Hello, everyone. I’m Zenji Koike. I’m CEO of Fukuoka Realty. Thank you verymuch for tuning in to the performance overview of Fukuoka REIT Corporation forthe 36th fiscal period between March 1 and August 31, 2022. Let’s get started.

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Executive summary
Distribution for the 36th Fiscal Period is ＋23 yen compared to the forecast

Executive summary

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Let me start with the executive summary on page 1 and go straight to talk about
the dividends. You’ll find the numbers at the bottom of the page. The dividend
payout for the 36th fiscal period was 3,523 yen per unit, beating our own
expectations by 23 yen. The payout has been on a steady path to recovery, as
shown in this chart, since the 32nd fiscal period’s 3,250 yen per unit, and we’vemanaged to pay above the 3,500 yen-level for the 36th fiscal period as well. We
also expect to be able to pay above that level for the next two fiscal periods. The
forecast for the 37th period is 3,520 yen per unit; and the forecast for the 38th
period is 3,540 yen per unit, up 20 yen per unit from the 37th period.
Next, please take a look at the upper left part of the page. When it comes toexternal growth, we acquired Hakata Chikushi-Dori Center Building at 4 billion
320 million yen on March 1. With respect to the performance of our existing
properties, our active retail has seen a recovery in sales across the board. And
as the government opens up the borders to let in more foreign tourists and tries
to stimulate domestic tourism demand with subsidies, we can expect that thesales will further increase going forward. For Canal City Hakata, a leading
property in our active retail, the extensive renovation project has entered theexecution phase. I will give you more details about the future vision for Canal
City Hakata later in my presentation.
Our office buildings were 99.7 percent occupied for the 36th fiscal period, and wecontinued to raise rent on rent revisions by 4.2 million yen on a monthly basis.
Although there was a large displacement of space at Higashi Hie BusinessCenter in September, some of the space has already been filled and some of
their tenants agreed to pay higher rent. I will give you more detail on that later as2well.
If you look to the right, here is our financial dashboard. As you can see, we
remain steadfast to ensure the stability of our financial structure. Total interestbearing debt stood at 83.9 billion yen at the end of the 36th fiscal period. And wewill continue to mitigate refinancing risk through diversifying repayment dates andother means. We will also consider ways to mitigate risk of higher funding costs
as result of rising interest rates; rebalancing the fixed and floating rates is one ofthe options.
Last but not least, here are our sustainability initiatives at the bottom. We
expressed support for the TCFD recommendations in September, and we
conducted a review of financial impact based on the scenario analysis. We also
received four stars in the GRESB survey 2022 as we did last year. This year weachieved a GRESB Public Disclosure Level of “A” for our outstanding disclosure of
ESG activities. We will continue to disclose more non-financial information suchas green performance data through the publication of our integrated report andother means.
So, that’s a quick overview of the executive summary.

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Dividend per unit
36th Actual was 3,523 yen, 37th Forecast projects a decrease to 3,520 yen and 38th Forecast projects an increase to 3,540 yen

Financial statements and business forecasts2

Now let’s go to the next page to discuss more details about our dividend payouts.
These are the factors that determined our dividend payout for the last fiscal
period as well as form the basis of the dividend forecast for the next two fiscal
periods. First, when we compare the 36th fiscal period against the preceding
period, the increase in other expenses was almost offset by revenue growth
driven by the full-period contribution of Hakata Chikushi-Dori Center Building.
And when we compare the last fiscal period’s payout against our own forecast,
the actual payout beat our expectations because of the rent increases that were
included in Other Revenues and a decline in repair expenses.
For the 37th fiscal period, we expect that a drop in revenue for Canal City Hakata
and an increase in repair expenses that are rolled over from the preceding period
will be offset by the gain on the disposal of Kurume Higashikushiwara SC.
Leasing revenue will suffer a loss due to a displacement in Higashi Hie BusinessCenter, but other revenues will increase thanks to an increase in operating
revenues from other properties in our portfolio. All in all, we expect to pay a
dividend of 3,520 yen per unit.
For the 38th fiscal period, the drop in revenue for Canal City Hakata and theincrease in repair expenses will continue to be offset by the gain on the disposalof Kurume Higashikushiwara SC. Furthermore, we expect an increase in leasing
revenue in part driven by strong leasing performance of Higashi Hie BusinessCenter. And that’s why we expect to raise dividend by 20 yen per unit from thepreceding period to 3,540 yen per unit. And from that fiscal period on, we believe
we will be ready to raise dividend on a consistent basis.

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Statements of Income （compared with the previous fiscal period）
Absorbed increased costs through newly acquired property ’ s contribution to revenue- unit : mm yen

Sign indicates impact on profit （unit : mm yen）

Financial statements and business forecasts

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On the next page, page 3, we compare the income statements and dividend
payouts between the 36th fiscal period and the previous period. Factors that
affected the operating revenues and expenses are described in the text within theorange box. Operating revenues increased from the previous fiscal period by 171
million yen, most of which, 133 million yen, came from the full-period contributionof newly acquired Hakata Chikushi-Dori Center Building and the rest came fromrevenue growth from the existing properties. Park Place Oita, one of our active
retail properties, has seen a recovery in sales since the previous period and thatis now expected to translate into a recovery in operating revenues going forward.
Operating expenses, too, increased from the previous period by 163 million yen
driven in large part by increases in outsourcing expenses and depreciation andamortization expenses. An increase in utilities expenses was offset by acorresponding increase in utilities charges that we collect from our tenants, so
virtually no impact on operating profit. With SG&A expenses and non-operating
expenses in addition to these, we paid a dividend of 3,523 yer per unit for the36th fiscal period.

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Statements of Income （compared with the forecast）
Due to factors such as increased office building and residential rent and an improvement in utility income and expenditures, the forecast was surpassed by 23 yen- unit : mm yen

Sign indicates impact on profit （unit : mm yen）

Financial statements and business forecasts

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The next page, page 4, compares the income statements and dividend payouts
between the 36th fiscal period and our own forecast. Again, factors that affected
the operating revenues and expenses are described in the text within the orange
box. Operating revenues beat our forecast by 22 million yen and operating
expenses were 8 million yen above the forecast. Rent increases for our officebuildings as well as residential properties and a lower-than-expected increase inutilities expenses are the main factors. Profit before income taxes came in 17
million yen above the forecast and the DPU was 23 yen above the forecast.

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Business forecast （the 37th fiscal period, Feb. 2023）
Canal City Hakata mostly absorbed the negative impact of repair expenses through gain on saleFinancial statements and business forecasts

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Let’s talk about our business forecast for the 37th fiscal period on page 5. You
can find the main assumptions for the forecast within the orange box. We expectthat a drop in revenue for Canal City Hakata and an increase in repair expenses
that are rolled over from the preceding period will be almost offset by the gain on
the disposal of Kurume Higashikushiwara SC. The disposal phase will be divided
into three fiscal periods so that we pay stable dividend. The first tranche of thedisposal, the 15% of our ownership share, will be completed during the current
fiscal period. And we expect to pay 3,520 yen per unit, almost the same level ofdividend as we did in the previous period.

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Business forecast （the 38th fiscal period, Aug. 2023）
Due to factors such as favorable leasing and rent increase in office buildings, the dividend increased by 20 yen

Financial statements and business forecasts

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Onto page 6, this is our business forecast for the 38th fiscal period. Here, you
can find the main assumptions for the forecast within the green box. We expect
an increase in leasing revenue from Higashi Hie Business Center, driven by earlysignings that make up for the displaced space and rent increases for new tenants.
Furthermore, the second tranche of the disposal of Kurume Higashikushiwara SC
will offset losses from Canal City Hakata so that we will continue to pay stabledividend. Net profit for the 38th fiscal period is expected to go up 15 million yen
from the forecast for the 37th fiscal period, and we are planning to pay a dividendof 3,540 yen per unit, up 20 yen per unit, compared to the 37th fiscal period.

7External Growth Initiatives
Aiming for an asset size of 250 billion yen by diversifying risks by investment type as a comprehensive REIT

External growth strategy and new acquisition of property

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Let’s turn our focus to external growth on page 7. Our current asset size as ofAugust 31st, 2022 is about 206.3 billion yen, and we continue to work hard toreach our target, 250 billion yen in asset size. We will also continue to work
closely with our sponsor not only in acquiring existing profitable buildings but also
in developing new, sustainable, high quality, and high-performing properties
including office buildings and logistics facilities. We have local connections,deliver a variety of solutions that cater to the local needs, and try to acquire highquality properties locally. We are also planning to acquire other stable assets
such as residential properties in addition to office buildings and logistics facilities,
tapping external sources.

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Acquisition of property （March, 2029）
Joint project with our sponsor Fukuoka Jisho

External growth strategy and new acquisition of property

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The next slide, page 8, is about a new asset acquisition, which we announced ina press release on June 14. We have been working with our sponsor, Fukuoka
Jisho, and we are named preferred bidder for a major logistics facility
development in the Island City Port and Harbor sites in Fukuoka City. We will pay
8 billion 82 million yen for the land on which Fukuoka Jisho is going to develop
logistics facilities. We are going to lease the land to Fukuoka Jisho.
As described in the slide, this acquisition will be significant because we believethat Island City will continue to thrive as a logistics hub that spurs economic
growth for Fukuoka and it is important for Fukuoka REIT to have more logistics
facilities in our portfolio. In fact, we own logistics facilities in the same area, all ofwhich enjoy high occupancy rates. The expected acquisition date is March 2029,
six and a half years from today.

9Leasing progress for Higashi Hie Business Center
Aiming to quickly improve NOI with favorable leasing and rent increase

Portfolio overview

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In the next slide, page 9, I want to give you more details about the leasing
development for Higashi Hie Business Center, which I talked about in the last
performance overview session. Higashi Hie Business Center suffered a large
displacement of approximately 4,800 square meters or 35% of the building’s
rentable area as of at the end of September. However, the vacant space has
been filled more quickly than we anticipated thanks to its prime location, highspec characteristics, and our focused efforts to find new tenants. Already 62.3
percent of the vacant space has been filled, compared to the previous forecast of
50 percent. We successfully cut short the period during which rent revenue is notearned such as a free rent period. Furthermore, we thought that it would be aperfect opportunity for us to fill the rent gap, and as expected, we havesuccessfully signed new leasing agreements at the market-level rent, which isabove our portfolio average rent unit price ranging between 12,500 and 13,000
yen. Of course, we are currently negotiating with prospective tenants to fill up theremaining space as quickly as possible.

10Trends in the Fukuoka office market
The market vacancy rate increased to the 5% range, but occupancy rates of large-scale buildings and large-sized buildings remain steady

Portfolio overview

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The next slide, page 10, is about updates on the office market in Fukuoka. As
the chart on the left shows, there has been consistent supply of new office spacesince 2021. But the rise in the vacancy rate has been minimal and it is at 5.08
percent as of September 2022, while the vacancy rate in Central Tokyo is
hovering high at around 6.49 percent. More recently the rise in the averagevacancy rate in Fukuoka has been more moderate than the rise in Tokyo as
indicated in the chart on the right side of the slide. And the fact that our officebuildings have this really low vacancy rate shows that they are highly competitive
properties in the market.

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Historical and projected office buildings’ occupancy rates
Aiming to reduce rent gap and complete leasing at an early stage despite some move-outs（％）

Portfolio overview

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Please go to the next slide, page 11. This slide shows the historical andprojected occupancy rates for office buildings in our portfolio. The weightedaverage occupancy rate for the ten office buildings in our portfolio, which
excludes the land for Tenjin Nishi-Dori Business Center, remains at an extremely
high level of 99.6 percent for the 36th fiscal period. As I mentioned earlier, there
was a large displacement in Higashi Hie Business Center in the 37th fiscal period
and there will be some displacement in Hakata Chikushi-Dori Center Building, too,
but we are working very hard to narrow the rent gap and fill those vacancies as
immediately as possible. According to CBRE’s latest appraisal data, our portfolio
rent is still 17.7 percent lower than the market rent, so we will continue to work
hard to raise rent as we have been doing as illustrated in the chart at the bottom
right of the slide.

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Situation of active retail
Overall sales are recovering

Portfolio overview

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The next slide, page 12, describes the current situation of our active retailproperties. As the table at the bottom of the slide shows, our active retail sales
are generally on the path to recovery. We call these properties “active retail”
because they pay a performance-based rent. They have been and are right now
undergoing renovations or holding events to increase traffic and improve
competitiveness as consumer demand recovers. And we absolutely believe thatthese measures will drive internal growth in the mid-to-long term. Furthermore,
we will make sure that we seize every opportunity to improve and increase sales
as the government tries to stimulate tourism demand through opening up theborders and providing subsidies.

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Future vision of Canal City Hakata①
Plan to differentiate of positioning

Portfolio overview

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On the next slide, I want to give you an update on the project in which we aregoing to transform Canal City Hakata for the next generation. The external
environment that surrounds Canal City Hakata is going through yet anothersignificant transformation. Canal City Hakata’s original brand concept was “thepursuit of entertainment and uniqueness” when it was open in 1996. In andaround 2002, it sought to become a hub for largest flagship stores in Japan. And
since 2012 it has been reshaping itself as “the destination retail facility for
inbound tourists,” and as such, has suffered a tremendous impact from thepandemic.
That is why it is all the more important that we create our vision for the future of
Canal City Hakata as we celebrate its 25th anniversary and when that inbounddemand evaporates. What you see on the slide is the overview of “Canal City
Hakata Transformation Project,” which we put together with our sponsor andproperty management company. Our new brand concept is “a place where ‘work’and ‘play’ fuse into one and that produces a fusion of Fukuoka and Asian culturesand enriches people’s lives.” With this new concept, Canal City Hakata will go
through steps of transformation as described on the right side of the slide.

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Future vision of Canal City Hakata ②
A venue combining business and pleasure that enriches people’ s daily lives while mixing Fukuoka and Asian culture

Portfolio overview

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Here are more details about the new concept on page 14. “Connect,” “Facilitate,”and “Empower” are the value proposition we promise to provide so that people
who visit Canal City Hakata can feel, experience, and interact with fascinating
culture. And this unique and original culture produced by Canal City Hakata will
be constituted of creative arts, food, and sports and healthcare, attract more
people, and help increase sales.
There are new tenants who believe in our vision and agree to open a store in thisnew, transformed Canal City Hakata. We just cannot disclose any names at thismoment for confidentiality reasons, but we will let you know as soon as we areallowed to do so.

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Disposition of property （Kurume Higashi Kushiwara SC）
Aim to stabilize dividend level

Portfolio overview

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The next slide is about the disposal of one of our retail assets, Kurume
Higashikushiwara SC, which we announced in a press release today. There arethree reasons for disposing this asset: One, cash in unrealized gains to pay
stable dividend; Two, lower the allocation for retail properties; and Three, reinvest
the gains for internal growth. As I explained earlier, part of the gains will be used
for internal growth as the Canal City Hakata project enters the execution phaseand the fact that the disposal takes place in three installments enables us to pay
stable dividend. So, we are confident that the decision to dispose this asset willserve the best interest of our unit holders in the short and mid-to-long terms byproviding a stable return for them.

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Situation of other assets（Logistics）
Continued rent increases due to robust demand

Portfolio overview

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The next slide, on page 16, describes the situation of our logistics assets. The
logistics property market in Fukuoka has been very bullish with zero percent
vacancy rate between 2019 and 2021. Despite the significant amount of new
supply in 2022 and beyond, CBRE expects only a modest rise in the vacancy rate
and that it will remain below the 2017 level. Also, it is very likely that the market
continues to be bullish not only in Fukuoka but also in Tosu area, Saga Prefecture,and the rent unit price is expected to go up even in the face of the expected large
supply of new logistics facilities. Currently we own four logistics properties andevery single one of them is running at 100 percent occupancy. And, as I talked
about earlier, we expect to acquire a logistics site in Fukuoka Island City, which isin a highly competitive location near the greater Fukuoka metropolitan area.

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Situation of other assets（Residence, Hotel）
Operation of residential properties are steady, for hotels, FRC owns only those specialized for accommodation

Portfolio overview

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The next slide, page 17, is about the situation of our residences and hotels. The
average occupancy rate of our five residential properties remained high at 96.8
percent for the 36th fiscal period. We keep trying to raise rent at the time oftenant replacements and rent revisions. All the hotels in our portfolio are roomonly hotels. They continue struggling despite some signs of recovery from theprevious period especially in terms of bookings on hand. We remain hopeful that
our hotels’ performance will get back on track following a recovery in domestic
and foreign tourism demand.

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Key financing events in the 36th fiscal period
First syndicated sustainability-linked loan for a J-REIT

Financial strategy

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Let’s go to the next slide. From here I’m going to talk about our finances. Let me
start with the key financing events in the 36th fiscal period on page 18. As you
can read the text on the upper left corner, we borrowed one billion yen; it’s a new
borrowing, and refinanced 1.6 billion yen of debt as a green loan and another 4.9
billion yen of debt as a sustainability-linked loan. This sustainability-linked loan isthe first syndicated loan to a J-REIT and serves as a catalyst for promoting
sustainability and protecting the environment. Fukuoka REIT Corporation andFukuoka Realty work as one team together with our sponsor banks including
Development Bank of Japan, Nishi-Nippon City Bank, and Bank of Fukuoka.
Also, we signed an agreement to extend the term of the committed line of credit
by one year, setting the remaining term to three years. That allows us to remain
on solid financial footing and have access to fast funding availability.

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Financing condition
Establishment of stable financial baseFinancial strategy

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The next slide, page 19, is about our financing capacity. Our average debt
duration is 5.4 years with a 0.66 percent interest rate on average for the 36th
fiscal period. According to the latest securities firm report, the average debt
duration across the J-REIT industry is 4.3 years. That means that we haveaccess to longer-term borrowings. We firmly stick to our policy of hedging therisk of rising rates, diversifying debt maturities, extending the borrowing term aslong as possible, and lowering interest cost as much as possible. Our LTV
remains at the low level of 41.7 percent for the 36th fiscal period, so we have noproblem in using debt to finance the acquisition of investment properties. The
percentage of the so-called “sustainability borrowings” is more than 10 percent of
our total debt for the 36th fiscal period and is likely to go up as we become morecommitted to ESG in financing activities. When it comes to the credit ratings, we
keep JCR’s AA- (Double A Minus) credit rating.

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Appraisal value
The unrealized gains（ totaled 43,026 million yen at the end of 36th fiscal period （increase of 214 million yen compared with previous fiscal period）＊1）- unit : mm yen

Appraisal value

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The next slide, page 20, is about the appraisal value of our portfolio. For the 36th
fiscal period, some of our properties saw their book value exceeding theirappraisal value because of the capex investment. But almost all the properties
we own have unrealized gains and the total unrealized gains stood at
approximately 43 billion yen as of the end of the 36th fiscal period. We willcontinue to act in the best interest of our unit holders in the mid-to-long term andpay stable dividend by realizing those gains as necessary.

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Sustainability

Sustainability

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Last but not least, I’m going to talk about what we are doing with respect tosustainability, which is one of our management priorities. When it comes to theenvironment, we expressed support for the TCFD recommendations in
September. We also created climate change resilience policy and conducted areview of financial impact based on the scenario analysis. You can read theresults of the review on the next page. Please have a look at them later.
As for actions for society, we were registered as a master on the Well-Being and
SDGs Register of Fukuoka City - a public assessment program for businesses
seeking to measure employee satisfaction and improve work environment.
We understand that sustainability continues to be one of the important criteria forreal estate investment, so we want to continue to discuss with our investors how
to move forward. And that brings to an end to the performance overview for the36th fiscal period. Thank you very much for watching.

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Assessment of Financial Impacts Based on Scenario Analysis
Creation of Climate Change and Resilience Policy (August 2022)

Sustainability

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Profile

Appendix

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A real estate investment trust specializing in regional properties

Appendix25

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Current situation of Fukuoka City①

Appendix26

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Current situation of Fukuoka City②

Appendix27

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Earthquake risk in Fukuoka, etc.
All properties owned by Fukuoka REIT are covered by earthquake insurance

Appendix28

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Certification from external organizations and information disclosure
Endorsement of TCFD （Task Force on Climate-Related Financial Disclosures） （Sept. 2022）

Appendix

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ESG Initiatives （Environment）

Appendix30

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ESG Initiatives （Society①）

Appendix

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ESG Initiatives （Society②）

Appendix

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ESG Initiatives （Governance）

Appendix33

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IR Initiatives

Appendix34

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Unitholders’ data

Appendix3536

Unit price chart

Appendix36

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Financial highlights
Dividend per unit was 3,523 yen- unit : mm yen

Appendix37

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Balance sheets（compared with the previous fiscal period）- unit : mm yen

Appendix38

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Cash flow statements（compared with the previous fiscal period）- unit : mm yen

Appendix39

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Income and expenditure by properties（Retail）- unit : mm yen（＊）Forecast at the financial results of the 35th fiscal period.

Appendix4041Income and expenditure by properties（Office buildings・Others）- unit : mm yen（＊1）Forecast at the financial results of the 35th fiscal period. （＊2）Information is not disclosed because the permission of tenants has not been obtained.

Appendix4142

Income and expenditure by properties（Total）/Repair and maintenance expenses, capital expenditures, and depreciation- unit : mm yen

Appendix42

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Portfolio table①（As of August 31, 2022）

Appendix43

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Portfolio table②

Appendix

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Portfolio map

Appendix

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Dividend and NAV per unit

Appendix

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Historical trends of asset’s size by investment type （based on acquisition）
Aiming for an asset size of 250 billion yen

Appendix

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Historical appraisal values（unrealized gains）
Unrealized gains: 43,026 million yen, ratio of unrealized gains: 22.6％（＊1）

Appendix48

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Portfolio properties' occupancy rates
Maintained a higher occupancy rate than the J-REIT average

Appendix49

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Top tenants by leased floor area

Appendix5051Office building rent revisions and tenant replacement situation
Continue to realize rent increase

Appendix51

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Breakdown of variable rents

Appendix52

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Initiatives by Fukuoka City Government and status of office workers
Driving up future office demand

Appendix

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Impact of COVID-19 infection
Daily shopping-oriented mall sales recovered to around the pre-pandemic level

Appendix54

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Strategies to strengthen active retail
Boosted customer visits from nearby trade areas with renovations and events

Appendix

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56

List of Interest-bearing debt

Appendix

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57

Lenders
A stable network of sponsor banks and other lenders

Appendix

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Asset management company’s organization

Appendix

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The condition of suburb area in Fukuoka

Appendix

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The condition of Fukuoka city center
Nanakuma subway line extension project will be opened on March 27, 2023

Appendix60

61Redevelopment in Tenjin area（Tenjin Big Bang）
Until the end of Tenjin Big Bang project in the end of Year 2026 （＊1）

Appendix61

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Redevelopment in Hakata area（Hakata Connected）

Appendix62

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Sponsor pipeline （Fukuoka Jisho Group）

Appendix6364