36th Fiscal Period
Report on Performance andManagement Status (Semiannual Report)

Security Code 8968

March 1, 2022 to August 31, 2022

Fukuoka REIT
Corporation

8968

I. Overview of Fukuoka REIT Corporation

I. Overview of Fukuoka REIT Corporation
To Our Unitholders

Status of the Investment Corporation

We would like to express our sincere appreciation to all
unitholders for your continued support of Fukuoka REIT Corporation (FRC).
We are pleased to report on the performance results andmanagement status of FRC for the thirty-sixth fiscal period(March 1, 2022 to August 31, 2022).
During the fiscal period under review (the 36th fiscal period), the Japanese economy showed Disposition. As for theoutlook, with social and economic activities increasingly normalized under thorough measures taken against COVID-19
infection, the economy is expected to pick up due in part tothe effects of various political measures, although a downturnin overseas economies in the face of global monetary tightening, etc. poses a risk of downward pressure on the domestic
economy.
Under such circumstances, FRC’s portfolio achieved solid
performance in the asset types of office buildings, logistic facilities, residential properties and community-based retailproperties. On the other hand, the impact of COVID-19 continued to linger at Canal City Hakata, a city-center retail property, while hotels remained unable to recover as tourism demand, etc. did not return strongly.
Amid such a situation, in the 36th fiscal period, FRC acquired Hakata Chikushi-Dori Center Building (acquisition
price: 4.32 billion yen) on March 1, 2022. Moreover, the occupancy rate remained solid, with the average period-end occupancy rate of all properties FRC owns standing at 99.4%.
Consequently, FRC posted operating revenues of 8,830
million yen, operating income of 3,181 million yen, ordinary
income of 2,805 million yen, and profit of 2,804 million yen for
the fiscal period under review. Dividend per unit came to 3,523
yen, which represents an increase of 23 yen over the dividend
forecast of 3,500 yen disclosed at the time of the announcement of the financial results for the 35th fiscal period.
As for future external growth, we will aim to expand theasset size by taking advantage of our local specific information-gathering ability. In June 2022, we decided to acquire alogistics site (Island City Minato Bay related site (Land with

FRC is Japan's first REIT specializing in regional properties. FRC manages a portfolio centering on retail facilities featuring excellent design and entertainment qualities and superior office buildings throughout all of Kyushu. With a central focus on Fukuoka,
and in Yamaguchi Prefecture and Okinawa Prefecture, we are utilizing our strength of knowing the local characteristics of realestate, which is a very regional-specific business.

Overview of the Investment Corporation
Zenji Koike
Executive Director
Fukuoka REIT Corporation
President and CEO
Fukuoka Realty Co., Ltd.

leasehold interest) (tentative)) from Fukuoka City (scheduled
for acquisition on March 31, 2029), in coordination with Fukuoka Jisho Co., Ltd., one of our sponsors.
In terms of internal growth, we will work to raise rent upontenant replacement and contract renewal at the properties
mainly in office buildings and residential properties. On top ofthis, we will manage our properties in retail properties and hotels in an appropriate manner, taking into account the relaxation of the government’s border measures against COVID-19
and resumption of measures to support tourism.
In the meantime, as part of our initiatives on sustainability,
we announced our support for the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD) in
September 2022. We will continue our proactive endeavors to
reduce CO2 emissions, coordinate with local communities, andprovide sustainability information to our unitholders through theissuance of integrated reports and other measures.
As a REIT specializing in regional properties, FRC continuously strive to maintain and enhance dividend per unit in astable manner by conducting steady asset management aswell as quickly responding to market changes while receiving
support and cooperation from powerful sponsors leading the
Kyushu business world. We are resolved to make utmost efforts to secure stable earnings over the medium to long term
and continuously offer stable dividends into the future basedon our management philosophy of “Act Local, Think Global.”
We greatly appreciate your continued support and cooperation.

II.

Name: Fukuoka REIT Corporation
Representative: Zenji Koike, Executive Director
Asset manager: Fukuoka Realty Co., Ltd. (Fukuoka Local Finance Branch Bureau (financial instruments) No. 10)
Listed date: June 21, 2005 (Tokyo Stock Exchange Inc., and Fukuoka Stock Exchange)

Sponsors

5%

5%

5%

THE BANK OFFUKUOKA, LTD.

THE NISHI-NIPPON CITY BANK, LTD.

Development Bank of Japan Inc.

55%

Director

Fukuoka Realty Co., Ltd.

FUKUOKA JISHO
CO., LTD. (Note)

Overview of Fukuoka REIT Corporation
To Our Unitholders ........................................................................................................ 1
Profile .............................................................................................................................................. 2
Trend of Growth in Asset Size of FRC / Financial Summary ......................................................... 3
Portfolio Overview .......................................................................................................................... 5
New Property Acquisition and Asset Disposition ........................................................................... 7
Initiatives on Sustainability ............................................................................................................. 8
Semiannual Report ............................................................................................................... 9III.
IV. Balance Sheet ....................................................................................................................... 29
V. Statement of Income ......................................................................................................... 31
VI. Statement of Changes in Net Assets ........................................................................ 32
VII. Statement of Cash Distribution .................................................................................... 33
VIII. Cash Flow Statement ........................................................................................................ 34
IX. Notes to Financial Statements ..................................................................................... 35
X. Supplementary Schedules ............................................................................................. 47

FUKUOKA REIT CORPORATION

1

Kyushu Electric Power Co., Inc.

(Asset Manager)

5%

5%

5%

5%

SAIBU GAS HOLDINGS CO., LTD.

Kyudenko Corporation

Nishi-Nippon Railroad Co., Ltd.

Kyushu Railway Company(Note) Concluded MOU with Fukuoka REIT Corporation and Fukuoka Realty Co., Ltd. concerning pipeline support.

Overview of the Asset Manager
Name: Fukuoka Realty Co., Ltd.
Representative: Zenji Koike, President and CEO
Address: 1-2-25, Sumiyoshi, Hakata Ward, Fukuoka City

Telephone: +81-92-272-3900
Established: December 26, 2003
Capital: 200,000,000 yen

Portfolio
RetailIndependent Auditor's Report ...................................................................................... 26

10%

Outsidedirector

Investment type (based on acquisition price)

CONTENTSI.

Profile53.0%

Investment area (based on acquisition price)

Office buildings Others

33.0%

Total leasable floor space

14.0%

578,255.35 m2

Fukuoka metropolitan area

77.1%

Occupancy rate at end of period

*Figures are based on properties owned as of August 31, 2022.

FUKUOKA REIT CORPORATION

2

Other
Kyushu areas

22.9%

99.4%

I. Overview of Fukuoka REIT Corporation

I. Overview of Fukuoka REIT Corporation

Trend of Growth in Asset Size of FRC
FRC More than Doubled Asset Size and Diversified Investment Types Since
The asset size stood at 206.3 billion yen (on an acquisition price basis) in the 36th fiscal period. FRC aims to achieve 250 billion yen,
Retail (left axis)(mm yen)

Office buildings (left axis)

Logistics (left axis)

Residence (left axis)

Listing
while working to dissipate risks through the portfolio as a diversified REIT.

Hotels (left axis)(properties)

Number of investment properties (right axis)

2.1%
4.1%

200,000

Acquired from sponsor

16

150,000

33

40

7.8%

Sponsor

63.3%

properties* Higashi Hie Business Center, which FRC acquired in the10th fiscal period ended August 2009, was acquired bothfrom an outside seller and a sponsor. Accordingly, the acquisition price of the property has been evenly divided andadded to the acquisition price from outside sources and theacquisition from the sponsor, respectively. As for the numberof properties, it has been added as a single property to thenumber of acquisitions from the sponsor.

Other thansponsor

36.7%
75,649million yen

130,690

As ofmillion yen
August 31, 2022

206,339

31

million yen

23
100,000

19

15

32

15

16

16

16

16

17

24

23

27

28

27

25

25

26

29

29

29

33.0%

26

20

20

17

11

11

33
30

27

14

31

32

53.0%
10

50,000

7

8

5

0

5th

10th

15th

(Feb. 2007)(Aug. 2009)(Feb. 2012) inancial Highlights for 36th Fiscal Period and Business Forecasts forF
37th and 38th Fiscal Periods
36th fiscal period

37th fiscal period

38th fiscal period(March 1, 2022 to August 31, 2022)(September 1, 2022 to February 28, 2023)(March 1, 2023 to August 31, 2023)

ActualForecast

Forecast

Operating revenues

mm yen

8,830

8,915

9,119

Operating expenses

mm yen

5,648

5,737

5,920

Operating income

mm yen

3,181

3,177

3,199

Ordinary income

mm yen

2,805

2,803

2,819

Profitmm yen

2,804

2,801

2,817

Dividend per unityen (1)

3,523

–

–

Latest dividend forecast per unit
Difference from forecast
Total number of investment units outstanding(at end of period)

25th

30th

35th

(Aug. 2014)(Feb. 2017)(Aug. 2019)

36th

0

(Feb. 2022) (Aug. 2022)(Note) As the senior equity interest in an anonymous partnership managed by CCH Bridge Y.K. was redeemed in the 14th fiscal period, it is excluded from the total acquired assets from the 14th fiscal period onward.
Since interest in the anonymous partnership managed by Limited Liability Company FRC1 was redeemed in the 26th fiscal period, it is excluded from the total acquired assets from the 26th fiscal period onward.

Financial Summary

Category20thyen (2)

3,500

3,520

3,540

yen (1)-(2)

23

–

–

units

796,000

796,000

796,000

Dividend Performance
Showing a recovery trend from the impact of COVID-19 in the 36th fiscal period, FRC will keep its endeavors to maintain andstabilize dividends.
36th fiscal period end

August 31, 2022 (semiannual periods ending every February and August)36th fiscal period dividend 3,523 yen per unit

36th fiscal period days 184 days
Dividend yield

4.1% {(Dividend / Days × 365) / Unit price (as of August 31, 2022)}

(yen)

4,000

3,523 3,520 3,540
3,000

2,000

1,000

0

5th

Feb.
[2007
]

10th

Aug.
[2009
]

15th

Feb.
[2012
]

20th

25th

Aug.
[2014
]

Feb.
[2017
]

*FRC implemented a 5-for-1 split of its investment units with March 1, 2014 as the effective date. Dividend per unit indicates the value after the 5-for-1 split.
FUKUOKA REIT CORPORATION3FUKUOKA REIT CORPORATION

4

30th

Aug.
[2019
]

35th 36th 37th 38th

Feb. Aug. Feb. Aug.
[2022][2022][2023][2023](Forecast) (Forecast)I. Overview of Fukuoka REIT Corporation

I. Overview of Fukuoka REIT Corporation

1

Retail2

Canal City Hakata

Retail3

Retail5

RetailPark Place Oita

SunLive City Kokura

Konoha Mall Hashimoto

One of the largest entertainment-type retail facilities inJapan and comprising United
Cinemas and others

One of the largest entertainment-type retail facilities inJapan and comprising OPA,
MUJI Canal City Hakata andothers

A leading retail facility in the Oita
area, providing “park entertainment” for families

One of the largest malls in
Kitakyushu and anchored by a
SunLive supermarket chosen by
local consumers

A community-based retail facility
with SunLive as its anchor
tenant and directly connected to
Hashimoto Station via apedestrian bridge

6

7

8

9

10 Retail

RetailSquare Mall
Kagoshima Usuki

Canal City Hakata·B

4

RetailRetailKumamoto
Intercommunity SC

RetailHanahata SC

RetailKurume Higashi
Kushiwara SC

K’s Denki Kagoshima

A retail facility in Kagoshima,
designed by John Jerde who
designed Canal City Hakata andRoppongi Hills

Located along a major arterial
road and comprising Sports
Depo, Golf 5 and Starbucks
coffeeLocated in a new residential area
and comprising BON REPAS
supermarket and Matsumoto
Kiyoshi drug store

Located on a corner of aheavy-traffic intersection andcomprising Sports Depo andGolf 5

Having a large floor area andtenanted by an electric
appliance store widely attracting
customers from nearby cities

11 Retail12 Office Building

13 Office Building

14 Office Building

15 Office Building

Others26 (logistics)

Others27 (residence)

LOGICITY Wakamiya
A logistics facility located in aleading industrial city of Fukuoka
prefecture and can conduct
operations 24 hours a day as
well as frequent deliveries

A tower-type rental condominium near downtown Fukuoka,
with traffic convenience andenvironment that matches awide range of generations

A high-quality rental condominium in a popular residential areaof Fukuoka, featuring traffic andliving convenience

A rental condominium comprised of units mainly for singles
and small families to match thelocal characteristics

Others31 (residence)

32 Others(hotel)33 Others(hotel)OthersA (logistics)

Granfore Yakuin Minami

Hotel FORZA Oita

Tissage Hotel Naha

A rental condominium in theYakuin/Hirao area that is popularamong younger generations andhas plentiful bus networks

A business hotel located walking
distance from Oita Station andspecialized for lodging to meetbusiness needs

A hotel in Naha City, Okinawa
Prefecture located a 10-minutecar ride from Naha Airport.
Guestrooms are of sufficient sizeand quality to take in leisuredemand.

An office building expected toexert synergy with Canal City
Hakata, with showroom
functions

An office building facing majorarterial roads Meiji-dori Avenue
and Taihaku-dori Street, anddirectly connected to Gofukumachi Station on the city subway

A highly convenient, station-front
office building that is a
two-minute walk from JR Hakata
Station.

Good location along Taihaku-dori Street, a two-minute
walk from Gion subway stationand ten-minute walk from
Hakata Station

17 Office Building

18 Office Building

19 Office Building

Nagasaki

Oita

32
3

29

7
Kumamoto
Miyazaki3

20 Office Building

3

KyushuArea

33

An office building facing Tenjin
Nishi-dori Street wherecommercial facilities areconcentrated

21 Office Building

22 Office Building

A highly convenient officebuilding located in the Tenjin
area that features Kyushu’s
largest integration of urban
functions

Others23 (logistics)

Higashi Hie BusinessCenter II

Higashi Hie BusinessCenter III

Directly connected to Higashi Hie
subway station, a two-minuteride to Hakata Station and highly
recognized for its excellent
business continuity plan (BCP)

An office building with highscarcity value and goodaccessibility, completed in
March 2020 and located close to
Higashi Hie subway station exit

Others24 (logistics)

Fukuoka Expressway,
Route 1 (Loop Line)11

SubwayKuko Line

An approximate 8 minute-walkfrom JR Hakata Station in anarea where hotels and public
offices are concentrated

LOGICITY Hisayama

A logistics facility among thelargest in the Fukuoka area, witha location featuring traffic
convenience and concentrationof such facilities

Approximately 5 km from the
Fukuoka Interchange featuring
traffic convenience, and has
good general-purpose capabilities

FUKUOKA REIT CORPORATION

5

Tenjin28

19
14 2016
3
22

Hakata1
12
2

Ohori Park

202

15

31
SubwayNanakuma
Line

202

Ni
sh
Omitetut su
a Te
Lin nj
e in

263

5

Fukuoka Airport

01km

Fukuoka
E

xpr
ess
wa

y R oute

op Line)5 (LoFUKUOKA REIT CORPORATION

Fukuoka metropolitan area
Other Kyushu areas(including Okinawa and Yamaguchi prefectures)

0 - 10% Others

Investment type

(Logistics, Residence, Hotels and Other facilities)

8*As of August 31, 2022.

Investment area

40 - 70% Retail
20 - 50% Office buildings
0 - 30% Others

385
202

Investment Policy
60 - 90%
10 - 30%

ine
aL
im
sh
go
Ka

Located along Meiji-dori Avenue, along-standing business district in the
Tenjin area, as well as near Tenjin
Nishi-Dori Street where commercial
facilities are concentrated

27
30 21
17

25 (logistics)

LOGICITY
Minato Kashii

Tosu Logistics Center
A logistics facility located in theGreen Logistics Park Tosu,
operating around the clock andwith three temperature zones

18

JR

Hakata Chikushi-Dori
Center Building

13

FUKUOKA
PayPay DOMEOthers202

Tenjin Nishi-Dori BusinessCenter (Land with leasehold interest)

Line
JR Sasaguri

ay
sw
es ne
pr Li
Ex ifu
an za
rb a
U D

Directly connected to Higashi
Hie subway station, a two-minute ride to Hakata Station andthree-minute ride to Fukuoka
AirportTenjin North Front
Building

Kyushu University Fukuoka Ex pr
Hakozaki Campus R oute 4 Kas essway,
uya Line
Site

Hakata Bay

Okinawa

Tenjin Nishi-Dori Center
Building

Fukuoka
Metropolitan
Area

Fukuoka IC

Kagoshima

6
10

Higashi Hie BusinessCenterssway
Kyushu Expre

Taihaku Street BusinessCenter(Note) Scheduled to be acquired on
March 31, 2029.

25

e
Lin

16 Office Building

Sanix Hakata Building

A large-scale logistics facility
located within a 10 km radius from
Hakata Port, Fukuoka Airport andFukuoka IC and featuring highscarcity in the Hakata Port area.

,
ay es w L in
resCit ypx daE no k sl aku 6 IF u u teRo

Fukuoka

D-Wing Tower
A large, high-rise (20-story)
rental condominium, approximately a seven-minute walk from
Tenjin subway station

Island City Minato Bay relatedsite (Land with leaseholdinterest) (tentative) (Note)

24
A Island City

26 4
23
9

Aqualia Chihaya

ii
sh
Ka
JR

(Marina Side Building)
Located east of Marinoa City
Fukuoka and has stableattractiveness through synergy
with the Outlet building

Gofukumachi BusinessCenterOthers30 (residence)

City House Keyaki DoriSaga

Canal City BusinessCenter Building

Others29 (residence)Amex Akasakamon
Tower

Fukuoka
Metropolitan Area

Marinoa City Fukuoka

Others28 (residence)

Sh
in
ka
ns
en

Portfolio Overview

FRC has purchased earthquake insurance
for all the properties (buildings) it owns.

Sa
ny
o

Purchase of earthquake
insurance6

I. Overview of Fukuoka REIT Corporation

I. Overview of Fukuoka REIT Corporation

New Property Acquisition and Asset Disposition

Initiatives on Sustainability

Acquisition of Asset (scheduled in March 2029)

External Certification (Important Initiative)

A collaborative project with Fukuoka Jisho Co., Ltd., the sponsor. We will acquire a bay related site (land with leasehold interest)of Island City, an artificial island located in Higashi Ward, Fukuoka City, which will further develop as a logistics hub, driving the
growth of Fukuoka.
With the acquisition, further enhancement of the portfolio and securement of stable earnings in the future are expected.

Location of the Land to be Acquired
i Lineamich
inonakJR UmIsland City Minato Bay related site

（Land with leasehold interest）（tentative）
Island City Chuo
Park

LOGICITY Minato Kashii

59

35

Kashii

JR

Kashiihama

Ka
ine
ii L
sh

504

3

MiyazakiNajimaKa Nishizu iteka tsu
Lin
e

24

3

Fuku
ok
Expr a Urba
Kashessway nii Line

549

Kaizuka Sta.
3

JR Kagoshima

Hakata Bay

Fuku 504
21
oka Urba
Kasu n Express
ya LinwayeMatsushima

550

Line

KyushuUniversity
Hakozaki
HakozakiCampus Site

Fukuoka IC

TanotsuKasuya35

21

uE

Tenjin-kita

Ha Su
ko bw
za ay
ki
Lin
e
607

Chiyo

NakasuKawabata
Sta.

602

an ineUrb jo L
oka anMeinohama Fuku ay K
w
ress
Exp

Area map

Island City Minato
Bay related site

Land to be sold (Note 1)

68

Canal City Hakata

Nishitetsu Tenjin
Omuta Line

Atago

607

HakataTenjin560

3

an
Urb ayaok sw eku res Lin
Fu Exp port Kukodori
Air Yutaka JCT
552

Fukuoka-kuko （Airport）
Su
bw
Sta.
ay Gion Sta. Hakataekihigashi
Ku
Fukuoka
OhorikoenkoTenjin Sta. Fukuoka
EnokidaTower
Lin（Ohori Park） Sta.
City Halle Hakata Sta.
Higashi-Hie
Tojinmachi Sta.
551Sta.
553
Sta.
JR Hakata City
Akasaka Sta. Nishitetsu Tenjin-minami
Fukuoka
AirportOhori
fukuoka385
557
e
Ruins ofPark
（Tenjin）
ko LinFukuoka 202
Hanmichibashi
Sta.
ay Ku
Watanabe-dori Sta.
CastleSubw
Nishijin Sta.
Yakuin Sta.
Yakuin-odori
112
3
SubwaySta.
Nanakuma Line
575
Ropponmatsu Sta.
553
Sakurazaka Sta.
FUKUOKA
Momochi PayPay DOME

JR Chikuhi Line

550

ay

E

Gofukumachi

sw

Seaside Momochi
Beach Park

21

Chikko607

es

Chidoribashi JCT

Marine Messe
Hakata Fukuoka
Port

JR Sasaguri Line

68

x pr

517

an
Urb Lineoka Kanjo
Nishikouen
Fuku way
Nishi Parkss
xpre

K y ush24
545

Higashihama

Hakata Bay

Signing of the Principles for Responsible Investment (PRI) (September 2018)

546

Kaizuka JCT
KaizukaKagoshima

Port Area

Sue Smart ICBEST DENKI
Stadium

500m

45

Town Area

LOGICITY
Minato Kashii North（Land withleasehold interest）（tentative）

The Asset Management Company expressed its support for the “Task Force on Climate-related Financial Disclosures(TCFD)” recommendations established by the Financial Stability Board (FSB) for the purpose of discussing the disclosuresof climate-related financial information and the responses by financial institutions.
At the same time, it joined the “TCFD Consortium,” an organization formed by domestic companies supporting the TCFD
recommendations.

AEON MALL
Kashiihama

Sh
ink
an
se
n

Fukuoka City area
Nagasaki Kumamoto

Kashii-higashi

o

Oita

Saga

3

Kyushu Sangyo
University

Island City

Sa
ny

Fukuoka

Overview of the Land to be Acquired upport for the Task Force on Climate-related Financial
S
Disclosures (TCFD) recommendations (September 2022)

Vegefru stadium(Fresh produce market)

LOGICITY Minato Kashii

General Gymnasium
development area

Terihakita
Elementary
School

金印公園

Teriha Elementary andJunior High School

International
Container Terminal

Island City Ramp
Land to be sol
olddSubdivisi
sion
on com
ompl
ple
eted

Fukuoka Island City Chuo
Park
Children’s
Hospital

Fukuoka Urban Expressway
Route 6 （Island city Line）

Points Valued in Deciding on the Property• High scarcity as a large-scale logistics facility (land with leasehold interest)with an area of more than 10,000 tsubo in the Hakata Port area

SellerFukuoka City
Island City Minato Bay related site (Land with
Property nameleasehold interest) (tentative)
Acquisition date (scheduled) March 31, 2029
Acquisition price (planned) 8,082 million yen
Appraisal value
8,210 million yen (as of August 31, 2022)
Part of 32-1, Minato Kashii 3-chome, Higashi-ku,
Address
Fukuoka City
Approx. 39,142 m²
Area (land)(entire land for sale: approx. 41,181 m²)
Acquisition cap rate (Note 2) 3.4%
Lessee of land
Fukuoka Jisho Co., Ltd. (planned)(Note 1) This shows the appearance of the entire plan land including land to be sold. This property to
be acquired by FRC is scheduled to become a land portion after subdivision equivalent to95.05% of the total planned land for subdivision, but its location has not yet been determined.
(Note 2) “Acquisition CAP rate” is calculated as follows: Direct capitalization method NCF in the appraisal report / estimated acquisition price × 100 (%).

• Capable of operating 24 hours as it stands in an area dedicated to logistics• Good accessibility, such as being close to Hakata Port, Fukuoka Airport, Fukuoka IC, and the entrance/exit of Fukuoka City Expressway No. 6 (Island City Line), which was
newly established in March 2021

PRI comprises an international network of financial institution investors working to realize six
principles for the finance industry, which were established in 2006 under the leadership of
then-UN Secretary-General Kofi Annan. PRI encourages the incorporation of environmental,social and governance (“ESG”) issues into investment decision-making processes, aiming tothereby help companies enhance their long-term investment performance and better fulfill their fiduciary duty.
The Asset Management Company agrees with the basic approach of PRI and became a signatory in September 2018.

Signing of the Principles for Financial Action for the 21st Century (PFA21) (September 2018)
The Principles for Financial Action towards a Sustainable Society (Principles for Financial Action forthe 21st Century) were drawn up in October 2011, with the Ministry of Environment serving as secretariat, as guidelines for action by financial institutions seeking to fulfill their roles and responsibilities
necessary for the establishment of a sustainable society. The Asset Management Company agreed
to the concept of the principles and became a signatory in September 2018.

Green Building Certification
GRESB2022

DBJ Green Building Certification

Green Building Certification

GRESB Real Estate Assessment
Acquired “4 Star” and “Green Star”

Acquired the certification for 12
properties
Of which, six are reacquisition(March 2022)

Green Building certification obtainedfor 77.8% of the entire portfolio

GRESB Public Disclosure
Acquired the highest rating of“A Level”

Disposition of Asset
LocationContract dateBuyer

370-3 Higashi-Kushihara-cho, Kurume City, Fukuoka Prefecture
October 26, 2022 (scheduled)
Not disclosed
1. February 28, 2023 (15% co-ownership interest)
Disposition date
2. August 31, 2023 (55% co-ownership interest)(scheduled)
3. November 30, 2023 (30% co-ownership interest)
Appraisal value
2,740 million yen (as of August 31, 2022)
Book value
1,966 million yen (as of August 31, 2022)
Disposition price
2,740 million yen(planned)
1. 411 million yen 2. 1,507 million yen 3. 822 million yen
Acquisition dateFebruary 1, 2008
Acquisition price2,500 million yen
Site area
7,182.44 m²
Total leasable space 6,467.80 m²

Environmental certification rate
BELS Evaluation

14.1%

Canal City Hakata
Canal City Hakata•B
Properties withthe best classenvironmental &social awareness

Certification
rate

77.8%
BELS Evaluation
Acquired thecertificationfor 4 properties

Park Place Oita
Properties withexceptionally highenvironmental &social awareness

DBJ Green Building
Certification

77.8%*As of August 31, 2022 (based on total floor space)(Note) Not disclosed because the consent of the buyer has not been obtained.

FUKUOKA REIT CORPORATION7FUKUOKA REIT CORPORATION

8

II. Semiannual Report

II. Semiannual Report

Overview of Asset Management

Overview of Asset Management

2. Management assessment(1) Brief history of the investment corporation

1. Changes in operating results and financial position
Fiscal Period(unit)

Operating revenues

mm yen[Leasing business revenues]

mm yen35th fiscal period

36th fiscal period(March 1, 2021 toAugust 31, 2021)(September 1, 2021 to
February 28, 2022)(March 1, 2022 toAugust 31, 2022)

mm yen

8,867[8,762]
5,662[4,978]
3,204
2,817
2,816
199,804[0.1]
82,400101,755[0.1]
98,938

8,658[8,658]5,472[4,810]
3,185
2,816
2,814
198,745[(0.5)]
82,400101,753[(0.0)]
98,9388,830[8,830]5,648[4,974]
3,181
2,805
2,804
201,223[1.2]
83,900101,743[(0.0)]
98,938

units

796,000

796,000

796,000

796,000

796,000(d)/(e)yen(f)

mm yen127,656
2,675
3,361[3,361][–]

127,833
2,817
3,539[3,539][–]127,8312,814
3,536[3,536][–]

127,818
2,804
3,523[3,523][–]mm yenmm yenmm yenmm yen(a)

mm yen(b)

mm yen[Change from previous period]%(c)

mm yen(d)

mm yen[Change from previous period]%

Unitholders’ equity
Total number of investment
units outstanding
Net assets per unit
Total dividend
Dividend per unit

34th fiscal period(September 1, 2020 toFebruary 28, 2021)

8,904[8,904]
5,842[5,180]
3,061
2,677
2,675
199,559[0.3]
82,400101,614[0.1]
98,938[Expenses related to leasing business]

Interest-bearing debt
Net assets

33rd fiscal period(March 1, 2020 toAugust 31, 2020)

8,518[8,518]5,551[4,897]
2,966
2,587
2,586
199,004[2.2]
82,400101,525[(0.3)]
98,938Operating expenses
Operating income
Ordinary income
ProfitTotal assets

32nd fiscal period(e)[Earnings dividend per unit]

yen[Dividend in excess of earnings per unit]

yen

127,5442,587
3,250[3,250][–](Note 2)%

1.3 [2.6]

1.3 [2.7]

1.4 [2.8]

1.4 [2.9]

1.4 [2.8](Note 2)%

2.5 [5.0]

2.6 [5.3]

2.8 [5.5]

2.8 [5.6]

2.8 [5.5](d)/(b)

%

51.0

50.9

50.9

51.2

50.6

%

Ratio of ordinary income to total
assetsReturn on net assets
Ratio of net assets to total
assets(f)/(e)(Note 2)%[(1.3)]
100.0[(0.1)]
100.0

[0.0]
100.0

[0.3]
100.0

[(0.6)]
100.0(c)/(b)

%

41.4

41.3

41.2

41.5

41.7

properties

31

31

32

32

33

m2

591,021.51

608,557.70

572,215.71

572,288.25

578,255.35

%

99.7

99.5

99.5

99.4

99.4

mm yen

1,686

1,623

1,552

1,486

1,514

mm yen

790
5,307
184
4,273
5,368

687
5,347
181
4,299
5,401

445
5,336
184
4,265
5,358

600
5,334
181
4,301
5,403

1,946
5,370
184
4,318
5,425

[Change from previous period]

Payout ratio
Ratio of interest-bearing debt tototal assets at end of period (LTV)[Other reference information]
Number of investment
properties (at end of period)
Total leasable floor space(at end of period)

Occupancy rate
(at end of period)

Depreciation and amortization
expensesCapital expenditures
Leasing NOI
Days in fiscal period
FFO (Funds from Operation)
FFO per unityen

(Note 2)mm yendays(g)(Note 2) mm yen(g)/(e)yen(Note 1) In the above table, monetary amounts are rounded down to the nearest specified unit and percentage figures are rounded off to one decimal place.
(Note 2) The indicators are calculated by using the following methods. Furthermore, the figures in square brackets represent annualized value based on the number of days in each fiscal period.
Ratio of ordinary income to total assets
Return on net assets
Payout ratio
Leasing NOIFFO (Funds from Operation)

Ordinary income / average total assets
Average total assets = (Total assets at beginning of period + total assets at end of period) / 2
Profit / average net assets
Average net assets = (Net assets at beginning of period + net assets at end of period) / 2
Dividend per unit (excluding dividend in excess of earnings) / profit per unit
Profit per unit = Profit / total number of investment units outstanding
Leasing business revenues – expenses related to leasing business + depreciation and amortization expenses
Profit + depreciation and amortization expenses + impairment loss - gain or loss on sales of real estate property

FUKUOKA REIT CORPORATION

9

Based on the “Act on Investment Trusts and Investment Corporations” (Act No. 198 in 1951 including later revisions, hereinafter
the “Investment Trusts Act”), FRC was established on July 2, 2004 as Japan’s first real estate investment trust specializing inregional properties, investing in real estate throughout Kyushu (including Okinawa Prefecture), with a central focus on Fukuoka
City, and Yamaguchi Prefecture (hereinafter the “Fukuoka and Kyushu areas”) by using its strength of expertise in regional characteristics, a feature in the real estate industry. FRC started asset management activities on November 9, 2004 after acquisitionof four properties comprising retail properties and an office building, and listed on the Tokyo Stock Exchange, Inc. and the Fukuoka Stock Exchange on June 21, 2005 as the nation’s (code number: 8968).
As of the end of the 36th fiscal period (August 31, 2022), FRC manages a total of 33 properties comprising 11 Retail, 11 Officebuildings (including land with leasehold interest for an office building) and 11 Others.

(2) Investment environment and portfolio performance
The Japanese economy showed a mild pickup trend during the fiscal period under review (the 36th fiscal period). As for theoutlook, with social and economic activities increasingly normalized while measures are thoroughly taken against the novel coronavirus (COVID-19) infection, the economy is expected to pick up due in part to the effects of various political measures, although a downturn in overseas economies in the face of global monetary tightening, etc. poses a risk of placing downward
pressure on the domestic economy.
In the Fukuoka and Kyushu area, the core investment target area for FRC, the economy improved moderately by and large,
mainly in consumer spending and housing investment, with public spending remaining at a high level and capital investment
increasing as a whole. As we foresee, we must be wary of how the economic conditions will be impacted by the spread of
COVID-19 and rising raw material prices, etc.
As for land price trends, the 2022 Land Price Survey showed an upward turn in the combined average price for residential andcommercial land on a national basis and, by land type, in residential land price and commercial land price, respectively, for the
first time in three years, 31 years and three years, for each. Meanwhile, in Fukuoka City, the central area of FRC’s investment
targets, land prices continued rising for the tenth consecutive year, up 9.6% year-on-year for commercial land and up 6.5%
year-on-year for residential land.
Under such circumstances, FRC’s portfolio achieved solid performance in the asset types of office buildings, logistic facilities,
residential properties and retail properties rooted in the spheres of people’s daily lives. On the other hand, the impact of
COVID-19 continued to linger at Canal City Hakata, a city-center retail property, while hotels remained unable to recover as
tourism demand, etc. did not return strongly. As for external growth in the 36th fiscal period, FRC acquired Hakata Chikushi-Dori
Center Building, an office property located about an eight-minute walk from Hakata Station, on March 1, 2022.
When analyzing FRC’s portfolio (on an acquisition price basis) as of the end of the 36th fiscal period by investment target area,
the investment ratio in the Fukuoka metropolitan area accounted for 77.1%; when analyzing by property type, Retail, Officebuildings, and Others accounted for 53.0%, 33.0% and 14.0%, respectively.
On top of these efforts, Fukuoka Realty Co., Ltd., to which FRC entrusts its asset management (the Asset Manager), has established Sustainability Policy and Regulations Concerning Sustainability Management to promote sustainability through environmental, social and governance (ESG) considerations. By setting up the Sustainability Promotion Committee, which comprises full-time directors, the Executive Director and general managers of each department, the Asset Manager investigates
specific targets and measures and supervises the progress in implementation of the measures with regard to the internal system,
cooperation with related parties outside the company and information disclosure policy, etc. On the implementation side, thesustainability officer (general manager of the Planning Department), who is the person responsible for the practical aspects concerning the targets set at the Sustainability Promotion Committee, concurrently serves as general manager of the Sustainability
Promotion Office, which is engaged in continuous operations related to the GRESB Real Estate Assessment (with Green Star
rating), the Principles for Responsible Investment (PRI) and the Principles for Financial Action for the 21st Century (PFA21) andother initiatives.
Having established a “Policy on Climate Change and Resilience” that states its policy of endeavors regarding the risks andopportunities from climate changes as well as the resilience (strength and buoyancy) of its operations and strategies for climate-related issues, the Asset Manager announced its support for the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) and joined the TCFD Consortium, an organization of Japanese companies expressing their support, both in September 2022.
FUKUOKA REIT CORPORATION

10

II. Semiannual Report

II. Semiannual Report

Overview of Asset Management

Overview of Asset Management(3) Summary of fundraising[Changes in market price of investment certificates]

In the 36th fiscal period, FRC conducted refinancing of 6,000 million yen as well as new financing of 1,500 million yen. These led
to the balance of its interest-bearing debt outstanding (including investment corporation bonds) at the end of the period totaling
83,900 million yen. Of the total amount of financing (7,500 million yen), FRC procured 6,500 million yen by way of sustainablefinancing with an aim to promote sustainability through ESG considerations.
The loan-to-value ratio (ratio of interest-bearing debt (including investment corporation bonds) to total assets) was 41.7% andthe ratio of fixed-interest rate debt (ratio of interest-bearing debt with fixed interest rates (including investment corporation
bonds) to total interest-bearing debt) stood at 93.4% at the end of the 36th fiscal period. In addition, with regard to the commitment line agreement (credit limit: 6,000 million yen) with The Bank of Fukuoka, Ltd. serving as the agent, FRC extended thecommitment period by a year, lengthening the remaining term of commitment to three years.
FRC will continue its endeavors to reduce refinancing risks by dispersing debt repayment dates and other measures. At thesame time, FRC will investigate mitigating the possible increase in financing costs in accordance with higher interest rates going
forward, including reviewing the ratio of fixed-interest rate debt.

The highest and lowest (closing price) market prices on the Real Estate Investment Trust Section of the Tokyo Stock Exchange,
Inc., on which FRC’s investment certificates are listed, in each fiscal period are as follows:Moreover, the credit ratings assigned to FRC as of the end of the 36th fiscal period are as follows:
Credit Rating Agency
Rating and Investment Information, Inc. (R&I)
Japan Credit Rating Agency, Ltd. (JCR)

Rating Type
Issuer Rating
Long-term Issuer Rating

RatingA+
AA−

Rating Outlook
StableStableJuly 2, 2004
November 8, 2004
June 20, 2005
July 21, 2005
September 7, 2006
March 1, 2011
March 1, 2013
March 1, 2014
April 27, 2015
March 1, 2018

Item
Established through private placement
Additional issue of investment units through private offering
Additional issue of new investment units through public offering
Additional issue of new investment units through third-party allotment
Additional issue of new investment units through public offering
Additional issue of new investment units through public offering
Additional issue of new investment units through public offering
Split of investment units
Additional issue of new investment units through public offering
Additional issue of new investment units through public offering

Unitholders’ capital(mm of yen) (Note 11)

Increase
125
41,4005,944
1,698
11,096
8,913
10,263–
11,701
7,795

Balance
125
41,52547,46949,16760,264
69,17779,441
79,441
91,142
98,938Remarks

11

35th fiscal period

36th fiscal period(March 1, 2021 toAugust 31, 2021)(September 1, 2021 to
February 28, 2022)(March 1, 2022 toAugust 31, 2022)

179,900 yen
126,300 yen

191,700 yen
163,100 yen

176,000 yen
153,400 yen

173,500 yen
153,200 yen

Total dividends[Dividend per unit]

Earnings dividends[Earnings dividend per unit]

Contribution refund[Contribution refund per unit]

Of the contribution refund,
distribution of the reserve fortemporary difference adjustments(Of the contribution refund per unit, distribution
per unit through the reduction in unitholders’capital for tax purposes)

32nd fiscal period

33rd fiscal period

34th fiscal period

35th fiscal period

36th fiscal period(March 1, 2020 toAugust 31, 2020)(September 1, 2020 toFebruary 28, 2021)(March 1, 2021 toAugust 31, 2021)(September 1, 2021 to
February 28, 2022)(March 1, 2022 toAugust 31, 2022)

2,586,899
2,587,031
31
2,587,000[3,250 yen]
2,587,000[3,250 yen]–[–]

2,675,572
2,675,604
248
2,675,356[3,361 yen]
2,675,356[3,361 yen]–[–]

2,816,802
2,817,051
7
2,817,044[3,539 yen]
2,817,044[3,539 yen]–[–]

2,814,814
2,814,821
165
2,814,656[3,536 yen]
2,814,656[3,536 yen]–[–]

2,804,394
2,804,559
251
2,804,308[3,523 yen]
2,804,308[3,523 yen]
–
[–]

–
[–]

–
[–]

–
[–]

–
[–]

–
[–]

–
[–]

–
[–]

–
[–]

–
[–]

–
[–]

(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)(Note 1) FRC was established with an issue of investment units at 500,000 yen per unit.
(Note 2) New investment units were issued through private offering at the issue price of 500,000 yen per unit for the purpose of procuring funds for acquiring new properties, etc.
(Note 3) New investment units were issued through public offering at the issue price of 880,000 yen per unit (purchase price of 849,200 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 4) New investment units were issued through third-party allotment at the purchase price of 849,200 yen per unit.
(Note 5) New investment units were issued through public offering at the issue price of 766,360 yen per unit (purchase price of 739,772 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 6) New investment units were issued through public offering at the issue price of 576,083 yen per unit (purchase price of 557,078 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 7) New investment units were issued through public offering at the issue price of 710,580 yen per unit (purchase price of 686,529 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 8) FRC implemented a 5-for-1 split of its investment units.
(Note 9) New investment units were issued through public offering at the issue price of 212,257 yen per unit (purchase price of 205,290 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 10) New investment units were issued through public offering at the issue price of 164,414 yen per unit (purchase price of 159,102 yen) for the purpose of procuring funds for acquiring new properties, etc.
(Note 11) No consideration has been given to the change in unitholders’ equity due to distribution of dividend in excess of earnings that came from reserve for temporary difference adjustments. The same shallapply hereafter.

FUKUOKA REIT CORPORATION

34th fiscal period(September 1, 2020 toFebruary 28, 2021)

With respect to the dividend for the 36th fiscal period, FRC determined to distribute the whole unappropriated surplus (except
for the fraction amount, which is the dividend per unit of less than 1 yen) to be eligible for special tax measures for an investment
corporation (as stipulated in Article 67-15-1 of the Special Taxation Measures Act) that allow FRC to deduct the maximum
amount of earnings dividend from its taxable income. Accordingly, dividend per unit for the fiscal period was 3,523 yen.
(thousands of yen)Of the contribution refund,
distribution through the reduction inunitholders’ capital for tax purposes

Changes in unitholders’ capital from the incorporation of FRC to the end of the 36th fiscal period are as follows:

33rd fiscal period(March 1, 2020 toAugust 31, 2020)

4. Results of dividend, etc.

(Of the contribution refund per unit, distribution
per unit of the reserve for temporary difference
adjustments)

3. Change in the number of investment units issued

32nd fiscal period
169,900 yen
72,500 yen

ProfitUnappropriated surplus
Undistributed earnings

As a result of these management efforts, operating revenues totaled 8,830 million yen and operating income after excluding
operating expenses such as expenses related to leasing business and asset management fees totaled 3,181 million yen. Ordinary income was 2,805 million yen and profit amounted to 2,804 million yen. Management decided to make a dividend of 3,523
yen per unit to meet the requirements of special tax measures for an investment corporation (as stipulated in Article 67-15 of the
Act on Special Measures Concerning Taxation of Japan [Act No. 26 in 1957 including later revisions]). Under this act, an investment corporation is allowed to deduct the maximum amount of dividends paid to investors from its taxable income.

Date

HighestLowestFiscal period(4) Summary of performance and dividend

Number of investment units
issued (units)
Increase
Balance250
250
82,80083,0507,000
90,0502,000
92,05015,000107,050
16,000123,050
14,950138,000
552,000
690,000
57,000747,000
49,000796,000

Fiscal period

5. Future portfolio management policy and vital issues
FRC will further reinforce management and leasing capabilities by cooperating with property management companies including
sponsor companies, and secure and maintain the stable operation of the properties by making the most use of their advantages.
FRC will make investments based on the basic policy stipulated in its Articles of Incorporation and its basic philosophy: focusing on “specialized areas in which FRC can demonstrate its competitive edge” that are in “high growth potential markets.” Bygeographic location, of Fukuoka and Kyushu areas, FRC will invest 60% to 90% of its assets in the Fukuoka metropolitan area
since the Fukuoka metropolitan area is expected to have a high population growth rate in the future. In addition to the Fukuoka
metropolitan area, management has decided to actively acquire properties in major cities if there are regions or properties where
FRC can generate investment merits from community-oriented viewpoints. FRC will acquire high-quality properties with adequate use of its advantages, such as information gathering ability in the areas, good knowledge of regional properties and close
relations with the local business community including its sponsors and governments, so that investors can continue to invest in
FRC with assurance.
Meanwhile, FRC will build stronger relationships with financial institutions to realize stable fundraising and try to maintain asolid financial structure.

FUKUOKA REIT CORPORATION

12

II. Semiannual Report

II. Semiannual Report

Overview of the Investment Corporation

Overview of Asset Management
6. Significant events that have occurred after the end of the 36th fiscal period

3. Matters related to directors

Disposition of Asset(1) The names of FRC’s directors, etc. and their fees for the 36th fiscal period are as
follows:

On October 26, 2022, FRC concluded a sales agreement regarding the disposal of a real estate trust beneficiary interest.
Asset to be disposed
Property name
Use
Location
Buyer
Disposition price (planned)
Disposition date (planned)

Impact on earnings (planned)

Real estate trust beneficiary interest
Kurume Higashi Kushiwara SC
Retail
370-3 Higashi-Kushihara-cho, Kurume City, Fukuoka
Undisclosed (Note 1)
2,740 million yen (Note 2)
1st (15% co-ownership interest): February 28, 2023
2nd (55% co-ownership interest): August 31, 2023
3rd (30% co-ownership interest): November 30, 2023
FRC plans to record gain on sales of real estate property as operating revenues by approximately 115 million yen for the 37th fiscal
period, approximately 432 million yen for the 38th fiscal period and approximately 238 million yen in the 39th fiscal period.

(Note 1) The buyer is a domestic operating company but is not disclosed as no consent to disclosure has been obtained from the buyer. Furthermore, the buyer does not fall under the category of interested
parties of FRC or the asset management company.
(Note 2) The disposition price (planned) does not include disposition expenses, the amount equivalent to the settlement of property taxes and city planning taxes, etc. and consumption taxes. FRC plans to disposeof the property through three separate co-ownership transactions, and the disposition price (planned) on the disposition date (planned) for each is as follows:
1st: 411 million yen (for 15% co-ownership interest of the trust beneficiary interest)
2nd: 1,507 million yen (for 55% co-ownership interest of the trust beneficiary interest)
3rd: 822 million yen (for 30% co-ownership interest of the trust beneficiary interest)(Note 3) The beneficiary interest transfer agreement for the Property (the “Transfer Agreement”) falls under the category of forward commitment, etc. (a postdated transaction agreement where the settlementand delivery are to take place one month or more after the conclusion of agreement as well as other similar agreements). In the Transfer Agreement, it has been set that FRC and the buyer, after mutually discussing and obtaining consent of the counterparty, can cancel the Transfer Agreement by paying the amount equivalent to 20% of the total purchase amount for the transaction not completed
as of the said consent, to the counterparty. Moreover, in the event either FRC or the buyer breaches the contractual obligations set by the Transfer Agreement, the counterparty may cancel the Transfer
Agreement in whole or in part, unless the breach is solved within 30days as a rule from the date when the breaching party receives notification from the counterparty. In this case, the breaching party
shall pay to the counterparty a penalty fee equivalent to 20% of the total purchase price of the transaction not completed as of the date of cancellation. Notwithstanding the above provisions related tocancellation, however, after the transfer of ownership of each beneficiary interest is put in force, no cancellation of the Transfer Agreement shall be allowed in any case for the ownership of the beneficiary interest for which transfer has been put in force.

Title

Name of directors, etc.

Major concurrent assignments

Total fee for each title for the36th fiscal period(thousands of yen) (Note 3)

Executive Director
Supervisory Directors
Independent Auditor

Zenji Koike
Takashi Tanabe
Yasuo Kawasho
PricewaterhouseCoopers
Aarata LLC

Zenji Koike, President and CEO, Fukuoka Realty Co., Ltd.
Representative attorney at law at Tanabe Law Office
Representative Partner, Kawasho Authorize Accountant Office
–

–
3,600
8,500

(Note 1) Zenji Koike, the Executive Director, possesses five investment units of FRC under his own name. The Supervisory Directors do not possess investment units of FRC under their own name or under another person’s name. Although there are cases where the Supervisory Directors may be directors of companies other than those stated above, none of the companies or those stated above have vested
interest in FRC.
(Note 2) Appointments of Executive Director and Supervisory Directors of FRC due to the expiration of their terms of office were made at the Tenth General Meeting of Unitholders held on May 25, 2022. Zenji
Koike (new appointment) took office as Executive Director as of May 29, 2022 in accordance with the resignation of Etsuo Matsuyuki due to the expiration of his term of office as of May 28, 2022, andthe posts of Supervisory Directors were taken by Takashi Tanabe and Yasuo Kawasho (both reappointments).
(Note 3) The fees for the Executive Director and Supervisory Directors are the amounts paid to them in the 36th fiscal period, and the fee to the Independent Auditor is the amount payable to it (estimate) foraudits pertaining to the 36th fiscal period.

(2) Policy on deciding to dismiss and not to reappoint the Independent Auditor
FRC will review at its Board of Directors meetings decisions regarding the dismissal of the Independent Auditor in accordancewith the provisions of the Investment Trusts Act, and review decisions not to reappoint the Independent Auditor following thecomprehensive consideration of the audit quality, audit fee and other various conditions.

4. Matters concerning directors and officers liability insurance agreement
FRC has entered into a directors and officers liability insurance agreement as follows:

Overview of the Investment Corporation

Scope of the insured

Executive Director andSupervisory Directors

1. Summary of unitholders’ capital
Fiscal period

32nd fiscal period

33rd fiscal period

34th fiscal period

35th fiscal period

36th fiscal period

as of August 31, 2020

as of February 28, 2021

as of August 31, 2021

as of February 28, 2022

as of August 31, 2022

Total number of authorized investment units
Total number of investment units outstanding
Number of unitholders

10,000,000 units
796,000 units
14,46810,000,000 units
796,000 units
13,817

10,000,000 units
796,000 units
13,306

10,000,000 units
796,000 units
13,641

10,000,000 units
796,000 units
13,554

The following table sets forth the major unitholders of FRC as of August 31, 2022.
Investment units held (units)

Custody Bank of Japan, Ltd. (Trust account)
The Master Trust Bank of Japan, Ltd. (Trust account)
Fukuoka Jisho Co., Ltd.
The Nomura Trust and Banking Co., Ltd. (Investment trust account)
The Shinkumi Federation BankSTATE STREET BANK WEST CLIENT – TREATY 505234
MetLife, Inc.
SSBTC CLIENT OMNIBUS ACCOUNT
Shikoku Railway Company
JP MORGAN CHASE BANK 385771
Total

211,859
94,254
73,13633,813
14,76012,804
10,227
9,329
9,130
8,886
478,198

5. Names of asset management company, asset custodian and generaladministrators as of the end of the 36th fiscal period
The following table sets forth the asset management company, asset custodian and general administrators of FRC as of August
31, 2022.

2. Matters related to investment units
Name

Overview of agreement[Overview of insured event covered by the insurance]
The directors and officers liability insurance agreement covers such losses as compensation payment and dispute costs to be borne by the
insured when they receive a claim for compensation for the actions they have taken based on their positions at FRC.
[Measures to ensure the appropriateness of the execution of duties]
When the insured suffer damages by actions which they executed while recognizing that it may constitute criminal act or violate the laws andregulations, the loss is not subject of the protection.

Percentage of total number ofinvestment units outstanding (%) (Note)
26.61
11.84
9.18
4.24
1.85
1.60
1.28
1.17
1.14
1.11
60.07

Category of entrustment
Asset Management Company
Asset Custodian
General Administrator (accounting matters, etc.)
General Administrator (administration of unitholders’ list)
General Administrator (administration of investment corporation bonds registry)
General Administrator (administration of investment corporation bonds registry)Name
Fukuoka Realty Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.

(Note) Percentage of total number of investment units outstanding is rounded down to the nearest specified unit.

FUKUOKA REIT CORPORATION13FUKUOKA REIT CORPORATION

14

II. Semiannual Report

II. Semiannual Report

Status of FRC’s Assets under Management

Status of FRC’s Assets under Management

1. FRC’s asset structure
Type of asset

Real estate

Real estate trust
beneficiary interest

Use

3. Details of real estate properties in the portfolio

Area(Note 1)36th fiscal period
as of August 31, 2022

The following table provides details of the real estate properties owned by FRC as of August 31, 2022.

Total value of
properties owned

Percentage of
total assets

Total value of
properties owned

Percentage of
total assets(mm of yen) (Note 2)(%) (Note 3)(mm of yen) (Note 2)(%) (Note 3)

–
–
–
–
–
2,143
66,351
36,59855,054–19,7595,269
13,567

–
–
–
–
–
1.1
33.4
18.4
27.7
–
9.9
2.7
6.8

–
–
–
–
–
2,128
66,78037,08959,306–
19,632
5,226
11,060

–
–
–
–
–
1.1
33.2
18.4
29.5
–
9.8
2.6
5.5

198,745[185,678]

100.0[93.4]

201,223[190,171]100.0[94.5]

Fukuoka metropolitan area
RetailOther Kyushu areas
Fukuoka metropolitan area
Office buildings
Other Kyushu areas
Fukuoka metropolitan area
OthersOther Kyushu areas
Fukuoka metropolitan area
RetailOther Kyushu areas
Fukuoka metropolitan area
Office buildings
Other Kyushu areas
Fukuoka metropolitan area
OthersOther Kyushu areas
Deposits and other assets
Total amount of assets (Note 4)

35th fiscal period
as of February 28, 2022

(Note 1) “Fukuoka metropolitan area” refers to cities, towns and villages where 10% or more of the population commute to Fukuoka City for school and work, according to the 2020 census, which states “thenumber of workers and students aged 15 years or older (students including those aged 14 years or younger: particular reference) commuting between their homes and places of work or school” conducted by Fukuoka City and the Statistics Bureau of the Ministry of Internal Affairs and Communications. “Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka metropolitan area).
(Note 2) “Total value of properties owned” is based on the value on the balance sheet (the value of real estate and real estate trust beneficiary interest is the book value after depreciation).
(Note 3) Concerning the “Percentage of total assets,” the figures are rounded off to one decimal place. The total of individual percentages in the above table may not equal 100%.
(Note 4) Figures in square brackets for “Total amount of assets” refer to the value and percentage of real estate owned in effect to the total amount of assets.

2. Major assets owned by FRC
The following is an overview of the major assets (top ten properties on a book value basis) owned by FRC as of August 31, 2022.
Real estate property name (Note 1)
Canal City Hakata
Canal City Hakata·B
Park Place Oita
Canal City Business Center Building
Konoha Mall Hashimoto
Gofukumachi Business Center
Tenjin Nishi-Dori Business Center(Land with leasehold interest)
LOGICITY Minato Kashii
SunLive City Kokura
Taihaku Street Business Center
Total

Total leasable
floor space (m2)Book value(mm of yen)

29,757
20,701
20,555
12,706
10,018
8,679

46,585.57
31,141.44
121,184.09
23,031.14
22,191.19
19,905.34

7,754

1,343.51

7,680
5,548
5,524
128,926

43,233.72
61,450.22
14,677.35
384,743.57(Note 4)

Total leased floor Occupancy rate(%) (Note 2)
space (m2)
45,494.59
29,904.36
120,987.88
23,031.14
22,191.19
19,905.34

97.7
96.0
99.8
100.0
100.0
100.0

Percentage of total
leasing businessrevenues (%) (Note 3)
11.5
10.5
13.2
7.3
9.2
6.7

Main use
RetailRetailRetailOffice buildings
RetailOffice buildings

Real estate property name
Canal City Hakata
Canal City Hakata·B
Park Place Oita
SunLive City Kokura
Konoha Mall Hashimoto
Square Mall Kagoshima Usuki
Kumamoto Intercommunity SC
Hanahata SC
Kurume Higashi Kushiwara SC
K’s Denki Kagoshima
Marinoa City Fukuoka(Marina Side Building)Form ofownership

2-22, 1-chome, Sumiyoshi, Hakata
Ward, Fukuoka City
2-1, 1-chome, Sumiyoshi, Hakata
Ward, Fukuoka City1, 2-chome, Koen Dori Nishi, Oita City,
Oita
14-1, 2-chome, Kami Kuzuhara,
Kokura Minami Ward, Kitakyushu City
27-2, 2-chome, Hashimoto, Nishi
Ward, Fukuoka City
2-18, 2-chome, Usuki, Kagoshima
City, Kagoshima
1-5, 1-chome, Kozono, Higashi Ward,
Kumamoto City
9-12, 4-chome, Hanahata, Minami
Ward, Fukuoka City
370-3 Higashi Kushihara, Kurume City,
Fukuoka
4-12, Tokai-cho, Kagoshima City,
Kagoshima
12-30, 2-chome, Odo, Nishi Ward,
Fukuoka City

Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest

Retail subtotal:
2-25, 1-chome, Sumiyoshi, Hakata
Ward, Fukuoka City
10-10, Kami Gofukumachi, Hakata
Gofukumachi Business Center
Ward, Fukuoka City
1-23, 2-chome, Hakataeki Higashi,
Sanix Hakata Building
Hakata Ward, Fukuoka City
3-21 Gokushomachi, Hakata Ward,
Taihaku Street Business Center
Fukuoka City
1-2, 3-chome, Higashi Hie, Hakata
Higashi Hie Business Center
Ward, Fukuoka City
5-28, 2-chome, Tenjin, Chuo Ward,
Tenjin Nishi-Dori Center Building
Fukuoka City
4-20, 4-chome, Tenjin, Chuo Ward,
Tenjin North Front Building
Fukuoka City
5-13, 1-chome, Higashi Hie, Hakata
Higashi Hie Business Center II
Ward, Fukuoka City45, 4-chome, Higashi Hie, Hakata
Higashi Hie Business Center III
Ward, Fukuoka City
149, 2-chome, Tenjin, Chuo Ward,
Tenjin Nishi-Dori Business Center
Fukuoka City
(Land with leasehold interest)
5, 2-chome, Hakataekiminami, Hakata
Hakata Chikushi-Dori Center Building Ward, Fukuoka City

Canal City Business Center Building

1,343.51

100.0

1.8

Office buildings

43,233.72
61,450.22
14,601.53
382,143.48

100.0
100.0
99.5
99.3

Undisclosed (Note 5)
3.1
3.7
–

OthersRetailOffice buildings–

City House Keyaki Dori
Aqualia Chihaya
D-Wing Tower
Granfore Yakuin Minami
Hotel FORZA Oita
Tissage Hotel Naha
Tosu Logistics Center
LOGICITY Minato Kashii
LOGICITY Hisayama
LOGICITY Wakamiya

4-23, 2-chome, Maizuru, Chuo Ward,
Fukuoka City
16-21, 2-chome, Kego, Chuo Ward,
Fukuoka City
3-12, 4-chome, Chihaya, Higashi
Ward, Fukuoka City
10-38, 2-chome, Daimyo, Chuo Ward,
Fukuoka City
11-20, 1-chome, Hirao, Chuo Ward,
Fukuoka City
5-18, 1-chome, Chuo-cho, Oita City,
Oita
14-1, 2-chome, Nishi, Naha City,
Okinawa
1607 Aza Momota, Himekata-cho,Tosu City, Saga
3-4, 2-chome, Minato Kashii, Higashi
Ward, Fukuoka City
2335-3 Oaza Yamada, Hisayamamachi, Kasuya County, Fukuoka
1406 Shimoaruki, Miyawaka City,
Fukuoka

Others subtotal:
Total

FUKUOKA REIT CORPORATION

15

Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest

Office buildings subtotal:
Amex Akasakamon Tower(Note 1) The properties listed above are owned in the form of trust beneficiary interest.
(Note 2) “Occupancy rate” refers to the percentage of leased floor space to leasable floor space and the figures are rounded off to one decimal place.
(Note 3) “Percentage of total leasing business revenues” is rounded off to one decimal place.
(Note 4) The total leasable floor space indicates the land area recorded in the real estate registry. The same shall apply hereafter.
(Note 5) The figures are not disclosed as no consent to disclosure has been obtained from the tenants.

Location

Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Trust beneficiaryinterest
Real estate

Period-end
Book value atTotal leasable
appraisal value end of period
floor space (m2) (mmof yen) (Note 1)(mm of yen)

Real estate appraiser

46,585.57

30,60029,75731,141.44

21,40020,701

Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.

121,184.09

20,50020,555

Japan Real Estate Institute61,450.22

8,520

5,548

Japan Real Estate Institute22,191.19

10,00010,018

Tanizawa Sogo Appraisal
Co., Ltd.

14,602.88

4,650

4,234

Japan Real Estate Institute6,968.66

2,740

1,921

Japan Real Estate Institute2,801.15

1,200

950

6,467.80

2,740

1,966

7,296.17

3,660

2,863

33,069.82

5,890

5,352

Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.

353,758.99

111,900

103,869

23,031.14

17,40012,706

19,905.34

15,6008,679

Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.

6,293.75

6,890

3,731

Japan Real Estate Institute

14,677.35

9,770

5,524

Japan Real Estate Institute13,614.59

8,230

4,288

Tanizawa Sogo Appraisal
Co., Ltd.

3,339.32

3,360

2,650

Japan Real Estate Institute5,252.41

4,880

2,350

Japan Real Estate Institute6,214.77

4,660

3,901

2,981.14

3,380

3,218

Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.

1,343.51

8,250

7,754

Japan Real Estate Institute5,994.41

4,540

4,499

Tanizawa Sogo Appraisal
Co., Ltd.

102,647.73

86,96059,306

4,821.25

1,950

1,599

2,710.86

1,090

866

5,619.69

2,040

1,129

Japan Real Estate Institute7,187.59

3,880

2,605

2,496.06

1,370

1,064

Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.

5,785.44

1,890

1,329

Japan Real Estate Institute3,758.76

2,880

2,762

Tanizawa Sogo Appraisal
Co., Ltd.

4,173.29

1,420

1,134

Japan Real Estate Institute43,233.72

9,670

7,680

24,505.65

5,650

4,688

Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.
Tanizawa Sogo Appraisal
Co., Ltd.

17,556.32

2,490

2,128

121,848.63
578,255.35

34,330233,190

26,987
190,163FUKUOKA REIT CORPORATION

16

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.

II. Semiannual Report

II. Semiannual Report

Status of FRC’s Assets under Management

Status of FRC’s Assets under Management(Property to be acquired)Real estate property nameLocation

Part of 32-1, Minato Kashii 3-chome,Island City Minato Bay related site
(Land with leasehold interest) (tentative) Higashi-ku, Fukuoka City

Form ofownership

Period-end
Book value atTotal leasable
appraisal value end of period
floor space (m2) (mmof yen) (Note 1)(mm of yen)

Real estate

Approx. 39,142

8,210(Note 4)(Note 4)(Note 2) (Note 3)−

Real estate appraiser
Tanizawa Sogo Appraisal
Co., Ltd.

(Note 1)	“Period-end appraisal value” refers to the evaluation value based on appraisals by a real estate appraiser in conformity with the method and standards for asset evaluation stipulated in FRC’s Articles ofIncorporation and rules stipulated by The Investment Trusts Association, Japan.
(Note 2)	The acquisition of the property falls under the category of forward commitment, etc. as provided by the “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.” set
forth by the Financial Services Agency. As a reservation deposit, FRC paid the amount equivalent to 5% (approximately 4 mm yen) of the purchase price corresponding to its acquisition ratio at the timeof applying to the Fukuoka City Government for the purchase. If FRC withdraws from the purchase of the property, the deposit shall be used as cancellation penalty.
(Note 3) The property is planned for delivery on March 31, 2029 (which may be changed depending on the situation of its foundation enhancement work and other factors).
(Note 4) The location and total leasable floor space are to be finalized after measurement surveys to be conducted later and registration of subdivided lots.

Real estate property name35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)(%) (Note 5)

Canal City Hakata
Canal City Hakata·B
Park Place Oita
SunLive City Kokura
Konoha Mall Hashimoto
Square Mall Kagoshima Usuki
Kumamoto Intercommunity SC
Hanahata SC
Kurume Higashi Kushiwara SC
K’s Denki Kagoshima
Marinoa City Fukuoka (Marina Side Building)Retail subtotal:
Canal City Business Center Building
Gofukumachi Business Center
Sanix Hakata Building
Taihaku Street Business Center
Higashi Hie Business Center
Tenjin Nishi-Dori Center Building
Tenjin North Front Building
Higashi Hie Business Center II
Higashi Hie Business Center III
Tenjin Nishi-Dori Business Center(Land with leasehold interest)
Hakata Chikushi-Dori Center Building
Office buildings subtotal:

1 [44]
1 [45]
1 [102]
1
1 [123]
13
2
2
1
1
1
25 [335]

No relevant items.

99.3

4,959

56.2

Off-market transaction

1 [64]
36
16
1 [71]
1 [27]
1
11
2
6

100.0
100.0
100.0
99.5
100.0
100.0
100.0
100.0
100.0

649
590
211
325
357
86
148
164
98

7.3
6.7
2.4
3.7
4.0
1.0
1.7
1.9
1.1

1 (Note 6)

100.0

159

1.8

−

1 [13]

96.7

133

1.5

31.9

77 [248](Note 2)

99.7

2,924

33.1

1 [64]
1 [42]
1 [104]
1 [127]
1 [96]
1
1

94.1
100.0
98.9
93.2
97.0
100.0
100.0

1

100.0

66
39
60
112
39
63
43
Undisclosed

0.7
0.4
0.7
1.3
0.4
0.7
0.5
Undisclosed(Note 7)(Note 7)2

100.0

Undisclosed

Undisclosed(Note 7)(Note 7)1

100.0

Undisclosed

Undisclosed(Note 7)(Note 7)1

100.0

Undisclosed

Undisclosed(Note 7)(Note 7)

99.2

4,967

57.4

1 [43]
1 [42]
1 [103]
1
1 [124]
13
2
2
1
1
1
25 [333]

1 [62]
36
16
1 [70]
1 [27]
1
11
2
6

100.0
100.0
100.0
99.2
100.0
100.0
100.0
100.0
100.0

650
572
208
323
353
86
145
164
98

7.5
6.6
2.4
3.7
4.1
1.0
1.7
1.9
1.1

1 (Note 6)

100.0

159

1.8

−
76 [232]

−

−

99.9

2,762

0.8
0.5
0.7
1.3
0.4
0.7
0.4
Undisclosed

1 [66]
1 [42]
1 [104]
1 [135]
1 [95]
1
1

98.8
100.0
98.9
98.9
95.9
100.0
100.0

Tosu Logistics Center

1

100.0

67
41
60
110
38
63
37
Undisclosed(Note 7)(Note 7)

100.0

Undisclosed

Undisclosed(Note 7)(Note 7)

Undisclosed

2(Note 2)LOGICITY Hisayama

1

100.0

Undisclosed(Note 7)(Note 7)LOGICITY Wakamiya

1

100.0

Undisclosed

Undisclosed(Note 7)(Note 7)

99.8

929

10.7

12 [440](Note 2)

99.3

946

10.7

100.0

114 [1,021]

99.4

8,830

100.0

Others subtotal:

12 [449]

Total

113 [1,016](Note 2)
(Note 2)

99.4

8,658

FUKUOKA REIT CORPORATION

6. Securities incorporated in the portfolio

11.5
10.5
13.2
3.1
9.2
2.9
1.0
0.5
1.0
1.3
2.0

11.4
10.9
13.8
3.0
9.4
2.9
1.0
0.5
1.0
1.3
2.0

(Note 2)(%) (Note 5)

No relevant items.

1,016
929
1,164
270
816
255
89
40
88
111
177

990
940
1,194
262
818
251
89
40
90
111
177

(Note 2)

No relevant items.

97.7
96.0
99.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

97.8
97.9
99.5
100.0
97.0
100.0
100.0
100.0
100.0
100.0
100.0

Amex Akasakamon Tower
City House Keyaki Dori
Aqualia Chihaya
D-Wing Tower
Granfore Yakuin Minami
Hotel FORZA Oita
Tissage Hotel Naha

LOGICITY Minato Kashii(Note 4)

4. Details of renewable energy generation facilities in the portfolio
5. Details of the rights to operate public facilities, etc. in the portfolio

Total leasing
Total leasing
Percentage ofPercentage of
Number ofOccupancy
Number ofOccupancy
businessbusiness
total leasing
total leasing
tenants at end rate at end oftenants
at
end
rate
at
end
of
revenues
revenues
businessbusinessof period
periodof period
periodduring periods
during periods
revenues
revenues(Note 1)(%) (Note 3)(Note 1)(%) (Note 3)(mm of yen)
(mm of yen)
(Note 4)(Note 1) “Number of tenants” is based on the total number of sections stipulated in the tenancy agreements for retail and office buildings among relevant properties. For the number of tenants in pass-throughmaster leasing properties, the number of sections stipulated in the tenancy agreements with end tenants is shown in square brackets. The Taihaku Street Business Center is an office building with aresidential tower. Its number of tenants comprises 13 for the office building and 58 for the residence in the 36th fiscal period (13 for the office building and 57 for the residence in the 35th fiscal period).
(Note 2) The total of all the tenants in other than pass-through master leasing properties and the total number of sections stipulated in the tenancy agreements with end tenants for pass-through master leasing
properties is shown in square brackets in the subtotal and total columns for “Number of tenants.”(Note 3) “Occupancy rate” refers to the percentage of leased floor space to leasable floor space and the figures are rounded off to one decimal place.
(Note 4) “Total leasing business revenues” indicates the total of real estate leasing revenues and other revenues from real estate rent in the current fiscal period.
(Note 5) “Percentage of total leasing business revenues” is rounded off to one decimal place, and the total of individual percentages in the above table may not equal 100%.
(Note 6) The number of tenants indicates the number of the lessee of the land with leasehold interest.
(Note 7) The figures are not disclosed as no consent to disclosure has been obtained from the tenants.

17(Note 2)

7. List of specific transaction and forward exchange transaction contract
amount and status of fair value
The following table provides the contract amount of FRC’s specific transactions and the status of its fair value as of August 31, 2022.
Category

Contract amount, etc. (mm of yen)
Of which, exceeding 1 year

Type

(Note 1)

Interest rate swap transaction(Receivable floating; Payable fixed)
Total

Fair value(mm of yen) (Note 2)

21,10019,200123

21,10019,200123(Note 1) The contract amount, etc. of the interest rate swap transaction is based on the notional principal amount.
(Note 2) The fair value is calculated by the counterparty of the transaction contract based on the actual interest rate on the market and other factors.

8. Status of other assets
All real estate and real estate trust beneficiary interests owned by FRC have been entered under “3. Details of real estate properties in the portfolio” on page 16. There is no incorporation of other specified assets as of the end of the 36th fiscal period.

9. Status of owned assets by country and region
As of the end of the 36th fiscal period, no overseas real estate properties in countries or regions other than Japan are incorporated into FRC’s portfolio.

Capital Expenditures for Owned Real Estate
1. Planned capital expenditures
The following table provides amounts of major items of capital expenditures associated with currently planned renovations, etc.
for real estate properties owned by FRC as of the date of this Semiannual Report. The planned construction costs indicatedbelow may be partly classified as expenses. In addition, FRC will implement renewal construction work in order to maintain andimprove the competitiveness of properties in the market as well as tenant satisfaction, on top of the construction, facilities andreplacement work for which expenditures will be made regularly.
FUKUOKA REIT CORPORATION

18

II. Semiannual Report

II. Semiannual Report

Capital Expenditures for Owned Real Estate

Expenses and Liabilities
1. Details of expenses related to asset management

Planned construction cost
Real estate property nameLocation

Purpose(mm of yen)

Schedule

Construction
Amountcost
already paid

Total
Replacement of facilities and formation
Hakata Ward, Fukuoka Cityof floor sections

From March 23 toJuly 2023

528

–

–

Canal City Hakata

Hakata Ward, Fukuoka City Replacement of air-conditioning units

From March 2022 toFebruary 2023

78

–

–

Canal City Hakata·B

Hakata Ward, Fukuoka City

Replacement of emergency power
generators

From July 2022 toApril 2023

50

–

–

Park Place Oita

Oita City, Oita

Replacement of air-conditioning units

From March 2023 to
May 2023

147

–

–

Replacement of central monitoring
Hakata Ward, Fukuoka Cityequipment
Replacement of disaster prevention
Hakata Ward, Fukuoka City
facilities and equipment

From April 2023 to
May 2023

52––

From July 2023 toAugust 2023

52

–

–

Oita City, Oita

From May 2023 toAugust 2023

58

–

–

Canal City Hakata

Gofukumachi Business Center
Gofukumachi Business Center
Hotel FORZA Oita

Replacement of air-conditioning units

Capital expenditures for the real estate properties owned by FRC totaled 1,946 million yen in the 36th period. Furthermore, FRC
incurred construction costs of 2,075 million yen in total in the period, including 119 million yen in repair and maintenance expenses classified as expenses on the Statement of Income and 9 million yen in expenses for restoration to former state. The following
table provides the overview of major construction work that was completed in the 36th fiscal period.
Location(thousands of yen)Item

35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)(a) Asset management fees (Note)(b) Asset custody fees(c) Administrative service fees(d) Directors’ compensations(e) Other operating expenses
Total

526,058
7,431
57,7699,600
61,771
662,630

534,574
7,514
60,0876,600
65,669674,446(Note) Aside from the amounts of the asset management fees shown above, 21,600 thousand yen for asset management, capitalized in the acquisition costs, related to the acquisition of Hakata Chikushi-Dori
Center Building was paid in the 36th fiscal period.

2. Status of debt
As of the end of the 36th fiscal period (August 31, 2022), FRC has the following debt from respective financial institutions.

2. Capital expenditures during the 36th fiscal period

Real estate property name

Purpose

PeriodConstruction cost

Category

Balance as ofMarch 1,
2022

Balance as ofAugust 31,
2022

Averageinterest
rate(mm of yen)

(mm of yen)(%) (Note 1)

June 30, 2015

1,600

–

0.790

June 30, 2022

August 29, 2014

4,000

–

1.010

August 31, 2022

August 31, 2015

400

–

0.417

August 31, 2022

July 31, 2015

–

1,500

0.564

July 31, 2023

August 31, 2015

–

4,000

0.880

August 31, 2023

August 31, 2015

–

400

0.870

August 31, 2023

Drawdown
dateLenderSumitomo Mitsui Banking
Corporation
Development Bank of Japan

Repayment
date

Canal City Hakata

Hakata Ward, Fukuoka City

Replacement of piping

From July 2021 to April 2022

597

Park Place Oita

Oita City, Oita

Renovation of common spaces

From September 2021 to April 2022

632

Current The Bank of Fukuoka
maturities
of long- Sumitomo Mitsui Trust Bank
term debt
Development Bank of Japan

Park Place Oita

Oita City, Oita

Formation of tenant sections

May 2022

78

The Nishi-Nippon City BankPark Place Oita

Oita City, Oita

Replacement of air-conditioning units

May 2022

33

Subtotal

6,000

5,900

Konoha Mall Hashimoto

Nishi Ward, Fukuoka City

Switching to LED lighting throughout the building

From June 2022 to August 2022

147

Sumitomo Mitsui Trust Bank

July 31, 2015

1,500

–

0.564

July 31, 2023

Konoha Mall Hashimoto

Nishi Ward, Fukuoka City

Improvement of food court environment

From February 2022 to April 2022

62

Development Bank of Japan

August 31, 2015

4,000

–

0.880

August 31, 2023

Square Mall Kagoshima Usuki

Kagoshima City, Kagoshima

Renovation of external walls

From May 2022 to August 2022

19

The Nishi-Nippon City Bank

August 31, 2015

400

–

0.870

August 31, 2023

Gofukumachi Business Center

Hakata Ward, Fukuoka City

Replacement of air-conditioning units

March 2022

38

The Bank of Fukuoka

February 29, 2016

2,000

2,000

0.417

February 29, 2024

Sanix Hakata Building

Hakata Ward, Fukuoka City

Renovation of common spaces

From February 2022 to May 2022

36

The Nishi-Nippon City Bank

February 29, 2016

2,000

2,000

0.440

February 29, 2024

Taihaku Street Business Center

Hakata Ward, Fukuoka City

Repair of mechanical parking lots

June 2022

14

Development Bank of Japan

February 29, 2016

2,000

2,000

0.620

February 28, 2025

Taihaku Street Business Center

Hakata Ward, Fukuoka City

Replacement of heat exchangers

August 2022

10

Replacement of air-conditioning units

500

0.440

May 202212500

February 29, 2024

Oita City, Oita

Mizuho Bank

February 29, 2016

Hotel FORZA Oita

Shinsei Bank

July 29, 2016

700

700

0.400

July 31, 2024

September 30, 2016

300

300

0.410

September 30, 2025

December 30, 2016

1,500
100
100
100
200
100

1,500
100
100
100
200
100

0.718

December 30, 2025

The Bank of Fukuoka

December 30, 2016

1,500

1,500

0.416

December 30, 2026

MUFG Bank

March 31, 2017

800

800

0.481

March 31, 2025

Resona Bank

March 31, 2017

600

600

0.658

March 31, 2027

The Higo Bank

March 31, 2017

300

300

0.481

March 31, 2025

June 30, 2017

1,300
1,000
700
700
700
1,100

1,300
1,000
700
700
700
1,100

0.777

June 30, 2026

(mm of yen)

Sumitomo Mitsui Trust Bank

3. Reserves for long-term repair and maintenance plans
FRC has deposited the following amounts from the cash flows generated during the 36th fiscal period in order to fund largescale repair and maintenance work in the medium- to long-term, based on long-term repairs and maintenance plans preparedfor respective properties.
(millions of yen)
Fiscal period
Balance of deposits at beginning of period
Deposits during the period
Amounts used from deposits during the period
Deposits carried forward to the next period

32nd fiscal period

33rd fiscal period

34th fiscal period

35th fiscal period

36th fiscal period(March 1, 2020 toAugust 31, 2020)(September 1, 2020 toFebruary 28, 2021)(March 1, 2021 toAugust 31, 2021)(September 1, 2021 to
February 28, 2022)(March 1, 2022 toAugust 31, 2022)

1,000
–
–
1,000

1,000
–
–
1,000

FUKUOKA REIT CORPORATION

1,000
–
–
1,000

19

1,000
–
–
1,000

1,000
–
–
1,000

Development Bank of JapanThe Oita Bank
Long-term The Kagoshima Bank
debt
The Kitakyushu BankThe Juhachi-Shinwa Bank
The Hiroshima Bank

The Bank of Fukuoka
The Nishi-Nippon City BankThe Oita Bank
The Kitakyushu Bank
The Miyazaki BankThe Juhachi-Shinwa BankFUKUOKA REIT CORPORATION

20

Repayment
methodLump-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
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

Lump-sum uponmaturity

Use offunds
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund

Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund

Refinance fund

Refinance fund
Refinance fund
Refinance fund
Refinance fund

Refinance fundDescription
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

No collateral/
No guarantee

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

No collateral/
No guaranteeII. Semiannual Report

II. Semiannual Report

Expenses and Liabilities
Category
LenderDrawdown
date

Expenses and Liabilities

Balance as ofMarch 1,
2022

Balance as ofAugust 31,
2022

Averageinterest
rate(mm of yen)

(mm of yen)(%) (Note 1)

Repayment
date

The Iyo Bank

June 30, 2017

500

500

0.777

June 30, 2026

Development Bank of Japan

June 30, 2017

1,800

1,800

0.650

December 31, 2026

The Bank of Fukuoka

July 31, 2017

2,000

2,000

0.792

July 31, 2027

The Nishi-Nippon City Bank

0.892

July 31, 2027

July 31, 2017

2,000

2,000

The Nishi-Nippon City Bank
The Bank of Fukuoka
The Oita Bank
The Kitakyushu BankThe Juhachi-Shinwa Bank
The Hiroshima Bank

August 31, 2017

500
500
100
100
200
100

500
500
100
100
200
100

0.850

Resona Bank

September 29, 2017

2,000

2,000

0.493

September 30, 2027

The Bank of Fukuoka

December 29, 2017

1,500

1,500

0.812

December 30, 2027

Development Bank of Japan

December 29, 2017

500

500

0.680

December 30, 2027

The Nishi-Nippon City Bank

February 28, 2018

1,900

1,900

0.750

February 29, 2028

Sumitomo Mitsui Trust Bank

February 28, 2018

1,100

1,100

0.600

February 26, 2027

MUFG Bank

February 28, 2018

1,500

1,500

0.500

February 27, 2026

Resona Bank

February 28, 2018

600

600

0.567

February 29, 2028

Development Bank of Japan

March 1, 2018

2,500

2,500

0.720

March 1, 2028

MUFG Bank

March 30, 2018

600

600

0.480

March 31, 2026

The Nishi-Nippon City Bank

March 30, 2018

600

600

0.802

March 31, 2028

The Bank of Fukuoka

March 30, 2018

500

500

0.802

March 31, 2028

March 30, 2018

500

500

0.630

March 31, 2028

March 30, 2018

500

500

0.504

March 31, 2025

March 30, 2018

500

500

0.490

March 31, 2027

Sumitomo Mitsui Trust Bank

March 30, 2018

400

400

0.576

March 31, 2027

The Oita Bank

March 30, 2018

400

400

0.646

March 31, 2028

The Hiroshima Bank

March 30, 2018

400

400

0.646

March 31, 2028

Shinsei Bank
Sumitomo Mitsui Banking
Corporation
MUFG Bank

March 30, 2018

300

300

0.400

March 31, 2025

January 31, 2019

500

500

0.655

January 31, 2029

January 31, 2019

500

500

0.590

January 31, 2028

The Nishi-Nippon City Bank

January 31, 2019

400

400

0.417

January 31, 2029

The Bank of Fukuoka

January 31, 2019

300

300

0.417

January 31, 2029

The Oita Bank

February 28, 2019

200

200

0.334

February 27, 2026

The Kagoshima Bank

February 28, 2019

200

200

0.334

February 27, 2026

The Higo Bank

February 28, 2019

200

200

0.334

February 27, 2026

Mizuho Bank
Long-term
Sumitomo Mitsui Banking
debt
Corporation
MUFG Bank

Resona Bank

August 31, 2027

February 28, 2019

200

200

0.488

February 28, 2029

Mizuho Bank
The Bank of Saga
The Higo Bank

July 31, 2019

1,200
500
500

1,200
500
500

0.521

July 31, 2029

The Norinchukin Bank

July 31, 2019

1,500

1,500

0.303

January 29, 2027

MUFG Bank

September 25, 2019

500

500

0.480

September 29, 2028

The Nishi-Nippon City Bank

February 28, 2020

2,500

2,500

0.480

February 28, 2030

Mizuho Bank

February 28, 2020

1,700

1,700

0.420

February 28, 2030

FUKUOKA REIT CORPORATION

21

Repayment
methodLump-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
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
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
Lump-sum uponmaturity
Lump-sum uponmaturity
Lump-sum uponmaturity
Lump-sum uponmaturity
Lump-sum uponmaturity
Lump-sum uponmaturity

Use offunds
Refinance fund
Refinance fund
Refinance fund
Refinance fund

Refinance fund

Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fundAcquisition fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund

Refinance fund

Refinance fund
Refinance fund
Refinance fund
Refinance fundCategory

Description

LenderNo collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

No collateral/
No guarantee

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

Drawdown
date

Balance as ofMarch 1,
2022

Balance as ofAugust 31,
2022

Averageinterest
rate

Repayment
date

Repayment
methodUse offunds

Description(mm of yen)

(mm of yen)(%) (Note 1)

Aozora Bank

June 30, 2020

1,000

1,000

0.569

June 28, 2030

Resona Bank

June 30, 2020

700

700

0.569

June 28, 2030

MUFG Bank

June 30, 2020

500

500

0.600

June 29, 2029

The Kagoshima Bank

June 30, 2020

500

500

0.465

June 30, 2028

Development Bank of Japan

July 31, 2020

1,500

1,500

0.530

July 31, 2030

Mizuho Bank

July 31, 2020

1,000

1,000

0.470

July 31, 2030

The Kitakyushu Bank

July 31, 2020

500

500

0.526

July 31, 2030

The Iyo Bank

July 31, 2020

200

200

0.526

July 31, 2030

Long-term The Juhachi-Shinwa Bank
debt
Mizuho Bank
The Hiroshima Bank
The Kitakyushu BankThe Iyo Bank
The Higo Bank
Mizuho Trust & Banking Co.,
Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank of JapanThe Nishi-Nippon City Bank
The Bank of Fukuoka
Subtotal
Total

March 31, 2021

1,000

1,000

0.590

March 31, 2031

July 30, 2021

2,300
1,400
800
500
300

2,300
1,400
800
500
300

0.490

July 31, 2031

Lump-sum uponmaturity

Refinance fundNo collateral/
No guarantee

March 31, 2022

–

1,000

0.367

March 31, 2032

Lump-sum uponmaturity

Refinance fundNo collateral/
No guarantee

June 30, 2022

–

1,600

0.726

June 29, 2029

Lump-sum uponmaturity

Refinance fundNo collateral/
No guarantee–––
71,40077,400

4,000
500
400
73,00078,9000.919

August 31, 2032

Lump-sum uponmaturity

Refinance fundNo collateral/
No guarantee

August 31, 2022

(Note 2)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

Refinance fundAcquisition fundAcquisition fundAcquisition fund
Refinance fund
Refinance fund
Refinance fund
Refinance fund
Refinance fundNo collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee(Note 1)	The average interest rate is a weighted-average figure during the fiscal period and is rounded to the third decimal place. Furthermore, the average interest rate of debt for which FRC conducted interest
rate swap transactions in order to hedge against interest rate fluctuation risks is the weighted-average figure during the fiscal period taking into consideration the effect of interest rate swaps.
(Note 2)	The borrowing is a Sustainability-Linked Loan in which it has been set as a Sustainability Performance Target (SPT) to reduce CO2 emissions (in terms of intensity) by 35% compared with fiscal 2019by February 28, 2031, and the achievement of the target is linked to the loan conditions. When the SPT is achieved, the contract will offer a preferential treatment for the interest rate determined at thetime of borrowing, for the period from August 2031 to the repayment date.

3. Investment corporation bonds
As of the end of the 36th fiscal period (August 31, 2022), FRC has the following investment corporation bonds outstanding.
Issue

Issue date

Balance as ofMarch 1,2022

Decreaseduring the
fiscal period

Balance as ofAugust 31,2022(mm of yen)

(mm of yen)

(mm of yen)(%)

Maturity
date

CouponFirst Series ofUnsecured Bonds

December 30, 2013

2,000

–

2,000

1.32

December 29, 2023

Second Series ofUnsecured Bonds

July 31, 2017

2,000

–

2,000

1.00

July 30, 2032

July 31, 2018

1,000

–

1,000

1.20

July 30, 2038

5,000

–

5,000

Third Series ofUnsecured Bonds
Total

Maturity
methodLump-sum uponmaturity(Note 1)
Lump-sum uponmaturity(Note 1)
Lump-sum uponmaturity(Note 1)

Use
Repayment ofdebt
Repayment ofdebt
Repayment of
debt(Note 1) The bonds may be repurchased and cancelled by FRC at any time on and after the date following the payment date, unless otherwise determined by the book-entry transfer agent.
(Note 2) The bonds are subject to the limited pari passu clause among specified investment corporation bonds.

4. Short-term investment corporation bonds
No relevant items.

5. Subscription rights to shares
No relevant items.
FUKUOKA REIT CORPORATION

22

Description
No collateral/
No guarantee(Note 2)
No collateral/
No guarantee(Note 2)
No collateral/
No guarantee(Note 2)

II. Semiannual Report

II. Semiannual Report

Acquisitions and Sales during the 36th Fiscal Period

Acquisitions and Sales during the 36th Fiscal Period

1. Acquisition and sale of real estate property, asset-backed securities,
infrastructure assets, etc. and infrastructure-related assets, etc.
Acquisition
Property nameAcquisition date

Hakata Chikushi-Dori Center Building
Total

Disposition

Acquisition priceMarch 1, 2022–

Category(Note)(mm of yen)

Disposition date

4,320
4,320

Disposition price––(mm of yen)––Book value

Gain or loss on sale

(mm of yen)

(mm of yen)

–
–

–
–

(Note) Acquisition price is the amount (transaction price indicated in the sales agreement) excluding expenses (transaction brokerage fees, taxes and other public charges, etc.) required for the acquisition of therelevant real estate, etc.

2. Acquisition and sale of other assets
No relevant items.

3. Survey on prices of specified assets, etc.
(1) Real estate, etc.
Acquisition or
disposition
Acquisition

Property nameHakata Chikushi-Dori Center
Building

Type of asset

Transaction
dateReal estate in trust

March 1, 2022

Acquisition price ordisposition priceReal estateappraisal value(Note 1)(mm of yen)

(Note 2)(mm of yen)

4,320

4,540

Real estateappraiser

Appraisaldate

Tanizawa Sogo
Appraisal Co., Ltd.

August 1, 2021

(Note 1) Acquisition price is the amount (transaction price indicated in the sales agreement) excluding related expenses (transaction brokerage fees, taxes and other public charges, etc.) required for the acquisition of the relevant real estate, etc.
(Note 2) The above appraisal was valuated by applying the “Real Estate Appraisal Standards, Chapter 3: Valuation for price of real estate for securitization.”(2) Other
Other than the transaction described in “(1) Real estate, etc.” above, FRC carried out no transaction in the 36th fiscal period thatwas required to have the value, etc. reviewed pursuant to the provisions of Article 201 of the Investment Trusts Act.

4. Transactions with interested parties, etc.

Breakdown of transactions with interested parties, etc.

Total paid fees (A)(thousands of yen)
(Note 1)

Property leasing brokerage fees (Note 2)

25,400Property management fees (Note 3)

325,064

Outsourcing fees (Note 2) (Note 4)

1,415,844

Other operating expenses (Note 2)

1,511,071

Paid amount (B)Paid party(thousands of yen)

Fukuoka Jisho Co., Ltd.
FJ. Entertainment Works Ltd.
Fukuoka Jisho Co., Ltd.
FJ. Entertainment Works Ltd.
Fukuoka Jisho Co., Ltd.
FJ. Entertainment Works Ltd.
Sunlife Co., Ltd.
Fukuoka Jisho Co., Ltd.
FJ. Entertainment Works Ltd.
Sunlife Co., Ltd.

Percentage of total
amount(B) / (A)(%)

13,965
6,964
75,270240,562
530,435
735,320
131,277
192,284
320,808
918

55.0
27.4
23.2
74.0
37.5
51.9
9.3
12.7
21.2
0.1

(Note 1) Aside from the paid fees shown above, FRC paid the following amounts for repairs, etc. that were ordered to interested parties, etc. during the 36th fiscal period. The amounts include construction work
fees paid to third parties through interested parties, etc.
Fukuoka Jisho Co., Ltd.
136,527 thousand yen
FJ. Entertainment Works Ltd. 1,713,361 thousand yen
Sunlife Co., Ltd.
145,199 thousand yen(Note 2) The property leasing brokerage fees, outsourcing fees and other operating expenses include property leasing brokerage fees, etc. paid to third parties through interested parties, etc.
(Note 3) The property management fees do not include the following construction supervision fees. In addition, of the fees below, the construction supervision fees paid upon acquiring real estate are includedin the acquisition cost of the relevant real estate.
Fukuoka Jisho Co., Ltd.
6,927 thousand yen
FJ. Entertainment Works Ltd.
46,133 thousand yen(Note 4) The outsourcing fees shown above are paid fees, etc. regarding building management outsourcing fees, and do not coincide with the outsourcing fees described in VIII. Notes to Financial Statements(Notes to statement of income) that include property management fees and others.

5. Transactions with the asset management company regarding
concurrent work conducted by the asset management company
The asset management company (Fukuoka Realty Co., Ltd.) does not concurrently conduct any class 1 financial instruments
transaction business, class 2 financial instruments transaction business, land and building transaction business or real estatesyndication business, and has no such transactions with FRC.

Overview of Accounting(1) Transaction status
No relevant items.

1. Assets, liabilities, principal and profits/loss(2) Amount of fees paid, etc.
FRC paid the following fees to the interested parties, etc. during the 36th fiscal period. Furthermore, interested parties, etc. referto the interested parties of the asset management company who have concluded an asset management agreement with FRC
and are designated in Article 123 of the Enforcement Order of the Investment Trusts Act. Of these interested parties, etc., thebelow table indicates the business partners to which FRC paid fees, etc. during the 36th fiscal period.

Please refer to the IV. Balance Sheet, V. Statement of Income, VI. Statement of Changes in Net Assets, VII. Statement of CashDistributions, VIII. Cash Flow Statement, IX. Notes to Financial Statements and X. Supplementary Schedules on later pages ofthis report.

2. Changes in calculation method of depreciation
No relevant items.

3. Changes in valuation method of real estate and infrastructure assets,
etc.
No relevant items.

4. Overview of self-managed investment trust beneficiary certificatesNo relevant items.
FUKUOKA REIT CORPORATION23FUKUOKA REIT CORPORATION

24

II. Semiannual Report

III. Independent Auditor's Report

Overview of Accounting
5. Disclosure on corporation owning foreign real estate
No relevant items.

6. Disclosure on real estate owned by corporation owning foreign realestateNo relevant items.

Independent Auditor’s Report
To the Board of Directors of Fukuoka REIT Corporation

Other

Opinion

1. Handling of fractions of monetary amounts and percentage figures
Unless otherwise stated, the figures less than the specified unit are rounded down for monetary amounts and rounded off to one
decimal place for percentage figures throughout this Semiannual Report.

We have audited the financial statements of Fukuoka REIT Corporation (the Company), which
comprise the balance sheet as of August 31, 2022, and the statement of income, statement of changes
in net assets, statement of cash distributions and cash flow statement for the six months period thenended, notes to financial statements and supplementary schedules.
In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the Company as of August 31, 2022, and its financial performance and its cash
flows for the six months period then ended in accordance with accounting principles generally
accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company inaccordance with the ethical requirements that are relevant to our audit of the financial statements inJapan, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.
Other Information
The other information comprises the information included in the semiannual report, but does notinclude the financial statements and our auditor’s report thereon. Management is responsible for theother information. In addition, those charged with governance are responsible for overseeing
the Company’s reporting process of the other information.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact.
We have nothing to report in this regard.

PricewaterhouseCoopers Aarata LLC
Otemachi Park Building, 1-1-1 Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan
T: +81 (3) 6212 6800, F: +81 (3) 6212 6801, www.pwc.com/jp/assurance

FUKUOKA REIT CORPORATION25FUKUOKA REIT CORPORATION

26

III. Independent Auditor's Report

III. Independent Auditor's Report

Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern and disclosing, as applicable, matters related to going concern.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.

We communicate with management regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide management with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with auditing standards generally accepted in Japan will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.

 自動署名EL 自動署名Co1

Takeshi Yamaguchi

Takashi Sato

Designated Engagement Partner
Certified Public Accountant

Designated Engagement Partner
Certified Public Accountant

November 24, 2022

As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the financial statement
audit is not to express an opinion on the effectiveness of the Company’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
 Evaluate whether the presentation and disclosures of the financial statements are in accordancewith accounting principles generally accepted in Japan, the overall presentation, structure andcontent of the financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.

2 of 33 of 3FUKUOKA REIT CORPORATION27

FUKUOKA REIT CORPORATION

28

IV. Balance Sheet

IV. Balance Sheet(thousands of yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
OthersTotal current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Tools and fixtures
Accumulated depreciation
Tools and fixtures, net
Lands
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Vehicles and transport equipment in trust
Accumulated depreciation
Vehicles and transport equipment in trust, net
Tools and fixtures in trust
Accumulated depreciation
Tools and fixtures in trust, net
Lands in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right in trust
Other intangible assets in trust
Total intangible assets
Investment and other assets
Deferred tax assets
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Total investment and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance expenses
Total deferred assets
Total assets

(thousands of yen)

35th fiscal period

36th fiscal period

35th fiscal period

36th fiscal period(as of February 28, 2022)(as of August 31, 2022)(as of February 28, 2022)(as of August 31, 2022)

Liabilities
6,860,969
3,775,847
612,230
254,292
217,676
15,55011,736,566

4,203,346
4,335,931
788,376
227,634
124,948
10,2239,690,462

Current liabilities
Operating accounts payable
Current maturities of long-term debt

495,811

661,770

6,000,000

5,900,000

Accounts payable-other

22,767

16,275

Accrued expenses

414,713421,792

Income taxes payable
Advances received

1,659

962

1,007,044

1,084,850

697,145

1,026,223

8,639,141

9,111,875

Deposits received*1*1

FUKUOKA REIT CORPORATION

1,171,821(39,043)
1,132,777
20,698(516)
20,182
1,571
(312)
1,258
989,124
101,745,620(36,671,427)
65,074,192
1,939,630(884,785)
1,054,845
1,461,684(707,143)
754,541
626
(594)
31
1,443,100(1,222,570)
220,530
110,373,363
500,610
180,121,458*1*1

1,171,821(53,781)
1,118,039
20,698(709)
19,988
1,571
(430)
1,140
989,124
104,797,631(38,070,850)
66,726,781
1,976,251(907,404)
1,068,847
1,483,511(745,401)
738,110
626
(594)
31
1,473,642(1,241,477)
232,165
113,715,265
7,932
184,617,427

5,545,883
11,234
5,557,117

5,545,883
8,315
5,554,198

52
10,000327,135
964,988
1,302,176
186,980,752

13
10,000327,135
997,950
1,335,099
191,506,725

27,836
27,836
198,745,156

26,664
26,664201,223,852

29

Total current liabilities
Non-current liabilities
Investment corporation bonds

5,000,000

5,000,000

Long-term debt

71,400,000

73,000,000

Tenant leasehold and security deposits
Tenant leasehold and security deposits received in trust

450,958*1

Total non-current liabilities
Total liabilities

11,501,470

741,017*1

11,627,634

88,352,428

90,368,652

96,991,569

99,480,527

98,938,764

98,938,764

2,814,821

2,804,559

Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated surplus
Total surplus
Total unitholders’ equity
Total net assets*3

Total liabilities and net assets

2,814,821

2,804,559

101,753,586

101,743,324

101,753,586
198,745,156

FUKUOKA REIT CORPORATION

30*3

101,743,324
201,223,852

V. Statement of Income

VI. Statement of Changes in Net Assets

(thousands of yen)

35th fiscal period (September 1, 2021 to February 28, 2022)

35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

(thousands of yen)

Operating revenues
Leasing revenues – real estate*18,040,738*1

8,160,720

Other leasing revenues – real estate*1618,096*1

669,929

Total operating revenues

8,658,835

Unitholders’ Equity
Unitholders’ capital

8,830,650

Balance as of September 1, 2021

Operating expenses
Expenses related to leasing business*1 *2

4,810,362

Asset management fees

*1 *2

Unappropriated surplus

98,938,764

Total unitholders’ equity

Total net assets

2,817,051

101,755,815

101,755,815

Dividend of surplus(2,817,044)(2,817,044)(2,817,044)

Profit2,814,814

2,814,814

2,814,814

Changes in the current fiscal period

4,974,312

526,058

534,574

Asset custody fees

7,431

7,514

Administrative service fees

57,76960,087

Total of changes in the current fiscal period

Director’s compensations

9,600

6,600

Balance as of February 28, 2022

Other operating expenses

61,771

65,669Total operating expenses

5,472,993

5,648,758

3,185,841

3,181,891

Interest received

55

40

Others567

1,191

Total non-operating revenues

623

1,231

Operating income

Surplus–(2,229)(2,229)(2,229)98,938,764

2,814,821

101,753,586

101,753,586

36th fiscal period (March 1, 2022 to August 31, 2022)

Non-operating revenues

(thousands of yen)
Unitholders’ Equity

Non-operating expenses

Unitholders’ capitalInterest expenses

242,524

249,567Interest expenses on investment corporation bonds

29,20029,200

Amortization of investment corporation bond issuance
expenses

2,102

1,172

Financing related expenses

96,157

97,7443737370,022377,722

Ordinary income

2,816,442

2,805,401

Profit before income taxes

OthersTotal non-operating expenses

2,816,442

2,805,401

Income taxes-current

1,667

968

Income taxes-deferred

(39)

38

Total income taxes
Profit

1,628

1,007

2,814,814

2,804,394

Surplus brought forward

7

165

Unappropriated surplus

2,814,821

2,804,559

FUKUOKA REIT CORPORATION

31

Balance as of March 1, 2022

98,938,764

Surplus
Unappropriated surplus

Total unitholders’ equity

Total net assets

2,814,821

101,753,586

101,753,586

Dividend of surplus(2,814,656)(2,814,656)(2,814,656)

Profit2,804,394

2,804,394

2,804,394

Changes in the current fiscal period

Total of changes in the current fiscal period
Balance as of August 31, 2022–

(10,261)(10,261)(10,261)

98,938,764

2,804,559

101,743,324

101,743,324

FUKUOKA REIT CORPORATION

32

VII. Statement of Cash Distributions


VIII. Cash Flow Statement(thousands of yen)

Item



(thousands of yen)

35th fiscal period

36th fiscal period

35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

I. Unappropriated surplus

2,814,821

2,804,559

II. Total dividend[Dividend per investment unit]
III. Surplus brought forward

2,814,656[3,536 yen]
165

2,804,308[3,523 yen]
251

Method for calculating dividends

The amount of dividends shall be decided in accordancewith the dividend policy stipulated in Article 38-1-2 of
FRC’s Articles of Incorporation and must exceed 90% of
FRC’s distributable profits as stipulated in Article 67-15-1of the Special Taxation Measures Act.
Following the above policy, FRC shall decide to distribute
2,814,656 thousand yen, which is almost the entire
amount of unappropriated surplus, as earnings dividends.
Moreover, dividend in excess of earnings as stipulated in
Article 38-2 of FRC’s Articles of Incorporation will not beprovided.

The amount of dividends shall be decided in accordancewith the dividend policy stipulated in Article 38-1-2 of
FRC’s Articles of Incorporation and must exceed 90% of
FRC’s distributable profits as stipulated in Article 67-15-1of the Special Taxation Measures Act.
Following the above policy, FRC shall decide to distribute
2,804,308 thousand yen, which is almost the entire
amount of unappropriated surplus, as earnings dividends.
Moreover, dividend in excess of earnings as stipulated in
Article 38-2 of FRC’s Articles of Incorporation will not beprovided.

(Note) Amounts other than the amounts of dividend per investment unit are rounded down to the nearest thousand yen.

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

2,816,442

2,805,401

Depreciation and amortization expenses

1,486,407

1,514,524

2,102

1,172

Amortization of investment corporation bond issuance expenses
Interest received

(55)

(40)

Interest expenses

271,724

278,767

Decrease (increase) in operating accounts receivables(19,216)(176,146)

Decrease (increase) in consumption taxes refund receivable(217,676)

92,727

Increase (decrease) in accrued consumption taxes(705,556)–

Increase (decrease) in operating accounts payable(29,962)

73,784

Increase (decrease) in accounts payable-other

5,577(6,115)

Increase (decrease) in accrued expenses(3,258)

4,057

Increase (decrease) in advances received(50,183)

77,805

Increase (decrease) in deposits expenses(215,687)

329,077

Decrease (increase) in prepaid expenses

18,381

26,658Decrease (increase) in long-term prepaid expenses

71,142(32,961)

Others, net(9,271)

1,417

Subtotal

3,420,911

4,990,132

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

55

40(273,972)(275,746)(952)(1,665)

3,146,040

4,712,760

Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits(5,092)(493)(522,327)(5,911,512)

176

290,149

(30)

(90)

Proceeds from tenant leasehold and security deposits in trust

109,679

309,878

Repayments of tenant leasehold and security deposits in trust(239,871)(183,714)

Proceeds from restricted trust deposits

4,978

3,634

Payments for restricted trust deposits(6,343)(6,099)(658,830)(5,498,246)

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

4,000,000

Repayments of short-term debt–

(4,000,000)

Proceeds from long-term debt–

7,500,000

Repayments of long-term debt–

(6,000,000)(2,816,432)(2,814,517)(2,816,432)(1,314,517)(329,222)(2,100,003)

Dividends paid
Net cash provided by (used in) financial activities
Net increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at end of period

FUKUOKA REIT CORPORATION

33

10,917,706
10,588,484*1

FUKUOKA REIT CORPORATION

34

10,588,484*1

8,488,481

IX. Notes to Financial Statements

IX. Notes to Financial Statements(Basis of presentation)
The financial statements of FRC, which is incorporated in Japan, have been prepared in accordance with the provisions set forthin the Financial Instruments and Exchange Act of Japan and related regulations and accounting principles generally accepted inJapan, which are different in certain respects to the application and disclosure requirements of International Financial ReportingStandards (“IFRS Standards”).
The accompanying financial statements have been translated into English, for the convenience of readers outside Japan, fromthe audited financial statements that were prepared for Japanese domestic purposes from the accounts and records maintainedby FRC and were filed with the Kanto Local Finance Bureau of the Ministry of Finance as required by the said Act.

5. Scope of funds (cash and cash equivalents) in cash flow The funds (cash and cash equivalents) in the cash flow statement consist of cash on hand and cash in trust;statement
deposits that can be withdrawn at any time and deposits in trust; and short-term investments with a maturityof 3 months or less from the date of acquisition, which are readily convertible to cash and bear only an insignificant risk of value fluctuation.
6. Other significant items fundamental to preparing thefinancial statements(Significant accounting policies)
1. Depreciation method for non-current assets

2. Accounting for deferred assets

3. Standards for recognition of revenues and expenses

4. Method of hedge accounting(1) Property, plant and equipment
Depreciation is calculated using the straight-line method.
The useful lives of major categories of property, plant and equipment including trust assets are as follows:		 Buildings:
10 – 65 years
		 Structures:
15 – 60 years
		 Machinery and equipment:
15 – 30 years
		 Vehicles and transport equipment:
7 years
		 Tools and fixtures:
5 – 20 years(2) Intangible assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
Investment corporation bond issuance expenses
Investment corporation bond issuance expenses are amortized utilizing the straight-line method over theperiod through redemption.
(1) Standards for revenue recognition
The details of main performance obligations concerning revenues generated from contracts between FRC
and its customers and the ordinary time to fulfil said performance obligations (ordinary time to recognize
revenues) are as follows:➀ Sales of real estate property
		FRC recognizes revenues from sales of real estate property when the purchaser, who is a customer,
obtains control of the relevant real estate property as a result of FRC fulfilling its delivery obligations
stipulated in the transaction agreement of the real estate property.
➁	Utilities income
		FRC recognizes utilities income in accordance with the supply of electricity and water, etc. to the lessee, who is a customer, based on the lease agreement of real estate, etc. and details of agreements
incidental to it. Of the utilities income, in the case that FRC deems itself to be an agent, the net amountobtained by deducting the amount it pays to other parties from the amount it receives as charges forelectricity and gas, etc. supplied by the said other parties is recognized as revenue.
(2) Accounting treatment of property taxes, etc.
In connection with property taxes, city planning taxes and depreciated asset taxes, FRC uses the methodof charging the corresponding amounts of assessed taxes to the current fiscal period as expenses related
to leasing business.
The amount equivalent to property taxes, etc. for the initial fiscal year paid to the seller as settlementmoney upon acquisition of real estate or trust beneficiary interests in real estate as entrusted property is
not expensed but capitalized as part of the acquisition cost of the relevant property.
No amount equivalent to property taxes, etc. was capitalized in the acquisition cost of real estate, etc. forthe 35th fiscal period. The amount equivalent to property taxes, etc. capitalized in the acquisition cost ofreal estate, etc. was 23,928 thousand yen for the 36thd fiscal period.
(1) Method of hedge accounting
Deferred hedge accounting is applied for interest rate swap transactions. However, special accounting isapplied for interest rate swap transactions that satisfy the requirements for special accounting.
(2) Hedging instruments and hedged items
Hedging instrument: interest rate swap transactions
Hedged items: interest rates of borrowings(3) Hedging policy
FRC conducts derivative transactions to hedge interest rate fluctuation risks for floating-rate borrowings
based on FRC’s Articles of Incorporation.
(4) Method for assessing the effectiveness of hedging
Assessment of the effectiveness of hedging is omitted as requirements are satisfied for special accounting for interest rate swap transactions.

FUKUOKA REIT CORPORATION

35

Accounting methods for trust beneficiary interests in real estate as entrusted property
Regarding trust beneficiary interests in owned real estate as entrusted property, all asset and liability
accounts of the entrusted properties as well as all revenue and expense accounts generated by the entrusted properties are recorded in relevant accounts on the balance sheet and statement of income.
Furthermore, the following material accounts are separately stated on the balance sheet for entrusted
properties recorded in relevant accounts.
➀ Cash and deposits in trust➁	Buildings in trust, structures in trust, machinery and equipment in trust, vehicles and transport equipment in trust, tools and fixtures in trust, lands in trust and construction in progress in trust➂ Leasehold right in trust➃ Other intangible assets in trust➄ Lease and guarantee deposits in trust➅ Tenant leasehold and security deposits received in trust(Notes to balance sheet)*1. Assets pledged as collateral and secured liabilities
Assets pledged as collateral are as follows:	(thousands of yen)

Buildings in trust
Lands in trust

35th fiscal period

36th fiscal period

as of February 28, 2022

as of August 31, 2022

5,694,873
16,101,020
21,795,894

Total
Secured liabilities are as follows:	

6,273,659
16,101,020
22,374,680(thousands of yen)
35th fiscal period

36th fiscal period

as of February 28, 2022

as of August 31, 2022

Tenant leasehold and security deposits received in trust

821,462

821,462

2. Balance of unused committed line of credit
FRC has executed committed line of credit agreements with its banks primarily to conduct efficient and dynamic cash management.
[Committed line of credit agreement 1]
	(thousands of yen)

Credit limit
Outstanding debt at end of period
Unused committed line of credit at end of period

35th fiscal period

36th fiscal period

as of February 28, 2022

as of August 31, 2022

6,000,000–
6,000,000[Committed line of credit agreement 2]
	(thousands of yen)

Credit limit
Outstanding debt at end of period
Unused committed line of credit at end of period

35th fiscal period

36th fiscal period

as of February 28, 2022

as of August 31, 2022

7,000,000–
7,000,000*3. Minimum net assets designated in Article 67- 4 in the Act on Investment Trusts and Investment Corporations.
	(thousands of yen)
35th fiscal period

36th fiscal period

as of February 28, 2022

as of August 31, 2022

50,0006,000,000–
6,000,000

50,000FUKUOKA REIT CORPORATION

36

7,000,000–
7,000,000

IX. Notes to Financial Statements

IX. Notes to Financial Statements(Notes to statement of income)(Notes to leases)*1. Breakdown of revenues and expenses related to real estate leasing business.


A. Real estate leasing business revenues
Leasing revenues - real estate		Rents
		 Common charges
		 Parking revenues
Other leasing revenues - real estate		 Incidental income
		 Other miscellaneous income
Total real estate leasing business revenues
B. Expenses related to real estate leasing business
Expenses related to leasing business		 Outsourcing fees		 Repair and maintenance expenses
		 Taxes and other public charges
		 Insurance premiums and trust compensation
		 Utilities expenses
		 Depreciation and amortization expenses
		 Other expenses related to real estate leasing businessTotal expenses related to real estate leasing business
C. Revenues and expenses related to real estate leasing business (A - B)(thousands of yen)
35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

Due within 1 year
Due after 1 year
6,677,000
944,582
419,155

8,040,738

571,819
46,277

618,096
8,658,835

1,711,225
121,025
711,798
41,708476,400
1,486,407
261,797

4,810,362
4,810,362
3,848,472*2. Transactions with affiliated companies.
	

6,784,821
934,731441,168
649,178
20,7501,740,908
119,524
719,695
42,669544,853
1,514,524
292,136

Total
8,160,720

669,9298,830,650

4,974,312
4,974,312
3,856,337(thousands of yen)
35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

Expenses related to real estate leasing business

775,891

839,311(Notes to statement of changes in net assets)
Total number of authorized investment units and total number ofinvestment units outstanding
Total number of authorized investment units
Total number of investment units outstanding

35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

10,000,000 units
796,000 units

10,000,000 units
796,000 units(Notes to cash flow statement)*1. Relationship between the balance of cash and cash equivalents at end of period and the amounts of the corresponding accounts on the balance sheet.
	(thousands of yen)

Cash and deposits
Cash and deposits in trust
Restricted trust deposits (Note)
Cash and cash equivalents

The future lease revenues under the non-cancellable operating leases [as lessor] are as follows:	

35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

6,860,969
3,775,847(48,332)
10,588,484(Note) Restricted trust deposits are trust deposits reserved for refunding tenant leasehold and security deposits deposited by tenants and for other purposes.

FUKUOKA REIT CORPORATION

374,203,346
4,335,931(50,796)
8,488,481(thousands of yen)

35th fiscal period

36th fiscal period(as of February 28, 2022)(as of August 31, 2022)

5,690,287
10,188,449
15,878,736

5,541,544
9,559,355
15,100,900(Notes to financial instruments)
1. Matters concerning status of financial instruments(1) Policy on handling financial instruments
In order to secure stable earnings and steady growth of assets under management, FRC procures funds primarily throughborrowings from financial institutions, issuance of investment corporation bonds or issuance of investment units for property
acquisitions, repair and maintenance work, repayment of interest-bearing debt and other purposes.
In procuring interest-bearing debt, FRC borrows funds primarily in long-term, fixed interest debt based on the policy of
establishing a solid financial structure, and conducts conservative operations intended to secure financial stability and liquidity by dispersing debt payment dates and utilizing committed lines of credit and through other measures.
With regard to surplus funds, FRC manages them as various deposits and savings, etc. to support efficient management
while considering security.
FRC conducts derivative transactions only for the purpose of hedging the risk of future interest rate fluctuation, and not forthe purpose of speculation.
(2) Description of financial instruments and associated risks, and risk management structure
Debt and investment corporation bonds are funds procured primarily for acquiring real estate trust beneficiary interests andrefinancing of borrowings. Borrowings and investment corporation bonds are exposed to liquidity risks upon debt payment
dates, but FRC works to mitigate these risks by such measures as appropriately controlling the ratio of interest-bearing debt
to total assets and executing commitment line agreements with local financial institutions that are lenders to secure on-handliquidity.
In addition, borrowings with floating interest rates are exposed to interest rate fluctuation risks. However, FRC works to
reduce the risks by such measures as adjusting the ratio of the balance of borrowings with floating interest rates to totalborrowings in accordance with the financial environment and other factors. FRC conducts derivative transactions (specifically interest rate swap transactions) for part of its borrowings with floating interest rates in order to hedge the risk of futurefluctuations in the rates of interest payable. Furthermore, assessment of the effectiveness of these interest rate swaps isomitted as it has been determined that they have met the requirements for special accounting. FRC executes and manages
its derivative transactions in accordance with its financial derivative transaction management policies and, it does so only withfinancial institutions it determines to have a certain level of creditworthiness, by reference to their credit ratings, to reducecounterparty risks.
FRC manages surplus funds in large time deposits. Such deposits are subject to the risks of failure of the financial institutions holding the deposits as well as other credit risks. FRC mitigates the risks by limiting its deposits to financial institutions
with a certain level of creditworthiness, by reference to their credit ratings, as well as by setting short durations for these
deposits.
Tenant leasehold and security deposits and tenant leasehold and security deposits received in trust are deposits fromtenants and are exposed to liquidity risks if tenants move out before the contracts expire. FRC mitigates this risk by suchmeasures as securing on-hand liquidity.
(3) Supplementary explanation on matters concerning fair value of financial instruments
Certain assumptions are made in calculating the fair value of financial instruments, and there may be cases where the values
will vary when different assumptions are used.
As for the contract value and other conditions of derivative transactions indicated in “2. Matters concerning fair value offinancial instruments,” the contract value is not an indicator of the market risks related to such transactions.

FUKUOKA REIT CORPORATION38

IX. Notes to Financial Statements

IX. Notes to Financial Statements(Notes to investment securities)
2. Matters concerning fair value of financial instruments
The following table includes the book values for financial instruments as recorded on the balance sheet, the corresponding fairvalues and the difference between these amounts as of February 28, 2022. Furthermore, notes to Cash and deposits and Cashand deposits in trust are omitted as these are settled with cash and within a short period of time, and thus the fair value is approximately the same as the book value.
(thousands of yen)Book value recorded on thebalance sheet
6,000,000
5,000,000
71,400,000
450,958
11,501,470
94,352,428––(1) Current maturities of long-term debt
(2) Investment corporation bonds(3) Long-term debt
(4) Tenant leasehold and security deposits(5) Tenant leasehold and security deposits received in trust
Total of liabilities(6) Derivative transactions
Total of derivative transactions

Fair value

Difference(Note 1)

6,018,611
5,156,907
71,643,128
331,704
9,935,364
93,085,714––

18,611
156,907
243,128(119,253)(1,566,106)(1,266,713)––

The following table includes the book values for financial instruments as recorded on the balance sheet, the corresponding fairvalues and the difference between these amounts as of August 31, 2022. Furthermore, notes to Cash and deposits and Cashand deposits in trust are omitted as these are settled with cash and within a short period of time, and thus the fair value is approximately the same as the book value.
(thousands of yen)Book value recorded on thebalance sheet
5,900,000
5,000,000
73,000,000
741,017
11,627,634
96,268,652––(1) Current maturities of long-term debt
(2) Investment corporation bonds(3) Long-term debt
(4) Tenant leasehold and security deposits(5) Tenant leasehold and security deposits received in trust
Total of liabilities(6) Derivative transactions
Total of derivative transactions

Fair value

Difference(Note 1)

5,917,469
5,047,370
72,556,892
464,967
9,527,497
93,514,198––

17,46947,370(443,107)(276,050)(2,100,136)(2,754,453)––(Note 1) Calculation method for fair value of financial instruments(1) Current maturities of long-term debt, (2) investment corporation bonds and (3) Long-term debt
		The fair value of long-term debt with fixed interest rates (including debt with practical fixed interest rates through interest rate swaps) and investment corporation bonds (the “debt, etc.”) is calculatedby discounting the total amount of principal and interest by the rate assumed as being applicable in the event of a new drawdown of similar debt, etc.
		The fair value of long-term debt with floating interest rates is based on the book value, as the contract terms require the interest rates to be revised in a certain period of time (within six months) andthus is considered to be nearly equal to the book value.
(4) Tenant leasehold and security deposits and (5) Tenant leasehold and security deposits received in trust		The fair value of tenant leasehold and security deposits and tenant leasehold and security deposits received in trust is calculated by using the present value, which is obtained by discounting thefuture cash flows of such deposits by a rate that takes into account the term remaining until the reimbursement deadline and credit risks.
(6) Derivative transactions
		 Please refer to (Notes to derivative transactions).
(Note 2) Amount of repayment of long-term debt and investment corporation bonds scheduled to be due after closing of accounts (as of February 28, 2022)

	(thousands of yen)
Long-term debt
Investment corporationbonds

Due in 1 year or less
6,000,000

1 to 2 years
10,400,000

2 to 3 years
2,700,000

3 to 4 years
6,400,000

4 to 5 years
12,500,000

Due after 5 years
39,400,000–

2,000,000–––

3,000,000

35th fiscal period (as of February 28, 2022)
Not applicable.

36th fiscal period (as of August 31, 2022)
Not applicable.

(Notes to derivative transactions)
1. Derivatives to which hedge accounting is not applied
35th fiscal period (as of February 28, 2022)
Not applicable.

36th fiscal period (as of August 31, 2022)
Not applicable.

2. Derivatives to which hedge accounting is applied
35th fiscal period (as of February 28, 2022)
The following is the contract amount or amount equivalent to the principal provided in the contract as of the closing of accounts
for each method of hedge accounting.
(thousands of yen)
Method of hedge accounting

Type of derivative transactions,etc.

Main hedged
item

Special accounting for interest rate swaps

Interest rate swap transaction
Receivable floating; Payable fixedLong-term debt

Contract amount, etc.
Of which,exceeding 1 year
22,700,000

Long-term debt
Investment corporationbonds

Due in 1 year or less
5,900,000

1 to 2 years
5,200,000

2 to 3 years
3,900,000

3 to 4 years
11,100,000

4 to 5 years
12,900,000

Due after 5 years
39,900,000–

2,000,000–––

3,000,000

FUKUOKA REIT CORPORATION

39

(*)

–

36th fiscal period (as of August 31, 2022)
The following is the contract amount or amount equivalent to the principal provided in the contract as of the closing of accounts
for each method of hedge accounting.
(thousands of yen)
Method of hedge accounting

Type of derivative transactions,etc.

Main hedged
item

Special accounting for interest rate swaps

Interest rate swap transaction
Receivable floating; Payable fixedLong-term debt

Contract amount, etc.
Of which,exceeding 1 year
21,100,000

19,200,000

Fair
value

Calculation
method for thefair value(*)–(*) Transactions for which special accounting for interest rate swaps is applied are combined with long-term debt for accounting purposes. Accordingly, their fair value is included in the fair value of the relevant
long-term debt (refer to Notes to financial instruments, 2. Matters concerning fair value of financial instruments, (Note 1) (3)).

(Notes to retirement benefits)
35th fiscal period (as of February 28, 2022)
Not applicable as FRC does not have any retirement benefit system.

(thousands of yen)Calculation
method for thefair value(*) Transactions for which special accounting for interest rate swaps is applied are combined with long-term debt for accounting purposes. Accordingly, their fair value is included in the fair value of the relevant
long-term debt (refer to Notes to financial instruments, 2. Matters concerning fair value of financial instruments, (Note 1) (3)).

Amount of repayment of long-term debt and investment corporation bonds scheduled to be due after closing of accounts (as of August 31, 2022)

	21,100,000

Fair
value

36th fiscal period (as of August 31, 2022)
Not applicable as FRC does not have any retirement benefit system.

FUKUOKA REIT CORPORATION

40

IX. Notes to Financial Statements

IX. Notes to Financial Statements(Notes to tax effect accounting)
1. Breakdown of primary causes for occurrence of deferred tax assets and deferred tax liabilities.
(thousands of yen)

35th fiscal period

36th fiscal period(as of February 28, 2022)(as of August 31, 2022)

Deferred tax assets
Amount of accrued business taxes not deductible from taxable income
Total deferred tax assets
Deferred tax assets, net

52
52
52

36th fiscal period (from March 1, 2022 to August 31, 2022)


13
13
13

Classification

Name

Location

Other
affiliates

Fukuoka
Jisho Co.,Ltd.

Hakata Ward,
Fukuoka City

CapitalBusiness
description

100,000

General realestatebusiness(Note 2)

2. Breakdown of significant causes of the difference between the effective statutory income tax rate and the effective income tax rate after application of tax effect accounting.
(%)
35th fiscal period

36th fiscal period(as of February 28, 2022)(as of August 31, 2022)

Effective statutory income tax rate
Deductible dividend amount
Other
Effective income tax rate after application of tax effect accounting

31.25(31.23)
0.04
0.06

31.25
(31.24)0.02
0.04

FRC’s share of
voting rights, etc.

Descriptionofrelationship(thousands of yen)
Descriptionoftransaction

Transaction
amountCategory

Balance at
end ofperiodConsignment Consignment
Ownership in FRC
of real estate of real estate
Direct [9.19%]
management, management,
Indirect [0. 84%]
etc.
etc. (Note 1)

839,311

Operatingaccounts
payable66,850[or ownership of suchin FRC](Note 3)(Note 1) Transaction terms and conditions are determined in reference to market prices, etc. and by concluding business consignment agreements after negotiating on prices.
(Note 2) FRC has concluded a building lease and management consignment agreement with Fukuoka Jisho Co., Ltd. for Taihaku Street Business Center. The lease contract is a master lease type with passthrough rent, in which rents and other proceeds from end tenants are directly related to an increase or decrease of FRC’s revenues.
For the property covered by the said type of agreement, the above table shows figures that regard end tenants as direct lessees.
(Note 3) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

(2) Affiliated companies, etc.
35th fiscal period (from September 2021 to February 28, 2022)
Not applicable.

(Notes to equity method income and earnings)

36th fiscal period (from March 1, 2022 to August 31, 2022)

35th fiscal period (from September 1, 2021 to February 28, 2022)
Not applicable as FRC does not have any affiliated companies.

Not applicable.

36th fiscal period (from March 1, 2022 to August 31, 2022)(3) Sister companies

Not applicable as FRC does not have any affiliated companies.

35th fiscal period (from September 1, 2021 to February 28, 2022)
(Notes to transactions with related parties)

Classification

1. Transactions with related parties(1) Parent company and major corporate unitholders
35th fiscal period (from September 1, 2021 to February 28, 2022)
Classification

Other
affiliates

Name
Fukuoka
Jisho Co.,
Ltd.
(Note 2)

LocationHakata Ward,
Fukuoka City

Capital100,000

Business
description
General realestatebusiness

FRC’s share of
voting rights, etc.

DescriptionofrelationshipTransaction
amountConsignment Consignment
Ownership in FRC
of real estate of real estate
Direct [9.19%]
management, management,
Indirect [0.76%]
etc.
etc. (Note 1)

775,891(Note 3)Category
Operatingaccounts
payableBalance at
end ofperiod53,373(Note 3)(Note 1) Transaction terms and conditions are determined in reference to market prices, etc. and by concluding business consignment agreements after negotiating on prices.
(Note 2) FRC has concluded a building lease and management consignment agreement with Fukuoka Jisho Co., Ltd. for Taihaku Street Business Center. The lease contract is a master lease type with passthrough rent, in which rents and other proceeds from end tenants are directly related to an increase or decrease of FRC’s revenues.
For the property covered by the said type of agreement, the above table shows figures that regard end tenants as direct lessees.
(Note 3) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

FUKUOKA REIT CORPORATION

41

Name

Location

Subsidiaries
of otheraffiliates

FJ.
Entertainment Hakata Ward,
Works Ltd. Fukuoka City

Subsidiaries
of otheraffiliates

Fukuoka
Realty Co.,Ltd.

CapitalBusiness
description

20,000Real estatebusiness

200,000

Asset
managementof FRC andotherbusinesses(Note 2)(thousands of yen)

Descriptionoftransaction[or ownership of suchin FRC](Note 3)

Hakata Ward,
Fukuoka City

(thousands of yen)

FRC’s share of
voting rights, etc. Description of Description of Transaction[or ownership of relationship transaction
amountsuch in FRC]
Consignment Consignmentof real estate of real estate 1,357,216–(Note 5)management, management,
etc.
etc. (Note 1)

–

Asset
managementof FRC, etc.
(Note 3)

Payment of
asset
managementfees

526,058(Note 5)

Category

Balance at
end ofperiodOperatingaccounts
payable207,897

Accruedexpenses

306,190(Note 5)(Note 5)(Note 4)(Note 1) Transaction terms and conditions are determined in reference to market prices, etc. and by concluding business consignment agreements after negotiating on prices.
(Note 2) FRC has concluded with FJ. Entertainment Works Ltd. a building lease and management consignment agreement for Canal City Hakata, Canal City Hakata·B, Canal City Business Center Building andKonoha Mall Hashimoto, and a real estate lease and management consignment agreement for Park Place Oita. The relevant lease agreements are master lease type with pass-through rent, in which
rents and other proceeds from end tenants are directly related to an increase or decrease of FRC’s revenues. For the properties covered by the said type of the agreements, the above table shows figuresthat regard end tenants as direct lessees.
(Note 3) Although Etsuo Matsuyuki had been Executive Director of FRC as of the end of the 35th fiscal period, Zenji Koike was elected as Executive Director of FRC at its 10th General Meeting of Unitholders.
As of the date of this document, Zenji Koike concurrently serves as President and CEO of Fukuoka Realty Co., Ltd.
(Note 4) The amount of the asset management fees is decided based on the asset management consignment agreement following discussion between the concerned parties.
(Note 5) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

FUKUOKA REIT CORPORATION

42

IX. Notes to Financial Statements

IX. Notes to Financial Statements(Notes to properties for lease)36th fiscal period (from March 1, 2022 to August 31, 2022)
Classification

Name

Location

Subsidiaries
of otheraffiliates

FJ.
Entertainment Hakata Ward,
Works Ltd. Fukuoka City

Subsidiaries
of otheraffiliates

Fukuoka
Realty Co.,Ltd.

Capital

20,000Business
description

Real estatebusiness(Note 2)

Hakata Ward,
Fukuoka City

200,000

Asset
managementof FRC andotherbusinesses(thousands of yen)

FRC’s share of
voting rights, etc. Description of Description of Transaction[or ownership of relationship transaction
amountsuch in FRC]
Consignment Consignmentof real estate of real estate 1,364,487–(Note 5)management, management,
etc.
etc. (Note 1)

–

Asset
managementof FRC, etc.
(Note 3)

Payment of
asset
managementfees

534,574(Note 5)

Category

Balance at
end ofperiodOperatingaccounts
payable203,664

Accruedexpenses309,516

FRC owns retail, office buildings and other properties for lease in the Kyushu area centering on Fukuoka Prefecture. The following table provides the book value recorded on the balance sheet, amount of change during the period and fair value of theseproperties for lease.
(thousands of yen)
Use

(Note 5)Retail(Note 5)(Note 4)

Office buildings(Note 1) Transaction terms and conditions are determined in reference to market prices, etc. and by concluding business consignment agreements after negotiating on prices.
(Note 2) FRC has concluded with FJ. Entertainment Works Ltd. a building lease and management consignment agreement for Canal City Hakata, Canal City Hakata·B, Canal City Business Center Building andKonoha Mall Hashimoto, and a real estate lease and management consignment agreement for Park Place Oita. The relevant lease agreements are master lease type with pass-through rent, in which
rents and other proceeds from end tenants are directly related to an increase or decrease of FRC’s revenues. For the properties covered by the said type of the agreements, the above table shows figuresthat regard end tenants as direct lessees.
(Note 3) As of the date of this document, Zenji Koike concurrently serves as President and CEO of Fukuoka Realty Co., Ltd.
(Note 4) The amount of the asset management fees is decided based on the asset management consignment agreement following discussion between the concerned parties.
(Note 5) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

Others(4) Directors and major individual unitholders
35th fiscal period (from September 2021 to February 28, 2022)

Total

Not applicable.

36th fiscal period (from March 1, 2022 to August 31, 2022)
Not applicable.

2. Parent company and major affiliated companies
35th fiscal period (from September 2021 to February 28, 2022)
Not applicable.

103,007,471
863,811
103,871,283
111,900,000

55,861,781(363,826)
55,497,954
81,440,000

55,497,954
3,809,161
59,307,116
86,960,000

27,376,522(203,372)
27,173,149
33,740,000

27,173,149(179,922)
26,993,227
34,330,000

186,568,481(889,905)
185,678,576
227,990,000

185,678,576
4,493,050
190,171,626
233,190,000

The following table provides the income (loss) from properties for lease.
(thousands of yen)

Retail(Notes to asset retirement obligations)
Office buildings

Not applicable.

36th fiscal period (from March 1, 2022 to August 31, 2022)

103,330,177(322,706)
103,007,471
112,810,000(Note 1) Amount recorded on the balance sheet is the cost of acquisition less accumulated depreciation.
(Note 2) Of the amount of change during the 35th fiscal period, the amount of increase is primarily attributable to capital expenditures (600 million yen), and the amount of decrease is primarily attributable todepreciation and amortization expenses (1,486 million yen). Of the amount of change during the 36th fiscal period, the amount of increase is primarily attributable to acquisition of Hakata Chikushi-Dori
Center Building (4,069 million yen (excluding the deposit already paid in the 34th fiscal period from the acquisition price)) and capital expenditures (1,946 million yen), and the amount of decrease is
primarily attributable to depreciation and amortization expenses (1,514 million yen).
(Note 3) The fair value at end of period is the appraisal value provided by outside real estate appraisers.

36th fiscal period (from March 1, 2022 to August 31, 2022)

35th fiscal period (from September 2021 to February 28, 2022)

36th fiscal period(March 1, 2022 to August 31, 2022)

Amount recorded on the balance sheet
Balance at beginning of period
Amount of change during period
Balance at end of period
Fair value at end of period
Amount recorded on the balance sheet
Balance at beginning of period
Amount of change during period
Balance at end of period
Fair value at end of period
Amount recorded on the balance sheet
Balance at beginning of period
Amount of change during period
Balance at end of period
Fair value at end of period
Amount recorded on the balance sheet
Balance at beginning of period
Amount of change during period
Balance at end of period
Fair value at end of period

Use

Not applicable.

35th fiscal period(September 1, 2021 to February 28, 2022)

OthersNot applicable.

Total

35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

Amount recorded on the statement of income
Real estate leasing business revenues
Expenses related to real estate leasing business
Revenues and expenses related to real estate leasing businessAmount recorded on the statement of income
Real estate leasing business revenues
Expenses related to real estate leasing business
Revenues and expenses related to real estate leasing businessAmount recorded on the statement of income
Real estate leasing business revenues
Expenses related to real estate leasing business
Revenues and expenses related to real estate leasing businessAmount recorded on the statement of income
Real estate leasing business revenues
Expenses related to real estate leasing business
Revenues and expenses related to real estate leasing business

4,967,079
3,185,087
1,781,991

4,959,664
3,269,668
1,689,995

2,762,339
1,213,946
1,548,392

2,924,332
1,293,843
1,630,489

929,416
411,328
518,087

946,653
410,799535,853

8,658,835
4,810,362
3,848,472

8,830,650
4,974,312
3,856,337(Note) Real estate leasing business revenues and expenses related to real estate leasing business are comprised of leasing business revenues and accompanying expenses (outsourcing fees, depreciation andamortization expenses, taxes and other public charges, etc.), and are recorded as Leasing revenues - real estate, Other leasing revenues - real estate and Expenses related to leasing business, respectively.

FUKUOKA REIT CORPORATION43FUKUOKA REIT CORPORATION

44

IX. Notes to Financial Statements

IX. Notes to Financial Statements(Notesto revenue recognition)
(2) Information by region

35th fiscal period (from September 1, 2021 to February 28, 2022)
Breakdown of information on revenue from contracts with customers

Proceeds from sales of real estate
Utilities income
OthersTotal(thousands of yen)

Revenues from contracts with customers (Note)–
427,51098,934526,445

Sales to external customers–
427,5108,231,324
8,658,835(Note) Leasing business revenues subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) and transfers of real estate property subject to the “Practical Guidelines on Accounting by
Transferors for Securitization of Real Estate Using Special Purpose Companies” (Accounting System Committee Report No.15 of the Japanese Institute of Certified Public Accountants) are excluded from
“Revenues from contracts with customers” as such revenues are not covered by the Accounting Standard for Revenue Recognition. Revenues generated from contracts with customers mainly represent
proceeds from sales of real estate and utilities income.

Proceeds from sales of real estate
Utilities income
OthersTotal(3) Information by major customer
Descriptions are omitted as FRC’s operating revenues for an individual outside customer are less than 10% of operating
revenues recorded in the statement of income.

(Notes to per unit information)

36th fiscal period (from March 1, 2022 to August 31, 2022)
Breakdown information on revenue from contracts with customers(a) Operating revenues
Descriptions are omitted as FRC’s operating revenues for outside customers in Japan exceed 90% of operating revenues
recorded in the statement of income.
(b) Property, plant and equipment
Descriptions are omitted as the amount of FRC’s property, plant and equipment located in Japan exceeds 90% of property, plant and equipment recorded on the balance sheet.

(thousands of yen)

Revenues from contracts with customers (Note)–
491,383
111,018
602,401

Sales to external customers–
491,383
8,339,266
8,830,650(Note) Leasing business revenues subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) and transfers of real estate property subject to the “Practical Guidelines on Accounting by
Transferors for Securitization of Real Estate Using Special Purpose Companies” (Accounting System Committee Report No.15 of the Japanese Institute of Certified Public Accountants) are excluded from
“Revenues from contracts with customers” as such revenues are not covered by the Accounting Standard for Revenue Recognition. Revenues generated from contracts with customers mainly represent
proceeds from sales of real estate and utilities income.

(Notes to segment information)

35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

Net assets per unit (yen)Profit per unit (yen)127,831
3,536

127,818
3,523(Note 1) Profit per unit was calculated by dividing the profit by the daily weighted average number of investment units. Diluted profit per unit is not stated as there are no dilutive investment units.
(Note 2) Profit per unit was calculated based on the following data:

35th fiscal period

36th fiscal period(September 1, 2021 to February 28, 2022)(March 1, 2022 to August 31, 2022)

2,814,814–
2,814,814
796,000

Profit (thousands of yen)Amounts not attributable to ordinary unitholders (thousands of yen)
Profit attributable to ordinary investment units (thousands of yen)
Average number of units during the fiscal period (units)

2,804,394–
2,804,394
796,000(Notes to significant subsequent events)[Segment information]
Descriptions omitted as FRC has a single business segment of real estate leasing business.

Disposition of AssetOn October 26, 2022, FRC concluded a sales agreement regarding the disposal of a real estate trust beneficiary interest.

[Related information]
35th fiscal period (from September 2021 to February 28, 2022)(1) Information by product and service
Descriptions are omitted as FRC’s operating revenues under single product/service classification for outside customers exceed 90% of operating revenues recorded in the statement of income.

(2) Information by region(a) Operating revenues
Descriptions are omitted as FRC’s operating revenues for outside customers in Japan exceed 90% of operating revenues
recorded in the statement of income.
(b) Property, plant and equipment
Descriptions are omitted as the amount of FRC’s property, plant and equipment located in Japan exceeds 90% of property, plant and equipment recorded on the balance sheet.

(3) Information by major customer
Descriptions are omitted as FRC’s operating revenues for an individual outside customer are less than 10% of operating
revenues recorded in the statement of income.

36th fiscal period (from March 1, 2022 to August 31, 2022)(1) Information by product and service
Descriptions are omitted as FRC’s operating revenues under single product/service classification for outside customers exceed 90% of operating revenues recorded in the statement of income.
FUKUOKA REIT CORPORATION

45

Asset to be disposed
Property name
Use
Location
Buyer
Disposition price (planned)
Disposition date (planned)

Impact on earnings (planned)

Real estate trust beneficiary interest
Kurume Higashi Kushiwara SC
Retail
370-3 Higashi-Kushihara-cho, Kurume City, Fukuoka
Undisclosed (Note 1)
2,740 million yen (Note 2)
1st (15% co-ownership interest): February 28, 2023
2nd (55% co-ownership interest): August 31, 2023
3rd (30% co-ownership interest): November 30, 2023
FRC plans to record gain on sales of real estate property as operating revenues by approximately 115 million yen for the 37th fiscal
period, approximately 432 million yen for the 38th fiscal period and approximately 238 million yen in the 39th fiscal period.

(Note 1) The buyer is a domestic operating company but is not disclosed as no consent to disclosure has been obtained from the buyer. Furthermore, the buyer does not fall under the category of interested
parties of FRC or the asset management company.
(Note 2) The disposition price (planned) does not include disposition expenses, the amount equivalent to the settlement of property taxes and city planning taxes, etc. and consumption taxes. FRC plans to disposeof the property through three separate co-ownership transactions, and the disposition price (planned) on the disposition date (planned) for each is as follows:
1st: 411 million yen (for 15% co-ownership interest of the trust beneficiary interest)
2nd: 1,507 million yen (for 55% co-ownership interest of the trust beneficiary interest)
3rd: 822 million yen (for 30% co-ownership interest of the trust beneficiary interest)(Note 3) The beneficiary interest transfer agreement for the Property (the “Transfer Agreement”) falls under the category of forward commitment, etc. (a postdated transaction agreement where the settlementand delivery are to take place one month or more after the conclusion of agreement as well as other similar agreements). In the Transfer Agreement, it has been set that FRC and the buyer, after mutually discussing and obtaining consent of the counterparty, can cancel the Transfer Agreement by paying the amount equivalent to 20% of the total purchase amount for the transaction not completed
as of the said consent, to the counterparty. Moreover, in the event either FRC or the buyer breaches the contractual obligations set by the Transfer Agreement, the counterparty may cancel the Transfer
Agreement in whole or in part, unless the breach is solved within 30days as a rule from the date when the breaching party receives notification from the counterparty. In this case, the breaching party
shall pay to the counterparty a penalty fee equivalent to 20% of the total purchase price of the transaction not completed as of the date of cancellation. Notwithstanding the above provisions related tocancellation, however, after the transfer of ownership of each beneficiary interest is put in force, no cancellation of the Transfer Agreement shall be allowed in any case for the ownership of the beneficiary interest for which transfer has been put in force.

FUKUOKA REIT CORPORATION

46

X. Supplementary Schedules

X. Supplementary Schedules(Schedule of securities)(Schedule of investment corporation bonds)

Not applicable.
Issue(Schedule of contract amount, etc. and fair value of derivative transactions
andforward exchange transactions)(thousands of yen)
Category

Type(Note 1)

Interest rate swap transaction
Receivable floating; Payable fixed

Off-market transaction

Contract amount, etc.
Of which, exceeding 1 year

21,100,000

Total

21,100,000

123,010

19,200,000

Buildings
Structures
Tools and fixtures
Land
Buildings in trust
Structures in trust
Total
property, Machinery and equipment
plant and in trust
equipment Vehicles and transport
equipment in trust
Tools and fixtures in trust
Land in trust
Construction in progressin trust
Subtotal
Leasehold right in trust
Total
Other intangible assets inintangible
trust
assetsSubtotal
Total

Decreaseduring the
fiscal period

Balance as ofAugust 31,
2022(thousands of yen)(thousands of yen)(thousands of yen)

2,000,000–

2,000,000

December 30,
2013
July 31, 2017
July 31, 2018

Total

2,000,000
1,000,000
5,000,000–––

Coupon(%)

Maturity date

Maturity
methodUse

Description

1.32

December 29,
2023

Lump-sumupon maturity

Repayment ofdebt

No collateral/
No guarantee

July 30,2032

Lump-sumupon maturity

Repayment ofdebt

No collateral/
No guarantee

July 30,
2038

Lump-sumupon maturity

Repayment ofdebt

No collateral/
No guarantee

2,000,000
1,000,000

1.00
1.20

Balance as ofAccumulated Depreciation
August 31,
depreciation for the period2022
1,171,821
53,781
14,73820,698
709
193
1,571
430
117
989,124––
104,797,631
38,070,850
1,407,425
1,976,251
907,404
28,802

Net property
andRemarks
equipment
1,118,039
19,9881,140
989,124(Note)
66,726,781(Note)
1,068,847––––
3,061,115
49,634

–
–
–
–
9,103
13,014

1,461,684

21,827–

1,483,511

745,401

38,258738,110

626

–

–

626

594

–

31

1,443,100
110,373,363

33,8783,341,901

3,336–

1,473,642
113,715,265

1,241,477–

22,069–232,165
113,715,265(Note)

500,6106,585

499,262

7,932

–

–

7,932

(Note)

219,647,851
5,545,883

6,514,941–

524,716–

225,638,076
5,545,883

41,020,649–

1,511,604–

184,617,427
5,545,883

71,136––

71,13662,820

2,919

8,315

5,617,019
225,264,870–
6,514,941–
524,716

5,617,019
231,255,095

62,82041,083,469

2,919
1,514,524

5,554,198
190,171,626(Note 1)

(Note 2)

(Note 2)(thousands of yen)
Category
Investment corporation bonds

Due in 1 year or less–

1 to 2 years
2,000,000

2 to 3 years–(Note)(Note)(Schedule of other specified assets)
Not applicable.

47(Note 1)

(Note 2)5,000,000(Note) The main increase in the 36h fiscal period is due to the acquisition of Hakata Chikushi-Dori Center Building and construction work at properties.

FUKUOKA REIT CORPORATION(Note 1)(thousands of yen)

Decrease

Balance as ofMarch 1,
2022

(Note 1) The bonds may be repurchased and cancelled by FRC at any time on and after the date following the payment date, unless otherwise determined by the book-entry transfer agent.
(Note 2) The bonds are subject to the limited pari passu clause among specified investment corporation bonds.
(Note 3) Amount of redemption of investment corporation bonds scheduled to be due within 5 years after period end.



Increase

Third Series ofUnsecured Bonds

123,010(Schedule of property, plant and equipment, and intangible assets)
Balance as ofMarch 1,2022
1,171,821
20,6981,571
989,124
101,745,620
1,939,630

Second Series ofUnsecured Bonds(Note 2)

(Note 1) The contract amount, etc. of the interest rate swap transaction is based on the notional principal amount.
(Note 2) The fair value is calculated by the counterparty of the transaction contract based on the actual interest rate on the market and other factors.

Type of asset

First Series ofUnsecured Bonds

Fair value

19,200,000

Issue date

FUKUOKA REIT CORPORATION

48

3 to 4 years–

4 to 5 years–

X. Supplementary Schedules

X. Supplementary Schedules(Scheduleof debt)
(thousands of yen)

Category
LenderBalance as ofMarch 1,
2022

Increase

Decrease

Balance as of Average
August 31, interest rate(%) (Note 1)
2022

The Bank of Fukuoka(Note 2)–

833,333

833,333–

Resona Bank

(Note 2)–

166,666

166,666–

The Nishi-Nippon City Bank

(Note 2)–

357,142

357,142–

Resona Bank

(Note 2)–50,00050,000–0.435

Balance as ofMarch 1,
2022

Increase

Decrease

Sumitomo Mitsui Trust Bank

1,500,000–

1,500,000–

Development Bank of Japan

4,000,000–

4,000,000

The Nishi-Nippon City Bank

400,000–

The Bank of Fukuoka

2,000,000

The Nishi-Nippon City Bank

Category

Repayment
date

Use of funds Description

March 31, 2022

No collateral/
No guarantee

Acquisition fundNo collateral/
No guarantee

LenderBalance as of Average
August 31, interest rate(%) (Note 1)
2022

Repayment
date

Use of funds Description

0.564

July 31, 2023

Refinance fund

–

0.880

August 31, 2023

Refinance fund

400,000–

0.870

August 31, 2023

Refinance fund––

2,000,000

0.417

February 29, 2024

Refinance fund

2,000,000––

2,000,000

0.440

February 29, 2024

Refinance fund

2,000,000––

2,000,000

0.620

February 28, 2025

Refinance fundFebruary 29, 2024

Refinance fund

The Bank of Nagasaki, Ltd.

(Note 2)–35,71435,714–The Oita Bank

(Note 2)–35,71435,714–Development Bank of JapanThe Bank of Saga

(Note 2)–

21,42821,428–Mizuho Bank

500,000––

500,000

0.440

The Nishi-Nippon City Bank

(Note 2)–

357,142

357,142–

Shinsei Bank

700,000––

700,000

0.400

July 31, 2024

Refinance fundResona Bank

(Note 2)–50,00050,000–0.410

Refinance fund

The Bank of Nagasaki, Ltd.

(Note 2)–35,71435,714–September 30,
2025

The Oita Bank

(Note 2)–35,71435,714–The Oita Bank

The Bank of Saga

(Note 2)–

21,42821,428–The Nishi-Nippon City Bank

(Note 2)–

357,142

357,142–

Resona Bank

(Note 2)–50,00050,000–

The Bank of Nagasaki, Ltd.

(Note 2)–35,71435,714–The Oita Bank

(Note 2)–35,71435,714(Note 2)–

21,428(Note 2)–

Resona Bank

(Note 2)The Bank of Nagasaki, Ltd.

(Note 2)The Oita Bank

0.435

March 31, 2022

Acquisition fund

Sumitomo Mitsui Trust Bank

300,000

Development Bank of Japan

1,500,000
100,000

The Kagoshima Bank

100,000

The Kitakyushu Bank–

300,000––

1,500,000––

100,000––

100,000

100,000––

100,000

The Juhachi-Shinwa Bank

200,000––

200,000

The Hiroshima Bank

100,000––

100,000–

The Bank of Fukuoka

1,500,000––

21,428–MUFG Bank

800,000–

357,142

357,142–600,000–

50,00050,000––35,71435,714–(Note 2)–35,71435,714–The Bank of Saga

(Note 2)–

21,42821,428–The Nishi-Nippon City Bank

(Note 2)–

357,142

357,142–

Resona Bank

(Note 2)–50,00050,000–

Short-term
The Bank of Saga
debt
The Nishi-Nippon City Bank

0.435

0.425

0.422

April 28, 2022

May 31, 2022

June 30, 2022

Refinance fund

Refinance fund

Refinance fundNo collateral/
No guarantee

No collateral/
No guarantee

No collateral/
No guarantee

No collateral/
No guarantee

–

0.718

December 30, 2025 Refinance fund

1,500,000

0.416

December 30, 2026 Refinance fund–

800,000

0.481

March 31, 2025

Refinance fund––

600,000

0.658

March 31, 2027

Refinance fund

300,000––

300,000

0.481

March 31, 2025

Refinance fund

The Bank of Fukuoka

1,300,000––

1,300,000

The Nishi-Nippon City Bank

1,000,000––

1,000,000

The Oita Bank

700,000––

700,000

The Kitakyushu Bank

700,000––

700,000

0.777

June 30, 2026

Refinance fund

The Miyazaki Bank

700,000––

700,000

1,100,000––

1,100,000

500,000––

500,000

Long-term Resona Bank
debt
The Higo Bank

The Bank of Nagasaki, Ltd.

(Note 2)–35,71435,714–The Oita Bank

(Note 2)–35,71435,714–The Iyo Bank

The Bank of Saga

(Note 2)–

21,42821,428–Development Bank of Japan

1,800,000––

1,800,000

0.650

The Nishi-Nippon City Bank

(Note 2)–

357,142

357,142–

The Bank of Fukuoka

2,000,000––

2,000,000

0.792

July 31, 2027

Refinance fundResona Bank

(Note 2)–50,00050,000–

The Nishi-Nippon City Bank

2,000,000––

2,000,000

0.892

July 31, 2027

Refinance fund

The Bank of Nagasaki, Ltd.

(Note 2)–35,71435,714–The Nishi-Nippon City Bank

500,000––

500,000

The Oita Bank

(Note 2)–35,71435,714–The Bank of Fukuoka

500,000––

500,000

The Bank of Saga

(Note 2)–

21,42821,428–The Oita Bank

100,000––

100,000–

4,000,000

4,000,000

–

0.850

August 31, 2027

Refinance fund

Sumitomo Mitsui Banking
Corporation

1,600,000–

1,600,000–

Development Bank of Japan

4,000,000–

4,000,000

Current The Bank of Fukuoka
maturities
of long- Sumitomo Mitsui Trust Bank
term debt
Development Bank of Japan

400,000–

September 30,
2027

Refinance fund–

The Nishi-Nippon City Bank

Subtotal

Subtotal

0.432

0.430

July 29, 2022

August 31, 2022

Refinance fund

Refinance fund

0.790

June 30, 2022

Refinance fund

–

1.010

August 31, 2022

Refinance fund

400,000–

0.417

August 31, 2022

Refinance fund

1,500,000–

1,500,000

0.564

July 31, 2023

Refinance fund–4,000,000–

4,000,000

0.880

August 31, 2023

Refinance fund–

400,000–

400,000

0.870

August 31, 2023

Refinance fund6,000,000

5,900,000

6,000,000

5,900,000

FUKUOKA REIT CORPORATION49

No collateral/
No guarantee

The Juhachi-Shinwa Bank

December 31, 2026 Refinance fund

The Kitakyushu Bank

100,000––

100,000

No collateral/
No guarantee

The Juhachi-Shinwa Bank

200,000––

200,000

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

The Hiroshima Bank

100,000––

100,000

Resona Bank

2,000,000––

2,000,000

0.493

The Bank of Fukuoka

1,500,000––

1,500,000

0.812

December 30, 2027 Refinance fundDevelopment Bank of Japan

500,000––

500,000

0.680

December 30, 2027 Refinance fund

The Nishi-Nippon City Bank

1,900,000––

1,900,000

0.750

February 29, 2028

Refinance fund

Sumitomo Mitsui Trust Bank

1,100,000––

1,100,000

0.600

February 26, 2027

Refinance fund

FUKUOKA REIT CORPORATION50

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

No collateral/
No guarantee

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

No collateral/
No guarantee

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

No collateral/
No guarantee

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

X. Supplementary Schedules

X. Supplementary Schedules

Balance as ofMarch 1,
2022

Increase

Decrease

Balance as of Average
August 31, interest rate(%) (Note 1)
2022

Repayment
date

Use of funds Description

MUFG Bank

1,500,000––

1,500,000

0.500

February 27, 2026

Refinance fundResona Bank

600,000––

600,000

0.567

February 29, 2028

Refinance fund

2,500,000––

2,500,000

0.720

March 1, 2028

Acquisition fund

MUFG Bank

600,000––

600,000

0.480

March 31, 2026

Refinance fund

The Nishi-Nippon City Bank

600,000––

600,000

0.802

March 31, 2028

Refinance fund

The Bank of Fukuoka

500,000––

500,000

0.802

March 31, 2028

Refinance fundMizuho Bank

500,000––

500,000

0.630

March 31, 2028

Refinance fund

Sumitomo Mitsui Banking
Corporation

500,000––

500,000

0.504

March 31, 2025

Refinance fund

MUFG Bank

500,000––

500,000

0.490

March 31, 2027

Refinance fund

Sumitomo Mitsui Trust Bank

400,000––

400,000

0.576

March 31, 2027

Refinance fund

The Oita Bank

400,000––

400,000

0.646

March 31, 2028

Refinance fund

The Hiroshima Bank

400,000––

400,000

0.646

March 31, 2028

Refinance fund

Shinsei Bank

300,000––

300,000

0.400

March 31, 2025

Refinance fund

Sumitomo Mitsui Banking
Corporation

500,000––

500,000

0.655

January 31, 2029

Refinance fund

MUFG Bank

500,000––

500,000

0.590

January 31, 2028

Refinance fund

The Nishi-Nippon City Bank

400,000––

400,000

0.417

January 31, 2029

Refinance fund

300,000––

300,000

0.417

January 31, 2029

Refinance fund

200,000––

200,000

0.334

February 27, 2026

Refinance fund

The Kagoshima Bank

200,000––

200,000

0.334

February 27, 2026

Refinance fund

The Higo Bank

200,000––

200,000

0.334

February 27, 2026

Refinance fundResona Bank

200,000––

200,000

0.488

February 28, 2029

Refinance fundMizuho Bank

0.521

July 31, 2029

Refinance fundCategory
LenderDevelopment Bank of Japan

Long-term
The Bank of Fukuoka
debt
The Oita Bank

1,200,000––

1,200,000

The Bank of Saga

500,000––

500,000

The Higo Bank

500,000––

500,000

1,500,000––

1,500,000

0.303

January 29, 2027

Refinance fund

500,000––

500,000

0.480

September 29,
2028

Refinance fund

The Nishi-Nippon City Bank

2,500,000––

2,500,000

0.480

February 28, 2030

Refinance fundMizuho Bank

1,700,000––

1,700,000

0.420

February 28, 2030

Refinance fundAozora Bank

1,000,000––

1,000,000

0.569

June 28, 2030

Refinance fundResona Bank

700,000––

700,000

0.569

June 28, 2030

Acquisition fund

MUFG Bank

500,000––

500,000

0.600

June 29, 2029

Acquisition fund

The Kagoshima Bank

500,000––

500,000

0.465

June 30, 2028

Acquisition fundDevelopment Bank of Japan

1,500,000––

1,500,000

0.530

July 31, 2030

Refinance fundMizuho Bank

1,000,000––

1,000,000

0.470

July 31, 2030

Refinance fund

The Kitakyushu Bank

500,000––

500,000

0.526

July 31, 2030

Refinance fund

The Iyo Bank

200,000––

200,000

0.526

July 31, 2030

Refinance fund

1,000,000––

1,000,000

0.590

March 31, 2031

Refinance fund

The Norinchukin BankMUFG BankThe Juhachi-Shinwa BankFUKUOKA REIT CORPORATION51

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

Balance as ofMarch 1,
2022

Increase

Decrease

Mizuho Bank

2,300,000––

2,300,000

The Hiroshima Bank

1,400,000––

1,400,000

The Kitakyushu Bank

800,000––

800,000

The Iyo Bank

500,000––

500,000

The Higo Bank

300,000––

300,000–

1,000,000––

1,600,000

Development Bank of Japan–The Nishi-Nippon City Bank

Category

Balance as of Average
August 31, interest rate(%) (Note 1)
2022

Repayment
date

Use of funds Description

0.490

July 31, 2031

Refinance fundNo collateral/
No guarantee

1,000,000

0.367

March 31, 2032

Refinance fundNo collateral/
No guarantee–

1,600,000

0.726

June 29, 2029

Refinance fundNo collateral/
No guarantee

4,000,000–

4,000,000–

500,000–

500,000

0.919

August 31, 2032

Refinance fundNo collateral/
No guarantee

The Bank of Fukuoka–

400,000–

400,000

Subtotal

71,400,000

7,500,000

5,900,000

73,000,000

77,400,000

17,400,000

15,900,000

78,900,000

LenderLong-term Mizuho Trust & Banking Co., Ltd.
debt
Sumitomo Mitsui Banking
Corporation

Total(Note 3)(Note 1) The average interest rate is a weighted-average figure during the fiscal period and is rounded to the third decimal place. Furthermore, the average interest rate of debt for which FRC conducted interest
rate swap transactions is the weighted-average figure during the fiscal period taking into consideration the effect of interest rate swaps.
(Note 2) These loans are based on commitment line agreements.
(Note 3) The borrowing is a Sustainability-Linked Loan in which it has been set as a Sustainability Performance Target (SPT) to reduce CO2 emissions (in terms of intensity) by 35% compared with fiscal 2019 by
February 28, 2031, and the achievement of the target is linked to the loan conditions. When the SPT is achieved, the contract will offer a preferential treatment for the interest rate determined at thetime of borrowing, for the period from August 2031 to the repayment date.
(Note 4) Amount of repayment of long-term debt scheduled to be due within 5 years after period end.

(thousands of yen)

Category
Long-term debt

1 to 2 years
5,200,000

2 to 3 years
3,900,000

3 to 4 years
11,100,000

4 to 5 years
12,900,000

No collateral/
No guarantee

No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee
No collateral/
No guarantee

FUKUOKA REIT CORPORATION

52