Provisional translation only
October 13, 2016
EARNINGS BRIEFING
FOR THE PERIOD ENDED AUGUST 2016
URL: http://www.fukuoka-reit.jp/eng/
Stock listings: Tokyo Stock Exchange, andFukuoka Stock Exchange
Representative: Etsuo Matsuyuki CEO & Representative Director

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

Asset manager: Fukuoka Realty Co., Ltd.
Representative: Etsuo Matsuyuki CEO & Representative Director
Contact: Hidenori Hara
Managing Director and Head of Planning Dept.
Phone: +81-92-272-3900
Expected date for submitting securities report:
Expected commencement date of dividend payments:
Supplementary documents for earnings briefing
Analyst meeting (for institutional investors and analysts)

November 29, 2016
November 18, 2016
Yes
Yes
(Figures rounded down to nearest mm yen.)

1. PERFORMANCE AND SITUATION OF ASSETS FOR THE PERIOD ENDED AUGUST 2016
(March 1, 2016 to August 31, 2016)(1) Performance
Operating revenues
mm of yen%
Period ended
August 2016
Period ended
February 2016

8,234

(1.3)

3,069

(2.3)

2,616

(2.0)

938

(64.8)

8,343

(0.9)

3,141

(0.8)

2,670

0.3

2,669

0.3

Profitper unit
Period ended
August 2016
Period ended
February 2016(% shows percentage change from previous period)
Operating income
Ordinary income
Profitmm of yen
% mm of yen% mm of yen%

Ratio ofordinary income to total
assetsReturn on
net assets

Ratio ofordinary income tooperating revenues

1,256 yen

1.0%

1.4%

31.8%

3,573 yen

2.8%

1.5%

32.0%

Dividend
Total
per unit
Dividend
dividend(excl.
in excess(excl. dividend
dividend inof earnings
in excess ofexcess of
per unit
earnings)
earnings)

Total
dividendin excess ofearnings(2) Dividends
Dividend
Total dividend
Ratio ofper unit(incl. dividend Payout dividend(incl. dividend inin excess ofratio
to netexcess of
earnings)
assetsearnings)

Period ended
3,479 yen 2,598 mm yen 100.0%
1.0%
1,256 yen 938 mm yen 2,223 yen 1,660 mm yen
August 2016
Period ended
0 yen
0 mm yen
3,574 yen 2,669 mm yen 100.0%
2.8%
3,574 yen 2,669 mm yen
February 2016
(Note) The entire dividend in excess of earnings for the period ended August 2016 came from reserve for temporary difference adjustments.

(3) Financial condition
Period ended
August 2016
Period ended
February 2016

Ratio ofnet assets to total assets

Total assets

Net assets

Net assets per unit

179,513 mm yen

92,081 mm yen

51.3%

123,267 yen

181,445 mm yen

93,812 mm yen

51.7%

125,585 yen(4) Cash flows condition
Cash flows fromoperating activities
Period ended
August 2016
Period ended
February 2016

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at endof period

4,336 mm yen(772) mm yen(3,043) mm yen

8,873 mm yen

4,174 mm yen(606) mm yen(2,747) mm yen

8,353 mm yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

2. FORECAST OF PERFORMANCE FOR THE PERIOD ENDING FEBRUARY 2017 (September 1,
2016 to February 28, 2017) AND THE PERIOD ENDING AUGUST 2017 (March 1, 2017 to August
31, 2017)
Operatingrevenues
mm of yen
Period ending
February 2017
Period ending
August 2017(% shows percentage change from previous period)
Dividend
Operating income Ordinary income
Profitper unit
Dividend(excl.
in excess ofdividend in earnings% mm of yen% mm of yen% mm of yen% excess of
per unit
earnings)

17.9

4,517

47.2

4,127

57.8

4,126

339.7

3,300 yen

0 yen

8,008 (17.5)

2,820(37.6)

2,466 (40.2)

2,465(40.2)

3,300 yen

0 yen

9,707

(Reference) Forecast profit per unit:

Period ending February 2017
5,524 yen
Forecast profit per unit:
Period ending August 2017
3,300 yen
(Note) For the period ending February 2017, FRC anticipates recording of 1,655 mm yen as gain on sale, etc. of Aqualia Kego, which isscheduled to be transferred on November 29, 2016. Moreover, while FRC anticipates profit of 4,126 mm yen for the period ending
February 2017, total dividend is forecast to be 2,465 mm yen as FRC plans to reverse the reserve for temporary difference adjustments
amounting to 1,660 mm 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):
747,000 units at end of August 2016
747,000 units at end of February 2016(ii) Treasury investment units at end of period:— units at end of August 2016
— units at end of February 2016
Note: Regarding the number of investment units, a basis for calculating profit per unit, please refer to “Per unit
information,” on page 13.

* Statement on Implementation Status of Audit Procedure
This Earnings Briefing (“Kessan Tanshin” in Japanese) report is outside the scope of the auditing
procedure under the Financial Instruments and Exchange Act. As of the publication of this report, noauditing procedure under the Financial Instruments and Exchange Act has been completed for thefinancial statements.
* On the adequate use of performance forecasts and other items warranting special mention
Forecast figures are calculated based on information available on the date of release of the forecast andcontain uncertain factors to a large extent. Actual operating revenues, operating income, ordinary
income, 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 thepreconditions for the above forecast figures please refer to “2. Portfolio Management Policy andManagement Situation, (2) Management situation – Preconditions for the performance forecast for theperiod ending February 2017 (September 1, 2016 to February 28, 2017) and the period ending August
2017 (March 1, 2017 to August 31, 2017)” on page 6.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

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” (January 2016).

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 31, 2016).

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 31, 2016).
(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 listedon the Tokyo Stock Exchange Group Inc. and the Fukuoka Stock Exchange on June 21, 2005 as thenation’s first real estate investment trust specializing in regional properties (code number: 8968). FRC
invests in real estate throughout all of Kyushu (including Okinawa Prefecture), with a central focus on
Fukuoka City, and Yamaguchi Prefecture (hereinafter the “Fukuoka/Kyushu area) by turning regional
characteristics in the real estate industry, into strengths.
FRC started asset management activities on November 9, 2004 after acquisition of four properties such as
Retail in Canal City Hakata (excluding some areas of specialty shops, hotels, theaters, offices andcommon space), a commercial complex where specialty shops, cinema complex, theaters, amusement
facilities, hotels and offices are integrally developed (hereinafter “Canal City Hakata”). As of the end of
the current fiscal period (August 31, 2016), FRC manages a total of 27 properties comprising 11 Retail, 7
Office buildings and 9 Others.
(b) Investment environment and portfolio performance
During the fiscal period under review, the Japanese economy remained on course for a modest recovery
although weakness can be identified. Looking ahead, with the employment and income environment
continuing to improve, the economy is expected to head for a moderate recovery due to various politicalmeasures proving effective. In the Fukuoka and Kyushu area, the core investment target area for FRC, theeconomy was rapidly pressed downward, primarily in the production and tourism sectors, due to restrictedsupply and reduced demand resulting from the 2016 Kumamoto Earthquake (hereinafter the “Kumamoto
Earthquake”). As the impact of the Kumamoto Earthquake is mitigated, however, the economy is picking
up moderately. While consumers still keep cautious sentiment, the impact of the earthquake on businessactivities is softening. The tourism sector is also picking up as a whole, with a variety of measures tosupport and encourage tourism starting to prove effective.
As for land price trends, the national average over the past year from July 2015 showed a slower rate ofdecrease in terms of the combined average for residential and commercial land, according to the 2016
Land Price Survey. By land type, the residential land price decreased at a decelerated pace, and thecommercial land price shifted from a decrease that had continued through last year to a level-off. In
Fukuoka City, the central area of FRC's investment targets, land prices continued rising for the fourthconsecutive year, up 7.3% year-on-year for commercial land and up 2.9% year-on-year for residential
land, marking higher rates of increase.
Under such circumstances, FRC continued its efforts to reinforce competitive advantages and customer
drawing ability at Canal City Hakata and other major retail facilities, 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 99.5% at the end of the 24th fiscal period.
When analyzing FRC’s portfolio (on an acquisition price basis) by investment target area, the investment
ratio in the Fukuoka urban area accounted for 78.1%; when analyzing by property type, Retail, Officebuildings, and Others accounted for 60.7%, 27.0% and 12.3%, respectively.
(c) Summary of fundraising
In the 24th fiscal period, FRC repaid 300 mm yen by using cash on hand for the long-term debt that3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

matured in the period (totaling 5,000 mm yen). As a result, the balance of interest-bearing debt
outstanding (including investment corporation bonds) at the end of the 24th fiscal period totaled 71,950
mm yen, with the loan-to-value ratio (ratio of interest-bearing debt (including investment corporation
bonds) to total assets) at 40.1% and the ratio of fixed-interest rate debt (including investment corporation
bonds) at 80.0% as of the same date. Going forward, FRC will continue its efforts to reduce refinancing
risks by dispersing the debt repayment dates and increasing the average length of time until debt maturity,and to mitigate risks of rising interest rates by shifting to fixed-interest rate borrowings and through othermeasures.
Moreover, the credit ratings assigned to FRC as of the end of the current fiscal period are as follows.
Credit Rating Agency
Standard & Poor's Ratings
Japan K.K. (S&P)
Rating and Investment
Information, Inc. (R&I)
Japan Credit Rating Agency,
Ltd. (JCR)

Rating Type
Long-term Corporate Credit Rating
Short-term Corporate Credit Rating

RatingA−
A−2

Rating Outlook
Positive—

Issuer Rating

A+

StableLong-term Senior Debts Rating

AA−

Stable(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 8,234 mm yen and operating income
after excluding operating expenses such as expenses related to the leasing business and asset management
fees totaled 3,069 mm yen. Ordinary income was 2,616 mm yen. Due to occurrence of the Kumamoto
Earthquake, FRC recorded the insurance benefit (totaling 75 mm yen) for the loss on disaster at its owned
properties (mainly Kumamoto Intercommunity SC) as “insurance income” under extraordinary income. At
the same time, FRC recorded 90 mm yen of costs for restoration work in accordance with the loss on
disaster as “loss on disaster” under extraordinary losses.
Moreover, for the AEON Hara Shopping Center that was disposed on September 30, 2016, FRC reduced
its book value to a recoverable amount in the 24th fiscal period and recorded the reduced amount as
impairment loss (1,660 mm yen) under extraordinary losses. The recoverable amount was estimated basedon the net sale price, and the net sale price was calculated by deducting the estimated disposal expenses
from the actual sale price. The impairment loss consists of land in trust.
As a result, profit was 938 mm yen for the period ended August 31, 2016.
Moreover, based on the policy of paying dividends in excess of earnings as set forth in its Articles ofIncorporation, FRC set reserve for temporary difference adjustments (as set forth in Article 2-2-30 of theRegulations on Calculations of Investment Corporations; the same shall apply hereafter) at 1,660 mm yen
and dividend in excess of earnings per unit at 2,223 yen. Accordingly, dividend per unit came to 3,479
yen.
(ii) Forecast for the next fiscal period(a) Portfolio management policy
FRC will further reinforce management and leasing capabilities by cooperating with property managementcompanies including sponsor companies even in a weak consumer spending environment, and secure andmaintain the stable operation of the properties by making the most use of their advantages.
FRC will make investments based on the basic policy stipulated in its Articles of Incorporation and its
basic philosophy: focusing on “specialized areas in which FRC can demonstrate its competitive edge” thatare in “high growth potential markets.” By geographic location, of Fukuoka and Kyushu areas, FRC will
invest 60% to 90% of its assets in the Fukuoka urban area, since the Fukuoka urban area is expected tohave a high population growth rate in the future. In addition to the Fukuoka urban area, management has
decided to actively acquire properties in major cities, if there are regions or properties where FRC cangenerate investment merits from community-oriented viewpoints. FRC will acquire high quality properties
with adequate use of its advantages, such as information gathering ability in the areas, good knowledge ofregional properties and close relations with the local business community and governments, so thatinvestors can continue to invest in FRC with assurance.
Meanwhile, FRC will build stronger relationships with financial institutions to realize stable fundraisingand try to maintain a solid financial structure.
4

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016(b) Significant events that have occurred after the end of the current fiscal period
No relevant items.
(Reference Information)
FRC acquired Sports Club NAS Park Place Oita on September 1, 2016 and disposed AEON Hara
Shopping Center on September 30, 2016. Moreover, FRC plans to dispose Aqualia Kego on November 29,
2016.
(c) Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending February 2017 (September 1,
2016 to February 28, 2017) and the period ending August 2017 (March 1, 2017 to August 31, 2017).
Concerning preconditions for the forecast, please refer to “Preconditions for the performance forecast forthe period ending February 2017 (September 1, 2016 to February 28, 2017) and the period ending August
2017 (March 1, 2017 to August 31, 2017)” on page 6.
Period ending February 2017
Operating revenues
Operating income
Ordinary income
ProfitDividend per unit (Note 1)
Dividend in excess of earnings per unit

9,707 mm yen
4,517 mm yen
4,127 mm yen
4,126 mm yen
3,300 yen
0 yen

Period ending August 2017
Operating revenues
Operating income
Ordinary income
ProfitDividend per unit
Dividend in excess of earnings per unit

8,008 mm yen
2,820 mm yen
2,466 mm yen
2,465 mm yen
3,300 yen
0 yen

Note 1: FRC plans to reverse the reverse for temporary difference adjustments amounting to 1,660 mm
yen.
Note 2: The above forecast figures are calculated based on certain preconditions. The forecast should not
be construed as a guarantee of actual performance since actual operating revenues, operating
income, ordinary income, profit, dividend per unit and dividend in excess of earnings per unit may
differ due to changes in the business environment.

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

Preconditions for the performance forecast for the period ending February 2017 (September 1, 2016 to February 28,2017) and the period ending August 2017 (March 1, 2017 to August 31, 2017)
Item
Calculation period

Assets undermanagement

Total number ofinvestment units
outstanding

Interest-bearing debt
and refinancing

Operating revenues

Operating expenses

Non-operating
expenses
Reversal of reserve
for temporary
difference
adjustments
Dividend per unit
Dividend in excessof earnings per unit
Other

Preconditions
25th fiscal period: from September 1, 2016 to February 28, 2017 (181 days)
26th fiscal period: from March 1, 2017 to August 31, 2017 (184 days)
 It is assumed that, on the basis of the 27 investment properties FRC owns as of August 31,
2016, FRC completes acquisition of Sports Club NAS Park Place Oita (acquired on
September 1, 2016) and transfer of AEON Hara Shopping Center (disposed on September
30, 2016) and Aqualia Kego (scheduled to be disposed on November 29, 2016),
respectively.
 In practice, they may fluctuate due to changes in assets under management.
 It is assumed that there will be no issuance of new investment units until August 31, 2017.
 The balance of interest-bearing debt outstanding at the end of the period ending February
2017 (February 28, 2017) is expected to total 66,575 mm yen, a decrease of 5,375 mm yenfrom the end of the current period (August 31, 2016). The loan-to-value ratio (interestbearing debt  total assets  100) is expected to stand at around 38.0% (as of August 31,
2016, the loan-to-value ratio stands at 40.1%).
 The balance of interest-bearing debt outstanding at the end of the period ending August
2017 (August 31, 2017) is expected to total 65,600 mm yen, a decrease of 975 mm yenfrom the end of the period ending February 2017 (February 28, 2017). The loan-to-value
ratio (interest-bearing debt  total assets  100) is expected to stand at around 37.7%.
 Of leasing revenues – real estate, revenues from properties FRC has already acquired are
calculated based on tenancy agreements that are valid as of October 13, 2016 by taking
into account the competitiveness of the properties and the market environment.
Of leasing revenues– real estate, revenues from percentage lease contracts are calculated
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.
 For the period ending February 2017, FRC anticipates 1,655 mm yen as gain on sale, etc.
of Aqualia Kego, which is scheduled to be disposed on November 29, 2016.
 When acquiring investment properties, the property taxes and city planning taxes for theassets will be proportionally calculated according to the holding period and adjusted withthe former owner. FRC will not write them off since it will include the relevant adjusted
amount in the acquisition cost.
 FRC writes off estimated repair costs for buildings for the calculation periods (the periods
ending February 2017 and August 2017). Actual repair costs may differ significantly fromthe estimated amounts since there is the possibility that repair costs are incurred urgently
due to damages to buildings caused by unforeseeable factors, repair costs generally differ
largely from period to period, and repair costs are not regularly incurred.
 Concerning outsourcing expenses, FRC anticipates 1,552 mm yen for the period ending
February 2017 and 1,566 mm yen for the period ending August 2017.
 Concerning taxes and other public charges, FRC anticipates 643 mm yen for the period
ending February 2017 and 636 mm yen for the period ending August 2017.
 Concerning depreciation and amortization expenses, FRC anticipates 1,465 mm yen forthe period ending February 2017 and 1,474 mm yen for the period ending August 2017.
 Concerning interest expenses (including interest expenses on investment corporation
bonds) and expenses related to financing, FRC anticipates 385 mm yen for the period
ending February 2017 and 348 mm yen for the period ending August 2017.
 FRC anticipates a reversal of the reverse for temporary difference adjustments totaling
1,660 mm yen for the period ending February 2017.
 Dividend (dividend per unit) is calculated based on the dividend policy stipulated in
FRC’s Articles of Incorporation.
 Dividend per unit may fluctuate due to fluctuations in leasing revenues caused by changes
in assets under management and tenants or various factors including unexpectedoccurrences of repair.
 Dividend in excess of earnings (dividend in excess of earnings per unit) is not planned at
the moment.
 It is assumed that there will be no significant revisions to laws and regulations, the tax
system, and accounting standards that may influence the forecast figures.
 It is also assumed that there will be no significant unexpected changes in general
economic conditions and the real estate market.

(3) Investment risks
The disclosure is omitted, since there are no significant changes from the “Investment risks” disclosed in the latest
securities report (submitted on May 31, 2016).
6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

3. Financial Statements(1) Balance sheet
Account(thousands of yen)
24th fiscal period(as of August 31, 2016)

23rd fiscal period(as of February 29, 2016)

AssetsCurrent assets
Cash and deposits

3,513,400

4,165,198

Cash and deposits in trust

4,905,852

4,775,377

Operating accounts receivable

372,912491,196

Prepaid expenses

284,075

262,218

Deferred tax assets

8

26

6,442

7,859

9,082,690

9,701,876

OthersTotal current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation

84,421,663(20,966,851)

Structures in trust

84,816,296
63,454,811

1,477,663

Accumulated depreciation(559,477)

Machinery and equipment in trust(284,920)

Vehicles and transport equipment in trust

918,185(246)

Tools and fixtures in trust

353,400(973,210)

Lands in trust

889,187(308,433)

366,459

747
500

1,274,834

Accumulated depreciation(597,379)
674,893

747

Accumulated depreciation

62,483,734

1,486,567

638,321

Accumulated depreciation(22,332,561)

(294)

452

1,313,384
301,623(1,014,927)

298,456

104,756,397

103,095,432

19,571

206,478

169,804,490

167,340,202

1,765,318

1,765,318

5,633

3,610

1,770,951

1,768,928

Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

110,000

110,000

Long-term prepaid expenses

628,962

549,999

Total investment and other assets

748,962

669,999

172,324,405

169,779,131

Investment corporation bond issuance expenses

15,392

14,410Investment unit issuance expenses

23,383

17,771

Total deferred assets

38,77632,181

181,445,872

179,513,189

Construction in progress in trust
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

Total assets

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

Account(thousands of yen)
24th fiscal period(as of August 31, 2016)

23rd fiscal period(as of February 29, 2016)

Liabilities
Current liabilities
Operating accounts payable

667,486

639,486-

4,000,000

10,250,000

20,450,000

Accounts payable-other

23,963

12,451

Accrued expenses

353,001

348,865

736

1,242

321,550

107,177

Advances received

1,004,199

1,070,989

Deposits received

777,866

1,202,954

13,398,803

27,833,167

Investment corporation bonds

2,000,000

2,000,000

Long-term debt payable

60,075,000

45,500,000

331,243

371,765

11,828,272

11,727,080

74,234,515

59,598,846

87,633,318

87,432,014

91,142,766

91,142,766

Unappropriated surplus

2,669,786

938,409

Total surplus

2,669,786

938,409

Total unitholders’ equity

93,812,553

92,081,175

Total net assets

93,812,553

92,081,175

Total liabilities and net assets

181,445,872

179,513,189

Short-term debt
Current maturities of long-term debt

Income taxes payable
Accrued consumption taxes

Total current liabilities
Non-current liabilities

Tenant leasehold and security deposits
Tenant leasehold and security deposits received intrust
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016(2) Statement of income(thousands of yen)Account

23rd fiscal period(September 1, 2015 toFebruary 29, 2016)

24th fiscal period(March 1, 2016 toAugust 31, 2016)

7,864,570

7,701,123

Operating revenues
Leasing revenues – real estate
Other leasing revenues – real estate

478,927

8,343,498

533,1078,234,231

Operating expenses
Expenses related to leasing business

4,577,406

4,540,803

493,021492,164

Asset custody fees

6,772

6,841

Administrative service fees

52,47254,537

Director’s compensations

9,600

9,600

Other operating expenses

62,612

Asset management fees

Operating income

5,201,885

61,153

3,141,613

5,165,100
3,069,130

Non-operating revenues
Interest received

780

Others

2,566

114
3,346

893

1,007

Non-operating expenses
Interest expenses

345,071

333,165Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance expenses
Amortization of investment unit issuance expenses

13,20013,200982

982

11,154

5,612

Financing related expenses

104,000

100,963

Others15

Ordinary income

474,42315

2,670,536

453,938
2,616,200

Extraordinary income
Insurance income-

Total extraordinary income

75,052-75,052Extraordinary losses
Impairment loss-

1,660,964

Loss on disaster-

90,646

Total extraordinary losses
Net income before income taxes
Income taxes-current

855

Income taxes-deferred

53

Profit

-1,751,611

2,670,536

939,641
1,259

908

(18)

1,241

2,669,627

938,400

Surplus brought forward

159

8

Unappropriated surplus

2,669,786

938,409

9

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016(3) Statement of changes in net assets
23rd fiscal period (September 1, 2015 to February 29, 2016)(thousands of yen)
Unitholders’ Equity
Item

Unitholders’capitalBalance as of September 1, 2015

Surplus
UnappropriatedsurplusTotal
unitholders’equityTotal
net assets

91,142,766

2,661,720

93,804,487

93,804,487—(2,661,561)(2,661,561)(2,661,561)—

2,669,627

2,669,627

2,669,627

—

8,066

8,066

8,066

91,142,766

2,669,786

93,812,553

93,812,553

Changes in the current fiscal period
Dividend of surplus
ProfitTotal of changes in the current fiscal
periodBalance as of February 29, 2016

24th fiscal period (March 1, 2016 to August 31, 2016)(thousands of yen)
Unitholders’ Equity
Item

Balance as of March 1, 2016

Unitholders’capitalSurplus
UnappropriatedsurplusTotal
unitholders’equityTotal
net assets

91,142,766

2,669,786

93,812,553

93,812,553—(2,669,778)(2,669,778)(2,669,778)—

938,400

938,400

938,400—(1,731,377)(1,731,377)(1,731,377)

91,142,766

938,409

92,081,175

92,081,175

Changes in the current fiscal period
Dividend of surplus
ProfitTotal of changes in the current fiscal
periodBalance as of August 31, 201610

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

(4) Dividend statement

Account
I.
II.

Unappropriated surplus

23rd fiscal period(September 1, 2015 toFebruary 29, 2016)
2,669,786 thousand yen

938,409 thousand yen- thousand yen

1,660,581 thousand yen- thousand yen

1,660,581 thousand yen

2,669,778 thousand yen

2,598,813 thousand yen[3,574 yen]

[3,479 yen]

2,669,778 thousand yen

938,232 thousand yen[3,574 yen]

[1,256 yen]

- thousand yen

1,660,581 thousand yen[-yen][2,223 yen]

8 thousand yen

177 thousand yen

Addition of dividend in excess ofearnings
Of which, reverse for temporary
difference adjustments

III. Total[Dividend per investment unit]
Of which, earnings dividend

24th fiscal period(March 1, 2016 toAugust 31, 2016)[Of which, earnings dividend perunit]
Of which, dividend in excess ofearnings[Of which, dividend in excess ofearnings per unit [using reserve fortemporary difference
adjustments] ]IV. Surplus brought forward
Method for calculating dividends

The amount of dividends shall be decided The amount of dividends shall be decidedin accordance with the dividend policyin accordance with the dividend policy
stipulated in Article 38-1-1 of FRC’s
stipulated in Article 38-1-1 of FRC’s
Articles of Incorporation and must exceed Articles of Incorporation and must exceed
90% of FRC’s distributable profits as
90% of FRC’s distributable profits as
stipulated in Article 67-15 of the Special stipulated in Article 67-15-1 of theTaxation Measures Act. Following theSpecial Taxation Measures Act.
above policy, FRC shall decide to
Following the above policy, FRC shall
distribute 2,669,778 thousand yen, which decide to distribute 938,232 thousandis almost the entire amount ofyen, which is almost the entire amount of
unappropriated surplus, as earnings
unappropriated surplus, as earnings
dividends. Moreover, dividend in excess dividends.
of earnings as stipulated in Article 38-2 of Moreover, FRC shall decide to provide
FRC’s Articles of Incorporation will not dividend in excess of earnings as
be provided.
stipulated in Article 38-2 of its Articles ofIncorporation, using reserve fortemporary difference adjustments totaling
1,660,581 thousand yen, which is the
maximum value arrived at when the total
number of investment units outstanding(747,000 units) is multiplied by an
integer, to the extent not surpassing theamount equivalent to the impairment loss
recorded for the fiscal period.
(Note) All amounts except for dividend per investment unit, earnings dividend per unit and dividend in excess of earnings perunit (using reserve for temporary difference adjustments) are rounded down to the nearest thousand yen.

11

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

(5) Cash flows statement(thousands of yen)
23rd fiscal period(September 1, 2015 toFebruary 29, 2016)

Account

24th fiscal period(March 1, 2016 toAugust 31, 2016)

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

2,670,536

939,641

Depreciation and amortization expenses

1,471,072

1,470,912

Amortization of investment corporation bond issuance expenses

982

982

11,154

5,612

Impairment loss-

1,660,964

Interest received

(780)

(114)

Interest expenses

358,271346,365

Insurance income-(75,052)

Amortization of investment unit issuance expenses

Loss on disaster-

90,646

Decrease (increase) in operating accounts receivables

61,654(43,230)

Decrease (increase) in consumption taxes receivable

246,657-

Increase (decrease) in accrued consumption taxes

321,550(214,372)

Increase (decrease) in operating accounts payable(145,288)(76,677)

9,219(11,623)

Increase (decrease) in accrued expenses

1,824(3,346)

Increase (decrease) in advances received(10,644)

66,789

Increase (decrease) in deposits expenses(271,423)

425,087

Decrease (increase) in prepaid expenses(16,137)

22,919Decrease (increase) in long-term prepaid expenses(172,080)

83,034(2,806)(2,310)4,533,761

4,686,229

780

114

(358,527)(347,154)-(1,857)(1,863)(753)

4,174,151

4,336,578(549,764)(710,811)30

87,129

Increase (decrease) in accounts payable-other

Others, net
SubtotalInterest income received
Interest expenses paid
Payments for loss on disaster
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits(30)(46,606)

Proceeds from tenant leasehold and security deposits in trust

74,447124,063

Repayments of tenant leasehold and security deposits in trust(131,849)(225,255)

5,507

5,569

Proceeds from restricted trust deposits
Payments for restricted trust deposits
Net cash provided by (used in) investment activities(5,065)(6,972)(606,723)(772,883)－

4,000,000

Net cash provided by (used in) financial activities
Proceeds from short-term debt payable
Proceeds from long-term debt payable

6,500,000

700,000

Repayments of long-term debt payable(6,575,000)(11,411)(5,075,000)－

Dividends paid

(2,661,169)(2,668,773)

Net cash provided by (used in) financial activities(2,747,581)(3,043,773)

Net increase (decrease) in cash and cash equivalents

819,846

519,920

Balance of cash and cash equivalents at beginning of period

7,533,380

8,353,226

Balance of cash and cash equivalents at end of period

8,353,226

8,873,147

Payment of investment unit issuance expenses

12Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016(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 31, 2016).
(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, derivativetransactions, 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 fordisclosure in the earnings briefing.
(Per unit information)
23rd fiscal period
24th fiscal period(September 1, 2015 to February 29, 2016)(March 1, 2016 to August 31, 2016)
Net assets per investment unit:
125,585 yen
Net assets per investment unit:
123,267 yen
Profit per investment unit:
3,573 yen
Profit per investment unit:
1,256 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.
23rd fiscal period(September 1, 2015 toFebruary 29, 2016)

Account

24th fiscal period(March 1, 2016 toAugust 31, 2016)

2,669,627

938,400——

Profit attributable to common investment units (thousands of yen)

2,669,627

938,400

Average number of investment units during the fiscal period (units)

747,000

747,000

Profit (thousands of yen)Amount not attributable to common shareholders (thousands of yen)

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

13

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

4. Change in Directors(1) Change in directors in FRC
Takashi Shinohara resigned from the post of Supervisory Director (as of May 28, 2016).
Yasuo Kawasho was newly appointed as Supervisory Director (as of May 29, 2016).
Officers of FRC as of October 13, 2016 are listed below.
(as of October 13, 2016)
Title

Name

CEO &
Representative
Director

Etsuo
Matsuyuki

Career Summary
April 1980
June 2004
April 2005
July 2006

July 2009

August 2010

June 2011
January 2012
June 2012
May 2014
Supervisory
Director

Hiroyasu
ShindoApril 1973
April 1985
April 1986
April 1990
April 1996
July 2004
July 2006
November 2010

Supervisory
Director

Yasuo
KawashoAugust 1980
January 1981
December 1987
February 1993
May 2016

Joined Japan Development Bank (currently
Development Bank of Japan)
Appointed as Manager, Human Resources Division
Appointed as General Manager, Management
Division
Seconded to Fukuoka Jisho Co., Ltd. Appointed as
Deputy General Manager, Development BusinessGroup
Joined Fukuoka Jisho Co., Ltd. Appointed as
Executive Officer and Deputy General Manager,
Development Business Group and General
Manager, Building Division
Appointed as Executive Officer and General
Manager, Accounting & Finance Division and in
charge of General Affairs Division and Finance
Division
Appointed as Managing Director and Head ofPlanning Dept., Fukuoka Realty Co., Ltd.
Appointed as Managing Director and Executive
Officer, Fukuoka Jisho Co., Ltd.
Appointed as CEO & Representative Director,
Fukuoka Realty Co., Ltd. (current position)
Appointed as CEO & Representative Director,
Fukuoka REIT Corporation (current position)
Registered as Lawyer
Appointed as Chief of Secretariat, Kyushu
Federation of Bar Associations
Opened Shindo Law Firm (current position)
Appointed as Chief of Public Relations,
Kyushu Federation of Bar Associations
Appointed as Member of Disciplinary
Committee, Fukuokaken Bengoshikai., Ltd.
Appointed as Supervisory Director, Fukuoka
REIT Corporation
Retired from Supervisory Director, Fukuoka
REIT Corporation
Appointed as Supervisory Director, Fukuoka
REIT Corporation(current position)
Registered as Certified Public Accountant
and Certified Tax Accountant
Opened Kawasho Authorize Accountant
Office (current position)
Opened Creative Management Consultants
Co., Ltd. (current position)
Opened KawaSho Jinji Kenkyusyo Co., Ltd.
(current position)
Appointed as Supervisory Director, Fukuoka
REIT Corporation (current position)

Number of units
owned
0

0

0

(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.

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

(2) Change in directors at Fukuoka Realty Co., Ltd.
Naofumi Sato resigned from the post of Director (as of June 24, 2016).
Tomoyuki Aramaki was newly appointed as Director (as of June 24, 2016).
Officers of Fukuoka Realty as of October 13, 2016 are listed below.
(as of October 13, 2016)
Title
CEO &
Representative
Director

Name
Etsuo
Matsuyuki

Career Summary
April 1980
June 2004
April 2005
July 2006

July 2009

August 2010

June 2011
January 2012
June 2012
May 2014
Managing
Director andHead ofPlanning
Department

HidenoriHara

April 1985
June 1990
August 2005
August 2009
June 2012
June 2014
September 2014
September 2014
February 2015

Director

Hiroshi
Shimuta

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

Director

Masaru Ito

April 1985
July 1994
October 1996
September 2003
July 2009
August 2011

June 2012
June 2014
June 2015

Joined Japan Development Bank (currently
Development Bank of Japan)
Appointed as Manager, Human Resources
Division
Appointed as General Manager, Management
Division
Seconded to Fukuoka Jisho Co., Ltd. Appointed as
Deputy General Manager, Development BusinessGroup
Joined Fukuoka Jisho Co., Ltd. Appointed as
Executive Officer and Deputy General Manager,
Development Business Group and General
Manager, Building Division
Appointed as Executive Officer and General
Manager, Accounting & Finance Division and in
charge of General Affairs Division and Finance
Division
Appointed as Managing Director and Head ofPlanning Dept., Fukuoka Realty Co., Ltd.
Appointed as Managing Director and Executive
Officer, Fukuoka Jisho Co., Ltd.
Appointed as CEO & Representative Director,
Fukuoka Realty Co., Ltd. (current position)
Appointed as CEO & Representative Director,
Fukuoka REIT Corporation (current position)
Joined the Bank of Fukuoka
Joined Sumitomo Realty & Development Co., Ltd.
Joined Fukuoka Jisho Co., Ltd.
Appointed as General Manager, Development
Business Group
Appointed as Executive Officer and General
Manager, Housing Business Division
Appointed as Executive Officer in charge of
Housing Business Division
Appointed as Executive Officer (current position)
Seconded to Fukuoka Realty Co., Ltd. Appointed
as Managing Director
Appointed as Managing Director and Head ofPlanning Department (current position)
Registered as attorney at law
Appointed as Auditor, Fukuoka Realty Co., Ltd.
Appointed as Head of Compliance OfficeAppointed as Head of Compliance Dept.
Joined Nishimura Tokiwa Law Office (currently,
Nishimura Asahi Law Office)Appointed as Director, Fukuoka Realty Co., Ltd.
(current position)
Appointed as General Manger, Fukuoka Jisho Co.,
Ltd. Legal Division (current position)
Joined Nichiboshin, Ltd.
Joined FJ. Toshi Kaihatsu Co.
Joined Fukuoka Jisho Co., Ltd.
Appointed as General Manager, Accounting &Finance Division
Appointed as General Manager, Finance Division
Appointed as General Manager, President’s Officeand concurrently as General Manager, Finance
Division
Seconded to FJ. HOTELS Co., Ltd. Appointed as
Managing Director
Appointed as General Manager, Fukuoka Jisho
Co., Ltd. Finance Division (current position)
Appointed as Director, Fukuoka Realty Co., Ltd.
(current position)

15

Number of units
owned
0

0

0

0

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016
Director

Tomoyuki
AramakiApril 1975
July 1997
July 2004
June 2007
June 2009
July 2010

June 2012

June 2015

June 2016
Director

Masanori
TasakaApril 1978
August 2000
July 2003

October 2004
April 2005

April 2006
June 2006

Joined Kyushu Electric Power Co., Inc.
Appointed as Manager, Personnel Department,
Personnel Division
Appointed as General Manager, Personnel andLabor Relations Division
Appointed as President & CEO, Kyushu Sogo
Service Co., Ltd.
Appointed as Senior Executive Officer, Kyushu
Electric Power Co., Inc.
Appointed as Senior Executive Officer andGeneral Manager, Business Promotion Divisionand Human Resources Vitalization Division
Appointed as Senior Managing Executive Officer
and General Manager, Human Resources
Vitalization Division and General Manager ofSecretary OfficeAppointed as Executive Vice President in chargeof Secretary Office, CSR and Crisis Management,
Crisis Manager (current position)
Appointed as Director, Fukuoka Realty Co., Ltd.
(current position)
Joined Fukuoka Sogo Bank, Ltd. (currently, The
Nishi-Nippon City Bank, Ltd.)
Appointed as Deputy General Manager ofPlanning Division
Appointed as General Manager of Planning
Division and Manager of Risk Management
OfficeAppointed as Senior Manager supporting
Business Planning Division
Seconded to NCB Management Information
Service Co., Ltd. (currently, NCB Research &Consulting Co., Ltd.) and appointed as General
Manager of Business Alliance Division
Opened Masanori Tasaka Tax & Accounting
Office (current position)
Appointed as Auditor, Fukuoka Realty Co., Ltd.
(current position)

00(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,
based on the provisions of Article 31-4-1 of the Financial Instruments and Exchange Act.

16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016

5. Reference Information(1) Investment situation(as of August 31, 2016)
Type of asset

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

Location(Note 1)

Purpose

Percentage of
total assets(%)(Note 3)

Fukuoka urban area

68,692

38.3

Other Kyushu areas

35,581

19.8

Fukuoka urban area

43,292

24.1

Other Kyushu areas——

Fukuoka urban area

18,640

10.4

Other Kyushu areas

2,696

1.5

168,902

94.1

10,6105.9

179,513100.0[169,109][94.2]

RetailReal estate in
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 2010 census, which states “the number of workers and students aged 15
years or older (students including those aged 14 years or younger: particular reference) including commuting between
their homes and places of work or school” conducted by Fukuoka City and the Statistics Bureau of the Ministry ofInternal Affairs and Communications. “Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka
urban area).
Note 2: “Total value of properties held” is based on the value on the balance sheet (the value of real estate in trust is the bookvalue after depreciation).
Note 3: Concerning the “Percentage of total assets,” the 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 held in effect to thetotal amount of assets.
(as of August 31, 2016)
Percentage of total amount of assets(%)

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

87,432

48.7

Total amount of net assets

92,081

51.3(2) Investment assets(i) Primary issues of investment securities
No relevant items.
(ii) Real estate investment portfolio
No relevant items.

17

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016(iii) Other primary investment assets(a) Values and investment ratios at end of period are as follows.
(as of August 31, 2016)
Acquisitionvalue(mm of yen)
(Note 1)

Value on balancesheet(mm of yen)

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

Canal City Hakata

32,00030,36833,300

Tanizawa Sogo
17.8 Appraisal Co., Ltd.

Canal City Hakata･B

28,70028,42630,200

Tanizawa Sogo
16.0 Appraisal Co., Ltd.

Park Place Oita

16,29017,74017,738SunLive City Kokura

6,633

5,864

7,890

Square Mall Kagoshima Usuki

5,300

4,599

5,290

Kumamoto Intercommunity SC

2,400

2,072

2,650

9.1 Japan Real Estate
Institute
3.7 Japan Real Estate
Institute
2.9 Japan Real Estate
InstituteJapan Real Estate
1.3 Institute

AEON Hara Shopping Center(Note 4)

5,410

3,588

3,700

3.0 -

Hanahata SC

1,130

1,022

1,240

Tanizawa Sogo
0.6 Appraisal Co., Ltd.

Kurume Higashi Kushiwara SC

2,500

2,163

2,750

K’s Denki Kagoshima

3,550

3,141

3,680

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

5,250

5,286

5,600

109,163

104,274

114,038

14,60013,44015,200Gofukumachi Business Center

11,2009,368

13,400Sanix Hakata Building

4,400

3,959

5,370

Taihaku Street Business Center

7,000

6,332

7,280

Higashi Hie Business Center

5,900

4,792

6,520

Tenjin Nishi-Dori Center Building

2,600

2,723

2,990

Investment
ratio
(%)
(Note 3)

Real estate appraiser

1.4 Tanizawa Sogo
Appraisal Co., Ltd.
2.0 Tanizawa Sogo
Appraisal Co., Ltd.
2.9 Tanizawa Sogo
Appraisal Co., Ltd.
60.7
Tanizawa Sogo
8.1 Appraisal Co., Ltd.
Tanizawa Sogo
6.2 Appraisal Co., Ltd.
2.4 Japan Real Estate
Institute
3.9 Japan Real Estate
Institute
3.3 Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
1.4 InstituteJapan Real Estate
1.6 Institute
27.0
1.1 Daiwa Real EstateAppraisal Co., Ltd.
0.6 Daiwa Real EstateAppraisal Co., Ltd.

Tenjin North Front Building

2,800

2,674

3,490

Office buildings subtotal:

48,50043,292

54,250Amex Akasakamon Tower

2,060

1,800

1,870

City House Keyaki Dori

1,111

969

1,050

Aqualia Kego

2,800

2,632

4,320

1.6 -

Aqualia Chihaya

1,280

1,208

1,600

Japan Real Estate
0.7 InstituteD-WING TOWER

2,800

2,780

3,320

Tanizawa Sogo
1.6 Appraisal Co., Ltd.

Granfore Yakuin Minami

1,100

1,166

1,260

Tanizawa Sogo
0.6 Appraisal Co., Ltd.

0.9 Japan Real Estate
InstituteTosu Logistics Center
1,250
1,242
1,370
0.7 Japan Real Estate
Institute
LOGICITY Minato Kashii
8,150
8,081
8,590
4.5 Tanizawa Sogo
(Note 5)
Appraisal Co., Ltd.
Others subtotal:
22,081
21,33625,19012.3
Total
179,744
168,902
193,478100.0
Note 1: “Acquisition value” refers to the amount (purchasing prices shown on the purchasing contracts) not including expenses
for the acquisition of relevant properties (agency fees and taxes and other public charges).
Note 2: “Period-end appraisal value” refers to the evaluation value based on appraisals by a real estate appraiser in conformity
with the method and standards for asset evaluation stipulated in FRC’s Articles of Incorporation and rules stipulated by
the Investment Trusts Association, Japan. For AEON Hara Shopping Center and Aqualia Kego, the transfer prices statedin the sales agreements dated August 31, 2016 are indicated.
Note 3: “Investment ratio” is obtained by dividing each property’s acquisition value by the total acquisition value. The total ofindividual percentages in the above table may not equal 100%, since the figures are rounded off to one decimal place.
Note 4: The value on balance sheet is the amount after declaring impairment.
Note 5: The property was renamed from LOGIPORT Island-city Hakata as of March 1, 2016. The same shall apply hereafter.
Hotel FORZA Oita

1,530

1,454

18

1,810

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016(b) Summary of the real estate leasing business
Number oftenants(Note 1)

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

1 [48]
1 [49]
1 [104]
1
12

100.0
99.4
99.7
100.0
100.0

46,602.94
68,820.39
109,590.83
61,450.22
14,602.88

46,602.94
68,397.87
109,282.25
61,450.22
14,602.88

2

100.0

6,968.66

6,968.66

32

0.4

1
2
1
1

100.0
100.0
100.0
100.0

27,313.53
2,801.15
6,467.80
7,296.17

27,313.53
2,801.15
6,467.80
7,296.17

212
41
88
111

2.6
0.5
1.1
1.4

1

100.0

33,069.82

33,069.82

182

2.2

24 [222](Note 2)

99.8

384,984.39

384,253.29

5,240

63.6

1 [61]

100.0

23,030.98

23,030.98

628

7.6

35
16
1 [70]
1 [25]

99.5
100.0
99.2
100.0

19,905.34
6,293.75
14,677.27
13,614.59

19,806.06
6,293.75
14,554.68
13,614.59

533
197
297
327

6.5
2.4
3.6
4.0

1

100.0

3,339.32

3,339.32

86

1.1

11
66 [219](Note 2)
1 [63]
1 [39]
1 [124]
1 [99]
1 [131]
1 [96]
1

100.0

5,252.41

5,252.41

136

1.7

99.7

86,113.66

85,891.79

2,207

26.8

92.8
91.7
95.7
93.6
96.0
97.0
100.0

4,821.25
2,710.86
7,415.36
5,619.69
7,187.58
2,496.06
5,785.44

4,474.94
2,485.95
7,096.46
5,261.15
6,902.38
2,421.18
5,785.44

67
36
118
57
114
39
63

0.8
0.4
1.4
0.7
1.4
0.5
0.8

Tosu Logistics Center

1

100.0

4,173.29

4,173.29

LOGICITY Minato Kashii

2

100.0

43,233.72

43,233.72

Undisclosed(Note 7)
Undisclosed(Note 7)

Undisclosed(Note 7)
Undisclosed(Note 7)

Real estate property name
Canal City Hakata
Canal City Hakata･B
Park Place Oita
SunLive City Kokura
Square Mall Kagoshima Usuki
Kumamoto Intercommunity SC(Note 6)
AEON Hara Shopping Center
Hanahata SC
Kurume Higashi Kushiwara SC
K’s Denki Kagoshima
Marinoa City Fukuoka (Marina
Side Building)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
Office buildings subtotal:
Amex Akasakamon Tower
City House Keyaki Dori
Aqualia Kego
Aqualia Chihaya
D-WING TOWER
Granfore Yakuin Minami
Hotel FORZA Oita

Total
leased floor
space
(m2)

(as of August 31, 2016)
Total
Percentage ofleasing
total
revenues
leasing revenues(mm of yen)(%)
(Note 4)(Note 5)
1,273
15.5
1,598
19.4
1,138
13.8
292
3.6
269
3.3

10 [556]
Others subtotal:
98.1
83,443.25
81,834.51786
9.6(Note 2)100 [997]
Total
99.5
554,541.30
551,979.59
8,234
100.0
(Note 2)
Note 1: “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 tenants comprises 13 offices and 57 residences.
Note 2: The subtotal and total of all the tenants in other than pass-through master leasing properties and the number of sections
stipulated in the tenancy agreements with end tenants for pass-through master leasing properties is shown in parentheses
in the totals column for “Number of tenants.”
Note 3: “Occupancy rate” refers to the percentage of total leased floor space to total leasable floor space and the figures arerounded off to one decimal place.
Note 4: “Total leasing revenues” are the total of real estate leasing revenues and other revenues from real estate rent in the current
fiscal period.
Note 5: “Percentage of total leasing revenues” is obtained by dividing each property’s total leasing revenues by the total amountof 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.
Note 6: As the property suspended operations due to the Kumamoto Earthquake, FRC reduced rents for the suspension period
based on the lease contracts with the tenants.
Note 7: The figures are not disclosed as no consent to disclosure has been obtained from the tenants.

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Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2016(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 31, 2016).

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