1「Park Place Oita」増床(2008.4.24OPEN)

2

Profile

Fukuoka REIT Overview
Investment Unit Price

Profile【Name】

Fukuoka REIT Corporation【Asset Manager】

Fukuoka Realty Co., Ltd【Sponsors】

Fukuoka Jisho, Kyushu Electric Power,
The Bank of Fukuoka, The Nishi-Nippon City Bank,
Nishi-Nippon Railroad, Saibu Gas, Kyudenko,
Kyusyu Railway Company,
Development Bank of Japan Inc., Royal Holdings【Listed Date】【Unit Price】【Outstanding Units】【Market Capitalization】【Historical high】【Historical low】
【Net Asset Value Per Share】【Market Net Asset Value Per Share】

545,000 yen (as of August 29, 2008)
107,050 units
58.3 billion yen(unit price × outstanding units as of August 31, 2008)
1,300,000 yen (February 26, 2007)
513,000 yen (August 27, 2008)
562,955 yen (as of August 31, 2008)
759,779 yen (as of August 31, 2008)

Market Net Asset Value Per Share = {(Total Appraisal Value at the end of period based on
appraisal reports-Total Book Value at the end of period based on Balance Sheet) +Net Asset atthe end of period}/ Outstanding Units as of the end of period

June 21, 2005(TSE, FSE)

Financial Highlights

Portfolio Summary【Total Assets】

126 billion yen (as of August 31, 2008)【Total Debt 】

51.9 billion yen (as of August 31, 2008)【Credit Ratings】

S&P A- (Stable)
R&I A+ (Stable)【LTV (Interest-bearing liabilities/total assets) 】

41.2%【Asset Type】【Target of Asset Location】

Retail 64.9%, Office 32.4%, Residence 2.7%
Fukuoka Metropolitan Area 68.6%,
Other Kyushu Area 31.4%【Total Leasable Area at End of Period】 350,382.95㎡
99.4%【Occupancy Rate at End of period】
Figures have been calculated based on owned properties (but the preferred silent partnerships
interest) as of August 31, 2008. Figures of Leasable Area and Occupancy Rate are calculated
as of August 31, 2008

Dividend Information【Previous Fiscal Period (8th) End】

August 31, 2008 (semi-annual periods ending every February and August)【Dividend for 8th Fiscal Period (actual)】

18,373 yen per unit

【Number of Days】

184 days【Dividend Yield】

6.69% { (Dividend for the 8th fiscal period / length × 365) / Investment Unit Price}【Spread vs. JGB】

5.27% (Comparison with 10-year JGB as of August 29, 2008）

3

J-REIT Specialized in Fukuoka / Kyushu Area

4

Table of Contents

1

Financial Statements

6

2

Portfolio

14

3Operational Strategy of Retail24

4Operational Strategy of Office34

5

Financial Strategy

40

6Total Strategy

48

7Compliance52

8

Appendix

56

These materials may contain future performance, plans, management targets and strategies. These forward-looking descriptions are based on present assumptions
on future events and trends in the business environment, but such assumptions may not necessarily be accurate. Actual results may differ materially due to various
factors. Neither Fukuoka REIT Corporation nor Fukuoka Realty shall be liable for the accuracy, rationality and completeness of information contained in thesematerials, whether they were prepared by Fukuoka REIT Corporation or Fukuoka Realty or provided by a third party. These materials have not been prepared to
entice investment. When applying to purchase investment units issued by Fukuoka REIT Corporation, do so based on your own judgment and responsibility.

5

6

Financial Statements

Financial Highlights

Maintaining high dividend payment exceeding 18,000 yen.
3rd Fiscal Period 4th Fiscal Period 5th Fiscal Period 6th Fiscal Period

Category

September 1, 2005
to February 28, 2006

March 1, 2006
to August 31, 2006

September 1, 2006
to February 28, 2007

March 1, 2007
to August 31, 2007

7th Fiscal Period(i)8th Fiscal Period(ii)September 1, 2007
to February 29, 2008

March 1, 2008
to August 31, 2008

difference< (ii) - (i) >Total Revenues（mm yen）

4,050

4,496

4,870

5,232

5,179

5,483

+303

Property's ＮＯＩ (*1)
Depreciation
Operating Income
Ordinary Income
Net Income（mm yen）

2,654
562
1,751
1,698
1,697

2,855
619
1,983
1,716
1,715

3,171
688
2,210
1,866
1,856

3,395
741
2,362
1,966
1,965

3,441
763
2,382
1,981
1,980

3,596
847
2,441
1,968
1,966

+155
+83
+58
(12)
(13)

Dividend per unit

18,438 yen

18,632 yen

17,341 yen

18,360 yen

18,499 yen

18,373 yen(126)

Number of investment units

92,05092,050107,050

107,050

107,050

107,050（mm yen）

94,593

104,183

117,259

117,815

121,654

125,954（mm yen）

50,86550,75462,022

62,13962,10062,231

181

184

181

184

182

184

7

8

11

11

14

15

181

250

314

327

325

381

340,061.83㎡

350,382.95㎡

98.8%

99.4%

（mm yen）（mm yen）（mm yen）（mm yen）(as of end of period )Total Assets(as of end of period )Net Assets(as of end of period )Asset management period

Number of properties owned(as of end of period ) (*2)

Number of tenants(as of end of period ) (*3)

Leaseable floor space(as of end of period )Occupancy Rate(as of end of period ) (*4)

262,979.61 ㎡ 277,580.44 ㎡ 304,024.87 ㎡ 328,071.73 m2
99.0 %

99.4 %

99.4 %

99.7 %(*1) “Property's ＮＯＩ ” is obtained by the following calculating formula: “Leasing Business Income - Leasing Business Expenditure + Depreciation.” (*2) The number of properties owned does not include the preferredsilent partnerships interest. (*3) The number of tenants shown is based on the total number of sections stipulated in the tenancy agreements for properties FRC owns. As for the number of tenants in pass-throughmaster leasing properties, the total number of sections stipulated in the tenancy agreements with end tenants is shown. (*4) “Occupancy rate” is the percentage of total leased areas to total leasable areas as of theend of the period.
7

Financial Statements

Statement of Income（unit：thousands）

I. Operating revenues
Real estate leasing revenues
Other revenues from real estateleasing
Silent partnership dividend
II. Operating expenses
Real estate leasing expenses

8th Fiscal Period(1)7th Fiscal Period(2)Variation

Primary factors for period-on-period Variation

March 1,2008 - August 31,2008

September 1,2007 - February 29,2008< (1)－(2) >(Unit: mm yen)Amount(%)

Amount(%)

Amount(%)

5,483,008

100.0

5,179,178

100.0

303,830

5.9

5,169,535

4,871,952

177,472

171,225

136,000

136,000

3,041,506

55.5

2,796,387

2,597,412

2,365,097

Asset management fees

336,502

321,104

Asset custodian fees

10,702

10,252

General administration fees

33,72433,828

Director compensation

9,600

9,510

Other operating expenses

53,56456,594

Operating income

54.0

245,1198.8

2,382,791

46.0

58,711

2.5

III. Non-operating revenues

8,724

0.2

7,149

0.1

1,574

22.0

Interest received

7,863

Interest payment

7,149
―

861

481,6378.8

408,594

410,487

345,043

Amortization of establishment cost

5,595

5,595

Investment unit issuance fee write off

8,412

8,412

Expenses related to debt financing

52,60046,564

Other non-operating expenses

4,542

2,978

7.9

73,04317.9

35.9

1,981,346

38.2(12,757)(0.6)

Net income before tax

1,968,589

35.9

1,981,346

38.2(12,757)(0.6)

Adjustment to income tax
Net income
Retained earnings brought foward
previous period
Unappropriated retained earnings
for the period

1,029

(43)

19

1,966,854

35.9

1,980,297

Contribution of properties newly acquired to NOI・Contribution of properties newly acquired
・Full contribution of properties acquired in the previous period
Park Place Oita (effects from the expansion of floor spaces)
Park Place Oita (seasonal factor)
Payment of fixed property tax and city planning tax（Hara SATY and Hanahata SC）
Others

+155
178
93
85
37
(36)
(19)
(5)

Factors for a Variation in operating income (except NOI)
Increase in Depreciation expenses
・Properties newly acquired, properties acquired in the previous period
・Park Place Oita
・Others
Increase in operating expenses (including Asset Management fees)

(83)
(54)
(26)
(3)
(13)

Factors for a Variation in non-operating income or loss

1,968,589

1,778

3,441

Operating Income ：+58

Ordinary income

Corporation, inhabitant and business tax

3,596

Property's NOI ：+155

44.5

Other non-operating revenues

8th Fiscal Period 7th Fiscal Period Difference

Property's NOI

2,441,502

IV. Non-operating expenses

Factors for a Variation in property's NOI

38.2(13,443)

29

49

(20)

1,966,884

1,980,347(13,463)(0.7)

Increase in financing costs
・Increase in interest payment due to shifting tolonger-period debts at the end of February 2008
・Increase in interest payment due to increasein debts (for acquiring new properties)
・Others
・Increase in financing related costs (due to increase in debts)

(71)
(30)
(30)

(5)
(6)

Ordinary Income ： (12)8Financial Statements

Balance Sheets(unit：thousands)

8th Fiscal Period

7th Fiscal Period(as of Aug.31, 2008)(as of Feb.29,2008）

AmountAssetsCash and cash equivalents

1,931,769
4,378,955
302,233
165,58161━
33,531
6,812,132

Cash and deposits in trust
Operating receivables
Pre-paid expenses
Deferred tax assets
Consumption tax receivables
Other current assets
Total current assets
1. Tangible fixed assets

AmountAdditional
category

I. Current assets

II. Fixed assets

(%)

5.4

1,649,844
4,034,804
232,783━18
50,608
127,375
6,095,433(%)

Difference
Amount(%)

Increased:
7th Fiscal
Period:61,728103,853 281,924
344,151
69,450165,58143(50,608)(93,843)
5.0
716,699
11.8

Transfer to buildings in trust by floor expansion of Park Place Oita

Construction in process
Buildings in trust
Structure in trust
Machinery and equipmentin trust
Tools and fixtures in trust
Land in trust
Total tangible fixed assets

306,176287━

20,931
285
40,854

657,928
489,977
11,259,739

50,260313,713
6,355,641

Income taxes payable
Consumption taxes payable
Rent received in advance

68,810,414

66,666,541

2,143,873
3.2－━
37,9503,521,443

2.9

37,9501.1

119,119,736

94.6

115,523,052

95.0

3,596,683

3.1(8,412)

22,4200.0

36,428125,954,289

100.0

121,654,914

0.0
100.
0

14.0

9.3

56.4

38,500,000(2,000,000)━

80,288(80,288)

Guarantees and deposit in trust

9,607,644

9,570,159

37,485Derivative loss━
46,107,644

36.6

144,515
48,294,963

39.7(144,515)(2,187,318)(4.5)

63,723,025

50.6

59,554,702

49.0

4,168,323

7.0

Total Fixed liabilities

I. Shareholders’ capital
1. Total investment(14,007)(38.5)

4,299,375

3.5“K's Denki Kagoshima”andexpansion of floor plan at“Park Place Oita”

60,264,380

60,264,380

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

1,980,347
1,980,347
62,244,727

Park Place Oita tenants
goes to Deposit to in trust－

2. Reserve
Unappropriated profit
Total reserve(5,595)708,189
803,691
17,615,381

Shifthing tolongterm 10
billion yen

Net Assets

III. Deferred assets

25,237(%)

36,500,000

Total liabilities

2.8

Total assets

327,108572
40,854Long-term debt

3,559,393

Total deferred assets(7,737)

Expenses payable

71,01011,19037,334500,000
5,400,000

339,276

5,595

282,9102,900,000

22,458410,286

16,825320,244
3,400,000

6,600,000

Guarantees and deposits

3,421,633
10,00089,809Amount

14,720(7,715)3,558,733(%)

Amount12,000,000

283,946

92.1(%)

Difference

Accounts payable

Total current liabilities

Total Investment and other assets

Establishment expense
Investment unit issuance
expense

Short-term debt
Long-term debt to be repaid
within a year

276,230

112,001,609(as of Feb.29,2008）

II. Fixed liabilities

Long term prepaid expense
Total fixed assets

Accrued business fees

(483,728)
1,664,282
171,01191.8

7th Fiscal Period(as of Aug.31, 2008)“K’s Denki Kagoshima” ”Park Place Oita” total 3.9billion yen increase

I. Current liabilities

483,728
43,734,843
493,273

3,421,633
10,000127,759

Guarantees and deposits

Liabilities━
45,399,125
664,284

115,560,343

8th Fiscal Period

AmountDeposits held

2. Investment and other assets
Investment securities(unit：thousands)

Total shareholders’ capital
II Difference of valuation andconversion
1.Profit and Loss deferred hedge
Total difference of valuation andconversion
Net Assets
Total liabilities and net assets

49.4

━

51.1

(144,515)(13,463)(13,463)(13,463)(0.0)

144,515━━(144,515)(0.0)

144,515━

62,231,264

49.4

62,100,212

51.0

131,0510.2

125,954,289

100.0

121,654,914

100.0

4,299,375

3.5

No Interest rate swap of evaluation by using special disposition

9

Financial Statements

Cash Flows Statements(unit：thousands)

Category
Ⅰ Cash flows from operating activities
Net income before tax
Depreciation expenses
Amortization of establishment expenses
Investment unit issuance depreciation
Interest received
Interest payment
Increase / Decrease in operating receivables
Increase / Decrease in uncollected consumption tax receivables
Increase / Decrease in consumption tax payable
Increase / Decrease in operating payable
Increase / Decrease in account payable
Increase / Decrease in payable expense
Increase / Decrease in rent received in advance
Increase / Decrease in deposits
Increase / Decrease in pre-paid expenses
Increase / Decrease in long-term pre-paid
OthersSubtotalInterest received
Interest payment
Income for Corporation tax payment, etc.
Income from Corporation tax payment
Cash flows from operationg activities
Ⅱ Cash flows from investment activities
Payment for purchase of tangibles fixed assets
Payment for purchase of tangibles fixed assets in trust
Payments for key money and security deposits on deposit
Proceeds from key money and security deposits in turst
Payments for key money and security deposits in trust
Net Cash used for investing activities
Ⅲ Cash flows from financing activities
Proceeds from short-term debt
Repayments of short-tem debt
Proceeds from long-term debt
Repayment of long-term debt
Dividends paid
Net cash provided by financing activities
Ⅳ Net increase / Decrease in cash and cash equivalents
Ⅴ Cash and cash equivalents at start of period
Ⅵ Cash and cash equivalents at end of period

The 8th Fiscal Period （184 days）

The 7th Fiscal Period （182 days）

March 1, 2008 - August 31, 2008

September 1, 2007 - February 29, 2008

1,968,589
847,195
5,595
8,412(7,863)
410,487(69,450)
50,60840,854
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

1,981,346
763,679
5,595
8,412(7,149)345,043
42,467(50,608)(101,182)(1,499)(17,077)(1,061)
28,536(215,758)
30,932
7,930
12,874
2,832,481
7,149(348,222)(15,388)―2,476,020―(4,409,606)―
287,371(330,175)(4,452,409)(477,708)(4,837,312)
80,288285,856(124,969)(5,073,844)

30,100,000(29,600,000)
10,000,000(6,600,000)(1,979,389)
1,920,610
626,076
5,195,986
5,822,063

15,300,000(20,900,000)
9,500,000―(1,966,518)
1,933,481(664,341)
5,860,328
5,195,986

10

Financial Statements

Difference between Forecast and Result

The Company continues to beat forecast.

Category

Operatingrevenues

Operating income

Result for the 8th
Fiscal Period (i)5,483 mm yen

2,441 mm yen

Forecast for the
8th Fiscal Period (ii)announced on
April 9, 2008

5,466 mm yen

2,392 mm yen

Difference< (i) - (ii) >Primary factors for difference between
forecast and result (Unit: mm yen)
Ordinary profit (in comparison to the forecast)+61+17 mm yen+49 mm yen

Exceeding of the budgeted NOI
for the existing properties
1.Exceeding forecast of Canal City Hakata
2.Effect of the expansion of floor spaceat Park Place Oita
3.Exceeding forecast of Office buildings
4.Others

Increase in Depreciation expenses

+31
+22
+5
+8
(4)

(3)

(increase in asset classification due to the
expansion of floor space)

Ordinary income

1,968 mm yen

1,907 mm yen+61 mm yen

Net income

1,966 mm yen

1,905 mm yen+61 mm yen

Reduction in sales and generaladministrative expenses+21

Reduction in financing costs, etc.

+12

Dividend
payment exceeds
the forecast by
Dividend per unit

18,373 yen

17,800 yen+573 yen

573 yen11

Financial Statements

Forecasts for the 9th and 10th Fiscal Periods(Unit: mm yen)

3rd Fiscal period 4th Fiscal period 5th Fiscal period 6th Fiscal period 7th Fiscal period 8th Fiscal period 9th Fiscal period 10th Fiscal period
ended Feb 28,
ended Aug 31,
ended Feb 28,
ended Aug 31,
ended Feb 29,
ended Aug 31,
ending Feb 28,
ending Aug 31,
2006
2006
2007
2007
2008
2008
2009
2009

Category

ResultResultResultResultResultResultForecast

Forecast

Operating revenues （mm yen）

4,050

4,496

4,870

5,232

5,179

5,483

5,486

5,453

Operating profit （mm yen）

1,751

1,983

2,210

2,362

2,382

2,441

2,394

2,323

Ordinary profit（mm yen）

1,698

1,716

1,866

1,966

1,981

1,968

1,907

1,822

Net profit（mm yen）

1,697

1,715

1,856

1,965

1,980

1,966

1,906

1,820

181 days

184 days

181 days

184 days

182 days

184 days

181 days

184 days

Dividend per unit(i) 18,438 yen

18,632 yen

17,341 yen

18,360 yen

18,499 yen

18,373 yen――

Latest forecast(ii)16,700 yen

18,200 yen

17,000 yen

17,600 yen

17,700 yen

17,800 yen

17,800 yen

17,000 yen+1,738 yen+432 yen+341 yen+760 yen+799 yen+573 yen――

Asset management period

Difference< (i) - (ii) >(*) The Company forecasted dividend per unit would be 17,400 yen in the 9th fiscal period when announcing the result for 7th fiscal period.
(*) The above forecast figures are calculated based on certain assumptions. The forecast should not be construed as a guarantee of actual performance since actual operating revenues, ordinary profit, net profit, anddividend per unit may differ due to Variations in the business environment.

12

Financial Statements

Basic Assumption for Business Forecast
Analysis on difference between result of the 8th fiscal period and forecast of the 9th fiscal period(Unit: mm yen)

8th Fiscal period

9th Fiscal period(Result)（Forecast）

Difference

NOI

3,596

3,586

(11)

1. Expansion of floor space at Park Place Oita
2. Full contribution from K’s Denki Kagoshima
3. Renovation of COMME ÇA STORE

+36
+15
(28)

Depreciation
expense

(847)

(859)

(12)

1. Expansion of floor space at Park Place Oita
2. Renovation of COMME ÇA STORE

(8)
(4)

Other operating profit
or loss

(308)

(333)

(24)

1. Increase in expenses for IR activities
2. A floating factor in the first half and last half fiscal period

(12)
(12)

Operating Income

2,441

2,394

(47)

Financing costs

(463)

(480)

(17)

Other non-operating
profit or loss

(9)

(7)

+2

Ordinary Income

1,968

1,907

(62)

Category

Factor

1. Effects from shifting to longer-period debts and etc

Analysis on difference between forecasts of the 9th fiscal period and the 10th fiscal period
Category
NOI
Depreciation expense
Other operating profit
or loss
Operating Income

9th Fiscal period

10h Fiscal period（Forecast）（Forecast）

Difference

3,586

3,502

(84)

Factor
1.Payment of fixed property tax and city planning tax（Kurume Higashi Kushiwara SC and K’s Denki Kagoshima）
2. Others (reserves for possible vacancies and repair costs)

(859)

(872)

(13)

1. Renovation of COMME ÇA STORE

(333)

(307)

+26

1. Decrease in expenses for rating and other expenses

2,394

2,323

(71)

Financing costs

(480)

(498)

(18)

Other non-operating
profit or loss

(7)

(3)

+4

Ordinary Income

1,907

1,822

(85)

(14)
(70)

1. Variation in the borrowing period and possible increase in interest payment(*) The above forecast figures are calculated based on certain assumptions. The forecast should not be construed as a guarantee of actual performance since actual operating revenues, ordinary profit,
net profit, and dividend per unit may differ due to Variations in the business environment.

13

14

Portfolio

Portfolio Overview(*1)The figures are not included preferred silent partnerships interest (*2)The figures calculated as of 8th Fiscal Period (August, 2008)15

Portfolio

Portfolio Map

As of August 31, 200816

Portfolio

Ratio by Properties(*) The figures are calculated as of August, 200817

Portfolio

Portfolio Table
Property Name

Age
(Note 1)

Acquisition
AcquisitionPrice(mm yen)
Timing(Note 2)

Source(Note 3)

Leasable
Number ofOccupancy
tenants at
floor areas
Primary tenants at end of period
at end of rate at end
end of(Top 2 tenants of the relevant property)
periodperiod (㎡) of period
27
Washington Hotel and COMME ÇA STORE 47,860.48
100.0%

Retail Properties
Office buildings

Canal City Hakata

12yr4m32,00011.9.2004

SponsorPark Place Oita

6yr5m

15,70011.9.2004

Sponsor100

JUSCO and K's Denki

103,963.32

99.9%

SunLiveCity Kokura

3yr5m

6,633

7.1.2005

External

1

SunLive

61,450.22

100.0%

Square Mall Kagoshima Usuki

1yr11m

5,300

9.28.2006

Sponsor

11

Sports Depo/Golf 5 and Best Denki

14,661.72

100.0%

Kumamoto Intercommunity SC

1yr9m

2,400

11.30.2006

Sponsor2

Sports Depo/Golf 5 and Starbucks Coffee

6,968.66

100.0%

Hara SATY

31yr10m

5,410

3.1.2007

Sponsor

1

SATY

27,580.75

100.0%

Hanahata SC

1yr1m

1,130

9.3.2007

Sponsor2

BON REPAS and Matsumotokiyoshi

2,801.15

100.0%

Kurume Higashi Kushiwara SC

8m

2,500

2.1.2008

Sponsor1

Sports Depo/Golf 56,467.80

100.0%

K’s Denki Kagoshima(acquired in the 8th fiscal period)

9m

3,550

3.27.2008

External

1

K's Denki

7,296.17

100.0%

Total of retail properties－

74,623

－

－

－

－

－

－

Canal City Business Center Building

12yr4m

14,60011.9.2004

Sponsor

45

TOTO and Bell System24

23,014.11

99.6%

19,906.22

97.9%

6,293.67

98.6%

Sanyo Shinpan Finance and
NTT West Japan-Kyushu
SANIX and Idemitsu Kosan

Gofukumachi Business Center

4yr10m

11,20011.9.2004

Sponsor18

Sanix Hakata Building

7yr5m

4,400

9.30.2005

External

13

Taihaku Street Business Center

6yr5m

7,000

3.16.2006

Sponsor61

NTT COMWARE and Tokio Marine & Nichido
Jimu Outsourcing

14,652.68

94.8%

－

37,200

－

－

－

－

－

－

City House Keyaki Dori

9m

1,111

12.20.2007

External

41-

2,710.86

97.8%

Amex Akasakamon Tower

3yr1m

2,060

9.1.2006

External

57-

4,755.14

85.6%

－

3,171

－

－

－

－

－

－

8yr11m114,994

-

-

381

－

350,382.95

99.4%

Total of office buildings
Residence

Total for residence
Total or weighted average of all properties (Note 4)

Issue
OthersPreferred silent partnership interest of CCH
Bridge LLC
Total of portfolio

Acquisition Acquisition
cost (mm yen)
Timing

3,400

118,394

2.27.2006

Estimated
IRR

8.0% (*5)(*1) “Age” as of the end of the 8th fiscal period(*2) Acquisition costs do not include fees, public charges and expenses.
(*3) Properties acquired through arrangement by a sponsor company are indicated with “sponsor” in thecolumn of seller.
(*4) “Age” is obtained by dividing the total ages of the above properties by the total acquisition costs.
“Occupancy rate” is obtained by dividing the total leased areas by the total leasable areas of the above
properties as of the end of the 8th fiscal period.
(*5) The estimated IRR is a figure listed on the “Survey on Investment Profitability Value of Preferred Equity”
by Japan Real Estate Institute.

18

Portfolio

List of Property Prices

Property nameAmountrecognized
Acquisition
Appraisal
LatestAcquisition
in balance appraisal
Cap rate
Cap ratePricesheet at end(NCF basis)value(mm yen)(NFC basis)of period(Note 3)(Note 1)(mm yen)(Note 2)(mm yen)Appraisal company(Note 4)

Latest appraisal Latest appraisal value by the DCF method(mm yen) (Note 6)
value by the
directcapitalization Appraisal
Discount Periodical
methodvalue
rate
Cap rate(mm yen)(mm yen)(Note 5)

Canal City Hakata

32,00031,65537,200

6.0%

4.8%

Tanizawa Sogo Appraisal

38,20036,700

4.9%

5.1%

Retail properties

Park Place Oita

15,70017,147

21,200

6.6%

5.5%

Japan Real Estate Institute21,40021,000

5.2%

5.6%

SunLiveCity Kokura

6,633

6,487

8,770

6.6%

5.6%

Japan Real Estate Institute

8,780

8,760

5.0%

5.4%

Square Mall Kagoshima Usuki

5,300

5,174

5,790

6.2%

5.9%

Japan Real Estate Institute

5,800

5,780

5.6%

6.1%

Kumamoto Intercommunity SC

2,400

2,357

2,530

6.5%

6.3%

Japan Real Estate Institute

2,560

2,500

6.1%

6.6%

Hara SATY

5,410

5,592

5,700

6.8%

6.5%

Japan Real Estate Institute

5,770

5,650

5.5%

7.6%

Hanahata SC

1,130

1,134

1,210

6.4%

5.8%

Tanizawa Sogo Appraisal

1,240

1,190

5.8%

6.1%

Kurume Higashi Kushiwara SC

2,500

2,515

2,630

6.1%

5.7%

Tanizawa Sogo Appraisal

2,700

2,600

5.7%

6.0%

Office buildings Residence

K’s Denki Kagoshima

3,550

3,622

3,600

5.7%

5.6%

Tanizawa Sogo Appraisal

3,640

3,580

5.3%

5.9%

Total of retail properties

74,62375,683

88,630---90,09087,760--Canal City Business Center Building

14,60014,431

17,100

6.3%

5.0%

Tanizawa Sogo Appraisal

17,40016,900

5.0%

5.3%

Gofukumachi Business Center

11,20010,752

14,000

6.3%

5.0%

Tanizawa Sogo Appraisal

14,10013,900

5.1%

5.3%

Sanix Hakata Building

4,400

4,491

5,610

5.9%

4.8%

Japan Real Estate Institute

5,650

5,560

4.6%

5.0%

Taihaku Street Business Center

7,000

6,979

8,090

6.0%

5.2%

Japan Real Estate Institute

8,180

7,990

5.0%

5.4%

Total of office buildings

37,20036,65344,800---45,33044,350--City House Keyaki Dori

1,111

1,144

1,140

5.5%

5.2%

Daiwa Real Estate Appraisal

1,150

1,130

5.0%

5.4%

Amex Akasakamon Tower

2,060

2,070

2,060

5.4%

5.2%

Daiwa Real Estate Appraisal

2,100

2,040

5.0%

5.4%

-

3,250

3,170

-

-

Total of residence

Total or weighted average of all properties

3,171

3,214

3,200

-

-

114,994

115,560

136,630

6.21%

5.23%

(Note 1) “Acquisition costs” do not include fees, public charges and expenses.
(Note 2) Numbers below million yen rounded down.
(Note 3) “Acquisition CAP rate (NCF basis)” is calculated by dividing the direct capitalization method NCFs in the appraisal at the time ofproperty acquisition by the acquisition cost.
(Note 4) “Appraisal CAP rate (NCF basis)” are the cap rates under the direct capitalization method in the appraisal at the end of period as of theend of period.
(Note 5) Latest appraisal values by the direct capitalization method are evaluation values based on the direct capitalization method recorded inappraisal reports for each owned property as of August 31, 2008.
(Note 6) Latest appraisal values by the DCF method are values based on the DCF method recorded in appraisal reports for each owned
property as of August 31, 2008.

19

Portfolio

History of Occupancy Rate by Property (Retail)(*1) The occupancy is the percentage the leased area comprises of the leasable area(*2) The information used for each data is that for the end of each month.

20

Portfolio

History of Occupancy Rate by Property (Office, Others)(*1) The occupancy is the percentage the leased area comprises of the leasable area.
(*2) The information used for each data is that for the end of each month.

21

Portfolio

History of NOI by Property (Retail)Continues stable NOI(*)Shown NOI actual price by each property at the every fiscal period(*)The numbers below million yen rounded down

22Portfolio

History of NOI by Property (Office, Others)(*)Shown NOI actual price by each property at the every fiscal period(*)The numbers below million yen rounded down

23

24

Operational Strategy of RetailClassification of "Retail Properties"

25

Operational Strategy of Retail

Property under active management policy：Canal City Hakata

26

Operational Strategy of Retail

Canal City Hakata：Renovation of 2nd fｌoor at the Mega Store Building

27

Operational Strategy of Retail

Retail Property under Active Management Policy: Park Place Oita

28

Operational Strategy of RetailPark Place Oita: Expansion of floor space at Magnolia Court

29

Operational Strategy of Retail

Retail Property under Active Management Policy: SunLiveCity Kokura

30

Operational Strategy of Retail

SunLiveCity Kokura: Development of Surrounding Area

31

Operational Strategy of Retail

Retail Property under Passive Management Policy

32

Operational Strategy of Retail

Risk Management for Retail Properties

Reducing risks with a variety of managerial measures

33

34

Operational Strategy of Office

Office Leasing Market in Fukuoka

Source:
The graph was prepared by Fukuoka Realty based on CBRE and Ikoma Data Service System
Reference: “vacancy rate (%)”= (vacancy floor area within a zone / total leasing floor area) * 100“rent”= unit price per tsubo in monthly rent (excluding a fee for common services)

Aiming to outperform the industry average by maintaining and improving of the occupancy rate

35

Operational Strategy of Office

New Office Space Supply Trends(1) Hakata, Gion, and Gofukumachi Areas

36

Operational Strategy of Office

New Office Space Supply Trends(2) Tenjin and Yakuin Areas

37

Operational Strategy of Office

Analysis on Vacancy Rate for "A"-Class Office Buildings

38

Operational Strategy of Office

Prospects for Office Leasing Market in Fukuoka
A fluctuation in rents is expected to be smaller (as the past trend indicated).
We keep paying attention to “vacancy rate.”

39

40

Financial Strategy

Basic Financial Policy and State of Achievement in 8th Fiscal Period

41

Financial Strategy

Financing Results in the 8th Fiscal Period: Refinancing (7.0 billion yen)No refinancing will be scheduled till August 2009.

42

Financial Strategy

Financing Results in the 8th Fiscal Period: Set-up of Committed line of credit

43

Financial Strategy

The Percentage of Fixed-Rate Debts to Total Debts and Duration

44

Financial Strategy

Dispersion of Repayment Period and Interest Payment

45

Financial Strategy

Future Measures to be taken

46

Financial Strategy

Itemization of borrowings(As of August 31, 2008)

Type
Long-term Debt
payable due within
one year

LenderDevelopment Bank of Japan Inc.

SubtotalLong-term Debt

Commitment Line

Amount (JPY)

Borrowing Date

Repayment
Maturity(*1)

Payment
MethodAnnual Interest

Interest

Description

12,000,000,000

November 9, 2004

August 31, 2009

Lump sum uponmaturity

1.39000%

Fixed

No collateral
No guarantee

Lump sum uponmaturity

1.92250% (*2)

Fixed

2.05174%

Fixed

2.05174%

Fixed

2.05174%

Fixed

2.00174%

Fixed

1.80296%

Fixed

1.69226%

Fixed

1.69226%

Fixed

1.69226%

Fixed

1.59226%

Fixed

1.54226%

Fixed

1.34417% (*3)

Floating

1.34417 % (*4)

Floating

12,000,000,000

Mizuho Corporate Bank, The Norinchukin Bank, Shinkin
Central Bank, The Hiroshima Bank, The Iyo Bank, The Bankof Saga, Yamaguchi Bank, Higo Bank, Shinwa Bank

10,000,000,000

August 25, 2006

July 30, 2010

The Bank of Fukuoka

2,000,000,000

August 25, 2006

July 29, 2011

Nishi-Nippon City Bank

2,000,000,000

August 25, 2006

July 29, 2011

The Dai-ichi Mutual Life Insurance

1,000,000,000

August 25, 2006

July 29, 2011

Shinsei Bank

1,000,000,000

August 25, 2006

July 29, 2011

The Sumitomo Trust and Banking

1,000,000,000

September 29, 2006

July 29, 2011

Nishi-Nippon City Bank

2,500,000,000

February 27, 2008

February 28, 2013

The Sumitomo Trust and Banking

2,000,000,000

February 27, 2008

February 28, 2013

Mizuho Corporate Bank

2,000,000,000

February 29, 2008

February 28, 2013

Mitsubishi UFJ Trust and Banking

2,000,000,000

February 29, 2008

February 28, 2013

Aozora Bank

1,000,000,000

February 29, 2008

February 28, 2013

Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity
Lump sum uponmaturity

The Bank of Fukuoka, Nishi-Nippon City Bank, Oita Bank,
The Miyazaki Bank, Shinwa Bank, The Iyo Bank, The Bank ofSaga, The Eighteenth Bank, Yamaguchi Bank

6,000,000,000

June 23, 2008

June 30, 2012

Lump sum uponmaturity

Aozora Bank

1,000,000,000

June 30, 2008

June 28, 2013

The Bank of Fukuoka

1,500,000,000

June 30, 2008

December 30, 2010

Lump sum uponmaturity
Lump sum uponmaturity

1.29417 % (*4)

Floating

June 30, 2008

December 30, 2011

Lump sum uponmaturity

1.34417 % (*4)

Floating

The Bank of Fukuoka

1,500,000,000

Subtotal

36,500,000,000

No collateral
No guarantee

The Bank of Fukuoka, Resona Bank,
Kumamoto Family Bank, Shinwa Bank % (*6)

1,700,000,000

August 29, 2008

September 30, 2008

Lump sum uponmaturity

0.99167% (*5)

Fixed

No collateral
No guarantee

Nishi-Nippon City Bank % (*7)

1,700,000,000

August 29, 2008

September 30, 2008

Lump sum uponmaturity

0.99167 % (*5)

Fixed

No collateral
No guarantee

Subtotal
Total

3,400,000,000
51,900,000,000

Status of Forming of Commitment Lines
Commitment Period
Start
End

Type

LenderCredit Limit (JPY)

Commitment line agreement (1)The Bank of Fukuoka, Resona Bank,
Kumamoto Family Bank and Shinwa Bank

5,000,000,000

August 1, 2008

July 31, 2009

No collateral
No guarantee

Commitment line agreement (2)Nishi-Nippon City Bank

5,000,000,000

March 27, 2008

February 28,
2009

No collateral
No guarantee

Total

Description(*1) Repayment maturity is included non-operating day.
(*2) A swap agreement has been concluded to fix the interest rate on variable interest debt
and the indicated interest rate is the rate when the swap agreement is incorporated(*3) From June 23,2008 to September 30, 2008 (not including the concerned date)(*4) From June 30, 2008 to September 30, 2008 (not including the concerned date)(*5) From Aug 29, 2008 to September 30, 2008(not including the concerned date)(*6) The debt under commitment line agreement1(*7) The debt under commitment line agreement2

10,000,000,000

47

48

4
Total Strategy

Tasks and Measures49

Total Strategy

Strategy for Growth: Asset Side

Steady management of blue-chip assets and accumulation of daily efforts

50

Total Strategy

Strategy for Growth: Debt and Equity Side

Maintaining market’s trust is the most important. Management capability is put to the test

51

52

ComplianceFukuoka Realty's Organizational Structure

53ComplianceFukuoka REIT's Decision-Making Process

54

Compliance

Summary of Asset Management Fees

Fees paid in the 8th
fiscal period

Percentage offees tooperatingrevenues

Name

Type

Calculating formula

Asset management fees (i)Assets-linked(on a per diem basis)

Total assets amount x 0.3% x Actual management period / 365 days

186

3.4%

Asset management fees (ii)

Revenues-linked

Operating revenues for the current fiscal period (revenues from theleasing business and etc.) x 2%

109

2.0%

Asset management fees (iii)

Profit-linked

40

0.7%

Total

336

6.1%

Operating revenues

5,483

100.0%

Distributable profit for the current fiscal period (after deduction of asset
management fees) x 2%

(Reference) Total assets at the end of fiscal period
Asset management fees (iv)

Acquisition Price-linked(added in the book value)

Value of acquired assets for the current fiscal period x 0.5%*(* In case an asset is acquired from an interest party, multiply by 0.25%.)(Any fractional sum of less than one
million yen is disregarded.)

125,954
17

0.3%

55

56

Appendix

Relation between Depreciation Expense and Capital Expenditures (incl. Repairing Expenses)

Quality Control within Depreciation

57

Appendix

Leasing Business Income and Expenditure by Properties (Retail)(unit:mm yen)

Category

Canal City
HakataPark Place
Oita

SunLive City
KokuraSquare Mall
Kagoshima
Usuki

Kumamoto
Intercommunity
SC

Hara SATY

Hanahata SC

KurumeHigashi
Kushiwara SC

K's Denki
Kagoshima

8th Fiscal Period ( March 1, 2008 – August 31, 2008)(Length)184 days

184 days

184 days

184 days

184 days

184 days

184 days

184 days

158 days

1,397

1,012

292

258

90

212

40

88

95

1,370

977

292

227

89

212

40

88

95

26

34

―

31

0

0

―

―

―

2.Total leasing business expenses

444

508

49

87

11

24

6

4

2

Outsourcing fees

323

307

8

33

2

6

1

2

1

Maintenance expenses

9

22

0

1

0

―

―

―

―

Expenses for restoration toformer state

―

―

―

―

―

―

―

―

―

Tax and public charges

72

81

37

18

6

16

3

―

―

Insurance premiums and trustcompensation

7

6

2

1

0

0

0

0

0

Other expenses

31

90

0

33

1

0

0

0

0

3.NOI (=1－2)

953

504

242

170

78

187

34

84

93

4.Depreciation

179

154

45

46

18

26

7

22

30

5.Leasing Business Profit (=3.－4.)

773

349

196

123

60

160

27

61

62

6.NOI Yield

5.9%

6.4%

7.3%

6.4%

6.5%

6.9%

6.1%

6.7%

6.0%

37

627

―

―

―

―

―

―

―

1.Total Leasing business
Real estate leasing revenues
Other real estate leasing
revenues

7.Capital Expenditures(*)Figures have numbers below a million yen rounded down.

58Appendix

Leasing Business Income and Expenditure by Properties (Office, Others, Total Portfolio)(unit:mm yen)

Category

Gofukumachi
Canal City
Business Center Business Center
Building
Building

Sanix Hakata
Building

Taihaku Street
Amex
Business Center Akasakamon
Tower
Building

City House
Keyaki Dori

8th Fiscal Period ( March 1, 2008 – August 31, 2008)(Length)
1Total Leasing business
Real estate leasing
revenues
Other real estate leasing
revenues
2Total leasing business expenses
Outsourcing fees

Total
8th

7th

Variation

184 days

184 days

184 days

184 days

184 days

184 days

184 days

182 days

696

554

196

317

64

29

5,347

5,043

+303

693

491

181

317

60

29

5,169

4,871

+297

2

62

14

0

3

0

177

171

+6

251

177

58

93

16

14

1,750

1,601

+148

185

73

18

61

5

1

1,034

987

+47

3

3

2

1

0

0

46

25

+20

Maintenance expenses
Expenses for restoration
to former state

―

―

―

―

2

―

2

2

0

Tax and public charges

46

37

16

25

4

2

369

345

+23

Insurance premiums andtrust compensation

5

3

1

1

0

0

33

30

+2

Other expenses

9

58

19

2

3

9

263

209

+53

3.NOI < = (1)－(2) >

445

377

138

223

48

14

3,596

3,441

+155

4.Depreciation

85

94

36

65

21

12

847

763

+83

5.Leasing Business Profit < = (3)－(4) >

360

282

101

158

26

2

2,749

2,678

+71

6.NOI Yield

6.0%

6.7%

6.2%

6.3%

4.6%

2.7%

6.2%

6.3%

52

8

16

1

1

―

745

600

7.Capital Expenditures(145)(*)Figures have numbers below a million yen rounded down.

59Appendix

Overview of Leased Area's Top 10 Tenants(As of August 31, 2008)

Rank

Store

TenantJusco Park Place Oita
1

3

Total Leased
Areas (㎡)Park Place Oita

58,588.34

AEON Kyushu

SunLiveCity Kokura

Sports Depo/Golf 5

Share (%)

24.8%
Hara SATY

27,580.75

SunLive

SunLiveCity Kokura

61,450.22

Alpen

Square Mall
Kagoshima Usuki
Kumamoto
Intercommunity SC
Kurume Higashi
Kushiwara SC

Hara SATY
2

Property

17.7%

6,684.81
6,838.16

Rent Structure

Contract Type

Remaining
contract
years (*2)

FixedOrdinary Lease

13.6

Fixed + Floating(*1)
Fixed + Floating(*1)

Fixed-term
Lease

10.5

Ordinary Lease

16.8

Fixed
5.7%

6,467.80

Fixed

18.1
Fixed-term
Lease

Fixed

18.3
19.3

4

K's Denki andMr. consent

K's Denki Holdings

Park Place Oita

13,705.32

3.9%

Fixed

Ordinary Lease

13.6

5

Washington Hotel

Canal City
Fukuoka Washington Hotel

Canal City Hakata

12,831.17

3.7%

Fixed + Floating(*1)

Ordinary Lease

7.6

Canal City Hakata

4,557.26

Fixed + Floating(*1)

Fixed-term
Lease

3.2

Fixed

Ordinary Lease

3.6

6

7
8
9
10

Sports Authority

MegaSports

2.4%
Park Place Oita

3,717.04

Canal City Hakata

7,859.12

2.3%

Fixed

Ordinary Lease

3.2

Canal City Hakata

7,303.80

2.1%

Fixed + Floating(*1)

Ordinary Lease

7.6

K's Denki Kagoshima

7,296.17

2.1%

Fixed

Fixed-term
Lease

14.3

Gofukumachi BusinessCenter Building

5,862.87

1.7%

Fixed

Ordinary Lease

0.2

Outside top 10 tenants

117,386.03

33.6%

Entire portfolio

348,128.86

100.0%COMME ÇA STOREFIVE FOXes

United Cinema
United Cinemas
Canal City 13
K's Denki Corporation,
Kyushu K's Denki Co., Ltd
Kagoshima
Sanyo Shinpan

Sanyo Shinpan(*1) Fixed-term lease agreements are the contract of no early cancellation allowed, no decrease in rents allowed. Ordinary lease agreements are the contract other than fixed-term lease agreements.
(*2) Remaining years are written by Leasing Contract as of August 31, 2008 .

60

Appendix

Rental Portfolio (including common expenses)(*1) Ratios indicated in the pie graphs are figures obtained by dividing the rents for the 8th fiscal period, as totaled for each remaining contract period of tenants at Canal City Business Center Building, Gofukumachi
Business Center, Taihaku Street Business Center and Sanix Hakata Building, by total rents for the 8th fiscal period from those properties.
(*2) Ratios indicated in the pie graphs are figures obtained by dividing the rents for the 8th fiscal period, as totaled for each remaining contract period of tenants at Canal City Hakata, Park Place Oita, SunLiveCity
Kokura, Square Mall Kagoshima Usuki and Kumamoto Intercommunity SC, Hara SATY, Hanahata SC, Kurume Higashi Kushiwara SC, K’s Denki Kagoshima by total rents for the 8th fiscal period from those
properties.

61

Appendix

Breakdown of Tenant Rent Types for Retail Properties(*5) This represents the total for the fixed rent of “Fixed rent
tenants" minimum guarantee for “Percentage of sales withminimum guarantee tenants” and fixed rents for “Fixed rent
+percentage of sales tenants”(*6) This represents the total for the rent of “Entirely percentage ofsales tenants” amount in excess of the minimum guarantee
for “minimum guarantee rent with percentage of sales
tenants” and the percentage of sales rents for the “Fixedrent” percentage of sales tenets.”(*1) Fixed rent tenants" are tenants whose monthly rent are fixed. Moreover, the indicated ratios are figures obtained by dividing the actual rent for the 8th fiscal period from the tenants with fixed rent housedin retail properties owned by Fukuoka REIT as of August 31, 2008 . by the total of actual rents for the 8th fiscal period from those properties.
(*2) Entirely percentage of sales tenants are tenants whose monthly rents shall be calculated by multiplying their monthly sales amount by a certain percentage. Moreover, the indicated ratios are figuresobtained by dividing the actual rent for the 8th fiscal period from the tenants with rent entirely linked to sales housed in retail properties owned by Fukuoka REIT as of August 31, 2008 by the total
amount of actual rent the 8th fiscal period from those properties.
(*3) Percentage of sales with minimum guarantee tenants are tenants whose monthly rents are fixed and who are required by contract to pay extra rents that are calculated by multiplying the excess sales
amounts, when their sales exceed certain amounts, by percentage. The indicated ratios are figures obtained by dividing the actual rent for the 8th fiscal period from the tenants with percentage of sales
and minimum guarantee housed in in retail properties owned by Fukuoka REIT as of August 31, 2008 by the total amount of actual rent for the 8th fiscal period from those properties.
(*4) Fixed rent + percentage of sales tenants are tenants whose monthly rents are fixed and who are (except for certain tenants) required by contract to pay extra rents that are calculated by multiplying theirsales amounts by the percentage of sales. The indicated ratios are figures obtained by dividing the actual rent for the 7th fiscal period from the tenants with fixed + percentage of sales housed in by the
total amount of actual rent for the 8th fiscal period from those properties.

62Appendix

Rent Structure Image of Retail Facilities

63Appendix

Construction Confirmation Inspection Agencies
Property Name

Construction
Name

Completion Date

Canal City Hakata

New construction
and renovation
work

Park Place Oita

March 26, 2002
New construction
April 17, 2002
and expansion
April 28, 2004
work
March 17, 2005

April 15, 1996

Design Companies

Contractor

Construction
Confirmation
Inspection
AgencyPML
Value(*3)A) 8.0Fukuoka Jisho First Class Architect's Office, FJ
Urban Development, Takenaka Corporation and
Zenitaka Corporation Design Consortium(* 2)

Canal City Hakata New
Construction Zone 1
Construction Joint Venture
and Takenaka Corporation

Fukuoka City

Fukuoka City

Asanuma Corporation Kyushu Branch, FirstClass Architect's Office
Fujita Corporation Kyushu Branch First Class
Architect's Office

Asanuma Corporation, Fujita
Corporation

Oita City
Japan ERI Co., Ltd

Oita City
Japan ERI Co., Ltd

Japan ERI Co., Ltd

Japan ERI Co., Ltd

6.7

Fukuoka City

Fukuoka City

4.0

Fukuoka City

Fukuoka City

6.9

Fukuoka City

Fukuoka City

4.3

B) 7.6C) 5.3D) 11.1
A) 14.5
B) 11.2
C) 11.3

SunLiveCity Kokura

New construction October 16, 2003

Matsui and Kono Joint Design Venture

Penta-Ocean Construction
Co., Ltd.

Gofukumachi BusinessCenter Building

New construction April 15, 1996

Institute of New Architecture Inc.

Takenaka Corporation

Canal City BusinessCenter Building

New construction
and renovation April 15, 1996
work

Sanix Hakata Building

New construction March 7, 2002

Taihaku Street BusinessCenterSquare Mall Kagoshima
Usuki
Kumamoto
Intercommunity SC

Construction
Confirmation
AgencyCanal City Hakata New
Fukuoka Jisho First Class Architect's Office, FJ
Construction Zone 2
Urban Development First Class Architect's Office Construction Joint Venture,
Zenitaka Corporation
Maeda Corporation Kyushu
Maeda Corporation First Class Architect's Office
BranchNew construction September 28, 2006

Yamashita Sekkei, Inc.

Takenaka Corporation

Fukuoka City

Fukuoka City

7.5

New construction November 30, 2006

Yamashita Sekkei, Inc.

Fujita Corporation

Kagoshima City

Kagoshima City

9.6

New construction July 26, 2005

Kajima Corporation

Kajima Corporation

Japan ERI Co., Ltd.

Japan ERI Co., Ltd.

16.3

Japan ERI Co., Ltd.

Japan ERI Co., Ltd.

11.6

Japan ERI Co., Ltd.

Japan ERI Co., Ltd.

1.9

Tada Corporation Kyushu
BranchDaiho Corporation Kyushu
BranchAmex Akasakamon Tower New construction March 26, 2002

Masaki Architect & Associates

City House Keyaki DoriNew construction November 17, 2007

Planning Office LECS Co., Ltd.

Hara SATY

New construction October 26, 1976

Pal Corporation

Obayashi Corporation

Fukuoka City

Fukuoka City

13.2

Japan ERI Co., Ltd.

Japan ERI Co., Ltd.

6.0

Hanahata SC

New construction July 10, 2007

Nishimatsu Construction Co., Ltd

Nishimatsu Construction Co.,
Ltd

Kurume Higashi
Kushiwara SC

New construction December 3, 2007

Azusa Sekkei Co., Ltd

Toyo Construction Co., Ltd

Kurume City

Kurume City

9.9

K's Denki Kagoshima

New construction November 17, 2007

Futaba Sekkei, Inc.

Daiwa House Industry Co.,Ltd

Kagoshima City

Kagoshima City

7.3

Portfolio PML Value(*1)(*1) Of multiple assumed earthquake scenarios, the portfolio PML values of Fukuoka REIT have been calculated by assuming the central part of Fukuoka City as the earthquake epicenter.
(*2) This consortium is the joint design venture by the designers of each zone.
(*3) Zones A through D of Canal City Hakata are classified by building status surveys. A indicates the Washington Hotel building, and B the amusement building, C the mega store building and D the common
areas. Parkplace Oita A and B are classified by building status surveys. B indicates Seven Eleven, A indicates the area other than B.

4.8

64

Appendix

Analysis of Investor Attributes and Volume Ownership Reports

65Appendix

Highlights of Financial Indicators66