Fukuoka REIT Corporation
Q&A Summary for the 30th Fiscal Period (Period Ended August 2019) Earnings Briefing
Session for Institutional Investors/Analysts
Date: October 17, 2019 (Thu.), 17:00pm – 17:30 pm
Q1: For the Fukuoka market, we recognize that the performance of office buildings andlogistics facilities is favorable and that of retail facilities is unfavorable. Do you intend toincrease the ratio of office buildings and logistics facilities and lower the ratio of retailfacilities in the portfolio? If so, please tell us about your actions and progress towards it,
as well as sense of speed, etc.
A1: The purpose of the change in the investment policy made in March 2019 was to acquire
office buildings and logistics facilities. As for the status of consideration, we are steadily
considering acquisition from outside parties and sponsors.
Q2: As for the business forecast, you mentioned the downturn in variable rent due to thedecrease in the number of South Korean tourists visiting Japan. Does that mean there
will be no risk of decrease in fixed rent caused by tenant move-out, etc.?
A2: There will be no move-outs of retail tenants and no decrease in fixed rent due to thedecrease in the number of South Korean tourists visiting Japan. As for the impact, wethink that only variable rent, which increased in line with the sales increase, will beslightly impacted in a negative manner.
Q3: You explained that dividends will decrease with the impact of the decrease in the numberof South Korean tourists visiting Japan. Do you intend to acquire properties throughborrowings and cover the decrease by raising the LTV?
A3: The current LTV ratio is 39.7% and approximately 1 billion yen can be borrowed up to40% and approximately 19 billion yen up to 45%. We acquired Tissage Hotel Nahathrough borrowings last December and intend to acquire properties by utilizing
borrowings and cash on hand if there are any small properties we find to be good.
Q4: You mentioned your goal of achieving DPU of 3,800 yen on an ongoing basis upon theannouncement of the financial results for the previous period. What are your thoughts

based on the current situation such as the decrease in the number of South Koreantourists visiting Japan? You said you are able to achieve 3,800 yen only through internal
growth, but have you made any changes to the forecast? If so, please tell us about it.
A4: We aim to achieve 3,800 yen, of course. However, replacement of major tenants, etc. arescheduled in the future and the achievement may be delayed more than initiallyassumed if downtime occurs, but we will not change our focus. Furthermore, our aim toachieve 3,800 yen as the next target will be realized through not only internal growth butalso by combining external growth, if there are small properties.
Q5: The decrease in variable rent for retail facilities continues to be a concern due to thedecrease in the number of South Korean tourists visiting Japan. You said you will coversuch decrease by attracting more tourists from other countries but is it possible to cover
the decrease in the number of South Korean tourists visiting Japan with increase intourists from other countries? Nonetheless, is variable rent forecasted to decrease overthe medium term? Please tell us your forecast on variable rent, considering the expected
number of tourists from other countries.
A5: In terms of volume, tourists from South Korea account for a large percentage of tourists
visiting Japan. Although it is difficult to make future assumptions as we cannot forecast
the amount by which South Korean tourist numbers will decrease and for how long thedecrease will continue, there are several countries from which we are attracting more
visitors with the launch of new flights. Our current aim is to increase the number oftourists from Southeast Asia by conducting sales promotions, as well as attract
customers from North America, Europe and Australia in the future.

This material contains statements on future business performances, plans, management targets and strategies, etc. Theseforward-looking statements are based on the latest judgments made by Fukuoka REIT Corporation and Fukuoka Realty Co., Ltd., and theactual results of Fukuoka REIT Corporation may differ materially from those in the forward-looking statements due to various factors.
Therefore, Fukuoka REIT Corporation and Fukuoka Realty Co., Ltd. do no guarantee their respective future performances described inthis material or in the explanations made on the basis of this material. Although Fukuoka REIT Corporation and Fukuoka Realty Co., Ltd.
have prepared this material based on the information believed to be reliable, it makes no guarantee as to the accuracy, rationality orcompleteness of the content. Please note that all the descriptions of this material are effective as of the date when this material wasprepared, and may be subject to change without prior notice. This material is solely for the purpose of providing information to investors,
and is not intended for soliciting investment or other activities. When making a final decision on investment, investors are kindly requested
to do so based on their own judgment and responsibility, fully recognizing and understanding the investment-related risks including adecrease in investment value.