Provisional translation only

April 9, 2009EARNINGS BRIEFING
FOR THE PERIOD ENDED FEBRUARY 2009
(September 1, 2008 to February 28, 2009)
Name of real estate
investment trust

Fukuoka REIT Corporation (FRC)

Listed Stock
Exchanges

Code number

8968

(URL:
http://www.fukuoka-reit.jp/eng/)

Representative
Name of asset manager
Representative
Contact

Operating Officer
Masayasu Saki
Fukuoka Realty Co., Ltd.
President and CEO Masayasu SakiManaging
Yoichi Nishio
Director, General
Phone: +81-92-272-3900
Manager ofFinance Division
May 27, 2009

Expected date forsubmitting securities
reportExpected commencement
date of dividendTokyo Stock
Exchange, Fukuoka
Stock Exchange

May 19, 2009

(Figures rounded off to nearest million yen.)

1. PERFORMANCE AND SITUATION OF ASSETS FOR THE PERIOD ENDED FEBRUARY
2009(September 1, 2008 to February 28, 2009)(1) Performance
Operating revenues
Millions of%yen
Period ended February
2009
Period ended August
2008

5,466

(0.3)

2,405

(1.5)

1,933

(1.8)

1,932

(1.8)

5,483

5.9

2,441

2.5

1,968

(0.6)

1,966

(0.7)

Net income per
unit

Period ended February 2009
Period ended August 2008(% shows percentage change from previous period.)
Operating income
Ordinary income
Net income
Millions of% Millions of% Millions of
%
yen
yen
yen

Return on net
assetsYen
18,04818,373%
3.1
3.2

Ratio of ordinary
income to total
liabilities and net
assets
%1.5
1.6

Ratio of ordinary
income tooperating revenue
%
35.4
35.9

(2) Dividends(Total dividends are rounded off to the nearest million yen.)
Dividend perunit (excl.
dividend inexcess of
earnings)

Total
dividend

Dividend inexcess of
earnings per
unit

Total dividendin excess ofearnings

Payout ratio

Period ended
1,932
February
18,049 yen
0 yen
0 million yen
million yen
2009
Period ended
1,966
18,373 yen
0 yen
0 million yen
August 2008
million yen(Note) Concerning payout ratio, all numbers after the first decimal place are disregarded.

Ratio ofdividend toperiod-end
net assets

100.0%

3.1%

99.9%

3.2%

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

(3) Financial condition
Total assets

Net assets

Ratio of net assets tototal assets

Period ended
125,222 million yen
62,196 million yen
February 2009
Period ended August
125,954 million yen
62,231 million yen
2008(Reference) Net assets: (Period ended February 2009) 62,196 million yen;
(Period ended August 2008) 62,231 million yen

Net assets per unit

49.7%

581,004 yen

49.4%

581,328 yen(4) Cash flows condition

Period ended
February 2009
Period ended August
2008

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents atperiod end

2,681 million yen(485) million yen(1,969) million yen

6,049 million yen

3,157 million yen(4,452) million yen

1,920 million yen

5,822 million yen

2. FORECAST OF PERFORMANCE FOR THE PERIOD ENDING AUGUST 2009
(March 1, 2009 to August 31, 2009) AND THE PERIOD ENDING FEBRUARY 2010
(September 1, 2009 to February 28, 2010)

Operatingrevenue
Millionsof yen5,594

Operatingincome%Millionsof yen2,310%(% shows percentage change from previous period.)
Dividend per
Dividend
unit (excl.
Ordinaryin excess of
Net income
dividend inincomeearnings per
excess ofunit
earnings)
Millions% Millions
%
yen
yen
of yenof yen
1,789
(7.4)
1,787
(7.5)
16,7000

Period
2.3(4.0)
endingAugust2009
Period
5,569
(0.5)
2,342
1.4
1,767
(1.2)
1,766
(1.2)
endingFebruary
2010(Reference) Forecast net income per unit: (Period ending August 2009) 16,700 yen;
(Period ending February 2010) 16,500 yen

2

16,5000Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

3. Others(1) Changes in accounting policies:(i) Changes due to revisions of accounting standards, etc.:
Yes(ii) Changes other than above (i):No
(Note) For details, please refer to “Changes in accounting policies,” on page 12.
(2) Number of investment units issued and outstanding(i) Number of investment units issued and outstanding at the end of period (including treasury
investment units):
107,050 units at end of Feb 2009; 107,050 units at end of Aug 2008(ii) Treasury investment units at the end of period:— units at end of Feb 2009; — units at end of Aug 2008
(Note) Regarding the number of investment units, a basis for calculating net income per unit, pleaserefer to “Per unit information,” on page 12.
* On the adequate use of performance forecasts and other items warranting special mention
Forecast figures are calculated based on information available on the date of release of the forecast andcontain uncertain factors to a large extent. Actual operating revenues, operating income, ordinary
income, net income, and dividend per unit may differ due to change in the business environment.
Forecasts should not be construed as a guarantee of actual dividend. Concerning details of thepreconditions for the above forecast figures please refer to “2. Portfolio management policy andmanagement situation, (2) Management situation – Preconditions for the performance forecast for theperiod ending August 2009 (March 1, 2009 to August 31, 2009) and the period ending February 2010
(September 1, 2009 to February 28, 2010),” on page 5.

3

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

Concerning the contents hereinafter, items that FRC judges that “can be omitted from the disclosure fromthe standpoint of importance” are not shown in conformity with “Guidance for Preparation of Earnings
Briefing for Listed Real Estate Investment Trusts” (February 2009) released by Tokyo Stock ExchangeGroup, Inc.

1. Investment Corporation-related Organizations
The disclosure is omitted, since there are no significant changes from the “Structure of the Investment
Corporation” disclosed by the latest Securities Report (submitted on November 25, 2008).

2. Portfolio management policy and management situation(1) Portfolio management policy
The disclosure is omitted, since there are no significant changes from “investment policy,”“investment target” and “dividend policy” disclosed by the latest Securities Report (submitted on
November 25, 2008).
(2) Management situation(i) Summary of current fiscal period(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” (Law No. 198 in 1951 including later revisions, hereinafter the“Investment Trust Law”) 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 inregional properties (code number: 8968). FRC invests in real estates throughout all of
Kyushu (including Okinawa Prefecture), with a central focus on Fukuoka City, and in
Yamaguchi Prefecture by turning regionality, characteristics in the real estate industry, intostrength.
FRC started asset management activities on November 9, 2004 after acquisition of four
properties such as commercial facilities in Canal City Hakata (excluding some areas of
specialty shops, hotels, 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”). FRC now has 15 properties (excluding limited
partnership interests)—nine commercial facilities, four office buildings, and two residential
properties—in its portfolio as of the end of the current fiscal period.
(b) Investment environment and portfolio performance
The economic downturn became apparent in the current fiscal period, since corporate
earnings, capital expenditures and consumers spending were badly affected due to turmoil inglobal financial markets and drastic fluctuations in stock and foreign exchange markets
triggered by U.S. subprime loan problems. In the Kyushu area, a primary area of FRC’s
investment target area, local businesses faced very difficult times, since the construction andoperation of new factories was postponed on the back of global recession.
According to the official posting of land prices in 2009 (by the Ministry of Land,
Infrastructure, Transport and Tourism), average national land prices, in all categories
including residential and commercial lands, declined over the previous year. In Fukuoka
City, a core of FRC’s investment target area, commercial and residential lands declined by
9.6% and 2.5% over the previous year, respectively.
In such a business environment, the occupancy rate of properties FRC owns stood at 99.2%
as of the end of the current fiscal period, thanks to our continuous efforts including
operations to enhance competitiveness and customer drawing power in major commercial
facilities such as Canal City Hakata.
When analyzing FRC’s portfolio (on an acquisition value basis) by geographic location,

4

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

properties in the Fukuoka urban area occupy 68.6% of its portfolio; when analyzing byproperty type, commercial facilities, office buildings, and residential properties account for
64.9%, 32.3% and 2.8%, respectively.

(c) Summary of fundraising
In the current fiscal period, FRC refinanced a part of debt under the committed line of credit(2,000 million yen) into long-term debt. At the end of the current fiscal period outstanding
debt totaled 51,900 million yen, unchanged from the end of the previous fiscal period, withthe loan-to-value ratio at 41.4%. To reduce refinancing risks in future debt, FRC willcontinue to disperse the repayment date and increase the average length of time until
maturity.
(d) Summary of performance and dividend
As results of these management efforts, operating revenue totaled 5,466 million yen andoperating income after excluding operating expenses such as rental business expenses andasset management fees totaled 2,405 million yen. Ordinary income and net income reached1,933 million yen and 1,932 million yen, respectively.
Management decided to make a dividend of 18,049 yen per investment unit to meet therequirements of special tax measures for an investment corporation (as stipulated in Article
67-15 of the Special Taxation Measures Law of Japan [Law No. 26 in 1957 including later
revisions, hereinafter the “Special Taxation Measures Law”]). Under this law, an investment
corporation is allowed to deduct dividends paid to investors from its taxable income if mostof the unappropriated earnings as of the end of the current fiscal period are distributed.
(ii) Forecast for the next fiscal year(a) Portfolio management policy
FRC will increase management and leasing capabilities by cooperating with property
management companies including sponsor companies even in a worsening consumer
spending environment and maintain the stable operation of the properties by making themost use of their advantages.
The Company will invest based on the basic policy stipulated in its Articles of Incorporationand its basic philosophy: focusing on “high growth potential markets in which FRC candemonstrate its competitive edge.” By geographic location, FRC invests 60% to 90% of its
assets in the Fukuoka urban area, since the Fukuoka urban area is expected to have thegreatest population growth of any urban area in Japan. In addition to the Fukuoka urban area,
management has decided to actively acquire properties in major cities, if FRC can generatesufficient investment merits from community-oriented viewpoints. FRC will acquire highquality properties with adequate use of its advantages, such as information gathering ability
in the areas, good knowledge of regional properties and close relations with the local
business community and governments, so that investors can continue to invest in FRC withassurance.
Meanwhile, FRC will build stronger relationships with financial institutions to realize stable
fundraising and try to maintain a solid financial structure.

(b) Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending August 2009
(March 1, 2009 to August 31, 2009) and the period ending February 2010 (September 1,
2009 to February 28, 2010). Concerning preconditions for the forecast, please refer to“Preconditions for the performance forecast for the period ending August 2009 (March 1,
2009 to August 31, 2009) and the period ending February 2010 (September 1, 2009 to
February 28, 2010),” on page 5.

5Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

Period ending August 2009
Operating revenue
Ordinary income
Net income
Dividend per unit
Dividend in excess of earnings per unit

5,594 million yen
1,789 million yen
1,787 million yen
16,700 yen
0 yen

Period ending February 2010
Operating revenue
Ordinary income
Net income
Dividend per unit
Dividend in excess of earnings per unit

5,569 million yen
1,767 million yen
1,766 million yen
16,500 yen
0 yen(Note) 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
revenue, ordinary income, net income, dividend per unit and dividend in excess ofearnings per unit may differ due to changes in the business environment.

6

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

Preconditions for the performance forecast for the period ending August 2009 (March 1, 2009 to August
31, 2009) and for the period ending February 2010 (September 1, 2009 to February 28, 2010)

Item
Calculation period

Assets under management
Number of investment units
issued and outstanding

Interest-bearing debt andrefinancing

Operating revenues

Operating expenses

Non-operating expenses

Dividend per unit

Dividend in excess ofearnings per unit

Preconditions
10th fiscal period, from March 1, 2009 to August 31, 2009 (184 days)
11th fiscal period, from September 1, 2009 to February 28, 2010 (181 days)• It is assumed that 15 properties and limited partnership interests FRC owns as ofFebruary 28, 2008 and Higashi Hie Business Center (acquisition price of 5,900
million yen) FRC acquired on March 13, 2009.
• 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 February
28, 2010.
• Outstanding interest bearing debts on February 28, 2010 are expected to total
57,300 million yen, an increase of 5,400 million yen from the end of the current
period (February 28, 2009). The loan-to-value ratio (Interest-bearing debt ÷ total
assets × 100) is expected to stand at around 43.9% (as of February 28, 2009 theloan-to-value ratio stands at 41.4%).
• In the fiscal period ending August 2009, it is assumed that FRC will refinancelong-term debt (12,000 million yen) and a part of short-term debt that will comedue this fiscal period (due on August 31, 2009) into long-term debt.
• In the fiscal period ending February 2010, it is assumed that FRC will refinance apart of short-term debt into long-term debt.
• Of revenues from the real estate rental business, revenues from properties FRC has
already acquired are calculated based on tenancy agreements that are valid as oftoday by taking into account the competitiveness of the properties and the market
environment.
Of revenues from the real estate rental business, revenues from the percentage
lease contracts are calculated based on past results by taking into account sales
fluctuation factors of the relevant tenants.
• Concerning revenues from the real estate rental business, vacancies are taken into
account to a certain extent. It is assumed that there will be no rent arrears or
non-payments by tenants.
• Concerning interests in limited partnerships, dividends from limited partnerships
are calculated based on the conditions stipulated in each limited partnershipcontract.
• When acquiring assets under management, the fixed property tax and city planningtax for the assets will be proportionally calculated according to the holding period
and adjusted with the former owner. FRC will not write them off since theCompany will include the relevant adjusted amount in the acquisition cost.
• FRC writes off estimated repair costs for buildings for the calculation periods, theperiods ending August 2009 and February 2010. Actual repair costs may differ
significantly from the 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; repair costs are
not regularly incurred.
• Concerning outsourcing expenses, FRC anticipates 1,025 million yen for the period
ending August 31, 2009 and 1,005 million yen for the period ending February 28,
2010. Concerning depreciation and amortization expenses, FRC anticipates 945
million yen for the period ending August 31, 2009 and 948 million yen for theperiod ending February 28, 2010.
• Concerning interests paid and expenses related to loans, FRC writes off estimatedamounts by taking into account the past figures and variable factors in thecalculation periods, the periods ending August 2009 and February 2010.
• Dividend (dividend per unit) is calculated based on the dividend policy stipulated
in FRC’s Articles of Incorporation.
• Dividend per unit may fluctuate due to fluctuations in rent revenues caused bychanges in assets under management and tenants or various factors including
unexpected occurrences of repair.
• The dividends of excess earnings are not planned at the moment.

7

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

Other

• It is assumed that there will be no significant revisions to laws and regulations, thetax 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.

(c) Significant facts after the closing of accounts
No relevant items(3) Investment risks
The disclosure is omitted, since there are no significant changes from the “Investment risks”
disclosed in the latest Securities Report (submitted on November 25, 2008).

8

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

3. Financial statements(1) Balance sheets

Account

8th fiscal period(as of August 31, 2008)
Amount(thousands of yen)

9th fiscal period(as of February 28, 2009)
Amount%(thousands of yen)%

Assets%Current assets
Cash andequivalents
Cash and depositin trust
Operatingreceivable
Prepaid expenses
Deferred tax
assetsOther current
assetsTotal current assets
Fixed assets
Tangible fixed assets
Buildings in trust
Aggregate ofaccumulated
depreciation
Structures in trust
Aggregate ofaccumulated
depreciation
Machinery andequipment intrust
Aggregate ofaccumulated
depreciation
Tools and fixturesin trust
Aggregate ofaccumulated
depreciation
Lands in trust
Total tangible fixed
assetsInvestment and otherassetsInvestment
securities
Guarantee
deposits
Long-term
prepaid expenses
Total investment
and other assets
Total fixed assets
Deferred assets
Establishment
expenses
Expenses for
issuing new

1,931,769

2,570,213

4,378,955

3,479,265

302,233

284,700

165,581

122,92561

17

33,531

34,9786,812,132

5.4

6,492,099

50,046,206
4,647,080

50,430,314
45,399,125

5,424,456

757,968
93,683

768,153664,284

121,612338,209

61,978646,540

338,698

276,230

72,003

578,558
168,271

45,005,858

266,695

683,096410,286

217,572

68,810,414
115,560,343

465,523
68,810,414

91.8

115,195,033

3,421,633

3,421,633

10,00010,000127,759

95,6663,559,393

2.8

3,527,300

119,119,736

94.6

118,722,333

5,595

—

16,825

8,412

9

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

investment units
Total deferredassetsTotal assets

22,4200.0

8,412

125,954,289

100.0

125,222,845

8th fiscal period(as of August 31, 2008)
Amount%(thousands of yen)Account

9th fiscal period(as of February 28, 2009)
Amount%(thousands of yen)

Liabilities%

Current liabilities
Accounts payable
Short-term debt
Current maturities oflong-term debt
Accrued liabilities
Accrued expenses
payableAccrued income
taxes
Accruedconsumption taxes
Advances received
Deposits received
Total current liabilities
Fixed liabilities
Long-term debt
Security deposits andguarantee money intrust
Total fixed liabilities
Total liabilities
Net assets

320,244
3,400,000

353,1131,400,000

12,000,000

12,000,000

14,72016,867

327,108

323,764572

331

40,854110,935

708,189
803,691
17,615,381

602,580493,649
15,301,242

36,500,000

38,500,000

9,607,644

9,225,045

46,107,644
63,723,025

Net Assets
Shareholders’ capital
Retained earnings
Unappropriatedretained earnings
Total retained earnings
Total Net Assets
Total net assets
Total liabilities and net
assets

14.0

36.6
50.6

47,725,045
63,026,288

60,264,380

60,264,380

1,966,884

1,932,176

1,966,884
62,231,264
62,231,264

49.4
49.4

1,932,176
62,196,556
62,196,556

125,954,289

100.0

125,222,845(2) Statements of Income

Account

Amount(thousands of yen)
1. Operating revenues
Real estateleasing revenues
Other revenues
from real estateleasing
Limitedpartnership

9th fiscal period(September 1, 2008 to February 28,
2009)
Amount%(thousands of yen)

8th fiscal period(March 1, 2008 to August 31, 2008)%

5,169,535

5,111,304

177,472

219,007

136,000

5,483,008

100.0

10

136,000

5,466,311

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

dividend
2. Operating expenses
Real estateleasing expenses
Assetmanagement fees
Asset custodian
fees
Generaladministration
fees
Directors
compensation
Other operating
expenses
Operating income
3. Non-operating
revenues
Interest received
Other
non-operating
revenue
4. Non-operating
expenses
Interest payment
Amortization of
establishment
cost
Investment unit
issuance fee write
offExpenses related
to debt financing
Other
non-operating
expenses
Ordinary income
Net income before
tax
Corporation,
inhabitant andbusiness tax
Adjustment toincome tax
Net income
Retained earnings
brought forwardfrom previous
periodUnappropriatedretained earnings
for the period

2,597,412

2,597,820

336,502336,157

10,702

10,93033,72435,711

9,600

9,600

53,564

3,041,506

55.5

2,441,502

44.5

7,863
861

70,8652,405,225

9,513
8,724

0.2

2,453

410,487

414,387

5,595

5,595

8,412

8,412

52,60055,592

4,542—

11,967

481,6378.8

1,968,589

35.9

1,933,205

1,968,589

35.9

1,933,205

1,778
(43)

3,061,085

483,987

1,039
1,734

0.0

1,966,854

35.9

43

1,083
1,932,122

29

54

1,966,884

1,932,176

11

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009(3) Statement of changes in net assets
8th Fiscal Period (March 1, 2008 to August 31, 2008)(thousands of yen)
Net Assets
Item

Balance as ofFebruary 29,
2008
Changes in thecurrent fiscal
periodDividend ofretainedearnings
Net income forthe current
fiscal period
Deferredhedge profit orloss
Total of changes
in the current
fiscal period
Balance as ofAugust 31, 2008

Differences from valuation andtranslation
Total difference
Deferred hedge
from valuation
profit or loss
and translation

Total net assets

Shareholders’capitalRetained earnings
Unappropriatedretained earnings

60,264,380

1,980,347

62,244,727(144,515)(144,515)

62,100,212—(1,980,317)(1,980,317)——(1,980,317)—

1,966,854

1,966,854——

1,966,854———

144,515

144,515

144,515—(13,463)(13,463)

144,515

144,515

131,051

60,264,380

1,966,884

62,231,264——

62,231,264

Total Net
Assets

9th Fiscal Period (September 1, 2008 to February 28, 2009)(thousands of yen)
Net Assets
Item

Balance as ofAugust 31, 2008
Changes in thecurrent fiscal
periodDividend ofretainedearnings
Net income forthe current
fiscal period
Deferredhedge profit orloss
Total of changes
in the current
fiscal period
Balance as ofFebruary 29,
2009

Differences from valuation andtranslation
Total difference
Deferred hedge
from valuation
profit or loss
and translation

Total net assets

Shareholders’capitalRetained earnings
Unappropriatedretained earnings

60,264,380

1,966,884

62,231,264——

62,231,264—(1,966,829)(1,966,829)——(1,966,829)—

1,932,122

1,932,122——

1,932,122

—

—

—

—

—

—

—

(34,707)(34, 707)——(34,707)60,264,380

1,932,176

62,196,556——

62,196,556

Total Net
Assets12

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

(4) Dividend Statement
Account
I. Unappropriated retained earnings
II. Total(Dividend per unit)
III. Retained earnings brought forward

8th fiscal period (March 1, 2008 to
August 31, 2008)
1,966,884 thousand yen
1,966,829 thousand yen(18,373 yen)
54 thousand yen

Method for calculating dividends

9th fiscal period (September 1,
2008 to February 28, 2009)
1,932,176 thousand yen
1,932,145 thousand yen(18,049 yen)
31 thousand yen

FRC shall decide the amount of
FRC shall decide the amount ofdividends, which must exceed 90% dividends, which must exceed 90%
of FRC’s distributable income asof FRC’s distributable income as
stipulated in Article 67-15 of the
stipulated in Article 67-15 of theSpecial Taxation Measures Law ofSpecial Taxation Measures Law ofJapan (Article 38-1-1 of FRC’s
Japan (Article 38-1-1 of FRC’s
Articles of Incorporation). For the
Articles of Incorporation). For thecurrent fiscal period, dividend as
current fiscal period, dividend as
income dividends totaled 1,966,829 income dividends totaled 1,932,145
thousand yen, which is almost thethousand yen, which is almost theentire amount of unappropriatedentire amount of unappropriatedearnings. Moreover, dividend in
earnings. Moreover, dividend inexcess of earnings as stipulated inexcess of earnings as stipulated in
Article 38-2 of FRC’s Articles of
Article 38-2 of FRC’s Articles ofIncorporation will not be provided.
Incorporation will not be provided.
(Note) Concerning amounts other than dividend per investment unit, fractions of 1,000 yen are omitted.

13

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

(5) Cash flows statements
8th fiscal period(March 1, 2008 to August
31, 2008)
Amount(thousands of yen)Account

9th fiscal period(September 1, 2008 to
February 28, 2009)
Amount(thousands of yen)

I. Cash flows from operating activities
Net income before taxes
Depreciation expenses
Amortization of establishment expenses
Investment unit issuance depreciation
Interest received
Interest payment
Increase or decrease in operating receivables
Increase or decrease in uncollected consumption tax
receivables
Increase or decrease in consumption tax payable
Increase or decrease in operating payable
Increase or decrease in account payable
Increase or decrease in payable expenses
Increase or decrease in rent received in advance
Increase or decrease in deposits
Increase or decrease in prepaid expenses
Increase or decrease in long-term prepaid expenses
OthersSubtotalInterest received
Interest payment
Income for Corporation tax payment, etc
Income from Corporation tax payment
Cash flows from operating activities

1,968,589
847,195
5,595
8,412(7,863)
410,487(69,450)
50,6081,933,205
864,630
5,595
8,412(9,513)414,387
17,533—40,854
31,188(1,280)10,68250,260313,729(61,727)(37,950)
5,690
3,565,021
7,863(400,237)(29,056)
14,284
3,157,875

70,08187,594
4,422(3,040)(67,815)(310,186)
42,65532,093(1,016)
3,089,038
9,513-414,690(29,673)
27,5632,681,751

II. Cash flows from investing activities
Payment for purchase of tangible fixed assets in trust
Proceeds from key money and security deposit in trust
Payment for key money and security deposits in trust
Proceeds from payout of restricted deposits in trust
Net cash used for investing activities(4,409,606)
287,371(330,175)—(4,452,409)(553,500)
95,125(515,517)
488,662(485,230)

30,100,000(29,600,000)
10,000,000(6,600,000)(1,979,389)
1,920,610
626,076

6,200,000(8,200,000)
2,000,000—(1,969,105)(1,969,105)
227,415

V. Balance of cash and cash equivalents at beginning of
period5,195,986

5,822,063

VI. Balance of cash and cash equivalents at end of
period5,822,063

6,049,478

III. Cash flows from financing activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Payment of dividends
Cash flows from financing activities
IV. Net Increase or decrease in cash and cash equivalents(6) Footnotes in precondition of a going concern
No relevant items

14

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009(7) Significant accounting policies
The disclosure is omitted, since there are no significant changes from contents disclosed by the latest
Securities Report (submitted on November 25, 2008).
(8) Change in accounting policies
Effective from the current fiscal period, FRC has applied the “Accounting standard for Lease
Transactions” (Accounting Standards Board of Japan, ASBJ Statement No. 13 [revised on March 30,
2007]) and the “Implementation Guidance for Accounting Standards for Lease Transactions”(Accounting Standards Board of Japan, ASBJ Guidance No. 16 [revised on March 30 2007]) tofinancial statements.
There is no impact on the business performance from the change.
(9) Additional information
In accordance with the revision to “Ministerial Ordinance Concerning the Useful Life of Depreciable
Assets and etc.” under the Fiscal Year 2008 tax reform, the statutory useful life of machinery andequipment is revised, but FRC continues applying the previous useful life.
(10) Footnotes in financial statements
FRC omits the disclosure of footnoted items on the balance sheet, income statement, statement ofchanges in net assets, cash flows statement, lease transactions, securities, derivative transactions,retirement benefits, tax effect accounting, and related party transactions, since the Company does notfind substantial need for disclosure in the earnings briefing.
(Data per investment unit)
8th Fiscal Period
March 1, 2008 to August 31, 2008
Net assets per investment unit:
581,328 yen
Net income per investment unit: 18,373 yen
Net income per investment unit is calculated by dividing
net income by the weighted average number ofinvestment units issued and outstanding during the fiscal
period. Diluted net income per investment unit is notshown since there are no potential investment units.

9th Fiscal Period
September 1, 2008 to February 28, 2009
Net assets per investment unit:
581,004 yen
Net income per investment unit: 18,048 yen
Net income per investment unit is calculated by dividing
net income by the weighted average number ofinvestment units issued and outstanding during the fiscal
period. Diluted net income per investment unit is notshown since there are no potential investment units.

15

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

(Note) Calculation of net income per investment unit is based on the following.

1,966,854—

9th Fiscal Period(September 1, 2008 to
February 28, 2009)
1,932,122—

1,966,854

1,932,122

107,050

107,050

8th Fiscal Period (March 1,
2008 to August 31, 2008)

Account
Net income (thousands of yen)
Net income not distributed to shareholders(thousands of yen)
Net income distributed to shareholders(thousands of yen)
Number of average investment units during the
fiscal period (units)(Subsequent critical events)
8th Fiscal Period
March 1, 2008 to August 31, 2008
No relevant items

9th Fiscal Period
September 1, 2008 to February 28, 2009Same as on the left

(11) Change in the number of investment units issued and outstanding
No relevant items

4. Change in directors(1) Change in directors in Fukuoka REIT Corporation
No relevant items(2) Change in directors in Fukuoka Realty Co., Ltd.
(November 30, 2008) Retirement of Hidekazu Tanaka as Managing Director(January 6, 2009) New appointment of Yoichi Nishio as Managing Director
Directors of Fukuoka Realty Co., Ltd. are as follows as of April 9, 2009.
Title

Name

Career Summary

CEO and
Representative
Director

Masayasu Saki

April 1969

Joined The Nippon Fudosan Bank,
Limited. (later, The Nippon Credit Bank,
Ltd.; currently, Aozora Bank, Ltd.)

June 1992

Member of the Board and Tokyo BranchManager

February 1994

Member of the Board and Director for
Financial Product Development

June 1995

Member of the Board and Director forMarketing Planning Division 2

June 1996

Executive Director

June 1998

Senior Executive Director

November 1999

Director at CSK KK

November 2000

Executive Officer at Sanyo Shinpan
Finance Co., Ltd.

July 2003

CEO of Fitch Ratings Japan

April 2006

Advisor of Fukuoka Realty Co., Ltd.

June 2006

CEO of Fukuoka Realty Co., Ltd.
(current position)

July 2006

CEO & Representative Director of16

Number ofshares held
0

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

Vice President
and Director

Managing
DirectorTakeshi Okuma

Yoichi Nishio

April 1975

Fukuoka REIT Corporation (current
position)
Joined Japan Development Bank,(currently Development Bank of Japan
Inc.)

June 2000

General Manager, Department for
Regional Development

June 2002

General Manager, Department for Urban
Development

June 2004

Kyushu Branch Manager

June 2006

Director, Research Institute of Capital
Formation

October 2007

Vice President and Director of Fukuoka
Realty Co., Ltd. (current position)
Joined The Nippon Credit Bank, Ltd.
(currently, Aozora Bank, Ltd.)

April 1985

September 2005

General Manager, Real Estate Finance
Division

July 2008

Joined as Senior Vice President of New
City Corporation.

January 2009

Joined as Managing Director and Head ofFinance Department of Fukuoka Realty
Co., Ltd. (current position)

00(Note) Masayasu Saki, CEO of Fukuoka Realty Co., Ltd., also serves as CEO & Representative Directorof Fukuoka REIT Corporation. In conformity with Article 13 of Securities Investment Trust Act (before
revision), he obtained approval for serving concurrently from Minister for the Financial Services Agency
as of June 22, 2006.
Title

Name

Career Summary

Director(part-time)

Soichiro
Shigefuchi

April 1988

Joined Tokyu Construction Co., Ltd.

November 1990

Joined Fukuoka Jisho Co., Ltd.

June 2004

Deputy General Manager, Development
Unit

June 2006

Director of Fukuoka Realty Co., Ltd.
(current position)

April 2008

General Manager, Commercial Business
Unit, Shopping Center Development andOperation, Fukuoka Jisho Co., Ltd.

June 2008

General Manager, Commercial Business
Unit, Business Control Division(current position)
Joined Kyushu Electric Power Co., Inc.

Director(part-time)

Yasumichi
HinagoApril 1968
July 1998

General Manager, Material Procurement
Division

July 2002

General Manager, Material & Fuel

17

Number ofshares held
00

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

Procurement Division

Director(part-time)

Auditor(part-time)

Hiroshi
Shimuta

Masanori
TasakaJune 2003

Saga Branch Manager

July 2003

Executive Officer and Saga BranchManagerJune 2005

Director

June 2007

Senior Managing Executive Officer(current position)

June 2007
October 2000

Director of Fukuoka Realty Co., Ltd.
(current position)
Registered as lawyer

April 2004

Joined Fukuoka Realty Co., Ltd.

April 2005

General Manager, Compliance Division

June 2007

Joined Nishimura & Tochiwa (currently,
Nishimura & Asahi) (current position)

June 2007

Director of Fukuoka Realty Co., Ltd.
(current position)
Joined The Fukuoka Sogo Bank, Ltd.
(currently, The NISHI-NIPPON CITY
BANK, LTD.)

April 1978

August 2000

Deputy General Manager, Planning
Division

July 2003

General Manager for Planning Division
and Risk Control Manager

October 2004

General Manager, General Planning
Division

April 2005

Loaned to NCB Management Information
Service Co., Ltd., General Manager for
Business Alliance

April 2006

Head of Tasaka Masanori Certified Tax
Accountant Office (current position)

June 2006

Auditor of Fukuoka Realty Co., Ltd.
(current position)

18

0

0

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009

5. Reference information(1) Investment situation(as of February 28, 2009)
Total value of properties
Percentage of total
heldassets (%)
Type of asset
PurposeLocation (Note 1)(Millions of yen)
(Note 3)(Note 2)
Commercial
Fukuoka urban area
38,53030.8
facility
Other Kyushu areas
37,07929.6
Fukuoka urban area
36,386
29.1
Office building
Real estate
Other Kyushu areas——
Residential
Fukuoka urban area
3,198
2.6
property
Other Kyushu areas——
Subtotal
115,195
92.0
Interests in limited partnership (Note 4)
3,421
2.7
Deposits and other assets
6,606
5.3
Total assets
125,222100.0(Note 5)(118,616)(94.7)
Note 1: The Fukuoka urban area refers to cities, towns and villages where 10% or more of the population commute
to Fukuoka City for school and work, according to the 2005 census, which states “the number of workers
and students aged 15 years or older commuting between their homes and places of work or school”
conducted by Fukuoka City and the Statistics Bureau of the Ministry of Internal Affairs andCommunications.
“Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka urban area) andYamaguchi Prefecture.
Note 2: “Total value of properties held” is based on figures on the balance sheet (the value of real estate in trust is abook value after depreciation).
Note 3: Concerning the “Percentage of total assets,” all numbers after the second decimal place are disregarded.
The total of individual percentages in the above table may not equal 100 percent.
Note 4: Preferred interests in limited partnerships are capital contributions to an SPC (CCH Bridge LLC), whoowns and manages a section of Canal City Hakata excluding the section the Company already holds (Canal
City Hakata SPC holding section).
Note 5: Figures in parentheses for “Total assets” refer to the value and percentage of real estates held in effect tototal assets.

Figures on balance sheet (millions of yen)

(as of February 28, 2009)
Percentage of total assets (%)

63,026
62,196

50.3
49.7

Total amount of debt
Total amount of net assets(2) Investment assets(i) Primary issues of investment securities
TypeBook value(millions of yen)

Description(as of February 28, 2009)
Evaluated amount
Percentage of(millions of yen)
total assets(Note)(%)

Preferred limited
Preferred interest in limited
3,421
3,400
2.7
partnership interest
partnerships to CCH Bridge LLC(Note) The evaluated amount is provided by the operator of a limited partnership in conformity with rules stipulatedby the Investment Trusts Association, Japan.

19

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009(ii) Real estate investment portfolio(a) Values and investment ratios at end of year are as follows.
(as of February 28, 2009)
Acquisition
value(millions ofyen)(Note 1)

Value onbalancesheet(millions ofyen)

Period-end
appraisal value(millions ofyen)(Note 2)

Investment
ratio
(%)
(Note 3)

Canal City Hakata

32,00031,83736,00027.8

Park Place Oita

15,70017,08318,900

13.7

SunLive City Kokura

6,633

6,441

7,610

5.8

5,300

5,129

5,040

4.6

2,400

2,339

2,460

2.1

Hara SATY

5,410

5,566

5,330

4.7

Hanahata SC

1,130

1,127

1,170

1.0

Kurume Higashi
Kushiwara SC

2,500

2,493

2,540

2.2

K’s Denki Kagoshima

3,550

3,592

3,420

3.1

14,60014,35016,40012.7

11,20010,65813,500

9.7

4,400

4,460

5,220

3.8

7,000

6,917

7,150

6.1

2,060

2,053

1,870

1.8

1,111

1,144

1,050

1.0

Name of property

Square Mall Kagoshima
Usuki
Kumamoto
Intercommunity SC

Canal City BusinessCenter Building
Gofukumachi BusinessCenter Building
Sanix Hakata Building
Taihaku Street BusinessCenter Building
Amex Akasakamon
Tower
City House Keyaki DoriReal estate appraiser

TANIZAWA SOGOAPPRAISAL CO., LTD.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
TANIZAWA SOGOAPPRAISAL CO., LTD.
TANIZAWA SOGOAPPRAISAL CO., LTD.
TANIZAWA SOGOAPPRAISAL CO., LTD.
TANIZAWA SOGOAPPRAISAL CO., LTD.
TANIZAWA SOGOAPPRAISAL CO., LTD.
Japan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.

Total
114,994
115,195
127,660
100.0
Note 1: “Acquisition value” refers to be amount (purchasing prices shown on the purchasing contracts) not
including expenses for the acquisition of relevant properties (agency fees and taxes and other publiccharges).
Note 2: “Period-end appraisal value” refers to the evaluation value based on appraisals by a real estate appraiser inconformity with the method and standards for asset evaluation stipulated in FRC’s Articles of Incorporation
and rules stipulated by the Investment Trusts Association, Japan.
Note 3: “Investment ratio” is obtained by dividing each property’s acquisition value by the total acquisition value.
The total of individual percentages in the above table may not equal 100 percent, since all numbers after thesecond decimal place are disregarded.

20

Fukuoka REIT Corporation (8968), Earnings briefing for the term ended February 2009(b) Summary of the real estate rental business

Name of property
Canal City Hakata
Park Place Oita
SunLive City
KokuraSquare Mall
Kagoshima Usuki
Kumamoto
Intercommunity SC
Hara SATY
Hanahata SC
Kurume Higashi
Kushiwara SC
K’s Denki
Kagoshima
Canal City
Business Center
Building
Gofukumachi
Business Center
Building
Sanix Hakata
Building
Taihaku Street
Business Center
Building(Note 4)
Amex Akasakamon
Tower
City House Keyaki
Dori
Total
Note 1:

Note 2:

Note 3:Note 4:Note 5:(as of February 28, 2009)
Total rental
Percentage ofrevenue
total rental(millions of yen)revenue(Note 4)
(%)
1,365
25.6
994
18.7

Occupancy
rate(%)(Note 3)
100.0
99.9

Total
leasable
space (m2)

Total leased
space (m2)

45,982.41
103,963.32

45,982.41
103,826.00

1

100.0

61,450.22

61,450.22

292

5.5

11

100.0

14,661.72

14,661.72

257

4.8

2

100.0

6,968.66

6,968.66

90

1.7

1
2

100.0
100.0

27,580.75
2,801.15

27,580.75
2,801.15

212
40

4.0
0.8

1

100.0

6,467.80

6,467.80

88

1.7

1

100.0

7,296.17

7,296.17

111

2.1

1 (43)

97.8

23,017.20

22,500.80

707

13.3

20

97.9

19,906.22

19,482.38

553

10.4

14

100.0

6,293.77

6,293.77

203

3.8

1 (58)

92.9

14,641.03

13,598.72

306

5.8

1 (61)

90.4

4,755.14

4,298.25

67

1.3

1 (41)

97.2

2,710.86

2,635.9138

0.7

Numberof tenants(Note 1)
1 (49)
1 (99)

59 [404]
99.2 348,496.42
345,844.71
5,330
100.0
(Note 2)The number of tenants shown is based on the total number of sections stipulated in the tenancy agreements
for commercial and office buildings among relevant properties. For the number of tenants in pass-throughmaster leasing properties, the number of sections stipulated in the tenancy agreements with end tenants isshown in parentheses. The Taihaku Street Business Center Building is an office building with residential
blocks. Its number of tenants comprises nine offices and 49 residents.
The 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 inparentheses in the totals column.
“Occupancy rate” refers to the percentage of total leased space to total leasable space and all numbers after
the second decimal place are disregarded
The total rental revenues shown are the total of revenues from the real estate rental business and revenues
from other real estate rental business in the current fiscal period.
The percentage of total rental revenue is obtained by dividing each property’s total rental revenue by the
total rental revenue. The total of individual percentages in the above table may not equal 100 percent, since
all numbers after the second decimal place are disregarded.

(3) Investment Target
The disclosure is omitted, since there are no significant changes from “Investment Target” disclosedby the latest Securities Report (submitted on November 25, 2008).

21