October 19, 2006

FINANCIAL RESULTS
FOR THE TERM ENDED AUGUST 2006
(March 1, 2006 to August 31, 2006)
Name of real estate
investment trust

Fukuoka REIT Corporation

Listed Stock
Exchanges

Code number

8968(URL: http://www.fukuoka-reit.jp/eng/)(Asset manager) Fukuoka Realty Co., Ltd.
Person in charge Hisashi Okita,
Senior Managing Director,
General Manager ofFinance Division,
Phone: +81-92-272-3900
October 19, 2006

Headquarters

Contact

Date of board of directors
meeting for approval of
financial results
Commencement date of
cash distribution

Tokyo Stock
Exchange, Fukuoka
Stock Exchange
Fukuoka Prefecture

November 22, 2006 (planned)

1. PERFORMANCE AND SITUATION OF ASSETS FOR THE TERM ENDED AUGUST 2006
(March 1, 2006 to August 31, 2006)(1) Performance

Term ended August 2006
Term ended February 2006

Net income
per unit

Operating revenues
Millions of
%
yen
4,496
11.0
4,050
—

Return on
net assets(Figures rounded off to nearest million yen.)
Operating income
Ordinary income
Net income
Millions of%Millions of%Millions of
%
yen
yen
yen
1,983
13.3
1,716
1.0
1,715
1.1
1,751
—
1,698
—
1,697
—

<Reference>(Annualized
figures)

Ratio of ordinary
income to total
liabilities and net
worth
%
1.7

<Reference>(Annualized
figures)

Ratio of ordinary
income tooperatingrevenues
%
38.1

Yen
%
%
%
Term ended
18,631
3.4
(6.7)
(3.4)
August 2006
Term ended
18,438
3.3
(6.7)
1.9
(3.8)
41.9
February 2006
(Notes) (i) The calculation period for the term ended August 2006 is 184 days, from March 1, 2006 to August 31,
2006; for the term ended February 2006 is 181days, from September 1, 2005 to February 28, 2006.
(ii) Net income per unit is calculated by dividing the net income by the weighted average number ofinvestment units outstanding for the period (92,050 units for the terms ended February 2006 and August2006).
(iii) Changes in accounting policies: Yes(iv) Percentage changes of operating revenues, operating income, ordinary income and net income from theprevious term are omitted for the term ended February 2006 since the calculation period of thecorresponding fiscal term exceeds the ordinary calculation period (six months).
(v) Concerning the return on net assets and ratio of ordinary income to total liabilities and net worth, theaverage of net assets and total liabilities and net worth at the beginning and end of the term are used fortheir calculations.

1(2) Cash distributions(Total cash distributions are rounded off to the nearest million yen.)Cashdistribution perunit (excl. cash
distributions inexcess of
earnings)

Total cash
distribution

Cashdistribution inexcess of
earnings per
unit

Total cash
distributions
in excess ofearnings

Payout ratio

Term ended
1,715
18,632 yen
0 yen–million yen
100.0%
August 2006
million yen
Term ended
1,697
February
18,438 yen
0 yen–million yen
99.9%
million yen
2006(Note) Concerning the payout ratio, all numbers after the first decimal place are disregarded.

Ratio of cash
distribution toterm-end net
assets3.4%
3.3%(3) Financial condition
Total assets(Total assets and net assets are rounded off to the nearest million yen.)
Ratio of net assets to
Net assets
Net assets per unit
total assets

Term ended August
104,183 million yen
50,754 million yen
48.7%
551,377 yen
2006
Term ended
94,593 million yen
50,865 million yen
53.8%
552,580 yen
February 2006
(Note) The number of investment units issued and outstanding at end of term: 92,050 units as of August 2006
92,050 units as of February 2006

2. FORECAST OF PERFORMANCE FOR THE TERM ENDING FEBRUARY 2007 (Sept. 1,
2006 to Feb. 28, 2007) AND THE TERM ENDING AUGUST 2007 (Mar. 1, 2007 to Aug. 31,
2007)

Operatingrevenues

Ordinary
incomeNet income

Cash distribution
per unit (excl. cash
distributions inexcess of earnings)
Yen

Cash
distribution inexcess of
earnings per unit
Yen

Millions of yen Millions of yen Millions of yen
Term ending
4,803
1,822
1,819
17,0000February 2007
Term ending
5,088
1,886
1,884
17,6000August 2007
(Reference) Forecast net income per unit (Term ending February 2007) 17,000 yen, (Term ending August 2007)
17,600 yen(Notes) Forecast figures are calculated based on the attached reference material, “Preconditions for performance
forecast for the term ending February 2007 (Sept. 1, 2006 to Feb. 28, 2007) and for the term ending August
2007 (Mar. 1, 2007 to Aug. 31, 2007).” The forecast should not be construed as a guarantee of actual
performance since actual operating revenues, ordinary income, net income, cash distribution per unit, andcash distribution in excess of earnings per unit may differ due to changes in the business environment.

3. Management situation(i) Summary for the current fiscal term(a) Brief history of the investment corporation
FRC was established on July 2, 2004 based on the “Investment Trust and Investment Corporation
Law of Japan” and listed on the Tokyo Stock Exchange and Fukuoka Stock Exchange on June 21,2005 as the nation’s first real estate investment trust specializing in regional properties (code : 8968).
FRC invests in real estates through the entire area of Kyushu (including Okinawa Prefecture), with acentral focus on Fukuoka City and Yamaguchi Prefecture by turning regional characteristics in thereal estate industry into its strength.
FRC began its asset management activities on November 9, 2004 after acquiring four properties
such as commercial facilities in Canal City Hakata (excluding some specialty shops, hotels, offices2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 previous fiscal term (February 28, 2006), FRC has seven properties (excluding
silent partnership interests). FRC acquired one “A”-class office building (a blue-chip property thatmeets its original acquisition criteria such as location, size, specifications, and age; the same
hereinafter).
As a result, FRC now has eight properties (excluding silent partnership interests), four commercial
facilities and four office buildings in its portfolio as of the end of the current fiscal term (August 31,
2006).
(b) Investment environment and portfolio performance
There were clear signs for recovery for the Japanese economy in the fiscal term, thanks to increased
capital expenditures on the back of strong corporate earnings and solid consumer spending
supported by increasing wages.
Although land prices still continued to decline throughout the nation, some visible indications ofturning around were seen in the real estate market, with land prices in the centers of three largest
cities clearly rising. In Fukuoka City, a core area of FRC’s investment target area, commercial landsin the city center rose sharply.
In such a business environment, FRC acquired the Taihaku Street Business Center Building, its
fourth “A”-class office building in the JR Hakata Station area, on March 16, 2006. On March 31,
2006, FRC signed a purchase contract for the City House Tenjin Keyaki Street (provisional name,expected completion date of November 30, 2007, expected acquisition date of December 20, 2007),a rental apartment located in one of the prominent residential areas in Fukuoka City.
When analyzing FRC’s portfolio by geographic location, properties in the Fukuoka urban area
occupy 75.0% of its portfolio, while analyzing by property type, commercial facilities and officebuilding account for 59.7% and 40.3%, respectively.
The occupancy rate of properties FRC owns stands at 99.4% as of the end of the current fiscal term,
thanks to our efforts including operations placed on enhancing competitiveness and customer
drawing power in major commercial facilities such as Canal City Hakata, as well as measures toraise the occupancy rate in office buildings.
(c) Summary of fundraising
FRC raised 9,000 million yen for acquisition of the Taihaku Street Business Center Building throughshort-term borrowings, and refinanced its short-term borrowings to procure 16,000 million yen
through long-term borrowings in anticipation of rising interest rates in the future. Managementattempted to increase the ratio of longer-term fixed-rate borrowings and thus diversify its fundingbase. As a result, fixed-rate borrowings account for 65.6% of total borrowings (including interest
rates swap). Moreover, outstanding interest-bearing liabilities amounted to 42,700 million yen andthe loan-to-value ratio stood at 41.0% at the end of the current fiscal term. To implement cash
management efficiently and flexibly, FRC established a commitment line of credit totaling 5,000
million yen.
In the meantime, FRC passed a resolution for issuance of new investment units (15,000 units), thefirst issuance since its listing on August 17, 2006, in order to raise funds used for acquisition of new
specific assets.
(d) Summary of performance and cash distribution
As a result of these management efforts, operating revenues totaled 4,496 million yen and operating
income after excluding operating expenses such as rental business expenses and asset management
fees amounted to 1,983 million yen. Ordinary income and net income reached 1,716 million yen and
1,715 million yen, respectively.

3

Management decided to make a cash distribution of 18,632 yen per investment unit to meet therequirements of special tax measures for an investment corporation (as stipulated under Article
67-15 of the Special Taxation Measures Law of Japan). Under this Law, an investment corporation isallowed to deduct distributions paid to investors from its taxable income if most of theunappropriated earnings as of the end of the current fiscal term are distributed.
(ii) Forecast for the next fiscal term(a) Portfolio management policy
FRC will invest based on the basic policy stipulated in its Articles of Incorporation and its basic
philosophy: focusing on “high growth potential markets in which FRC can demonstrate its
competitive edge.”
By geographic location, FRC decides to invest 60% to 90% of its assets in the Fukuoka urban area.
Especially Fukuoka City, a core city in the Fukuoka urban area, is a promising area with highgrowth potential since the city is expected to have the greatest population growth of any urban area
in Japan in the future. Moreover, management decides to actively acquire properties in major cities
in Kyushu and Yamaguchi Prefecture besides the Fukuoka urban area if FRC can generate sufficientinvestment merits from community-oriented viewpoints.
By property type, FRC decides to invest 60% to 80% of its assets in commercial facilities, 20% to
40% in office buildings, and 0% to 20% in other properties. Management continues to invest incommercial facilities mainly to expand its portfolio. Among commercial facilities, FRC plans toinvest in various types of facilities, not only relatively larger facilities such as urban type (midtowntype) and regional type (large suburban type), but also community-type facilities (neighborhoodtype).
Meanwhile, concerning fundraising, FRC succeeded in converting its financing into fixed-rate,
longer-term borrowings and in building stronger relationships with financial institutions.
Management will strive to secure more stable access to capital by closely monitoring market
conditions including interest rate trends.
Management expects that recovery in land prices will become more apparent with more intensifying
competition for acquisition of properties in major regional cities including Fukuoka. FRC will
acquire high quality properties for further expansion of its portfolio by avoiding competition as
much as possible and using its advantages wisely, such as its information gathering abilities in the
Fukuoka and Kyushu areas, its thorough knowledge of regional properties, and its close relations
with local business communities and governments, so that investors can continue to invest in FRC
with confidence.
(b) Performance forecast for the next fiscal term
FRC aims to achieve the following performance goals for the term ending February 2007 (Sept. 1,
2006 to Feb. 28, 2007) and the term ending August 2007 (Mar. 1, 2007 to Aug. 31, 2007).
Concerning the preconditions for the forecast, please refer to “Preconditions for the performance
forecast for the term ending February 2007 (Sept. 1, 2006 to Feb. 28, 2007) and for the term ending
August 2007 (Mar. 1, 2007 to Aug. 31, 2007)” described on page 4.
Term ending February 2007
Operating revenues
Ordinary income
Net income
Cash distribution per unit
Cash distribution in excess of earnings per unit

4,803 million yen
1,822 million yen
1,819 million yen
17,000 yen
0 yen

Term ending August 2007
Operating revenues
Ordinary income
Net income

5,088 million yen
1,886 million yen
1,884 million yen

4Cash distribution per unit
Cash distribution in excess of earnings per unit

17,600 yen
0 yen(Notes) The above forecast figures are calculated based on certain assumptions. The forecast should not be
construed as a guarantee of actual performance since actual operating revenues, ordinary income, net
income, cash distribution per unit, and cash distribution in excess of earnings per unit may differ due tochanges in the business environment.

4. Financial statements(i)Balance sheet(Thousands of yen)
Fiscal term

Account
AssetsI. Current assets
Cash and deposits
Cash and deposits in trust
Accounts receivable
Deferred tax assets
Consumer taxes
receivable
Other current assets
Total current assets
II. Fixed assets
1. Tangible assets
Buildings
Structures
Land
Buildings in trust
Structures in trust
Machinery and equipmentin trust
Tools, furniture andfixtures in trust
Land in trust
Construction in progressin trust
Total tangible assets
2. Investments and otherassetsInvestment securities
Guarantee deposits
Long-term prepaid
expenses
Total investments and otherassetsTotal fixed assets
III. Deferred assets
Start-up expenses
Total deferred assets
Total assets

Current term(as of Aug. 31, 2006)
Component
Amountratio%

Previous term(as of Feb. 28, 2006)
Component
Amountratio%

2,935,049
3,430,267
333,80819

1,424,770
2,585,615
132,64118

1,510,279
844,652
201,166
089,196—89,196

252,634
7,040,976

6.8

75,851
4,218,898

4.5

ChangeAmount176,7822,822,078

140,384843
641,782
37,987,229
209,848

144,085—
641,782
34,315,688
210,008-3,701843—
3,671,541-160

244,503

213,028

31,475

214,652

183,628

31,023

54,117,497

51,069,002

3,048,494

24,45738,889-14,431

93,581,200

89.8

86,816,115

91.8

6,765,085

3,421,633
10,0003,421,633
10,000——101,252

93,443

7,808

Term-on
-Term
%

66.9

7.8

3,532,885

3.4

3,525,077

3.7

7,808

0.2

97,114,086

93.2

90,341,192

95.5

6,772,894

7.5

27,977
27,9770.0

33,57233,5720.0-5,595-5,595-16.7

104,183,040

100.0

94,593,663

100.0

9,589,377

10.1

5

(Thousands of yen)
Fiscal term

Account

Current term(as of Aug. 31, 2006)

Previous term(as of Feb. 28, 2006)

Component
ratio

AmountLiabilities
I. Current liabilities
Accounts payable
Short-term borrowings
Accrued liabilities
Accrued expenses payable
Accrued corporate income
taxes
Advances received
Deposits received
Total current liabilities
II. Fixed liabilities
Long-term borrowings
Security deposits andguarantee money
Security deposits andguarantee money in trust
Derivative liabilities
Total fixed liabilities
Total liabilities
Net worthI. Unitholders’ equity
1. Unitholders’ capital
2. Retained earnings
Unappropriated retained
earnings
Total retained earnings
Total unitholders’ equity
II. Other changes in net assets
1. Deferred hedge profit orloss
Total other changes in net
assetsTotal net worth
Total liabilities and net worth
Unitholders’ equity
I. Unitholders’ capital
Unitholders’ capital
II. Retained earnings
Unappropriated retained
earnings
Total retained earnings
Total unitholders’ equity
Total liabilities andunitholders’ equity

Amount%ChangeComponent
ratio

Amount%232,183
8,100,000
46,319250,629

313,223
15,100,000
41,889228,055-81,039-7,000,000
4,430
22,574

975

1,036

-61

535,254
736,848
9,902,209

481,088473,399
16,638,691

54,165
263,448-6,736,482

9.5

17.6

34,600,000

18,600,000

16,000,000

103,128

107,661-4,5338,694,810

8,382,254

312,555

TermonTerm
%

-40.5

128,594
43,526,532
53,428,742

41.8
51.3

—
27,089,916
43,728,608

28.6
46.2

128,594
16,436,616
9,700,134

60.7
22.2

49,167,800

47.2

—

—

49,167,800—

1,715,092
1,715,092
50,882,892

—
1.6
48.8

-128,594——

1,715,092———

1,715,092
50,882,892——-128,594-128,594

-0.1

—

—

-128,594—

50,754,298
104,183,040

48.7
100.0

—
—

—
—

50,754,298
104,183,040

—
—

—

—

49,167,800

52.0-49,167,800——

1,697,255-1,697,255

—
—

—
—

1,697,255
50,865,055

1.8
53.8

-1,697,255-50,865,055

—
—

—

—

94,593,663

100.0-94,593,663—

6

(ii) Income statement(Thousands of yen)
Fiscal term

Account

Current term (Mar. 1, 2006
to Aug. 31, 2006)
AmountI. Operating revenues
Real estate rental revenues
Other real estate rental
revenues
Distribution from silent
partnerships

4,496,048
4,231,464

II. Operating expenses
Real estate rental
expenses
Asset management fees
Asset custodian fees
Outsourcing fees foradministrative works
Directors’ remunerations
Other operating expenses
Operating income

2,512,620

III. Non-operating revenues
Interest received
Tax-exempt enterprises’
consumption taxes
Other non-operating
revenues
IV. Non-operating expenses
Interest paid
Amortization of start-up
expenses
Loan-related expenses
Other non-operating
expenses
Ordinary income
Income before income taxes
Corporate income taxes andenterprise taxes
Income taxes deferred
Net income
Retained earnings brought
forward from previous term
Unappropriated retained
earnings

Percentage%
100.0

Previous term (Sept. 1,
2005 to Feb. 28, 2006)
Amount
4,050,927
3,879,589

Percentage%
100.0

ChangeAmount445,120
351,875

128,583

171,338-42,754

136,000—

136,000

55.9

2,299,570

56.8

213,049

2,123,240

1,959,121

164,118

273,293
8,344

249,046
7,590

24,246754

32,192

29,572

2,620

9,600
65,9481,983,427
368
368

9,600
44,6391,751,357
131,17120—
21,309232,070-130,803
347

44.1
0.0

43.2
3.2

—

128,104-128,104—

3,046-3,046

267,693
171,148

6.0

184,240
133,328

4.5

83,45237,819

5,595

5,595

—

89,09939,33449,764

1,850

5,981

-4,131

Term-onTerm
%
11.0

9.3

13.3
-99.7

45.3

1,716,102
1,716,102

38.1
38.1

1,698,288
1,698,288

41.9
41.9

17,814
17,814

1.0
1.0

1,048

0.0

1,040

0.0

8

0.8

-0
1,715,054

0.0
38.1

24
1,697,223

0.0
41.9

-25
17,831

—
1.1

37

31

5

1,715,092

1,697,255

17,836

7

(iii) Cash distribution statement
Account
I. Unappropriated retained earnings
II. Total cash distributions(Cash distribution per unit)
III. Retained earnings carried forward
Method for calculating cash
distributions

Current term
(Mar. 1, 2006 to Aug. 31, 2006)
1,715,092,253 yen
1,715,075,600 yen(18,632 yen)
16,653 yen
FRC shall decide the amount of cash
distributions, which must exceed
90% of FRC’s distributable income
as stipulated in Article 67-15 of theSpecial Taxation Measures Law ofJapan (Article 38-1-1 of FRC’s
Articles of Incorporation). For thecurrent fiscal term, cash distributions
as income distributions totaled
1,715,075,600 yen, which is almost
the entire amount of unappropriatedearnings. Moreover, cash
distribution in excess of earnings as
stipulated in Article 38-2 of FRC’s
Articles of Incorporation will not beprovided.

8

Previous term
(Sept. 1, 2005 to Feb. 28, 2006)
1,697,255,419 yen
1,697,217,900 yen(18,438 yen)
37,519 yen

FRC shall decide the amount of cash
distributions, which must exceed
90% of FRC’s distributable income
as stipulated in Article 67-15 of theSpecial Taxation Measures Law ofJapan (Article 38-1-1 of FRC’s
Articles of Incorporation). For thecurrent fiscal term, cash distribution
as income distributions totaled
1,697,217,900 yen, which is almost
the entire amount of unappropriatedearnings. Moreover, cash
distribution in excess of earnings as
stipulated in Article 38-2 of FRC’s
Articles of Incorporation will not beprovided.

4. Cash flow statement
Fiscal term

Current term (Mar.1, 2006
to Aug. 31, 2006)

Account
I. Cash flows from operating activities
Net income before income taxes
Depreciation and amortization expenses
Amortization of start-up expenses
Interest received
Interest paid
Increase or decrease in accounts receivable
Increase or decrease in accrued consumption taxes
Increase or decrease in accounts payable
Increase or decrease in accrued liabilities
Increase or decrease in accrued expenses
Increase or decrease in advances received
Increase or decrease in deposits received
Increase or decrease in prepaid expenses
Increase or decrease in long-term prepaid expenses
OthersSubtotal
Receipt of interest
Payment of interest
Payment of Corporate income taxes
Cash flows from operating activities(Thousands of yen)Previous term (Sept. 1,
2005 to Feb. 28, 2006)

1,716,102
619,112
5,595-368
171,148-201,166-89,196-86,287
25,103
12,67354,165
251,306-53,923-7,808-7,8982,408,557
368-161,247-1,1092,246,568

1,698,288
562,577
5,595-20
133,328
49,316
1,595,230
35,576-99,281-33,046
15,605-268,582
40,161
16,51233,146
3,784,407
20-99,974-2,204
3,682,249—-7,380,419-786,459-4,822,962-114,960——
109,928-4,533399,921-2,266
393,015-75,223-120,276-20,212-7,195,428-3,401,421-8,630,441

20,700,000-27,700,000
16,000,000-1,696,208
7,303,791
2,354,931

8,100,000-1,000,000—-1,740,716
5,359,283
411,091

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

4,010,386

3,599,294

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

6,365,317

4,010,386

II. Cash flows from investing activities
Payment for acquisition of tangible fixed assets
Payment for acquisition of tangible fixed assets intrust
Payment for down payments
Proceeds from security deposits and guarantee
money
Payment for security deposits and guarantee money
Proceeds from security deposits and guaranteemoney in trust
Payment for security deposits and guarantee moneyin trust
Payment for acquisition of investment securities
Cash flows from investing activities
III. Cash flows from financing activities
Proceeds from short-term borrowings
Repayment of short-term borrowings
Proceeds from long-term borrowings
Payment of cash distributions
Cash flows from financing activities
IV. Increase or decrease in cash and cash equivalents

95. Reference information(1) Investment situation

Type of asset

PurposeLocation(Note 1)

Current term(as of August 31, 2006)
Total value ofPercentage
properties held
to total(Millions ofassets valueyen)(%)(Note 5)Previous term(as of February.28, 2006)
Total value ofPercentage
properties held
to total(Millions ofassets valueyen)(%)(Note 5)

—

—

—

—

783

0.7

785

0.8

—

—

—

—

—

—

—

—

783

0.7

785

0.8

32,20230.9

32,33734.2

22,97522.1

23,10524.4

37,59536.1

30,548

32.3

—

—

—

—

Fukuokaurban area
Other Kyushu
areasReal estate
Fukuoka
Officeurban areabuilding
Other Kyushu
areas
Subtotal
FukuokaCommercial
urban area
facility
Other Kyushu
areasReal estates
Fukuokain trust
Officeurban areabuilding
Other Kyushu
areas
SubtotalInterests in silent partnership (Note 6)
Deposits and other assets (Note 2)
Total assets
Commercial
facility

Note 1:

Note 2:
Note 3:Note 4:Note 5:Note 6:

92,77389.1
85,991
90.9
3,421
3.3
3,421
3.6
7,204
6.9
4,394
4.7
104,183
100.0
94,593100.0(97,002)(93.1)(90,237)(95.4)“Fukuoka urban area” refers to cities, towns and villages where 10% or more of the population commute to
Fukuoka City for schooling and work, according to the 2000 census, which states “the number of workers
and students aged 15 years or older commuting between their homes and places of their work or schooling”
conducted by Fukuoka City and the Statistics Bureau of the then Ministry of Public Management, Home
Affairs, Posts and Telecommunications (now the Ministry of Internal Affairs and Communications).
“Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka urban area) andYamaguchi Prefecture.
The amount of construction in progress is included in deposits and other assets.
Figures in parentheses in total assets value refer to the percentage of real estates held in real terms to total
assets.
Concerning the percentage to total assets value, all numbers after the second decimal place are disregarded.
“The total value of properties held” is based on figures on the balance sheet (the value of real estate and realestate in trust is a book value after depreciation).
Preferred interests in silent partnerships are capital contributions to an SPC (CCH Bridge LLC), whichowns and manages “Canal City Hakata SPC holding section,” a section of the whole Canal City Hakata (acommercial complex where specialty shops, a cinema complex, theaters, amusement facilities, hotels andoffices are integrally developed), but excluding the section the Corporation has already held.

10(2) Real estate investment portfolio
Values and investment ratios at end of term are as follows.
Name of property

Acquisition
value(Note 1)
(Millions ofyen)

Value onbalancesheet(Millions ofyen)

Term-end
appraisal value(Note 2)
(Millions ofyen)

Investment
ratio(Note 3)(%)

32,00032,202

34,70034.7

15,70016,323

18,200

17.0

6,633

6,652

7,130

7.2

740

783

780

0.8

14,60014,632

15,60015.8

11,20011,115

12,700

12.1

4,400

4,616

4,780

4.8

Canal City Hakata
Park Place Oita
SunLive City Kokura
Kominedai Community
Mall
Canal City BusinessCenter Building
Gofukumachi BusinessCenter Building
Sanix Hakata Building

Real estate appraiser

TANIZAWA SOGOAPPRAISAL CO., LTD.
Japan Real Estate
InstituteJapan Real Estate
Institute
All Real EstateAppraisers Network Co.,Ltd.
TANIZAWA SOGOAPPRAISAL CO., LTD.
TANIZAWA SOGOAPPRAISAL CO., LTD.
Japan Real Estate
InstituteJapan Real Estate
Institute

Taihaku Street Business
7,000
7,231
7,560
7.6
Center Building
Total
92,27393,556
101,450100.0Note 1: “Acquisition value” refers to the purchasing price shown on the purchasing contract, which does notinclude expenses for acquisition of the relevant property (agency fees, taxes and other public charges).
Note 2: The term-end appraisal values shown refer to evaluated values based on appraisals by a real estate appraiserthat conforms with the method and standard for asset evaluation stipulated in FRC’s Articles ofIncorporation and rules stipulated by the Investment Trusts Association, Japan.
Note 3: “Investment ratio” refers to the percentage of the acquisition value of each property to total acquisition
values.

Summary of real estate rental business at end of term is as follows.
Name of property

Numberof tenants(Note 1)

Occupancy
rate(%)(Note 2)
100.0
99.5

Total
leasable
space (m2)

Total leased
space (m2)

Total rental
revenues(Millions of yen)
(Note 3)
1,387
912

Percentage tototal rental
revenues
(%)
31.8
20.9

Canal City Hakata
25
47,858.67
47,858.67
Park Place Oita
80
100,664.83
100,171.80
SunLive City
1
100.0
61,450.22
61,450.22
290
6.7
KokuraKominedai
4
100.0
3,743.12
3,743.1235
0.8Community Mall
Canal City
Business Center
44
96.5
23,011.85
22,213.89
674
15.5
Building
Gofukumachi
Business Center
19
100.0
19,906.21
19,906.21
559
12.8
Building
Sanix Hakata
13
100.0
6,293.67
6,293.67
205
4.7
Building
Taihaku Street
Business Center
64
98.3
14,651.87
14,397.50
293
6.8
Building(Note 4)
Total
250
99.4 277,580.44
276,035.08
4,360
100.0
Note 1: The number of tenants shown is based on the total number of sections stipulated in the tenancy agreements
for commercial and office buildings among the relevant properties. As for the number of tenants inpass-through master leasing properties, the number of sections stipulated in the tenancy agreements withend tenants is shown.
Note 2: “Occupancy rate” refers to the percentage of total leased space to total leasable space as of August 31,
2006.

11

Note 3: The total rental revenues shown are the results of the real estate rental business in the current fiscal term.
During this time, FRC acquired the Taihaku Street Business Center Building on March 16, 2006.
Note 4: The Taihaku Street Business Center Building is an office building with residential blocks. The breakdownof the tenants is nine offices and 55 residents.

Occupancy rates of properties for the past five years are as follows.
Name of property

Aug. 31, 2002
(%)
100.0
99.9
—
100.0

Aug. 31, 2003
(%)
100.0
100.0
—
100.0

Aug. 31, 2004
(%)
100.0
99.9
—
100.0

Aug. 31, 2005
(%)
100.0
99.9
100.0
100.0

Aug. 31, 2006
(%)
100.0
99.5
100.0
100.0

Canal City Hakata
Park Place Oita
SunLive City Kokura (Note 2)
Kominedai Community Mall
Canal City Business Center
94.9
92.1
93.6
98.5
Building
Gofukumachi Business Center
—
—
100.0
100.0
Building (Note 3)
Sanix Hakata Building————(Note 4)
Taihaku Street Business————Center Building (Note 4)
Note 1: “Occupancy rate” is the percentage of total leased space to total leasable space as of the base date.
Note 2: SunLive City Kokura was completed on March 17, 2005.
Note 3: Gofukumachi Business Center Building was completed on October 16, 2003.
Note 4: The occupancy rates shown are actual figures after FRC took over management.

12

96.5
100.0
100.0
98.3