,108

70,308,302

80,543,068

88,431,079

89,392,310

69,177,628

69,177,628

1,992,637

2,004,391

Total surplus

1,992,637

2,004,391

Total Net Assets

71,170,265

71,182,019

Total net assets

71,170,265

71,182,019

Total liabilities and net assets

159,601,345

160,574,329

Income taxes payable
Accrued consumption taxes

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

8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

(2) Statements of income(thousands of yen)Account

16th fiscal period(March 1, 2012 toAugust 31, 2012)

17th fiscal period(September 1, 2012 toFebruary 28, 2013)

6,596,812

6,784,009

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

497,427

7,094,239

416,974

7,200,984

2. Operating expenses
Expenses related to rent business

3,964,116

4,025,294

421,505422,387

Asset custody fees

5,874

5,935

Administrative service fees

48,93847,063

Director’s compensations

9,600

9,600

Bad debt expenses

1,006

—

Other operating expenses

47,757

Asset management fees

Operating income

4,498,799

68,097

4,578,378

2,595,440

2,622,606

753

674

Refund of property taxes and city planning taxes

84,414—

Appropriation of balance related to amended return

12,876—

3. Non-operating revenues
Interest received

Others454

98,499

1,955

2,629

4. Non-operating expenses
Interest payment

510,860

492,687

4,478

4,478

Financing related expenses

124,597

122,322

Others

48,664

Amortization of investment unit issuance expenses

688,601—

619,488

Ordinary income

2,005,338

2,005,746

Net income before income taxes

2,005,338

2,005,746

Income taxes-current

5,676

1,119

Income taxes based on amended return

7,400

—

Income taxes-deferred(326)

Net income

12,751324

1,444

1,992,587

2,004,301

Retained earnings brought forward

50

89

Unappropriated retained earnings

1,992,637

2,004,391

9

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013(3) Statement of changes in net assets
16th fiscal period (March 1, 2012 to August 31, 2012)(thousands of yen)
Net Assets
Item

Balance as of March 1, 2012

Shareholders’capitalRetained earnings
Unappropriatedretained earnings

Total
Net Assets

Total
net assets

69,177,628

2,045,264

71,222,892

71,222,892

Dividend of retained earnings—(2,045,214)(2,045,214)(2,045,214)

Net income—

1,992,587

1,992,587

1,992,587—(52,626)(52,626)(52,626)

69,177,628

1,992,637

71,170,265

71,170,265

Changes in the current fiscal period

Total of changes in the current fiscal period
Balance as of August 31, 2012

17th fiscal period (September 1, 2012 to February 28, 2013)(thousands of yen)
Net Assets
Item

Balance as of September 1, 2012

Shareholders’capitalRetained earnings
Unappropriatedretained earnings

Total
Net Assets

Total
net assets

69,177,628

1,992,637

71,170,265

71,170,265

Dividend of retained earnings—(1,992,548)(1,992,548)(1,992,548)

Net income—

2,004,301

2,004,301

2,004,301—

11,753

11,753

11,753

69,177,628

2,004,391

71,182,019

71,182,019

Changes in the current fiscal period

Total of changes in the current fiscal period
Balance as of February 28, 201310

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

(4) Dividend statement
Account

16th fiscal period(March 1, 2012 toAugust 31, 2012)

17th fiscal period(September 1, 2012 toFebruary 28, 2013)

I. Unappropriated retained earnings

1,992,637 thousand yen

2,004,391 thousand yen

II. Total

1,992,548 thousand yen

2,004,361 thousand yen(16,193 yen)

(16,289 yen)

89 thousand yen

29 thousand yen(Dividend per investment unit)

III. Retained earnings brought forward
Method for calculating dividends

The amount of dividends shall be decided The amount of dividends shall be decidedin accordance with the dividend policyin accordance with the dividend policy
stipulated in Article 38-1-1 of FRC’s
stipulated in Article 38-1-1 of FRC’s
Articles of Incorporation and must exceed Articles of Incorporation and must exceed
90% of FRC’s distributable profits as
90% of FRC’s distributable profits as
stipulated in Article 67-15 of the Special stipulated in Article 67-15 of the Special
Taxation Measures Law of Japan.
Taxation Measures Law of Japan.
Following the above policy, FRC shall
Following the above policy, FRC shalldecide to distribute 1,992,548 thousand decide to distribute 2,004,361 thousand
yen, which is almost the entire amount of yen, which is almost the entire amount of
unappropriated retained earnings, as
unappropriated retained earnings, asearnings dividends. Moreover, dividend in earnings dividends. Moreover, dividend inexcess of earnings as stipulated in Article excess of earnings as stipulated in Article38-2 of FRC’s Articles of Incorporation 38-2 of FRC’s Articles of Incorporation
will not be provided.
will not be provided.
Note: Concerning amounts other than dividend per investment unit, fractions of 1,000 yen are omitted.

11

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

(5) Cash flows statements(thousands of yen)
16th fiscal period(March 1, 2012 toAugust 31, 2012)

Account

17th fiscal period(September 1, 2012 toFebruary 28, 2013)

I. Net cash provided by (used in) operating activities
Net income before income taxes

2,005,338

2,005,746

Depreciation and amortization expenses

1,242,487

1,268,477

4,478

4,478

Amortization of investment unit issuance expenses
Interest received

(753)

(674)

Interest payment

510,860

492,687

Decrease (increase) in operating account receivables(33,737)

32,539Decrease (increase) in consumption taxes receivable(91,789)

91,789

Increase (decrease) in accrued consumption taxes(150,990)

157,514

Increase (decrease) in operating account payable

141,740(64,378)

Increase (decrease) in account payable-other49,678(34,726)

Increase (decrease) in accrued expenses

3,060

2,725

Increase (decrease) in advances received

42,979

9,530

Increase (decrease) in deposits expenses

394,504(480,528)

Decrease (increase) in prepaid expenses(33,972)

72,177

Decrease (increase) in long-term prepaid expenses

18,727

15,966

Others, net

24,22051,032

Subtotal

4,126,833

3,624,358

753

674

(501,162)(498,484)

Income taxes paid

(8,922)(5,663)

Income taxes refund

426—

3,617,928

3,120,885(5,229,355)(3,475,667)

Interest income received
Interest expenses paid

Net cash provided by (used in)operating activities
II. Net cash provided by (used in) investment activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Proceeds from tenant leasehold and security deposits(3,368)(129)—

15,861

Repayments of tenant leasehold and security deposits(25,952)(4,494)

Proceeds from tenant leasehold and security deposits in trust

158,363464,505

Repayment of tenant leasehold and security deposits in trust(889,035)(66,106)

Proceeds from restricted trust deposits

2,362

2,895

Payments for restricted trust deposits(29,392)(4,343)(6,016,378)(3,067,479)

Increase in short-term debt payable

8,600,000

3,800,000

Decrease in short-term debt payable(8,000,000)(2,200,000)

Proceeds from long-term debt payable

9,400,000

11,900,000

Repayment of long-term debt payable(6,075,000)(12,175,000)

Dividends paid

(2,043,437)(1,991,239)

Net cash provided by (used in) financial activities

1,881,562(666,239)

IV. Net increase (decrease) in cash and cash equivalents(516,887)(612,834)

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

8,154,590

7,637,703

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

7,637,703

7,024,869

Net cash provided by (used in) investment activities
III. Net cash provided by (used in) financial activities

12Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

(6) Notes on the going concern assumption
No relevant items(7) Significant accounting policies
The disclosure is omitted, since there are no significant changes from contents disclosed by the latest securities
report (submitted on November 28, 2012).
(8) Notes to financial statements
FRC omits the disclosure of notes to balance sheets, statements of income (except for certain part), statements ofchanges in Net Assets, and cash flows statements, as well as notes on lease transactions, financial instruments,
securities, derivative transactions, related-party transactions, tax-effect accounting, retirement benefits, asset
retirement obligations and rental properties, since it does not find substantial need for disclosure in the earnings
briefing.
(Notes to the Statements of Income)16th fiscal period(March 1, 2012 to August 31, 2012)
The “Appropriation of balance related to amended return”
in the Statements of Income represents the tax payment
amount incurred as a result of the amended return forincome taxes, etc. and the increased amount in income
taxes for the current fiscal period, both of which were paidby Fukuoka Realty Co., Ltd. based on the asset
management agreement with FRC.
This matter causes no impact on the dividend payment forthe 16th fiscal period.

17th fiscal period(September 1, 2012 to February 28, 2013)—(Per unit information)
16th fiscal period(March 1, 2012 to August 31, 2012)
Net assets per investment unit:
578,384 yen
Net income per investment unit: 16,193 yen

17th fiscal period(September 1, 2012 to February 28, 2013)
Net assets per investment unit:
578,480 yen
Net income per investment unit: 16,288 yen

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

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

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

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

Note: Calculation of net income per investment unit is based on the following.
16th fiscal period(March 1, 2012 toAugust 31, 2012)

Account
Net income (thousands of yen)Amount not attributable to common shareholders (thousands of yen)
Net income attributable to common investment units (thousands of yen)
Average number of investment units during the fiscal period (units)(Significant subsequent events)
17th fiscal period(September 1, 2012 to February 28, 2013)

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

13

17th fiscal period(September 1, 2012
to February 28, 2013)

1,992,587

2,004,301——

1,992,587

2,004,301

123,050

123,050

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013

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

5. Reference Information(1) Investment situation(as of February 28, 2013)
Type of asset

Purpose

RetailReal estate in
Trust

Office properties

OthersTotal value of
properties held
(mm of yen)
(Note 2)

Location(Note 1)

Percentage of
total assets(%)(Note 3)

Fukuoka metropolitan
area

66,718

41.5

Other Kyushu areas

35,84722.3

42,840

26.7

—

—

7,016

4.4

—

—

152,422

94.9

8,152

5.1

160,574

100.0(94.9)

Fukuoka metropolitan
area
Other Kyushu areas
Fukuoka metropolitan
area
Other Kyushu areas
Subtotal

Deposits and other assets
Total amount of assets(Note 4)(152,422)

Note 1: “Fukuoka urban area” refers to cities, towns and villages where 10% or more of the population commute to Fukuoka City
for school and work, according to the 2005 census, which states “the number of workers and students aged 15 years orolder commuting between their homes and places of work or school” conducted by Fukuoka City and the Statistics
Bureau of the Ministry of Internal Affairs and Communications.
“Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka urban area) and Yamaguchi Prefecture.
Note 2: “Total value of properties held” is based on the value on the balance sheet (the value of real estate in trust is the bookvalue after depreciation).
Note 3: Concerning the “Percentage of total assets,” the numbers are rounded off to one decimal place. The total of individual
percentages in the above table may not equal 100%.
Note 4: Figures in parentheses for “Total amount of assets” refer to the value and percentage of real estate held in effect to thetotal amount of assets.
(as of February 28, 2013)
Percentage of total amount of assets(%)

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

89,392

55.7

Total amount of net assets

71,18244.3(2) Investment assets(i) Primary issues of investment securities
No relevant items

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013(ii) Real estate investment portfolio(a) Values and investment ratios at end of period are as follows.
(as of February 28, 2013)
Acquisitionvalue(mm of yen)
(Note 1)

Value on balancesheet(mm of yen)

Period-end
appraisal value(mm of yen)
(Note 2)

Canal City Hakata

32,00031,50432,200Canal City Hakata・B

28,70028,74128,800Park Place Oita

15,70016,96816,735

SunLive City Kokura

6,633

6,114

7,410

Square Mall Kagoshima Usuki

5,300

4,905

4,910

Kumamoto Intercommunity SC

2,400

2,194

2,440

AEON Hara Shopping Center

5,410

5,402

4,610

Hanahata SC

1,130

1,070

1,170

Kurume Higashi Kushiwara SC

2,500

2,315

2,530

K’s Denki Kagoshima

3,550

3,348

3,400

Retail subtotal:

103,323

102,565

104,205

66.1

Canal City Business Center
Building

14,60013,922

14,700

9.3

Gofukumachi Business Center

11,2009,941

12,700Sanix Hakata Building

4,400

4,201

4,660

Taihaku Street Business Center

7,000

6,764

6,660

Higashi Hie Business Center

5,900

5,322

6,020

Tenjin Nishi-Dori Center Building

2,600

2,688

2,600

Office properties subtotal:

45,70042,84047,34029.2

Amex Akasakamon Tower

2,060

1,902

1,680

1.3

City House Keyaki Dori

1,111

1,043

1,040

Aqualia Kego

2,800

2,788

3,270

Aqualia Chihaya

1,280

1,282

1,410

Others:

7,251

7,016

7,400

4.6

156,274

152,422

158,945

100.0

Real estate property name

Total

Investment
ratio
(%)
(Note 3)

Real estate appraiser

Tanizawa Sogo
Appraisal Co., Ltd.
Tanizawa Sogo
18.4
Appraisal Co., Ltd.
Japan Real Estate
10.0
InstituteJapan Real Estate
4.2
InstituteJapan Real Estate
3.4
InstituteJapan Real Estate
1.5
InstituteJapan Real Estate
3.5
InstituteTanizawa Sogo
0.7
Appraisal Co., Ltd.
Tanizawa Sogo
1.6
Appraisal Co., Ltd.
Tanizawa Sogo
2.3
Appraisal Co., Ltd.
20.5

Tanizawa Sogo
Appraisal Co., Ltd.
Tanizawa Sogo
7.2
Appraisal Co., Ltd.
Japan Real Estate
2.8
InstituteJapan Real Estate
4.5
InstituteTanizawa Sogo
3.8
Appraisal Co., Ltd.
Japan Real Estate
1.7
Institute

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real Estate
0.7
Appraisal Co., Ltd.
Japan Real Estate
1.8
InstituteJapan Real Estate
0.8
Institute

Note 1: “Acquisition value” refers to the amount (purchasing prices shown on the purchasing contracts) not including expenses
for the acquisition of relevant properties (agency fees and taxes and other public charges).
Note 2: “Period-end appraisal value” refers to the evaluation value based on appraisals by a real estate appraiser in conformity
with the method and standards for asset evaluation stipulated in FRC’s Articles of Incorporation and rules stipulated by
the Investment Trusts Association, Japan.
Note 3: “Investment ratio” is obtained by dividing each property’s acquisition value by the total acquisition value. The total ofindividual percentages in the above table may not equal 100%, since the numbers are rounded off to one decimal place.
.

15

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2013(b) Summary of the real estate rental business
Total
leased floor
space
(m2)

(as of February 28, 2013)
Percentage of
Total
total
rental revenues
rental revenues(mm of yen)(%)
(Note 4)(Note 5)

Number oftenants(Note 1)

Occupancy
rate(%)(Note 3)Total
leasable floor
space
(m2)

Canal City Hakata

1 (49)

100.0

46,486.61

46,486.61

1,194

16.6

Canal City Hakata・B (Note 6)

1

(50)

99.9

68,814.45

68,712.68

1,604

22.3

Park Place Oita

1

(105)

99.1

104,917.10

103,965.22

1,093

15.2
4.1

Real estate property name

SunLive City Kokura

1

100.0

61,450.22

61,450.22

292

Square Mall Kagoshima Usuki

12

100.0

14,602.59

14,602.59

250

3.5

Kumamoto Intercommunity SC

2

100.0

6,968.66

6,968.66

90

1.3

AEON Hara Shopping Center

1

100.0

27,580.75

27,580.75

212

3.0

Hanahata SC

2

100.0

2,801.15

2,801.15

40

0.6

Kurume Higashi Kushiwara SC

1

100.0

6,467.80

6,467.80

88

1.2

K’s Denki Kagoshima

1

100.0

7,296.17

7,296.17

111

1.5

23 [224](Note 2)

99.7

347,385.50

346,331.85

4,979

69.1

Canal City Business Center
Building

1

100.0

23,022.21

23,022.21

613

8.5

Gofukumachi Business Center

26

94.8

19,909.91

18,878.67

504

7.0

Sanix Hakata Building

19

100.0

6,293.76

6,293.76

198

2.8

Taihaku Street Business Center

1

(66)

97.5

14,653.97

14,289.16

297

4.1

Higashi Hie Business Center

1

(20)

97.8

13,695.51

13,392.44

322

4.5

Tenjin Nishi-Dori Center
Building

1

100.0

3,339.32

3,339.32

14

0.2

49 [192](Note 2)

97.9

80,914.68

79,215.56

1,950

27.1

Amex Akasakamon Tower

1

(65)

96.8

4,821.25

4,665.0763

0.9City House Keyaki Dori

1

(41)

97.8

2,710.86

2,650.06

37

0.5

Aqualia Kego

1

(127)

97.3

7,415.36

7,215.64

113

1.6

Aqualia Chihaya

1

(102)

97.5

5,619.69

5,480.1056

0.8

Retail subtotal:

Office properties subtotal:(60)

4 [335]
Others subtotal:
97.3
20,567.16
3.8
20,010.87270(Note 2)76 [751]
Total
99.3
100.0
448,867.34
445,558.28
7,200(Note 2)
Note 1: “Number of tenants” is based on the total number of sections stipulated in the tenancy agreements for retail and officeproperties among relevant properties. For the number of tenants in pass-through master leasing properties, the number ofsections stipulated in the tenancy agreements with end tenants is shown in parentheses. The Taihaku Street Business Centeris an office property with a residential tower. Its number of tenants comprises 10 offices and 56 residences.
Note 2: The subtotal and total of all the tenants in other than pass-through master leasing properties and the number of sections
stipulated in the tenancy agreements with end tenants for pass-through master leasing properties is shown in parentheses inthe totals column for “Number of tenants.”
Note 3: “Occupancy rate” refers to the percentage of total leased floor space to total leasable floor space and the numbers arerounded off to one decimal place.
Note 4: “Total rental revenues” are the total of real estate rent revenues and other revenues from real estate rent in the current fiscal
period.
Note 5: “Percentage of total rental revenues” is obtained by dividing each property’s total rental revenues by the total amount of
total rental revenues. The total of individual percentages in the above table may not equal 100%, since the numbers arerounded off to one decimal place.

(3) Investment target
The disclosure is omitted, since there are no significant changes from the “Investment target” disclosed by the latest
securities report (submitted on November 28, 2012).

16