Provisional translation only
October 16, 2018EARNINGS BRIEFING FOR THE PERIOD ENDED AUGUST 2018
Name of issuer:
Code number:
URL:
Stock listings:

Fukuoka REIT Corporation (FRC)8968
https://www.fukuoka-reit.jp/eng/
Tokyo Stock Exchange, and Fukuoka Stock Exchange

Representative:

Etsuo Matsuyuki CEO & Representative Director

Asset manager:
Representative:
Contact:

Fukuoka Realty Co., Ltd.
Etsuo Matsuyuki CEO & Representative Director
Akira Eguchi
Executive Managing Director and General Manager ofPlanning Dept.
Phone: +81-92-272-3900

Expected date for submitting securities report:
November 29, 2018
Expected commencement date of dividend payments: November 16, 2018
Supplementary documents for earnings briefing
Yes
Analyst meeting (for institutional investors and analysts) Yes(Figures rounded down to nearest mm yen)

1. Performance and situation of assets for the period ended August 2018
(March 1, 2018 to August 31, 2018)(1) Performance(% shows percentage change from previous period)

Operating revenues
mm of yen
Period ended

August 2018
Period ended

February 2018

Operating income%

Ordinary income

mm of yen%

mm of yen

Profit%mm of yen

%

9,178

12.0

3,238

9.2

2,861

9.0

2,860

9.0

8,194

0.9

2,965

1.6

2,624

2.4

2,623

2.6

Profit per unit
Period ended

August 2018
Period ended

February 2018

Return on net assets

Ratio of ordinary
Ratio of ordinary income
income to total assets to operating revenues

3,593 yen

2.9%

1.5%

31.2%

3,512 yen

2.8%

1.5%

32.0%

(2) Dividends
Dividend
per unit

Total
dividend

Dividend(excl. dividend in(excl. dividend inexcess ofexcess of earnings)
earnings)
Period ended

August 2018
Period ended

February 2018

in excess ofearnings
per unit

Total
dividendin excess ofearnings

Dividend
per unit(incl. dividend inexcess of
earnings)

Total
dividend(incl. dividend inexcess of earnings)

Payoutratio

Ratio ofdividend
to netassets3,593 yen 2,860 mm yen

0 yen

0 mm yen

3,593 yen 2,860 mm yen

100.0%

2.8%

3,512 yen 2,623 mm yen

0 yen

0 mm yen

3,512 yen 2,623 mm yen

100.0%

2.8%(3) Financial condition

Period ended

August 2018
Period ended

February 2018

Ratio of net assets tototal assets

Total assets

Net assets

Net assets per unit

193,112 mm yen

101,799 mm yen

52.7%

127,888 yen

177,283 mm yen

93,766 mm yen

52.9%

125,524 yen(4) Cash flows condition

Period ended

August 2018
Period ended

February 2018

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash and cash
equivalents at end of period

4,149 mm yen(15,326) mm yen

11,734 mm yen

7,950 mm yen

4,292 mm yen(478) mm yen(3,555) mm yen

7,392 mm yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

2. Forecast of performance for the period ending February 2019 (September 1, 2018 to February 28,2019) and the period ending August 2019 (March 1, 2019 to August 31, 2019)(% shows percentage change from previous period)

Period ending

February 2019
Period ending

August 2019

Dividend
per unit

Dividend

0.2

2,865 0.2 3,600 yen

0 yen

2,826 (1.4)

2,825 (1.4) 3,550 yen

0 yen

Operating revenues Operating income

Ordinary income

mm of yen%

mm of yen%

9,121 (0.6)

3,234 (0.1)

2,866

9,160

3,200 (1.0)%

0.4mm of yen

(Reference) Forecast profit per unit: Period ending February 2019
Forecast profit per unit: Period ending August 2019

Profitmm of yen

in excess of(excl. dividend earnings
per unit% in excess ofearnings)

3,600 yen
3,550 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):
As of August 2018
796,000 units
As of February 2018
747,000 units(ii) Treasury investment units at end of period:
As of August 2018
0 unitAs of February 2018
0 unitNote: Regarding the number of investment units, a basis for calculating profit per unit, please refer to “Per unit information,” onpage 11.

* 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, profit, 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 the preconditions forthe above forecast figures please refer to “2. Portfolio Management Policy and Management Situation,(2) Management situation – Preconditions for the performance forecast for the period ending February
2019 (September 1, 2018 to February 28, 2019) and the period ending August 2019 (March 1, 2019 toAugust 31, 2019)” on page 4.

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

Concerning the contents hereinafter, items that FRC judges “can be omitted from the disclosure from the standpoint ofimportance” are not shown in conformity with the “Format and Guidance for Preparation of Earnings Briefing for REITs”(February 2018).
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 May 29, 2018).
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 May 29, 2018).
(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 “Act on
Investment Trusts and Investment Corporations” (Act No. 198 in 1951 including later revisions) 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 in regional properties (code number: 8968). FRC invests in realestate throughout all of Kyushu (including Okinawa Prefecture) with a central focus on Fukuoka City andYamaguchi Prefecture (hereinafter the “Fukuoka/Kyushu area) by turning regional characteristics in the realestate 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 and common
space), a commercial complex where specialty shops, cinema complex, theaters, amusement facilities,
hotels and offices are integrally developed (hereinafter “Canal City Hakata”). As of the end of the current
fiscal period (August 31, 2018), FRC manages a total of 28 properties comprising 11 Retail, 8 Officebuildings and 9 Others.
(b) Investment environment and portfolio performance
During the fiscal period under review (the 28th fiscal period), the Japanese economy showed a modest
recovery. Looking ahead, with the employment and income environment continuing to improve, the economy
is expected to continue recovering moderately due to various political measures proving effective, among
other factors.
In the Fukuoka and Kyushu area, the core investment target area for FRC, the economy is expanding
moderately at a solid pace. With regard to the outlook, a virtuous cycle is expected to continue, bolstered bydemand in and outside Japan.
As for land price trends, the national average price in combined average for residential and commercial land
took an upward turn for the first time in 27 years, according to the 2018 Land Market Value Publication. By
land type, residential land price continued to show a decelerating pace of decrease and commercial land
price rose for the second consecutive year, reinforcing its upward trend. In Fukuoka City, the central area of
FRC's investment targets, land prices continued rising for six consecutive years, up 11.1% year-on-year forcommercial land and up 4.4% year-on-year for residential land, marking higher rates of increase than thelast year.
Under such circumstances, FRC acquired Konoha Mall Hashimoto and Higashi Hie Business Center II on
March 1, 2018 as well as Park Place Oita Daiichi Parking on July 6, 2018. Park Place Oita Daiichi Parking ispart of the parking lots for customers at Park Place Oita, a property already owned by FRC, and is locatednearest to the center of Park Place Oita among the parking lots outside the property’s premises.
As for existing properties, FRC continued its efforts to reinforce competitive advantages and customer
drawing ability at Canal City Hakata and other major retail properties, and focused on maintaining andincreasing the occupancy rate of its owned properties. As a result of these endeavors, the averageoccupancy rate of all properties FRC owns was 99.6% at the end of the 28th fiscal period.
When analyzing FRC’s portfolio (on an acquisition price basis) as of the end of the 28th fiscal period byinvestment target area, the investment ratio in the Fukuoka urban area accounted for 78.4%; whenanalyzing by property type, Retail, Office buildings, and Others accounted for 60.1%, 27.3% and 12.6%,
respectively.
(c) Summary of fundraising
In the 28th fiscal period, FRC issued new investment units (49,000 units) on March 1, 2018 to raise 7,795
mm yen. FRC also borrowed funds to acquire the above-mentioned properties, among other purposes, andconducted refinancing. As a result, the balance of its interest-bearing debt outstanding (including investment
corporation bonds) at the end of the period totaled 75,500 mm yen, with the loan-to-value ratio (ratio of1

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

interest-bearing debt (including investment corporation bonds) to total assets) at 39.1% and the ratio of
fixed-interest rate debt (ratio of interest-bearing debt with fixed interest rates (including investment
corporation bonds) to total interest-bearing debt) at 90.9% as of the same date.
In the fiscal period under review, FRC issued its third series of investment corporation bonds with debt
maturity of 20 years, in pursuit of dispersion of debt repayment dates and extension of the averageremaining years to maturity. In like manner, FRC will continue its endeavors going forward to reducerefinancing risks by dispersing debt repayment dates and extending debt duration. At the same time, FRC
will work to mitigate risks of rising interest rates by shifting to fixed-interest rate borrowings and throughother measures.
Moreover, the credit ratings assigned to FRC as of the end of the current fiscal period are as follows.
Credit Rating Agency
Rating Type
RatingRating Outlook
Rating and Investment
Issuer Rating
A+
StableInformation, Inc. (R&I)
Japan Credit Rating Agency, Ltd.
Long-term Issuer Rating
AA−
Stable(JCR)
Furthermore, as announced in the “Notification Concerning the Withdrawal of Credit Rating” dated August
31, 2018, FRC requested S&P Global Ratings Japan Inc. (S&P) to withdraw the long-term issuer rating andshort-term issuer rating granted to FRC by the agency.
(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 9,178 mm yen and operating income
after excluding operating expenses such as expenses related to leasing business and asset management
fees totaled 3,238 mm yen. Ordinary income was 2,861 mm yen and profit amounted to 2,860 mm yen.
Management decided to make a dividend of 3,593 yen per investment unit to meet the requirements ofspecial tax measures for an investment corporation (as stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation of Japan [Act No. 26 in 1957 including later revisions]). Under this law, aninvestment corporation is allowed to deduct the maximum amount of dividends 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, and secure and maintain the stable operation of the properties bymaking 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” that are 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 to have a highpopulation growth rate in the future. In addition to the Fukuoka urban area, management has decided toactively acquire properties in major cities if there are regions or properties where FRC can generate
investment merits from community-oriented viewpoints. FRC will acquire high-quality properties withadequate 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 fundraising and try
to maintain a solid financial structure.
(b) Significant events that have occurred after the end of the current fiscal period:
No relevant items.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018(c) Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending February 2019 (September 1,
2018 to February 28, 2019) and the period ending August 2019 (March 1, 2019 to August 31, 2019).
Concerning preconditions for the forecast, please refer to “Preconditions for the performance forecast for theperiod ending February 2019 (September 1, 2018 to February 28, 2019) and the period ending August 31,
2019 (March 1, 2019 to August 31, 2019)” on page 4.
Period ending February 2019
Operating revenues
9,121 mm yen
Operating income
Ordinary income

3,234 mm yen
2,866 mm yen

ProfitDividend per unit
Dividend in excess ofearnings per unit

2,865 mm yen
3,600 yen
0 yen

Period ending August 2019
Operating revenues
Operating income

9,160 mm yen
3,200 mm yen

Ordinary income
Profit2,826 mm yen
2,825 mm yen

Dividend per unit
Dividend in excess ofearnings per unit

3,550 yen
0 yen

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

3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

Preconditions for the performance forecast for the period ending February 2019 (September 1, 2018 to February 28,2019) and the period ending August 2019 (March 1, 2019 to August 31, 2019)
Item
Preconditions
29th fiscal period: September 1, 2018 to February 28, 2019 (181 days)
Calculation period
30th fiscal period: March 1, 2019 to August 31, 2019 (184 days)
Assets under• It is assumed that there will be 28 properties FRC owns as of August 31, 2018.
management• In practice, the number may fluctuate due to changes in assets under management.
Total number of• It is assumed that there will be no issuance of new investment units until August 31, 2019.
investment units
outstanding• The balance of interest-bearing debt outstanding at the end of the 29th fiscal period(February 28, 2019) is expected to total 75,500 mm yen, the same as that at the end of the
28th fiscal period (August 31, 2018). The loan-to-value ratio (interest-bearing debt ÷ total
Interest-bearing
assets × 100) is expected to stand at around 39.3% (as of August 31, 2018, thedebt andloan-to-value ratio stands at 39.1%).
• The balance of interest-bearing debt outstanding at the end of the 30th fiscal period
refinancing(August 31, 2019) is expected to total 75,500 mm yen, same as the end of the 29th fiscal
period (February 28, 2019). The loan-to-value ratio (interest-bearing debt ÷ total assets ×100) is expected to stand at around 39.3%.
• Of leasing revenues – real estate, revenues from properties FRC has already acquired are
calculated based on tenancy agreements that are valid as of October 16, 2018 by taking
into account the competitiveness of the properties the market environment, etc.
Operating
Of leasing revenues– real estate, revenues from percentage lease contracts are calculated
revenues
based on past results by taking into account sales fluctuation factors of the relevant
tenants.
• For leasing revenues – real estate, 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 properties, the property taxes and city planning taxes for the assets will be
proportionally calculated according to the holding period and adjusted with the former
owner. However, the adjusted amount of the property taxes and city planning taxes to beborne by FRC for the initial year will not be written off since they will be included in theacquisition cost.
• FRC writes off estimated repair costs expected to be required for buildings for the
calculation periods (the 29th and 30th fiscal periods). Actual repair costs may differ
significantly from the estimated amounts since there is the possibility that repair costs are
Operatingincurred urgently due to damages to buildings caused by unforeseeable factors, repair
expenses
costs generally differ largely from period to period, and repair costs are not regularly
incurred.
• Concerning outsourcing expenses, FRC anticipates 1,911 mm yen for the 29th fiscal
period and 1,923 mm yen for the 30th fiscal period.
• Concerning taxes and other public charges, FRC anticipates 661 mm yen for the 29th
fiscal period and 726 mm yen for the 30th fiscal period.
• Concerning depreciation and amortization expenses, FRC anticipates 1,611 mm yen forthe 29th fiscal period and 1,625 mm yen for the 30th fiscal period.
• Concerning interest expenses (including interest expenses on investment corporation
Non-operating
bonds) and expenses related to financing, FRC anticipates 365 mm yen for the 29th fiscal
expensesperiod and 368 mm yen for the 30th fiscal period.
• Dividend (dividend per unit) is calculated based on the dividend policy stipulated in FRC’s
Articles of Incorporation.
Dividend per unit
• Dividend per unit may fluctuate due to fluctuations in leasing revenues caused by changes
in assets under management and tenants or various factors including unexpectedoccurrences of repair.
Dividend in excess• Dividend in excess of earnings (dividend in excess of earnings per unit) is not planned atof earnings per
the moment.
unit• 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.
Other• 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 May 29, 2018).

4

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

3. Financial Statements(1) Balance sheet(thousands of yen)Account

27th fiscal period

28th fiscal period(as of February 28, 2018)(as of August 31, 2018)

AssetsCurrent assets
Cash and deposits

2,924,449

2,609,937

Cash and deposits in trust

4,514,534

5,386,980

Operating accounts receivable

459,948542,640

Prepaid expenses

260,790

254,144-598,560

16

15

40,8634,737

8,200,604

9,397,015

Consumption taxes receivable
Deferred tax assets
OthersTotal current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Structures in trust
Accumulated depreciation
Machinery and equipment in trust
Accumulated depreciation

88,537,835(25,801,859)

62,735,975(667,932)

915,568

1,583,500(383,133)

Accumulated depreciation(437)

890,394

Lands in trust

309

1,155,236(422,173)

873,319

(485)

261

1,328,883
268,745
101,545,140

Construction in progress in trust(700,178)

747

1,319,583(1,050,837)

70,703,743

1,295,492

747

Accumulated depreciation(27,296,476)

1,855,414

1,273,527

Vehicles and transport equipment in trust

Tools and fixtures in trust

98,000,220(1,083,830)

245,052
103,814,610

6,780

113,234

166,362,914

176,905,458

1,765,318

5,545,883

16,97014,3901,782,289

5,560,273

Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

110,000

327,135

Long-term prepaid expenses

786,412850,645

Total investment and other assets

906,412

1,187,780

169,051,616

183,653,513

30,61242,551

935

19,17731,54861,728177,283,768

193,112,257

Total property, plant and equipment
Intangible assets
Leasehold right in trust
Other intangible assets in trust
Total intangible assets
Investment and other assets

Total non-current assets
Deferred assets
Investment corporation bond issuance
expenses
Investment unit issuance expenses
Total deferred assets
Total assets

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018
(thousands of yen)Account

27th fiscal period

28th fiscal period(as of February 28, 2018)(as of August 31, 2018)

Liabilities
Current liabilities
Operating accounts payable602,374

649,469

2,100,000

4,200,000

Accounts payable-other

21,34518,856

Accrued expenses

328,477

363,618

772

992

Accrued consumption taxes

298,500－

Advances received

990,174

1,049,850

Deposits received

768,735

1,327,250

5,110,380

7,610,038

Investment corporation bonds

4,000,000

5,000,000

Long-term debt

62,800,000

66,300,000

Current maturities of long-term debt

Income taxes payable

Total current liabilities
Non-current liabilities

Tenant leasehold and security deposits
Tenant leasehold and security deposits received
in trust

373,423

375,422

11,233,280

12,027,489

Total non-current liabilities

78,406,704

83,702,912

83,517,084

91,312,950

91,142,766

98,938,764

Unappropriated surplus

2,623,917

2,860,542

Total surplus

2,623,917

2,860,542

Total unitholders’ equity

93,766,684

101,799,306

Total net assets

93,766,684

101,799,306

Total liabilities and net assets

177,283,768

193,112,257

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018(2) Statement of income(thousands of yen)Account

27th fiscal period

28th fiscal period(September 1, 2017 to
February 28, 2018)(March 1, 2018 toAugust 31, 2018)

Operating revenues
Leasing revenues – real estate

7,725,449

Other leasing revenues – real estate

468,8718,478,614
8,194,321

699,815

9,178,430

Operating expenses
Expenses related to leasing business

4,614,437

5,287,625

482,350

520,829

Asset custody fees

6,622

6,702

Administrative service fees

51,81353,872

Director’s compensations

9,600

9,600

Other operating expenses

63,610Asset management fees

Operating income

5,228,434

61,761

2,965,887

5,940,392
3,238,038

Non-operating revenues
Interest received

36
2,426

Others

37
2,463

531

569

Non-operating expenses
Interest expenses
Interest expenses on investment corporationbonds
Amortization of investment corporation bondissuance expenses
Amortization of investment unit issuance
expensesFinancing related expenses
Others228,998

254,894

23,20024,200

1,646

1,722

5,612

4,770

84,211

91,90130

343,69830

377,518

Ordinary income

2,624,651

2,861,088

Profit before income taxes

2,624,651

2,861,088

Income taxes-current

1,032

Income taxes-deferred(16)

Profit

998
1,015

1

1,000

2,623,635

2,860,088

Surplus brought forward

281

453

Unappropriated surplus

2,623,917

2,860,542

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018(3) Statement of changes in net assets
27th fiscal period (September 1, 2017 to February 28, 2018)(thousands of yen)
Unitholders’ Equity
Surplus
Item

Balance as of September 1,
2017
Changes in the current fiscal
periodUnitholders’ capital

Unappropriated surplus

91,142,766

Total
net assets

2,556,515

93,699,282

93,699,282(2,556,234)
2,623,635(2,556,234)
2,623,635(2,556,234)-

67,401

67,401

67,401

91,142,766

2,623,917

93,766,684

93,766,684

Dividend of surplus
ProfitTotal of changes in thecurrent fiscal period
Balance as of February 28,
2018

Total
unitholders’ equity

2,623,635

28th fiscal period (March 1, 2018 to August 31, 2018)(thousands of yen)
Unitholders’ Equity
Surplus
Item

Balance as of March 1, 2018
Changes in the current fiscal
periodIssuance of new investment
units

Unitholders’ capital

Unappropriated surplus

91,142,766

2,623,917

Total
net assets

93,766,684

93,766,684

7,795,998

7,795,998(2,623,464)
2,860,088(2,623,464)
2,860,088(2,623,464)

7,795,998

236,624

8,032,622

8,032,622

98,938,764

2,860,542

101,799,306

101,799,306

7,795,998

Dividend of surplus
ProfitTotal of changes in thecurrent fiscal period
Balance as of August 31,
2018

Total
unitholders’ equity

8

2,860,088

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018(4) Dividend statement
Account

27th fiscal period

28th fiscal period(September 1, 2017 to February 28, 2018)(March 1, 2018 to August 31, 2018)

I.

Unappropriated surplus

2,623,917 thousand yen

2,860,542 thousand yen

II.

Total

2,623,464 thousand yen

2,860,028 thousand yen[Dividend per investment
unit][3,512 yen]

[3,593 yen]

III. Surplus brought forward

453 thousand yen

514 thousand yen

Method for calculating dividends

The amount of dividends shall be decided in The amount of dividends shall be decided
accordance with the dividend policy in accordance with the dividend policy
stipulated in Article 38-1-1 of FRC’s Articles stipulated in Article 38-1-1 of FRC’s Articles
of Incorporation and must exceed 90% of of Incorporation and must exceed 90% of
FRC’s distributable profits as stipulated in FRC’s distributable profits as stipulated in
Article 67-15-1 of the Special Taxation Article 67-15-1 of the Special Taxation
Measures Act. Following the above policy, Measures Act. Following the above policy,
FRC shall decide to distribute 2,623,464 FRC shall decide to distribute 2,860,028
thousand yen, which is almost the entire thousand yen, which is almost the entire
amount of unappropriated surplus, as amount of unappropriated surplus, 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 will 38-2 of FRC’s Articles of Incorporation will
not be provided.
not be provided.

(Note) Amounts other than the amounts of dividend per investment units are rounded off to the nearest thousand yen.

9

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

(5) Cash flows statement(thousands of yen)Account
Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation and amortization expenses
Amortization of investment corporation bond issuance
expenses
Amortization of investment unit issuance expenses
Interest received
Interest expenses
Decrease (increase) in operating accounts receivables
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts 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
Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
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
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Payments of tenant leasehold and security deposits in trust
Proceeds from restricted trust deposits
Payments for restricted trust deposits
Net cash provided by (used in) investment activities
Net cash provided by (used in) financial activities
Proceeds from short-term debt
Repayments of short-term debt
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of investment corporation bonds
Proceeds from issuance of investment units
Payments of investment corporation bond issuance expenses
Payment of investment unit issuance expenses
Dividends paid
Net cash provided by (used in) financial activities
Net increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at end of period

10

27th fiscal period

28th fiscal period(September 1, 2017 to
February 28, 2018)(March 1, 2018 toAugust 31, 2018)

2,624,651
1,500,084
1,646

2,861,088
1,602,568
1,722

5,612
(36)
252,198(28,531)
258,416
298,500
24,657(233)
2,954(7,240)(286,022)(12,764)(65,668)(20,758)
4,547,465
36(254,559)(1,311)517
4,292,149

4,770
(37)
279,094(82,691)(598,560)(298,500)
61,299(638)
27,10359,676558,514
6,646(64,233)
3,314
4,421,137
37(271,057)(778)
428
4,149,768(409,429)
34,621(30,035)
42,265(114,867)
3,058(3,938)(478,325)(12,130,191)(3,775,257)
8,534(6,536)
1,023,194(228,985)(217,135)
2,872(2,751)(15,326,254)

4,500,000(6,000,000)
9,100,000(8,600,000)(2,555,413)(3,555,413)
258,410
7,134,506
7,392,916

4,100,000(4,100,000)
7,200,000(1,600,000)
1,000,000
7,795,998(13,660)(23,013)(2,624,781)
11,734,542
558,055
7,392,916
7,950,972

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018(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 May 29, 2018).
(8) Notes to financial statements
FRC omits the disclosure of notes to balance sheet, statement of income, statement of changes in net assets, andcash flows statement, as well as notes on lease transactions, financial instruments, securities, derivative transactions,related-party transactions, tax-effect accounting, retirement benefits, asset retirement obligations, rental properties,
segment information and equity method income, etc. since it does not find substantial need for disclosure in theearnings briefing.
(Per unit information)
27th fiscal period

28th fiscal period(September 1, 2017 to February 28, 2018)

Net assets per investment unit:
Profit per investment unit:(March 1, 2018 to August 31, 2018)

125,524 yen
3,512 yen

Net assets per investment unit:
Profit per investment unit:

127,888 yen
3,593 yen

Note 1: Profit per investment unit is calculated by dividing profit by the weighted average number of investment units
outstanding during the fiscal period. Diluted profit per investment unit is not shown since there are no potential
investment units.
Note 2: Calculation of profit per investment unit is based on the following.

Account

27th fiscal period

28th fiscal period(September 1, 2017 to
February 28, 2018)(March 1, 2018 toAugust 31, 2018)

Profit (thousands of yen)Amount not attributable to common shareholders(thousands of yen)
Profit attributable to common investment units(thousands of yen)
Average number of investment units during the fiscal
period (units)

2,623,635

2,860,088——

2,623,635

2,860,088

747,000

796,000(Significant subsequent events)
No relevant items.
(9) Change in the number of investment units outstanding

Date

Item

July 2, 2004

Number of investment
units outstanding (units)

Unitholders’ capital(mm of yen)

Increase

Increase

Balance

Remarks

Balance

Established through private placement
250
250
125
125 (Note 1)
Additional issuance of investment
November 8, 2004
82,80083,05041,40041,525 (Note 2)units through private offering
Additional issuance of new investment
June 20, 2005
7,000
90,0505,944
47,469 (Note 3)
units through public offering
Additional issuance of new investment
July 21, 2005
2,000
92,0501,698
49,167 (Note 4)
units through third-party allotment
Additional issuance of new investment
September 7, 2006
15,000107,050
11,09660,264 (Note 5)
units through public offering
Additional issuance of new investment
March 1, 2011
16,000123,050
8,913
69,177 (Note 6)
units through public offering
Additional issuance of new investment
March 1, 2013
14,950138,000
10,26379,441 (Note 7)
units through public offering
March 1, 2014
Split of investment units
552,000
690,000－
79,441 (Note 8)
Additional issuance of new investment
April 27, 2015
57,000747,000
11,701
91,142 (Note 9)units through public offering
Additional issuance of new investment
March 1, 2018
49,000796,000
7,795
98,938 (Note 10)
units through public offering(Note 1) FRC was established with an issuance of investment units at 500,000 yen per unit.
(Note 2) New investment units were issued through private offering at the issue price of 500,000 yen per unit for the
purpose of procuring funds for acquiring new properties, etc.
(Note 3) New investment units were issued through public offering at the issue price of 880,000 yen per unit (paid-in
amount of 849,200 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 4) New investment units were issued through third-party allotment at the paid-in amount of 849,200 yen per unit.
(Note 5) New investment units were issued through public offering at the issue price of 766,360 yen per unit (paid-in

11

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

amount of 739,772 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 6) New investment units were issued through public offering at the issue price of 576,083 yen per unit (paid-in
amount of 557,078 yen) for the purpose of procuring funds for acquiring new properties.
(Note 7) New investment units were issued through public offering at the issue price of 710,580 yen per unit (paid-in
amount of 686,529 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 8) FRC implemented a 5-for-1 split of its investment units.
(Note 9) New investment units were issued through public offering at the issue price of 212,257 yen per unit (paid-in
amount of 205,290 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 10) New investment units were issued through public offering at the issue price of 164,414 yen per unit (paid-in
amount of 159,102 yen) for the purpose of procuring funds for acquiring new properties, etc.

12

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

4. Change in Directors(1) Change in directors in FRC
No relevant items.
(2) Change in directors at Fukuoka Realty Co., Ltd.
Tomoyuki Aramaki retired from the post of Director (as of June 22, 2018).
Yoshiro Watanabe was newly appointed as Director (as of June 22, 2018).
Officers of Fukuoka Realty as of October 16 are listed below.

Title

Name

CEO &
Etsuo
Representative Matsuyuki
Director

Career summary
April 1980
June 2004
April 2005
July 2006
July 2009

August 2010

June 2011
January 2012
June 2012
May 2014
Executive
Managing
Director

Akira Eguchi

April 1982
March 1989
July 2002
October 2005
August 2010
June 2012
June 2017
June 2017

Director

Hiroshi
Shimuta

October 2000
December 2003
April 2004
April 2005
June 2007
June 2007
September 2013
August 2017

Numberof units
owned(currently
0

Joined Japan Development Bank
Development Bank of Japan)
Appointed as Manager of Human Resources
Division
Appointed as General Manager of Management
Division
Seconded to Fukuoka Jisho Co., Ltd. Appointed as
Deputy General Manager of Development BusinessGroup
Joined Fukuoka Jisho Co., Ltd. Appointed as
Executive Officer and Deputy General Manager ofDevelopment Business Group and General
Manager of Building Division
Appointed as Executive Officer and General
Manager of Accounting & Finance Division and in
charge of General Affairs Division and Finance
Division
Appointed as Senior Managing Director andGeneral Manager of Planning Dept., Fukuoka
Realty Co., Ltd.
Appointed as Senior Executive Officer of Fukuoka
Jisho Co., Ltd.
Appointed as CEO & Representative Director of
Fukuoka Realty Co., Ltd. (current position)
Appointed as CEO & Representative Director of
Fukuoka REIT Corporation (current position)
Joined Okumura Corporation
Joined Fukuoka Jisho Co., Ltd. Assigned to Housing
Business Division
Appointed as Assistant General Manager ofConstruction Division
Appointed as General Manager of Construction
Division
Appointed as Executive Officer in charge ofConstruction Division
Appointed Senior Executive Officer in charge ofConstruction Division
Joined Fukuoka Realty Co., Ltd. Appointed as
General Manager of Planning Dept.
Appointed as Executive Managing Director andGeneral Manager of Planning Dept., Fukuoka
Realty Co., Ltd. (current position)
Registered as attorney at law
Appointed as Auditor of Fukuoka Realty Co., Ltd.
Appointed as Head of Compliance OfficeAppointed as General Manager of Compliance
Dept.
Joined Nishimura Tokiwa Law Office (currently,
Nishimura Asahi Law Office)Appointed as Director of Fukuoka Realty Co., Ltd.
(current position)
Appointed as General Manager of Fukuoka Jisho
Co., Ltd. Legal Division
Appointed as Vice President Board of Directors andGeneral Manager of Legal Division, Fukuoka Jisho
Co., Ltd. (current position)

13

0

0

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

Title
Director

Name

Career summary

Hidenori Hara April 1985
June 1990
August 2005
August 2009

Numberof units
owned
0Joined the Bank of Fukuoka
Joined Sumitomo Realty & Development Co., Ltd.
Joined Fukuoka Jisho Co., Ltd.
Appointed as General Manager of Development
Business Group
June 2012
Appointed as Executive Officer and General
Manager of Housing Business Division
June 2014
Appointed as Executive Officer in charge of Housing
Business Division
September 2014 Appointed as Executive Officer
September 2014 Seconded to Fukuoka Realty Co., Ltd. Appointed as
Senior Managing Director
February 2015
Appointed as Senior Managing Director andGeneral Manager of Planning Dept.
June 2017
Appointed as Senior Executive Officer in charge ofRetail Business Group and Housing Business
Division of Fukuoka Jisho Co., Ltd. (current position)
June 2017
Appointed as Director of Fukuoka Realty Co., Ltd.
(current position)
Director
YoshiroApril 1977
Joined Kyushu Electric Power Co., Inc.
0
Watanabe
July 2008
Appointed as General Manager of Corporate Sales
Dept.
June 2010
Appointed as General Manager of Sales Dept.
June 2011
Appointed as Senior Officer, General Manager ofSales Dept., Customer Services Division
June 2012
Appointed as Executive Officer and General
Manager of Kumamoto Branch Office
June 2014
Appointed as Managing Executive Officer andGeneral Manager of Corporate Administration
Division
June 2015
Appointed as Senior Managing Executive Officer
and Director of Customer Services Division
July 2015
Appointed as Senior Managing Executive Officer
and Director of Sales Division
April 2017
Appointed as Senior Managing Executive Officer,
Deputy Executive Director of Energy Service
Headquarters and Director of Marketing Division(current position)
June 2018
Appointed as Director of Fukuoka Realty Co., Ltd.
(current position)
June 2018
Appointed as Vice-Presidential Executive Officer ofKyushu Electric Power Co., Inc., Deputy Executive
Director & Director of Marketing Division of Energy
Service Headquarters
AuditorMasanori
April 1978
Joined Fukuoka Sogo Bank, Ltd. (currently, The
0
TasakaNishi-Nippon City Bank, Ltd.)
August 2000
Appointed as Deputy General Manager of Planning
Division
July 2003
Appointed as General Manager of Planning Division
and Manager of Risk Management Office
October 2004
Appointed as Senior Manager supporting Business
Planning Division
April 2005
Seconded to NCB Management Information Service
Co., Ltd. (currently, NCB Research & Consulting
Co., Ltd.) and appointed as General Manager ofBusiness Alliance Division
April 2006
Opened Masanori Tasaka Tax & Accounting Office(current position)
June 2006
Appointed as Auditor of Fukuoka Realty Co., Ltd.
(current position)(Note) Etsuo Matsuyuki concurrently serves as CEO & Representative Director of Fukuoka Realty Co., Ltd., theasset management company for FRC, and as CEO & Representative Director of FRC. A notification
regarding the concurrent office has been filed to the Commissioner of the Financial Services Agency, basedon the provisions of Article 31-4-1 of the Financial Instruments and Exchange Act.

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

5. Reference Information(1) Investment situation(as of August 31, 2018)

Type ofasset

Location

Use(Note 1)

Total value of
properties owned

Percentage of
total assets(mm of yen) (Note 2)(%) (Note 3)

Fukuoka urban area

75,833

39.3

Other Kyushu areas

36,88919.1

Fukuoka urban area

46,357

24.0

Other Kyushu areas--

Fukuoka urban area

20,639

10.7

Other Kyushu areas

2,632

1.4

182,352

94.4

10,7595.6

193,112100.0[182,465][94.5]

RetailReal estatein Trust

Office buildings

OthersSubtotal
Deposits and other assets
Total amount of assets (Note 4)

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 2015 census, which states “the number of workers and students aged 15 years orolder (students including those aged 14 years or younger: particular reference) including commuting between theirhomes 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 urbanarea).
Note 2: “Total value of properties owned” 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 figures 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 owned in effect tothe total amount of assets.
(as of August 31, 2018)

Value on balance sheet(mm of yen)

Percentage of total amount of assets (%)

Total amount of liabilities

91,312

47.3

Total amount of net assets

101,79952.7(2) Investment assets(i) Primary issues of investment securities
No relevant items.
(ii) Real estate investment portfolio
No relevant items.

15

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018(iii) Other primary investment assets(A) Values and investment ratios at end of period are as follows.
(as of August 31, 2018)

Acquisitionvalue(mm of yen)
(Note 1)

Value onbalance sheet(mm of yen)

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

Canal City Hakata

32,00030,16932,000Canal City Hakata･B

28,70028,97730,000Park Place Oita (Note 4)

18,62019,611

19,900SunLive City Kokura

6,633

5,675

8,160

Konoha Mall Hashimoto

10,000

10,25010,500

Square Mall Kagoshima Usuki

5,300

4,450

5,550

Kumamoto Intercommunity SC

2,400

2,017

2,810

Hanahata SC

1,130

996

1,250

Kurume Higashi Kushiwara SC

2,500

2,091

2,790

K’s Denki Kagoshima

3,550

3,042

3,710

Real estate property nameMarinoa City Fukuoka (Marina
Side Building)Retail subtotal:
Canal City Business Center
Building

5,250

5,440

6,060

116,083

112,722

122,730

14,60013,255

15,400Gofukumachi Business Center

11,2009,132

14,000Sanix Hakata Building

4,400

3,871

5,840

Taihaku Street Business Center

7,000

6,071

8,180

Higashi Hie Business Center

5,900

4,530

7,400

Tenjin Nishi-Dori Center Building

2,600

2,692

3,030

Tenjin North Front Building

2,800

2,573

3,880

Higashi Hie Business Center II

4,230

4,228

4,340

Office buildings subtotal:

52,73046,35762,070Amex Akasakamon Tower

2,060

1,737

1,940

City House Keyaki Dori

1,111

937

1,110

Aqualia Chihaya

1,280

1,189

1,680

D-Wing Tower

2,800

2,717

3,550

Granfore Yakuin Minami

1,100

1,136

1,310

Hotel FORZA Oita

1,530

1,427

1,870

Tosu Logistics Center

1,250

1,205

1,430

LOGICITY Minato Kashii

8,150

7,934

8,880

LOGICITY Hisayama

5,050

4,986

5,250

Others subtotal:
Total

24,331
193,144

23,272
182,352

27,020211,820

Note 1:
Note 2:
Note 3:Note 4:

Investment
ratio(%) (Note 3)

Real estate appraiser

Tanizawa Sogo
Appraisal Co., Ltd.
Tanizawa Sogo
14.9
Appraisal Co., Ltd.
Japan Real Estate
9.6
InstituteJapan Real Estate
3.4
InstituteTanizawa Sogo
5.2
Appraisal Co., Ltd.
Japan Real Estate
2.7
InstituteJapan Real Estate
1.2
InstituteTanizawa Sogo
0.6
Appraisal Co., Ltd.
Tanizawa Sogo
1.3
Appraisal Co., Ltd.
Tanizawa Sogo
1.8
Appraisal Co., Ltd.
Tanizawa Sogo
2.7
Appraisal Co., Ltd.
60.1
Tanizawa Sogo
7.6
Appraisal Co., Ltd.
Tanizawa Sogo
5.8
Appraisal Co., Ltd.
Japan Real Estate
2.3
InstituteJapan Real Estate
3.6
InstituteTanizawa Sogo
3.1
Appraisal Co., Ltd.
Japan Real Estate
1.3
InstituteJapan Real Estate
1.4
InstituteTanizawa Sogo
2.2
Appraisal Co., Ltd.
27.3
Daiwa Real Estate
1.1
Appraisal Co., Ltd.
Daiwa Real Estate
0.6
Appraisal Co., Ltd.
Japan Real Estate
0.7
InstituteTanizawa Sogo
1.4
Appraisal Co., Ltd.
Tanizawa Sogo
0.6
Appraisal Co., Ltd.
Japan Real Estate
0.8
InstituteJapan Real Estate
0.6
InstituteTanizawa Sogo
4.2
Appraisal Co., Ltd.
Tanizawa Sogo
2.6
Appraisal Co., Ltd.
12.6
100.0
16.6

“Acquisition value” refers to the amount (purchasing prices shown on the purchasing contracts) not including expenses forthe acquisition of relevant properties (agency fees and taxes and other public charges).
“Period-end appraisal value” refers to the evaluation value based on appraisals by a real estate appraiser in conformity withthe method and standards for asset evaluation stipulated in FRC’s Articles of Incorporation and rules stipulated by theInvestment Trusts Association, Japan.
“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 figures are rounded off to one decimal place.
Park Place Oita Daiichi Parking, which FRC acquired on July 6, 2018, is included. The same shall apply hereafter.

16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018

(B) Summary of the real estate leasing business(as of August 31, 2018)

Real estate property name

Number oftenants(Note 1)

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

Totalleased floor
space (m2)

Totalleasingrevenues(mm of yen)
(Note 4)

Percentage of
total
leasingrevenues(%) (Note 5)

Canal City Hakata

1 [50]

99.9

46,604.75

46,567.92

1,256

13.7

Canal City Hakata･B
Park Place Oita
SunLive City Kokura
Konoha Mall Hashimoto

1 [47]
1 [104]
1
1 [127]

99.0
99.8
100.0
100.0

68,828.79
113,834.59
61,450.22
22,121.03

68,129.95
113,657.62
61,450.22
22,121.03

1,576
1,207
292
838

17.2
13.2
3.2
9.1

Square Mall Kagoshima Usuki

12

100.0

14,602.88

14,602.88

257

2.8

Kumamoto Intercommunity SC

2

100.0

6,968.66

6,968.66

90

1.0

Hanahata SC

2

100.0

2,801.15

2,801.15

40

0.4

Kurume Higashi Kushiwara SC

1

100.0

6,467.80

6,467.80

88

1.0

K’s Denki Kagoshima

1

100.0

7,296.17

7,296.17

111

1.2

Marinoa City Fukuoka (Marina
Side Building)

1

100.0

33,069.82

33,069.82

177

1.9

24 [348](Note 2)99.8

384,045.86

383,133.22

5,937

64.7

1 [61]

99.1

23,031.09

22,821.31

633

6.9

35
16
1 [67]
1 [25]
1

100.0
100.0
98.2
100.0

19,905.34
6,293.75
14,677.30
13,614.59

19,905.34
6,293.75
14,420.16
13,614.59

544
201
300
338

5.9
2.2
3.3
3.7

100.0

3,339.32

3,339.32

86

0.9

11
2
68 [218](Note 2)
1 [64]
1 [40]
1 [103]
1 [131]
1 [94]
1

100.0
100.0

5,252.41
6,214.77

5,252.41
6,214.77

143
167

1.6
1.8

99.5

92,328.57

91,861.65

2,415

26.3

93.7
95.5
98.6
95.1
95.0
100.0

4,821.25
2,710.86
5,619.69
7,187.59
2,496.06
5,785.44

4,519.72
2,588.24
5,539.83
6,838.82
2,371.90
5,785.44

Tosu Logistics Center

1

100.0

4,173.29

4,173.29

LOGICITY Minato Kashii

2

100.0

43,233.72

43,233.72

LOGICITY Hisayama

1

100.0

24,505.65

24,505.65

66
37
60
116
38
63
Undisclosed(Note 6)
Undisclosed(Note 6)
Undisclosed(Note 6)

0.7
0.4
0.7
1.3
0.4
0.7
Undisclosed(Note 6)
Undisclosed(Note 6)
Undisclosed(Note 6)99.0

100,533.55

99,556.61

824

9.0

99.6

576,907.98

574,551.48

9,178

100.0

Retail subtotal:
Canal City Business Center
Building
Gofukumachi Business Center
Sanix Hakata Building
Taihaku Street Business Center
Higashi Hie Business Center
Tenjin Nishi-Dori Center
Building
Tenjin North Front Building
Higashi Hie Business Center II
Office buildings subtotal:
Amex Akasakamon Tower
City House Keyaki Dori
Aqualia Chihaya
D-Wing Tower
Granfore Yakuin Minami
Hotel FORZA Oita

Others subtotal:
Total
Note 1:

Note 2:

Note 3:Note 4:Note 5:Note 6:

10 [437](Note 2)102
[1,003](Note 2)

“Number of tenants” is based on the total number of sections stipulated in the tenancy agreements for retail and officebuildings 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 BusinessCenter is an office building with a residential tower. Its number of end tenants comprises 12 offices and 55 residences.
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
in the totals column for “Number of tenants.”“Occupancy rate” refers to the percentage of total leased floor space to total leasable floor space and the figures arerounded off to one decimal place.
“Total leasing revenues” is the total of real estate leasing revenues and other revenues from real estate rent in the current
fiscal period.
“Percentage of total leasing revenues” is obtained by dividing each property’s total leasing revenues by the total amount of
total leasing revenues. The total of individual percentages in the above table may not equal 100%, since the figures arerounded off to one decimal place.
The figures are not disclosed as no consent to disclosure has been obtained from the tenants.

17

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2018(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 May 29, 2018).

18