Fukuoka REIT Corporation (8968） http://www.fukuoka-reit.jp
Presentation of Accounts for Fourth Fiscal Period (March 1, 2006 ~ August 31, 2006)

Fukuoka Realty

Table of Contents
1. Presentation of Accounts for Fourth Fiscal Period

……………

4

2. Property Management Conditions ……………………………………… 11
3. Investment Strategy …………………………………………………………… 21
4. Financial Strategy
5. Compliance……………………………………………………………… 30………………………………………………………………………… 35

6. Appendix ……………………………………………………………………………… 39

These materials have been specifically prepared as roadshow materials and do not constitute a prospectus as
designated in the Securities and Exchange Law. When applying to purchase investment units issued by Fukuoka
REIT Corporation, do so based on your own judgment after reading the prospectus on the issuing of new
investment units (and corrections) issued by said investment corporation.

2

REIT Overview
ProfileCurrent Pricing●Name

Fukuoka REIT Corporation●Unit Price●Asset Manager

Fukuoka Realty Corporation Limited●Outstanding Units 107,050●Sponsors

Fukuoka Jisho, Kyushu Electric Power,
Royal Holdings, The Bank of Fukuoka,
The Nishi-Nippon City Bank, NishiNippon Railroad, Kyudenko, Saibu Gas,
Kyushu Railway Company●52 Week HighJPY 910,000 (June 21, 2005)●52 Week Low

JPY 763,000 (September 15, 2005)● Listed dateJune 21, 2005 (TSE and FSE)

Financial Highlights●Total Assets●Total Debt
●Debt Rating

JPY 864,000 yen

Note: The values are arrived at using the assets undermanagement and scheduled to be acquired (contract base) asof October 18, 2006. The figures for the total leasable area
and occupancy are the figures for the assets undermanagement as of August 31, 2006.

Portfolio Summary

JPY 104,183 million(as of August 31, 2006)
JPY
42,700(as of August 31, 2006)

million●Asset Types

Retail 62.8%, Office 34.5% andResidential 2.9%

● Asset Location

Fukuoka metropolitan
other Kyushu 28.3%● Properties

13

yen

S&P A- (stable)area

71.7%,● Total Leasable Area 277,580.44m2

Dividend Information●Previous Fiscal Period End

August 31, 2006 (semi-annual periods,
every February and August)●Cash Dividend (actual)

JPY 18,632 per unit

●Yield

4.3% (as of October 13, 2006)●Yield Gap

Gap 2.5% (Comparison with 10-year JGB
as of October 13, 2006)● Occupancy

99.4%

3

Presentation of Accounts
for Fourth Fiscal Period

Fukuoka REIT continues to deliver industry leading dividends◆ Fourth Fiscal Period

JPY18,632 per unit

◆ Fifth Fiscal Period

JPY17,000 per unit (forecast)◆ Sixth Fiscal Period

JPY17,600 per unit (forecast)Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

FRC Posts Gains in Income and Profits
for 2nd Consecutive Fiscal Period
Category

4th Fiscal Period

3rd Fiscal Period

March 1, 2006 –August 31, 2006

September 1, 2005 February 28, 2006

Compliance
ComplianceAppendix
Appendix

FRC Posts Gains in Income and Profits for
2nd Consecutive Fiscal Period

Variation
Value

Distribution per Unit

●Settlement (exceeds forecast)
JPY18,632

Operating revenues

4,496 mm yen

4,050 mm yen

445 mm yen

Ordinary profit

1,983 mm yen

1,751 mm yen

232 mm yen

Net profit

1,716 mm yen

1,698 mm yen

17 mm yen

Total distribution

1,715 mm yen

1,697 mm yen

17 mm yen

18,632 yen

18,438 yen

194 yen184 days

181 days

8 properties

7 properties

Positive Factors

250 tenants

181 tenants● The revenues of Taihaku Street Business Center were included from277,580.44m2

262,979.61m2

99.3%
99.4%

99.4%
99.0%

Distribution per unit
Operational period
Properties (period
end)(note)
Tenants (period end)
Leaseable floor space(period end)
Occupancy (average)
Occupancy (period end)

●Performance revision (August 17, 2006)
JPY18,400●Start of period forecast (April 20, 2006)
JPY18,200

Net Income: Factors behind Fluctuation

the beginning of the period (contribution after depreciation)+JPY167 million● Distribution from TK equity interest+JPY136 million● Increased rent from sales-linked rents resulting from strong sales
at key retail properties+JPY46 million

Negative Factors(Note) This excludes figures for planned acquisitions and TK interests.

● Loss of extraordinary profit last period (consumption tax of tax
exempt operator)-JPY128 million● Commencement of payment of real property and city taxes onacquired assets-JPY71 million● Increase in financing related costs such as initial conversion to
long-term debt costs-JPY50 million● Increase in paid interest accompanying acquisition of new assets-JPY38 million

5Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Profit and Loss Statement for the 4th Fiscal Period(unit: thousand yen)

Category
I. Operating revenues

4th Fiscal Period

3rd Fiscal Period

March 1, 2006 – August 31, 2006

September 1, 2005 - February 28, 2006

Value
4,496,048

Percentage
(%)
100.0

Value
4,050,927

Percentage
(%)
100.0

Variation
Value
445,120

4,231,464

3,879,589

351,875

Other revenues from realestate leasing

128,583

171,338(42,754)

TK Distribution

136,000−

136,000

Real estate leasing revenues

II. Operating expenses
Real estate leasing expenses
Asset management fees

2,512,620

55.9

2,299,570

56.8

213,049

2,123,240

1,959,121

164,118

273,293

249,046

24,246

Asset custodian fee

8,344

7,590

754

General administration fees

32,192

29,572

2,620

Director compensation

9,600

9,600

−

Other operating expenses
Operating income

III. Non-operating revenues
Interest received
Consumption tax for tax
exempt firm, etc.
Other non-operating
revenues

IV Non-operating expenses

65,94844,6399.3

preferred TK interest in CCH
Bridge operation for entire period

21,309● Rental expenses for Taihaku

1,751,357

43.2

232,070

13.3

368

0.0

131,171

3.2(130,803)(99.7)

20

347−

128,104(128,104)

−

3,046

(3,046)

267,693

6.0

184,240

4.5

83,452

133,328

37,819Amortization of
establishment cost

5,595

5,595

−

Expense related to financing

89,09939,33449,764

Other non-operating
expenses

1,850

5,981

(4,131)

45.3

last period (consumption tax fortax exempt operator)

Ordinary profit

1,716,102

38.1

1,698,288

41.9

17,8141.0

1,716,102

38.1

1,698,288

41.9

17,814

1.0

1,048

0.0

1,040

0.0

8

0.8

(0)

0.0

24

0.0

(25)

−

Net profit

1,715,054

38.1

1,697,223

41.9

17,831

1.1

37

31

5

Unappropriated profit

1,715,092

1,697,255

17,836

Street Business Center included
from the beginning of the period+JPY127 million● Commence payment of real
property and city taxes foracquired assets+JPY71 million● Loss of expenses for recovery to
original state recorded last period–JPY 22 million● Loss of extraordinary profit of

Net income before tax
Corporation, inhabitant andbusiness tax
Adjustment to corporation tax
Profit carrued forward

income in acquisition of property
from tenant moving out lastperiod-JPY26 million● Loss of income from recovery to
original state recorded last period-JPY25 million● Received distribution for

44.1

368

Business Center included from the
beginning of the period+JPY293 million yen●Increased rent from sales-linked
rents resulting from strong sales at
key retail properties+JPY46 million yen● Received penalty and loss of

1,983,427

171,148

Interest expense

Percentage
(%)
11.0

●Rental income from Taihaku Street● Increase in borrowing costs

accompanying acquisition of the
Taihaku Street Business Center● Conversion to long-term debt

expenses, etc.

6Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Balance Sheet for the 4th Fiscal Period(unit: thousand yen)

Category
AssetsI. Current assets
Cash and cash
equivalents
Cash and deposit intrust
Operatingreceivables
Deferred tax assets
Consumption tax
receivables
Other current assets
Total current assets
II. Fixed assets
1. Tangible fixed
assetsBuilding
Structure
Land
Building in trust
Structure in trust
Machinery andequipment in trust
Tools and fixtures intrust

Land in trust
Temporary accountof construction in trust
Total tangible assets intrust
2. Investment andother assets
Investment
securities
Guarantees anddeposits
Long term pre-paid
expenses
Total investment andother assets
Total fixed assets
III. Deferred assets
Establishment
expenses
Total deferred assets
Total assets

4th Fiscal
Period

3rd Fiscal
Period(as of August 31, 2006)
Percen
tage
Value
(%)

(as of February 28, 2006)
Percent
age
Value
(%)

4th Fiscal Period

Variation(as of August 31, 2006)

Percen
tage
(%)

Value

●Retained Amex
2,935,049

1,424,770

1,510,279

3,430,267

2,585,615

844,652

333,808

132,641

201,16619

18

0

89,196−89,196

252,634
7,040,976

75,851
4,218,898

176,7822,822,078

6.8

4.5

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

144,085−
641,782
34,315,688
210,008(3,701)843−
3,671,541(160)

244,503

213,028

31,475

214,652

183,628

31,023

54,117,497

51,069,002

3,048,494

24,45738,889(14,431)

93,581,200

89.8

86,816,115

91.8

6,765,085

3,421,633

3,421,633−

10,00010,000−101,252

93,443

7,808

Akasakamon
Tower
acquisition
funds (as of
September 1,
2006)●Deposit for
acquiring the
66.9
Cityhouse
TenjinKeyakidori(tentative name)
JPY+114 million●Acquisition of
Taihaku Street
Business Center

7.8

3,532,885

3.4

3,525,077

3.7

7,808

0.2

97,114,086

93.2

90,341,192

95.5

6,772,894

7.5

27,977
27,977104,183,040

33,5720.0
100.0

33,572
94,593,663(unit: thousand yen)

(5,595)0.0
100.0(5,595)9,589,377(16.7)
10.1

Category
Liabilities
I. Current assets
Accrued business fees
Short-term debt
Accounts payable
Expenses payable
Income taxes payable
Rent received inadvance
Deposits held
Total current liabilities
II. Fixed liabilities
Long-term debt
Key money andsecurity deposits on
deposit
Key money andsecurity deposits in trust
Derivative liabilities
Total fixed liabilities
Total liabilities
Net Assets
I. Unitholders’ capital
1. Total capital
2. Reserves
Unappropriated profit
Total reserves
Total unitholders’ capital
II. Difference of
valuation and conversion
1. Deferred hedge
profit/loss
Total difference of
valuation and conversion
Net assets
Total liabilities and net
assetsCapitalI. Total capital
Total capital
II. Reserves
Unappropriated profit
Total reserves
Total capital
Total liabilities/capital

Percentage (%)

Value

232,183
8,100,000
46,319250,629975

3rd Fiscal
PeriodVariation(as of February 28, 2006)
Percen
tage
Value
(%)

313,223
15,100,000
41,889228,055
1,036

Value

(81,039)(7,000,000)
4,430
22,574(61)535,254

481,088

54,165736,848
9,902,209

473,399
16,638,691

263,448(6,736,482)

9.5

17.6

34,600,000

18,600,000

16,000,000

103,128

107,661(4,533)8,694,810

8,382,254

312,555

Percentage(%)●Acquisition funds
for the Taihaku
Street BusinessCenter +JPY7,000
million● Repayment ofshort-term debt
accompanying
conversion to
long-term debt JPY16,000 million● Acquisition funds
for the Amex
Akasakamon(40.5)
Tower +JPY2,000
million●Conversion to
long-term debt
is executed

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

41.8
51.3

−
27,089,916
43,728,608

28.6
46.2

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

60.7
22.2

49,167,800

47.2

−

−

49,167,800−

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

1.6
48.8

−
−
−

−
−

1,715,092
1,715,092
50,882,892−−(128,594)(128,594)−(128,594)

(0.1)

−

−

(128,594)

50,754,298

48.7

−

−

50,754,298−

104,183,040

100.0

−

−

104,183,040

−

−

−

49,167,800

52.0(49,167,800)

−

−
−
−
−

−
−
−
−

1,697,255
1,697,255
50,865,055
94,593,663

1.8
53.8
100.0

(1,697,255)(1,697,255)(50,865,055)(94,593,663)

−

−
−−

7

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceCash Flow Statement for the 4th Fiscal Period
I. Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of founding fees
Interest received
Interest paid
Increased/decreased amount of operations receivables
Increased/decreased amount of uncollected consumption tax
Increased/decreased accrued business payments
Increased/decreased unpaid fees
Increased/decreased unpaid expenses
Increased/decreased advanced rents
Increased/decreased deposits held
Increased/decreased advance payments
Increased/decreased long-term advance payments
Other
SubtotalInterest received
Interest paid
Corporation tax payment, etc.
Net cash provided by operation activities
II. Cash flow from investment activities
Expenses from acquiring tangible fixed assets
Expenses from acquiring tangible fixed assets in trust
Expenses from commission payments
Income from security deposits and guarantees
Expenses from security deposits and guarantees
Income from security deposits and guarantees in trust
Expenses from security deposits and guarantees in trust
Expenses from acquiring investment securities
Net cash used in investment activities
III. Cash flow from financing activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Distribution payment
Net cash provided by financial activities
IV. Increased /decreased cash and cash equivalents
V. Cash and cash equivalents at start of period
VI. Cash and cash equivalents at end of period

Appendix
Appendix(unit: thousand yen)

4th period (184 days)

3rd Fiscal Period (181 days)

March 1, 2006 – August 31, 2006

September 1, 2005 - February 28, 2006

1,716,102
619,112
5,595(368)
171,148(201,166)(89,196)(86,287)
25,103
12,67354,165
251,306(53,923)(7,808)(7,898)2,408,557
368(161,247)(1,109)2,246,568

1,698,288
562,577
5,595(20)
133,328
49,316
1,595,230
35,576(99,281)(33,046)
15,605(268,582)
40,161
16,51233,146
3,784,407
20(99,974)(2,204)
3,682,249−(7,380,419)(114,960)−(4,533)399,921(75,223)(20,212)(7,195,428)(786,459)(4,822,962)−
109,928(2,266)
393,015(120,276)(3,401,421)(8,630,441)

20,700,000(27,700,000)
16,000,000(1,696,208)
7,303,791
2,354,931
4,010,386
6,365,317●Acquisition of Taihaku

Street Business Center●Conversion to long-term

debt in August 2006

8,100,000(1,000,000)−(1,740,716)
5,359,283
411,0913,599,294
4,010,386

8

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Forecasts for the 5th and 6th Fiscal Periods
Category

Forecast for the
6th fiscal period

March 1, 2007 – August 31, 2007

(184 days)

Forecast for the
5th fiscal period

September 1, 2006 - February 28,
2007

4th fiscal period
results
March 1, 2006 – August 31, 2006

3rd fiscal period
results

September 1, 2005 - February 28,
2006 (181 days)(181 days)(184 days)

5,088 mm yen

4,803 mm yen

4,496 mm yen

4,050 mm yen

Operating profit－－

1,983 mm yen

1,751 mm yen

Ordinary profit

1,886 mm yen

1,822 mm yen

1,716 mm yen

1,698 mm yen

Net profit

1,884 mm yen

1,819 mm yen

1,715 mm yen

1,697 mm yen

17,600 yen

17,000 yen

18,632 yen

18,438 yen

Operating revenues

Distribution perunit

Premises●Assets under management● Outstanding units● Interest-bearing liabilities● Operating revenues● Operating expenses● Non-operating expenses

Existing AUM (10 properties + TK interest) + 2 properties to be acquired*[Properties acquired in fifth period] Amex Akasakamon Tower, Square Mall Kagoshima Usuki*[To be acquired in fifth period] (tentative name) Kumamoto Inter-community SC and[to be acquired in sixth period] (tentative name) Hara Saty
107,050 after public offering (payment by September 7, 2006)
As of end of August 2007, JPY44.5 billion for an LTV of about 38%
Reflects certain factors for increasing occupancy and varying sales of assets under management[Depreciation] February 2007 Period: about JPY671 million,
August 2007 Period: about JPY726 million yen[Asset management compensation]
February 2007 Period:about JPY328 million,
August 2007 Period: about JPY356 million[Public offering expenses] Write off after recording deferred assets and using the straight line method[ Borrowing related expenses ]February 2007 Period: about JPY341 million,
August 2007 Period: about JPY413 million(Note) The above forecast values were calculated based on set premises. There is the possibility that the actual operating revenues, recurring profit, net profit and distribution per unit will change and thesevalues are not guaranteed by being entered here.

9Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Financial Accounts
FourthPeriodResults

Third
PeriodResults

184 days181days

Return on Assets (ROA)*Converted to annual return

3.4％

3.8％

Recurring profit/(total assets at start of period + total assets at end of period)/2

Return on Earnings (ROE)*Converted to annual return

6.7％

6.7％

Net profit/(net assets at start of period + net assets at end of period)/2

Unitholders’ ratio

48.7％

53.8％

Net assets/total assets

Ratio of interest-bearing debt to total assets

41.0％

35.6％

Interest-bearing debt at end of period/total assets at end of period

Ratio of long-term interest-bearing liabilities

81.0％

55.2％

Long-term borrowings/interest-bearing debt at end of period

14.6

17.9

Net assets per unit

JPY551,377

JPY552,580*Real net assets per unit after the public offering(assumed)

JPY636,696―(Total equity at end of fourth period + additional paid-in capital + (real estate appraisal amount – real estate book value))/
outstanding units after public offering of 107,500 units*Real NAV multiple after public offering(assumed)

1.33 times―

Investment unit price on September 30, 2006/net assets per unit after public offering (assumed)

FFO per unit

JPY25,358

JPY24,550

Distribution per unit

JPY18,632

JPY18,438

Item

Real management period

DSCR

Remarks (Definitions of Indices, etc.)(Net profit + paid interest + depreciation)/paid interest(Net profit + depreciation this period)/outstanding units at end of period of 92,050 units

10

Property Management
Conditions

Sales buoyant at Canal City Hakata, Park Place Oita
and SunLiveCity Kokura

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Portfolio Map

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix(as of October 18, 2006)

12

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Portfolio Table

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix(as of August 31, 2006)(Notes 1) The figure for the acquisition (planned) price excludes various expenses (commissions, public charges, etc.) in all cases. (Note 2) The acquisition CAP is calculated by dividing the direct
capitalization method NCF by the acquisition (planned) price described in the appraisal (including the investigation report). (Note 3) The appraisal CAP rate indicates the cap rate of the direct
capitalization method for the appraisal value (including the investigation report). (Note 4) Since the age of properties in the portfolio differ, figures equivalent to the weighted average of the floor area
are indicated. (Note 5) The leasable area of the Taihaku Street Business Center is the sum total of the 11,224.49m2 for the office building and 3,427.38m2 for the residential building. (Note 6) Averageage indicates weighted averaged (age of property under construction is calculated as 0) acquisition (planned) price, average acquisition (planned) price indicates simple average of the acquisition(planned) price, average occupancy indicates a value calculated by dividing the total leased area by total leasable area of the 8 properties. (Note 7) The assumed IRR is from the Preferred Equity
Investment Profitability Value Study issued by the Japan Real Estate Institute. (Note 8) In the above list, the figures in the parentheses are not included in the figures for each total column.

13

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Leasing Business Income andExpenditure in 4th Fiscal Period
Fiscal Period(Period)(Operational period)
Total Leasing business income ①

Investment
Investment Strategy
Strategy

Compliance
ComplianceAppendix
Appendix(million yen)

4th Fiscal
Period

3rd Fiscal Period

March 1, 2006
- August 31,
2006

September 1, 2005
- February 28,2006

184 days

181 days

Variation

Factors behind Period-on-Period Variation in NOI
Value

Positive Factors

4,360

4,050

309

4,231

3,879

351

Other income

128

171

(42)

Total leasing business expenses②

2,123

1,959

164

Outstanding fees

920

886

34

Maintenance costs

39

31

7

Repairs cost

2

24

(22)

Tax and other publiccharges

300

245

55

Insurance premiums andtrust compensation

29

30

(0)

Depreciation

619

562

56

Other expenses

211

177

34

Real estate rental business profit(loss) ③（=①－②）

2,236

2,091

145

ＮＯＩ ④（=③＋Depreciation）

2,855

2,654

201

ＮＯＩ yield （Annual conversion of ④）

6.2％

6.4％

―

Rent

Financial
Financial Strategy
Strategy● Including of Taihaku Street Business Center results from beginningof period+JPY232 million● Full period operation of acquired assets +JPY46 million-Sanix Hakata Building(152nd day of third period → whole period)+JPY26 million-Kominedai Community Mall
(71st day of third period → whole period)+JPY20 million● Increase in rents linked to sales due to buoyant sales at key retailproperties+JPY46 million
SunLiveCity Kokura+JPY28 million
Canal City Hakata+JPY13 million
Park Place Oita
+JPY5 million
Negative Factors● Start of real property and city tax payments for acquired assets-JPY71 million-SunLiveCity Kokura-JPY47 million-Sanix Hakata Building-JPY17 million-Kominedai Community Mall
-JPY7 million● Received penalties and loss of rents due to the departure of thepreceding tenant-JPY26 million● Drop in rental revenues due to the low occupancy of the Canal
City Business Center Building (mid-term average 97.7% for thethird period and 95.3% for the fourth period)-JPY12 million

14

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Leasing Business Income and Expenditure(Fiscal period)(Operational period)
Total Leasing business income①

Canal City
HakataPark Place
Oita

SunLiveCity
KokuraKominedai
Community
Mall

4th

4th

4th

4th

Canal City
Business
CenterBuilding
4th

184 days

184 days

184 days

184 days

184 days

Gofukumachi
Business
CenterSanix Hakata
Building

4th

4th

184 days

184 days(million yen)
Taihaku
StreetBusiness
Center4th
169 days

1,387

912

290

35

674

559

205

293

1,363

893

290

34

673

493

190

293

Other Income

24

19

0

1

1

66

15

0

Total leasing business
expenses ②

651

523

105

13

327

281

92

126

322

267

8

1

170

73

19

56

Maintenance expenses

3

14

－

0

5

12

1

1

Tax and public charges

70

74

47

6

46

38

17

－

Insurance premiums
and trust compensation

8

6

2

0

5

3

1

1

Depreciation

174

118

45

3

82

94

35

64

Other expenses

72

42

0

0

16

60

18

2

Real estate rental businessprofit (loss) ③（=①－②）

736

388

184

21

347

278

112

167

ＮＯＩ ④（=③＋Depreciation）

910

507

230

25

429

372

147

231

ＮＯＩ yield （Annual conversion
of ④）

5.6%

6.4%

6.9%

6.9%

5.8%

6.6%

6.7%

7.2%

Rent

Outsourcing fees

15Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Sales-linked Rents
Breakdown of Lease Types(based on fourth fiscal period lease results)

Fluctuation of Hybrid Fixed/Variable Rents
and Variable Rents(based on rent results for the third and fourth fiscal periods)

Benefit from the Improving Economy via Sales-linked Rents

16

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Sales History of Canal City Hakata

Compliance
ComplianceAppendix
Appendix(as of August 31, 2006)

Tenants Contributing toIncreased Sales[Comme Ca Store]

Utilized external tenants to renew itself to alifestyle-proposing store(Opened on December 4, 2004)[ZARA]

Highly popular European clothes SPA opened ashop – one of its largest in Japan(Opened on August 12, 2005)[Brand Off]

Attracted a popular brand shop as its first store
in Kyushu(Opened on September 16, 2005)[United Cinemas]

Continuous screening of such popular movies as
The Da Vinci Code and Gedo Senki attracted moreviewers

Replacement of Tenants and Other Measures Keep the Property Fresh,
Fresh, Contributing toSales Increase Even after 10 Years since its Opening

17

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Sales History of Park Place Oita

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix(as of August 31, 2006)

TopicsFukuoka REIT Anticipates Additional Visitors as the Surrounding Environment Develops Further

18

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Sales History of SunLiveCity Kokura

Compliance
ComplianceAppendix
Appendix(as of August 31, 2006)

Open

Topics【Overview of SunLive】
SunLive Sales History

Source: Nihon Keizai Shimbun(May 18, 2004, May 21, 2005
and June 22, 2006)

Strength of Fresh Foods Sale Has Established SunLiveCity Kokura as the No. 1 Store in the Region

19

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
Compliance

History of Occupancy Rate by Property

Occupancy of Overall Portfolio (8 Properties) at End of Fourth Fiscal Period: 99.4%

Appendix
Appendix(as of August 31, 2006)20

Investment Strategy

Posting steady growth through appropriate pricing
and good quality properties

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Property Scheduled for Acquisition in Sixth Fiscal Period (tentative name)Drawing

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Hara SATY

Acquisition Planned for March 1, 2007
• Planned acquisition amount: JPY5,410 million• Appraisal amount: JPY5,550 million• Acquisition cap rate*: 6.8% (planned)• This is the amount arrived at by dividing the direct capitalization
method (NCF) result, , which is indicated in the report issued at thetime of contracting for the acquisition by the planned acquisition
price.
Overview (planned)• Location: 6-chome Hara, Sawara Ward, Fukuoka City
• Floor space: 27,580.75m2 (note)• Construction period: October 26, 1976 (complete renovation
planned at acquisition)• Property Manager: Fukuoka Jisho Co., Ltd.
(Note) The figure indicated on the registryStore• SATY(Note) This drawing is the conceptualized building to be constructed basedon the design drawings and may differ from the actual building.

Characteristics
1) Excellent location for a retail property in the Fukuoka suburbs
There are 286,000 people within a 3km radius (equivalent to suburbs of Tokyo) and evenmore importantly there are no competitors of equal size in the area.
2) This will be the first SATY in Fukuoka once the former Daiei is drasticallyrenovated
Local residents have strong expectations for the opening of SATY
3) A 12-year lease has been completed with Mycal Kyushu Corporation (aconsolidated subsidiary of AEON)
Fixed rent with sales-linked portion, impossible to terminate during the rental period andimpossible to reduce rents
4) Sales predictions in the market report are JPY6-7 billion (old Daiei had sales of
JPY5-7.5 billion)
The market report states that it is “a store with the ability to reliably pay rents”
Rents have been reduced dramatically since when it was a Daiei

22

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Property Scheduled for Acquisition in Sixth Fiscal Period (tentative name)Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Hara SATY

Higashi Ward
Fukuoka City
5km radius

Hakata Ward
Fukuoka City

Mycal Kyushu Corporation
Company Profile
Paid-in capital: JPY900 million
Sales:

3km radius

JPY44.5 billion (year ended in
February 2006)

Shareholders:

Aeon 66.6%
Kyushu Electric Power 11.1%
The Bank of Fukuoka 5.0%

1km radius

Nishi-Nippon City Bank 5.0%
Fukuoka Jisho 4.4%
Coca-Cola West Japan 3.8%
Zenrin 3.3%
(from the Japan Food Journal dated
December 26, 2003)

Nishi Ward
Fukuoka City

Total Population
Materials: 2000 National Census
Unit: Person/1 km mesh
Less than 1,000
1,000 ~

less than 5,000

5,000 ~

less than 10,000

10,000 ~ less than 15,000
15,000 ~ less than 30,000

Sawara Ward
Fukuoka City

Jonan Ward
Fukuoka City

Although the trade area is very
dense, there are few competitors.
There is also little risk of new storesof competitors due to the three City
Planning Laws.

Minami Ward
Fukuoka City

Mycal conducts the general supermarket
business within the Aeon Group.

The stars indicate the supermarkets, food supermarkets and GMS with 5,000m2
or more in floor space that exist within a 5km radius with Hara SATY at its center(market report).
※The store area of Hara SATY is about 17,000m2.

23

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
AppendixExternal Growth Supported by Sponsors
Utilize strong sponsor network to avoid excessive competition
and realize steady growth of good quality

Realize External Growth Maintaining High CAP Rates without Getting Involved in Property Acquisition Race

24

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

A Selection of Fukuoka Jisho Group’s Developments
Company Overview of Fukuoka Jisho (May 2006 Accounts Settlement)
Sales: JPY19.4 billion
Recurring profit: JPY3.4 billion
Total assets: JPY86.4 billion
Unitholders’ equity:JPY14.3 billion
Business description: City, residential, retail and office development and management centering on Fukuoka

Riverwalk Kitakyushu

Marinoa City Fukuoka

Tenjin Kirameki Dori Building(Iwataya Shinkan)

Hakataza Nishigin
Redevelopment Building

Hakata Ekimae Business Center

Nexus Momochi

Grand Hyatt Fukuoka

Hyatt Regency Fukuoka

Hyatt Residential Suites Fukuoka

Note) As of October 20, 2006, Fukuoka REIT has no plans to acquire any of these properties.

The Fukuoka Jisho Group is developing more properties in the present strong economic climate

25

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
AppendixExternal Growth Roadmap(Note 1) This is the preferred TK
interest in CCH Bridge YK,
an SPC operating theCanal City SPC owned
portion as a managed
asset.
(Note 2) This is based on theacquisition
pricesofproperties owned as of
October 18, 2006.

Fukuoka REIT Aims to Create the Best Portfolio for a Fukuoka/Kyushu Dedicated REIT

26

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Investment Categories(Note) This is calculated using the acquisition (planned) prices of assets under management as of October 18, 2006 and planned acquisitions (contract base).

Fukuoka REIT intends to acquire a greater share of urban shopping centers in the medium-term

27

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Evolution of the Shopping Center Format

Shopping centers are broadly evolving in three directions to meet the diversification of consumer needs

28

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Primary Shopping Centersof Kyushu
Kitakyushu
metropolitan
area

Fukuoka metropolitan area

Sasebo metropolitan area

Saga
metropolitan
area

Kurume metropolitan area

Nagasaki metropolitan area

(Source) Floor area: Kyushu Factbook (2006 edition) published by
the Fukuoka Branch of the Development Bank of Japan;
the shopping centers with floor spaces of at least
15,000m2 were entered
Population: the 2000 national census issued by theStatistics Bureau of the Ministry of Internal Affairs andCommunications(Note 1) The length of the graph illustrates the floor area size
(Note 2) Metropolitan Areas are the central cities and municipalities
where at least 10% of their populations work or study inthe central cities and this is based on the workers due toresidence, workers who are 15 or older in themunicipalities and students commuting who are 15 orolder in the 2000 national census issued by the Statistics
Bureau of the Ministry of Internal Affairs andCommunications.

Oita
metropolit
an area

Kumamoto
metropolitan area

Miyazaki metropolitan
area

Floor Area
Kagoshima metropolitan area

Miyakonojo
metropolitan
area

33,000m2

Population
100,000
500,000
1,000,000

Fukuoka REIT Carefully Discerns the Scope of the Trade Area and Competitive Environment in Selecting its Strategic Focus Areas
Areas

29

Financial Strategy

Creation of spare LTV through capital increase andrealization of greater ratio of fixed interest debt

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Overview of August – September 2006 Offering
Offering form

Domestic offering

Additional investment units

15,000Post-offering outstanding units

107,050

Launch dateAugust 17 (Thu), 2006

Bookbuilding period

August 28 (Mon) ~ August 30 (Wed), 2006

Finalization of issuance priceAugust 30 (Wed), 2006

Transfer date

September 8 (Fri), 2006

Discount rate

2.0%

Issuance price

JPY766,360 yen

Total offering amount

JPY11,495 million

Co-managers

Nikko Citigroup Limited
Mitsubishi UFJ Securities Co., Ltd.

31

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
AppendixUse of Spare LTV Ratio
Planned Acquisition Date March 1, 2007 (tentative) Hara SATY
Forecast fifth period distribution

17,000 yen↓
Forecast sixth period distribution

17,600 yen(Note) This considers repayment of JPY2 billion short-term bridge loan for acquiring Amex Akasakamon Tower.

Fukuoka REIT realized external growth by applying part of spare LTV created through the PO

32

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Fukuoka REIT Increases Ratio of Fixed Debt
February 2006 Breakdown of
Fixed and Floating Debt

September 2006 Breakdown of
Fixed and Floating Debt

Diversification of Repayment Maturities
September 2006
JPY billion
14

Fixed
35.6% Floating
64.4%

Fixed

Floating
26.6%(Note）

73.4%

12

12

10

10
7

6.6

8
6

3.9

4
2
(Note) The fixed includes borrowings (floating interest) that had
their interest fixed through an interest rate swap.

February 2006
●Weighted averageinterest 0.84%● Duration 1.9 years

September 2006

0

0

2006

2007

2008

2009

2010

2011

Repayment Maturity● Weighted averageinterest 1.50%● Duration 3.0 years● Commenced transactions with Mizuho Corporate Bank, The Norinchukin Bank, The Dai-ichi Mutual Life Insurance,
Shinkin Central Bank, the Sumitomo Trust and Banking, etc.
● Procured a JPY10 billion non-collateral syndicate loan arranged by the Mizuho Financial Group
Fukuoka REIT has successfully fixed the interest on a greater share of our debt

33

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
Compliance

Itemization of Borrowings
Type

Shortterm
debt

LenderAmount (JPY)

Borrowing Date

Repayment
Maturity

3,400,000,000

2006.2.27

2007.2.27

Nishi-Nippon City Bank

500,000,000

2006.3.31

2007.3.31

2004.11.9

2009.8.31

Development Bank of Japan

Longtermdebt(as of September 30, 2006)

Nishi-Nippon City Bank

Subtotal

Payment
MethodAnnual Interest

Lump sumupon
maturity

0.79000%
From September 30, 2006 to
October 31, 2006 (*1)
0.79000%
From September 30, 2006 to
October 31, 2006 (*1)
1.39000％（※2）
0.94000%
From September 26, 2006 to
December 25, 2006 (*1)

6,600,000,000

2005.6.29

2008.6.23

10,000,000,000

2006.8.25

2010.7.30

The Bank of Fukuoka

2,000,000,000

2006.8.25

2011.7.29

Nishi-Nihon City Bank

2,000,000,000

2006.8.25

2011.7.29

2.05174％（※2）

The Dai-ichi Mutual Life Insurance

1,000,000,000

2006.8.25

2011.7.29

2.05174％（※2）

Shinsei Bank

1,000,000,000

2006.8.25

2011.7.29

2.00174％（※2）

Sumitomo Trust and Banking

1,000,000,000

2006.9.29

2011.7.29

1.80296%（※2）

Subtotal

35,600,000,000

Total

39,500,000,000

TypeCommitment line
agreement (1) (*4)
Commitment line
agreement (2) (*4)

LenderCredit Limit (JPY)

Lump sumupon
maturity

Commitment Period
Start
End

The Bank of Fukuoka

3,000,000,000

2006.6.29

2007.6.29

The Bank of Fukuoka

5,000,000,000

2006.8.25

2007.8.23

Total

Description
No collateral
No guarantee
No collateral
No guarantee

3,900,000,000
12,000,000,000

Aozora Bank, The Bank of Fukuoka, NishiNippon City Bank, Oita Bank, Iyo Bank, The
Bank of Saga, Eighteenth Bank, Miyazaki
Bank, Yamaguchi Bank, Shinwa Bank,
Chikuho Bank
Mizuho Corporate Bank, Norinchukin Bank,
Shinkin Central Bank, Hiroshima Bank, Iyo
Bank, The Bank of Saga, Yamaguchi Bank,
Higo Bank, Shinwa Bank

Appendix
Appendix

1.92250%（※3）

2.05174％（※2）

Collateral
No guarantee
Collateral
No guarantee

Collateral
No guarantee
Collateral
No guarantee
Collateral
No guarantee
Collateral
No guarantee
Collateral
No guarantee
Collateral
No guarantee

Description
No collateral
No guarantee
No collateral
No guarantee

8,000,000,000(*1) This is a floating interest loan. (*2) This is a fixed interest loan. (*3) This is a floating interest loan but a swap contract has been concluded to fix the interest and the interest rate when theswap contract is combined has been entered. (*4) The funds will be used for working capital and facility funds (including funds to make additional acquisitions of assets).

Fukuoka REIT has reinforced its banking strategy by commencing transactions with central financial institutions

34

ComplianceFukuoka REIT has established a strong compliance systemthat matches the risk perception of the capital markets.

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

The Property Selection and Decision-Making Process

Japan Real Estate Institute (7 properties)
Tanizawa Sogo Appraisal (3 properties)
Daiwa Real Estate Appraisal (2 properties)
All Real Estate Appraisers Network (1 property)

Fukuoka REIT has a strict compliance system that matches the risk perception of capital markets

36

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Corporate Governance System

Periodical internal audits are conducted by the Compliance Officer (active licensed lawyer)

37

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Measures against Natural Disaster Risks
地震・水災への備え■Measures against water disaster risks
Casualty
insurance

Profitinsurance(Note 1)

(Note 2)Amex
Akasakamon
Tower

1,278,560
thousand yen

－

0 yen

Other
properties

1.0 billion yen

1.0 billion yen

30,000 yen[Reference]
Classifications ofEarthquake Insurance

Indemnificati
on amount■Measures against earthquake risks
Casualty
insurance

Profitinsurance

Indemnificati
on amount

Amex
Akasakamon
Tower

639,280thousand yen

－

0 yen

Other
prooerties

1.5 billion yen－

10,000thousandyen(Note 1）All insurance coverage represents a coverage for a single accident.
(Note 2) Profit insurance insures profits lost because of accidents, such as the cases in which tenants cannot pay
rents.
（(Note 3) Properties owned by Fukuoka REIT (except for Amex Akasakamon Tower) are covered in a lump sum by
a comprehensive insurance for corporate assets. Reasons of insurance payment by the comprehensive
insurance for corporate assets also include fire, thunderbolt explosion, explosion, wind, hailstone, snow
disaster, electrical and mechanical accidents and other accidental incidents. Amex Akasakamon Tower isinsured separately.

Class 1
Class 2
Class 3
Class 4

Earthquake insurance policies can beconcluded at relatively small costs since
Fukuoka and the Kyushu regions haveearthquake insurance classifications ofclass 1 or 2
Source: Overview of Earthquake Insurance on
Ministry of Finance Website

Covers Natural Disaster Risks including Earthquakes and Water Disaster38

Appendix

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Concept
Investment Policy
Portfolio Summary
Construction Confirmation Inspection Body
Property Overview
Prefectural Land Price Report for 2005 and 2006
Major Office Buildings in Central Fukuoka
Market Trends for Office Rents
Population Growth
Consumption Trends
Investment Unit Pricing History
Newsweek

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Concept
1. Regional REIT
Fukuoka REIT aims to maximize
investor profit by applying theinformation strength andexpertise of the asset manager,
which is well versed in theindividual and unique
circumstances of Kyushu.

2. Contribution to Regional Regeneration and Forming an Attractive City
Fukuoka REIT is helping to regenerate
the Fukuoka and Kyushu region byattracting Japanese and foreign
investor funds to the regional realestate and financial markets.
Simultaneously, the regional growth isreflected in the returns to investors by
distributing the revenues from theseassets under management.

Fukuoka REIT has Unique Characteristics as a Regional REIT Specialized in Fukuoka (Kyushu)

40

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Investment Policy(Note) These figures are based on theassets under management as of
October 18, 2006 and planned
acquisition properties (contractbase). The planned acquisition
prices were used for (tentative)
Kumamoto Inter-Community SC,
Amex Akasakamon Tower,(tentative) City House Tenjin
Keyaki Dori and (tentative) Hara
SATY. The TK equity interest is
not included in the calculations.

41

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Portfolio Summary(Note 1) The store names are written for the retail properties.
(Note 2) The figures are calculated using the assets under management as of October 18,
2006 and the planned acquisition properties (contract base). The properties that haven’t been
constructed yet are counted as less than five years after the completion of construction.

Investment
Investment Strategy
Strategy

10年以上
15年未満
45.2％

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix(as of August 31, 2006)(based on acquisition price; Note 2)

42

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Construction Confirmation Inspection Agencies
Property Name

Construction Name

Design Companies

Contractor

Construction
Confirmation
AgencyConstruction
Confirmation
Inspection Agency

New construction andrenovation work

Fukuoka Jisho First Class Architect’s Office,Canal City Hakata New Construction
FJ Urban Development, Takenaka
District 1 Construction Joint Venture and Fukuoka City
Corporation and Zenitaka Corporation
Takenaka Corporation
Consortium (Note 1)

Park Place Oita

New construction

Asanuma Corporation Kyushu Branch FirstClass Architect’s Office
Fujita Corporation Kyushu Branch FirstClass Architect’s Office

Asanuma Corporation, Fujita
Corporation

Oita City

SunLiveCity Kokura

New construction

Matsui and Kono Joint Design Venture

Penta-Ocean Construction Co., Ltd.

Japan ERI Co., Ltd.

Japan ERI Co., Ltd.

Gofukumachi Business Center

New construction

Institute of New Architecture Inc.

Takenaka Corporation

Fukuoka City

Fukuoka City

Canal City Business Center Building

New construction andrenovation work

Fukuoka Jisho First Class Architect’s Office, Canal City Hakata New Construction
District 2 Construction Joint Venture,
FJ Urban Development First Class
Zenitaka Corporation
Architect’s Office

Fukuoka City

Fukuoka City

Sanix Hakata Building

New construction

Maeda Corporation First Class Architect’s
OfficeMaeda Corporation Kyushu Branch

Fukuoka City

Fukuoka City

Super Kyowa Building

New construction

Shintoku Design Office

Shinwa Co., Ltd.

Kitakyushu City

Kitakyushu City

Daiso Building

New construction andextension work

Watanabe Architects & Associates

Shinwa Co., Ltd.

Kitakyushu City－(Note 2)

Gusto Building

New construction

Tesco Design Office

Shinwa Co., Ltd.

Kitakyushu City

Kitakyushu City

Mister Donut Building

New construction

Shintoku Design Office

Shinwa Co., Ltd.

Kitakyushu City

Kitakyushu City

Taihaku Street Business Center

New construction

Yamashita Sekkei, Inc.

Takenaka Corporation

Fukuoka City

Fukuoka City

Square Mall Kagoshima Ushuku

New construction

Yamashita Sekkei, Inc.

Fujita Corporation

Kagoshima City

Kagoshima City

(Tentative) Kumamoto Intercommunity SC

New construction

Kajima Corporation

Kajima Corporation

Japan ERI Co., Ltd.

Amex Akasakamon Tower

New construction

Masaki Architect & Associates

Tada Corporation Kyushu BranchJapan ERI Co., Ltd.

Japan ERI Co., Ltd.

(Tentative) City House Tenjin Keyaki DoriNew construction

Planning Office LECS Co., Ltd.

Daiho Co., Ltd. Kyushu BranchJapan ERI Co., Ltd.

－(Not constructed)(Tentative) Hara SATY

New construction

Pal Corporation

Obayashi Corporation

Fukuoka City

Fukuoka City

Canal City Hakata

Kominedai
Community Mall

Notes

Fukuoka City

Oita City－(Not constructed)

1. The consortium is the joint design venture by the designers of each zone.
2. This building didn’t undergo a completion inspection when it was newly built and an inspection certificate has not been issued, but Japan ERI Co., Ltd. conducted a suitability study for all the regulations in the Construction Standards Law and submitted a reportthat the building can be judged as suitable.

43

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Property Overview
Urban SC

Canal City Hakata
Characteristics• Within walking distance from Hakata Station and located near the
popular area of Nakasu• Renowned tourist destination in Fukuoka with over 10 million visitors ayear• Distinguished design by Jon Jerde renowned for his work on Las Vegas’
Fremont Mall and Tokyo’s Roppongi Hills
Stores• Washington Hotel• Comme Ca Store• United Cinema(cinema complex)• OPA (Canal City OPA)
• Sports Authority• Others

Overview• Address:

1-chome, Sumiyoshi,
Hakata Ward, Fukuoka City
• Total leasable area: 47,909.65m2• Built:
April 15, 1996
• Property manager: Fukuoka Jisho

Urban SC

Preferred TK Investment
Characteristics• Acquired the preferred TK investment interest (3,400 million yen) to CCH Bridge YK, an SPC.
• A contract to reserve acquisition of “Canal City Hakata SPC owned section” of the subject real estate was also
signed simultaneously (execution of the reservation fulfillment right by Fukuoka REIT will establish thetransaction contract at a price appraised by the Tanizawa Appraisal Office or the Japan Real Estate Institute).
Main tenants of the section owned by
the Canal City Hakata SPC• Top luxury hotel in the region: Grand Hyatt
Fukuoka (370 guest rooms)• OPA Shopping Mall (more than 100 specialty
shops)• One of the largest MUJI (Mujirushi Ryohin)
Stores in Kyushu• Fukuoka City Theater of Shiki TheaterCompany• Others

44

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Property Overview
Regional SC

Park Place Oita
Characteristics• Located in new town development next to Oita Prefectural Sports Park
(World Cup Soccer Stadium)• Near Oita-Mera Interchange with parking for about 4,000 cars
• Designed as an open mall in a forest by Jon JerdeStores• Jusco• K’s Denki• T Joy• Sports Authority• Plaza Capcom• Others

Overview• Address:

2-chome, Koen Dori
Nishi, Oita City
• Total leasable area: 100,664.83m2• Built:
March 26, 2002
April 17, 2002
April 28, 2004
• Property manager: FJ Real Estate

Regional SC

SunLiveCity Kokura
Characteristics• Lies along National Highway 10 and near the Kokura Higashi
Interchange on the Kyushu Expressway with parking for about 2,000
cars• Leading regional mall in Kitakyushu region with about 110 specialty
stores centering on the SunLive Supermarket• Core development in the Kami Kuzuhara Rezoning District (about
66,000m2), a large commercial zone
Overview• Address:
2-chome, Kami Kuzuhara,
Store
Kokura Minami Ward,• SunLive
Kitakyushu City
• Total leasable area: 61,450.22m2• Built:
March 17, 2005
• Property manager: Fukuoka Jisho

45

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Property Overview
Regional SC

Hara SATY (tentative)
Characteristics• Excellent location for a retail property in the Fukuoka suburbs
There are 286,000 people within a 3km radius (equivalent to suburbs ofTokyo) and even more importantly there are no competitors of equal
size in the area
• Will be the first SATY in Fukuoka once the former Daiei is drasticallyrenovated• 12-year lease has been completed with Mycal Kyushu Corporation (aconsolidated subsidiary of AEON)
Fixed rent with sales-linked portion, impossible to terminate during therental period and impossible to reduce rents• Sales predictions in the market report are JPY6-7 billion (old Daiei had
sales of JPY5-7.5 billion)
Store (planned)
・SATY

Community SC

Kominedai Community Mall

Overview
・Location: Sawara Ward, Fukuoka City
・Floor space: 27,580.75m2 (note)
・Construction period: October 26, 1976 (completerenovation planned in Spring 2007)
・Property Manager: Fukuoka Jisho Co., Ltd.
(Note) From the entries of the confirmation certificate

Characteristics• Located along the main thoroughfare National Highway 211 and right infront of the Komine Interchange Exit on Kitakyushu Urban Expressway
No. 4• The center of the about 8,000m2 site has a sufficient single levelparking lot• Comprised of four tenants centering on a community entrenched fresh
food supermarket
Stores・Super Kyowa
・Daiso・Gusto・Mister Donut

Overview
・Address:

1-chome Kominedai,
Yahatanishi Ward,
Kitakyushu City
・Total leasable area: 3,743.12m2
・Constructed:
June 3, 1972, March 15, 1997,
May 12, 1997 and June 9, 1997
・Property manager: Fukuoka Jisho

46

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Property Overview
Community SC

Square Mall Kagoshima Usuki
Characteristics• One of the busiest thoroughfares of Kyushu (along Prefectural Highway 217)
42,000 cars on average travel on Prefectural Highway 217 every 12 hours (fiscal
1999), which exceeds National Highway 3, Taihaku Street, Watanabe Dori and othermajor thoroughfares in central Fukuoka (each with 35,000-40,000 cars every 12hours)• Leading category killers of each industry as tenants
Sports Depot, Right On, Golf5Nishimatsuya, Honeys, ABC Mart, Best Denki, etc.
• Design by John Jerde• Concluded long-term fixed leases with tenants that enjoy a high level of credibility
5-20 years, inability in principle to terminate contracts during mid-contractual period,
impossibility to reduce leases (excluding 1 tenant)Overview (planned)• Address:
Usuki 2-chome, Kagoshima City
• Total leasable area: 14,663.41m2• Constructed: September 28, 2006
• Property manager: Fukuoka Jisho

Community SC

Kumamoto Intercommunity SC (tentative)
Characteristics• One of Kyushu’s busiest thoroughfares (located along National Highway 57 East Bypass)
39,000 cars on average travel on National Highway 57 every 12 hours (fiscal 1999),
which is almost equal to National Highway 3, Taihaku Street, Watanabe Dori andother major thoroughfares in central Fukuoka (each with 35,000-40,000 cars every
12 hours)• Plan to conclude fixed long-term leasehold contracts with highly regarded tenants
20 years, inability in principle to terminate contracts during mid-contractual period,
impossibility to reduce leases
Overview (planned)
Stores (planned)• Address: Kozono 1-chome,• Sports Depot and Golf 5
Kumamoto City
(major sporting goods chain)• Floor area: 9,684.52m2（Note）
First Sports Depot store to be opened by Alpen
in Kumamoto and it will have an enormous• Property manager: Fukuoka Jisho(Note) Entries are from the Confirmation Certificate
sales space of 2,000 tsubos.
and represent the totals for the two buildings.
• Starbucks (drive thru coffee shop)
This is the second drive thru Starbucks in
Kumamoto and the fourth in Kyushu.

47

Presentationof Fourth
Fourth Period
Period Accounts
Accounts
Presentation of

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Property Overview
A Class Building

Canal City Business Center Building
Characteristics• Pioneer of multi-use complexes• Synergy between popularity and name recognition of Canal City Hakata• Used by TOTO Ltd. as Fukuoka office and showroom
Tenants• TOTO• Bell System 24• USEN Corporation• Aflac Japan• Mitsubishi Electric Building
Techno-Service• Others

Overview• Address:

1-chome, Sumiyoshi,
Hakata Ward,
Fukuoka City
• Total leasable area: 23,011.85m2• Built:
April 15, 1996
• Property manager: Fukuoka Jisho

A Class Building

Gofukumachi Business Center
Characteristics• Faces Meiji Dori and Taihaku Street and directly connected to Gofukumachi
Subway Station• Designed by Michael Graves, designer of the Museum of New Ark• Top Quality Specs in Region- 1 floor: 620 tsubos- Ceiling height: 2,900mm- Optic fiber cables• Sanyo Shimpan, NTT West Kyushu Corporation, Sony Life Insurance andother leading firms use the premises as a call center
Tenants• Sanyo Shimpan
Overview• NTT West Kyushu• Address:
Kami Gofukumachi,
Corporation
Hakata Ward,• Sony Life Insurance
Fukuoka City
• Suntory• Total leasable area: 19,906.21m2• Sunny• Built:
October 16, 2003
• Others• Property manager: Fukuoka Jisho

48

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Property Overview
A Class Building

Sanix Hakata Building
Characteristics• Two-minute walk from Hakata Station (Shinkansen), and Fukuoka Airport isa mere five-minute subway ride away
• The concentration of hotels and government offices surrounding thebuilding make it an optimal location for business• High-quality and flexible specifications:- Free access floors / independent air conditioning systems- Each floor can be partitioned / optical fiber cables
Tenants• Sanix• The Nishi-Nippon
City Bank• ROHM• Idemitsu Kosan• Others

Overview• Address:

Hakataeki Higashi,
Hakata Ward,
Fukuoka City
• Total leasable area: 6,293.67m2• Built:
March 31, 2001
• Property manager: Fukuoka Jisho

A Class Building

Taihaku Street Business Center
Characteristics• Superbly located with excellent accessibility: ten-minute walk from Hakata
Station and a two-minute walk from Gion Subway Station; standing along
the trunk road “Taihaku Street”• Leading facility standard for Fukuoka City office buildings:- Exemplary functional space of 333-tsubo can be partitioned to aminimum 18 tsubos- 2.7m ceiling height / Free access floor of 100mm- Optional cables / Independent air conditioning systems• Accompanied by luxurious 59-room residential tower- Housing 1LDK – 3LDK
rooms to meet requirements of downtown commuters
Tenants• NTT Comware• Yokogawa Electric• The Tokio Marine Nichido
Outsourcing Business• Fujitsu Network solutions• Tokio Marine & NichidoLife• Others

Overview• Address:

Gokushomachi, Hakata Ward,
Fukuoka City
• Total leasable area: Office Tower: 11,244.49m2
Residential Tower:3,427.38m2• Built:
March 7, 2002
• Property manager: Fukuoka Jisho

49

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Property Overview
Residential

City House Tenjin Keyaki Dori (tentative)
Characteristics• Near the Tenjin district with good access• New rental condominium in a popular residential area with excellent transportation andliving conveniences• 15-minute walk from the Nishitetsu Fukuoka Station on the Nishitetsu Tenjin Omuta
Line, 9-minute walk from Akasaka Station on the Municipal Subway Line and 11-minute
walk from Sakurazaka on the same line
• Planned to have 13 stories above ground (total floor area of 3,531.37m2) and havethirty 2LDK units (about 58m2 per) and twelve 3LDK units (about 75m2 per unit)• Earthquake resistance structure for high safety and security
Overview• Address:• Total floor area:• Scheduled completion date:• Property manager:

Kego 2-chome, Chuo Ward, Fukuoka City3,531.37m2
November 30, 2007
DMC (a member of the Daio Group, a giant
residential management company in the Tenjin area)

Residential

Amex Akasakamon Tower
Characteristics• Property is near the Tenjin area and enjoys strong transit convenience (withinwalking distance of the metro subway’s Akasaka and Tenjin stations)• A tower-type rental condominium with 2LDK（55.58m2）to 4LDK (144.84m2) units.
Overview• Address: 2-chome Maizuru, Chuo Ward, Fukuoka City
• Leasable area: 4,755.14m2• Built: July 26, 2005
• Property manager: DMC (a member of the Daio Group, a giant residential
management company in the Tenjin area)

50

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Land Price Survey by Prefecture (2005-2006)
Fukuoka City Land Price Trends (2004 – 2005)

Fukuoka City Land Price Trends (2005 - 2006)(Source) Land Price Survey by Fukuoka Prefecture (2004-2006)
Numerical Map 25,000 by the Geographical Survey Institute (based on space data)(Note 1) The map indicates all land price survey standard sites located in the center of Fukuoka City.
(Note 2) The red columns in the map indicate places where land price rose, with the land price increase rate shown in figures in red. The blue
columns indicate places where land price dropped, with the land price decrease rate shown in figures in blue.

The Land Price Survey Announced in September 2006 Shows 45 Places with Year-on-Year Price Increase

51

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Main Office Buildings in Central Fukuoka City
Gion Gofukumachi
District
Average advertised rent: 14,567 yen/tsubo(common expenses included)

Tenjin District

Average vacancy: 2.36%

Average advertised rent: 18,287 yen/tsubo(common expenses included)
Average vacancy: 6.47%

Akasaka Daimyo District
Average advertised rent :14,483 yen/tsubo(common expenses included)
Average vacancy: 4.22%

Hakata Station Front
District
Average advertised rent: 16,047 yen/tsubo(common expenses included)
Average vacancy: 8.34%

Yakuin and Watanabe
Dori District

Hakata Station East andSouth District
Average advertised rent: 14,462 yen/tsubo(common expenses included)
Average vacancy: 5.45%

Average advertised rent): 15,215 yen/tsubo(common expenses included)
Average vacancy: 6.92%

Floor space
5,000(tsubos)(Source) Researched by Miki Shoji Co., Ltd.
Notes 1. This only contains figures for buildings with 2,000 or more tsubos of floor space that meet the new anti-seismic standards.
2. The length of the graphs represents the floor area.
3. The data for each district represents a tabulation of the concerned buildings.

The office market of central Fukuoka City is divided into six districts and the main office buildings are concentrated
in the Tenjin District and around Hakata Station

52

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Office Lease Market Trends(%)

Vacancy Rate of Office
Buildings

Average Rent of Office Buildings
Yen

Source: "Office Building Market Report by Region" issued by Miki Shoji Co., Ltd. (Compilation and analysis of office buildings that are located in major business districts in each city and areabove certain standards in floor areas, standard floor areas and other factors)(Note 1) Average rents do not include common service charges.
(Note 2) Figures for 2006 are as of the end of August.

The Office Lease Market in Fukuoka is Recovering

53

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Population Growth

Population including Students Continue to Flow from the Entire Kyushu into Fukuoka

54

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Consumption Trends
Fluctuations in Monthly Comparisons of Large Retail Store Sales(June 2005 – May 2006)
108.0
106.0
104.0
102.0

100

100.0
98.0
96.0
Fukuoka City (department store total)
Kyushu (large retail store total)
National (department store total)
National (large retail store total)

94.0
92.0
90.0
July 2005

Aug. 2005

Sept. 2005

Oct. 2005

Nov. 2005

Dec. 2005

Jan. 2006

Feb. 2006

Mar. 2006

Apr. 2006

May 2006

Source: Current Survey of Commerce by the Ministry of Economy, Trade and Industry

Retail Sales are Steadily Growing in Fukuoka

55

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

Performance on Pricing

As of October 13, 2006
Stock Price:(closing price)

High:
Low:

864,000 yen
910,000 yen (June 21, 2005)
763,000 yen (September 15, 2005)

56

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

10 HIGH ROLLERS

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Las Vegas(U.S.)

Beyong the Strip

Fukuoka(Japan)City of Substance

Munich(Germany)

Rich and Richer

Compliance
ComplianceAppendix
AppendixLong the fastest-growing metropolis in
America, sin city is building more than casinos.
There are many would-be ‘Gateways to Asia.’ This
one’s for real.
A bright spot in the gloaming, but for how long?

Capital of Magnet

London(U.K.)

London’s gain is Manchester’s loss, but Brits worry
more about Shanghai.

Toulouse(France)‘It’s Airbusville’Nanchang(China)Welcome, World

Moscow(Russia)

The Great Pump

Ghaziabad(India)An ancient city has evolved into a new type: themultinational town.
A star marks the unlikely epicenter of China’s
second-city explosion.

Moscow draws all the new arrivals, from babies tofortune seekers.

Ring of Change
A factory suburb of Delhi, now surrounded by poshhigh rises.

Goyang(South Korea)

Lovely Little Rebels

Florianopolis(Brazil)Bigger yet Better

Built by the state, an affluent enclave is now battlingit.
On ‘Magic island,’ a virtuous cycle began with a ban
on heavy industry.

57

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

POINT 1• Capital investment in the manufacturingindustry in Kyushu has grown as fast as
52% in recent years• Fukuoka residents refer to Kyushu as Car
Island, or Silicon Island

POINT 2
• 50% increase in containers handled at
Hakata Port, the main port of Fukuoka City,
over the past six years• Toyota established its second manufacturingbase in Japan in Kyushu and started shipping
Lexus models to China from Hakata this year

POINT 3• Cultural assets and festivals that attract
tourists• 50% increase in foreign tourists over the
past six years• Consumption propelled by Asian tourists andyoung visitors from other Kyushu areas

58

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

POINT 1

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

POINT 1

Large Manufacturers Reinforce Proactive Investment in Kyushu

Capital Investment in Kyushu is Making Steady Progress

Distribution of Primary Automobile and
IT Plants in Kyushu
DENSO Kitakyushu Plant(Kitakyushu City)

Long-term Fluctuations in Capital Investment
by Manufacturers

Toyota Motors Kyushu, Kanda Plant(Kanda-machi, Fukuoka Prefecture)
Nissan Motor, Kyushu Plant(Kanda-machi, Fukuoka Prefecture)

Toyota Motors Kyushu, Kanda Plant(Miyawaka City, Fukuoka Prefecture)

ROHM Fukuoka(Yukuhashi City, Fukuoka Prefecture)

Power Device Division,
Mitsubishi Electronic(Fukuoka City)

Daihatsu Auto Body
(Nakatsu City, Oita Prefecture)
Oita Canon(Kunisaki City, Oita Prefecture)

Tokyo Electron Kyushu(Tosu City, Saga Prefecture)

Toshiba, Oita Plant(Oita Prefecture)
Nagasaki Technology Center,Sony Semiconductor Kyushu(Isahaya City, Nagasaki Prefecture)

NEC Kyushu(Kumamoto Prefecture)

Aishin Kyushu(Jonan Town,
Kumamoto Prefecture)

Honda Motor,
Kumamoto Plant

Asahi Kasei
Microsystems Kyushu(Nobeoka City,
Miyazaki Prefecture)(Ozu-Town, Kumamoto Prefecture)

Fuji Photo Film
(Kikyuyo Town,
Kumamoto Prefecture)
Fujitsu Integrated
Microtechnology, Kyushu Plant(Satsuma-Sendai City, Kagoshima
Prefecture)

Automobile
IT

Miyazaki Oki Electric(Kiyotake Town, Miyazaki Prefecture)
KYOCERA Corporation Kagoshima
Kokubu Plant(Kirishima City, Kagoshima Prefecture)

Source: Nihon Keizai Shimbun, April 29, 2006

Automobiles and Semiconductors Support Expansion in Capital Investment

59

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

Property
Property Management
Management Conditions
Conditions

POINT 2

Investment
Investment Strategy
Strategy

Financial
Financial Strategy
Strategy

Compliance
ComplianceAppendix
Appendix

POINT 2
Port of Hakata Expands Handling of Containers

Toyota Establishing Second Largest Production Base in Japan

History of Handling Volume of International Trade
Containers (comparison among principal ports)

Sales of Toyota Motor Kyushu

300
Port of Tokyo
Port of Yokohama
Port of Nagoya
Port of Kobe
Port of Osaka
Port of Hakata
Japan total

250
200
150
100
50
0

1996

1997

1998

1999

2000

2001

2002

2003

(Note) Graph formed after establishing the figures in 1996 as 100
Source: Institute for Advanced Port Transportation of Japan
Ports and Harbours Bureau of the Ministry of Land, Infrastructure and Transport

2004

2005

Source: Nihon Keizai Shimbun, July 6, 2006

Toyota Motor Kyushu Leads Expansion of Exports

60

Presentation
Presentation ofof Fourth
Fourth Period
Period Accounts
Accounts

POINT 3

Property
Property Management
Management Conditions
Conditions

Investment
Investment Strategy
Strategy

POINT 3

Increasing Number of Foreign Tourists

Fluctuation in the Number of Foreigners
Entering Japan(people)100%

Port of Tokyo
Port of Yokohama
Port of Osaka
Port of Kobe
Port of Shimonoseki
Port of Hakata

140,000
120,000

Compliance
ComplianceAppendix
Appendix

Fukuoka Has Strong Asian Features

Regional Breakdown of Foreigners
Entering Japan

Breakdown by Principal Seaport

160,000

Financial
Financial Strategy
Strategy

3.5

1.0
3.2
3.0

14.1
80%

12.2

100,000

60%

80,00092.7
40%60,00068.2

40,000No nationality
OceaniaSouth America
North America
AfricaEuropeAsia

20%

20,000
0%

0

2000

2001

2002

2003

All of Japan

2004

POINT 3

Fukuoka

Source: Immigration Bureau of Japan of the Ministry of JusticeSource: Immigration Bureau of Japan of the Ministry of Justice

Cultural Assets and Festivals that Attract Tourists

Hakata Gion Yamagasa Festival

Hakata Dontaku Festival

Kyushu National Museum

Kyokusui-no-en festival at Dazaifu
Tenmangu shrine

Tourists from Asia are Increasing

61