Security code

Overview of the 33rd fiscal period performance［8968 ］September 1st,2020〜February 28th,2021

Executive summary

1

Asset replacement and growth strategy

2Impact of COVID-19 infection

7

Financial statements

8

Business forecasts

10

Portfolio overview

12

Financial strategy

21

Appraisal value

24

Sustainability

26

Appendix

27＊Regarding rounding of amounts, percentage, and ratios : unless otherwise noted, in these materials,
monetary amounts are rounded down to the nearest whole unit, and percentages and ratios arerounded off to one decimal places.

Overview of the 33rd fiscal period performance［Security code8968］September 1st,2020〜February 28th,2021

These materials may contain future performance, plans, managementtargets and strategies. These forward-looking descriptions are based onpresent assumptions on future events and trends in the businessenvironment, but such assumptions may not necessarily be accurate.
Actual results may differ materially due to various factors. Neither
Fukuoka REIT Corporation nor Fukuoka Realty shall be liable for theaccuracy, rationality and completeness of information contained in thesematerials, whether they were prepared by Fukuoka REIT Corporation or
Fukuoka Realty or provided by a third party. These materials have notbeen prepared to entice investment. When applying to purchase investment units issued by Fukuoka REIT Corporation, do so based on yourown judgment and responsibility.
The illustration on the cover was created based on an aerial photo of theTenjin area in the Fukuoka metropolitan area, FRC’s investment target
area, taken from the northeastern sky.
Please note that, as of April 16, 2021, Tenjin Nishi-Dori Business Center（Land with leasehold interest）
is the sole property FRC plans to acquire among
the photographed properties, and FRC has no plan to acquire any other.

Executive summary
Announced a decrease in the ratio of retail properties and an increase in the ratio of office buildings in the portfolio through asset replacement

Asset replacement

Owned properties■ Capture the medium- to long-term growth potential of office buildings in the Tenjin area
■ Reduce the risk of having a full-service hotel that is subject to large impact of COVID-19

Tenjin Nishi-DoriBusiness Center

Property
Name（Land with leasehold interest）

Acquisition
price（scheduled）

7,700 mm yen

Acquisitiondate（scheduled）

June 1, 2021

SponsorsupportAsset
Replacement

Property
Name
Disposition
price（scheduled）

Gain on sale Disposition
95 mm yen date（Prospect） （scheduled）

CANAL CITY Hakata・B
Grand Building（88.28% co-ownership interest in Grand Building）■ Retail

properties

More strongly captured domestic demand at city-center retail facilities （Canal City Hakata）
Maintained a high occupancy rate while replacing tenants
Ended rent reduction measures and fully collected the rent that had been
subject to deferment of payment■ Office

Achieved upward revision of rents for 9 straight fiscal periods while keeping
high occupancy. Completed tenant leasing for Higashi Hie Business Center III

buildings

Change inmonthly rent

7,700 mm yen

Positive
rent gap） ＋2.8 mm yen

upon rent
revision / tenant
replacement（

New logistics facility （LOGICITY Wakamiya） started contribution to earnings
and stable operation （since November 2020）
No rent reduction or deferment of rent payment conducted for hotels （33rd fiscal period）■ Others

June 1, 2021

＋25.2％（＊1）（＊1）Positive rent gap indicates the gap between current rent （contract rent with common charges） and market rent, and is calculated as "（market rent - current rent） / current rent".

E S G

Financial Management■ Extended the 7,000-million-yen commitment line agreement with The Nishi-Nippon City

Bank serving as the agent by 1 year during the ongoing agreement period
Total debt

Committed line

Fixed rate

82,40013,00094.1％

mm yenmm yenAverage remaining
duration to maturity

5.4 years（＊3）

J-REITs' average：4.4years

LTV （＊2）

41.3％

（＊3）

J-REITs' average：44.0％（＊2）LTV is calculated as total interest-bearing debt divided by total assets.
（＊3）Indicates the average value of the latest account settlement figures of all investment corporations as of February 2021,■ External evaluation

GRESB 3 Star
Green Building certification obtained for 79.8% （based on total floor space）■ Institution of

PRI （as of September 2018）・ PFA21 （as of September 2018）

signatory

Publicized the second issue in a year (2020),■ Publication of“Integrated Report” becoming the only J-REIT to do so

calculated by Fukuoka Realty based on their disclosure materials.

（yen）

4,000

3,512

3,593

3,687

3,693

3,642

Devidend per unit
3,250

3,361

3,500

3,500

【Dividend per unit】

3,361 yen

（

2,500

34th Forecast 3,500 yen

（

2,000

35 Forecast 3,500 yen

3,500

The actualof the 33rd FP

3,000

27 th

Feb. 2018

28 thAug. 2018

29 thFeb. 201930 th

Aug. 201931st

Feb. 2020

32nd

Aug. 2020

33rd

Feb. 2021

34 th

35 th

Aug. 2021[forecast] Feb. 2022[forecast]compared with theprevious FP ＋3.4％
compared with theforecast＋1.8％
compared with
33rd Actual ＋4.1％

）

）

th

               

1Aim of Asset Replacement （announced on March 18, 2021）
Aim of Asset Replacement

Aerial protograph of Tenjin Area

Conducted asset replacement based on investment policy changed in March 2019

East

（lowering the investment ratio of retail facilities and heightening the investment ratio of office buildings）

2

Take in medium- to long-term office building market growth in the Tenjin area
9

Realize continuous sponsor support
Capture domestic demand further and contribute to future growth ofCanal City Hakata as a whole

8

7
11

3

North

10

Watanabe-dori Ave.

4

1

Secure gain on sale by selling at a price above the appraisal value

South

Reduce risks of having a full-service hotel which is largely impacted by COVID-19

6

Showa-dori Ave.

12

Improve stability in dividends

Meiji-dori Ave.

5

Overview of Asset Replacement

Property name

Investment type
Acquisition /Transfer date （scheduled）
Acquisition /Disposition price （scheduled）

Asset to be acquired
Tenjin Nishi-DoriBusiness Center

Asset to be transferred
CANAL CITY Hakata・B
Grand Building

Office building

Retail（Land with leasehold interest） （88.28% co-ownership interest in Grand Building）（Land with leasehold interest）

June 1, 2021
7,700 mm yen

Appraisal value

7,790 mm yen

7,640 mm yen

Book value （＊1）

ー

7,510 mm yen（90 ） mm yen

60 mm yen

3.5％

5.9％

NOI yield （＊2）

Asset to be acquired
1 Tenjin Nishi-Dori Business■

7,700 mm yen

Difference between acquisition /disposition price（scheduled）
and appraisal valueWest（＊1）The gain（loss ）on disposition including expenses for the disposition, etc. is estimated to be 95 million yen.
（＊2）The figure is calculated based on the NOI of the appraisal value.

Center （Land with leasehold interest）

Poperties owned
by Fukuoka RIET Corporation
2 Canal City Hakata■
3 Tenjin Northfront Building■
4 Tenjin Nishi-Dori Center■

Building

5 D-WingTower■

Properties owned
by Fukuoka Jisho Group
6 Tenjin Business Center■（planned completion in Sept. 2021）

7 Tenjin MMT Building■（during dismantling）

8 Fukuoka Kogin Building■

Other development projects
11 Tenjin 1-chome 11th Block■

Development Project（provisional name）

12 Former Daimyo■

Elementary School Site
（provisional name）

9 Tenjin Riverfront Business■Center

10 Tenjinkirameki-dori■building

Asset replacement and growth strategy

2

Investment policy and External Growth Strategy
Continous External Growth by Actively Leveraging Our Sponcer Support

External Growth Strategy● Aim for asset size of 250.0 billion yen while striving to disperse risks

in each investment type as a general REITContinue to flexibly consider
property replacements if there are any favorable opportunities● Continue selective investment mainly in office buildings,
logistics and other facilities by utilizing advantage of being a
region-specific REIT and the sponsor pipeline◎Investment policy （Investment ratios by investment type）

the 32nd fiscal period（March 1, 2020-August 31, 2020）
Logistics

Office buildings

June 1, 2021（scheduled）

RetailOffice buildings

Asset to beacquiredInvestment policy changed in March 2019
BeforeAfter

RetailRetail60-80％
20-40％

40-70％
20-50％（Hotel, Residence, Logistics, and Other facilities）（Hotel, Residence, Logistics, and Other facilities）

Office buildings

Others

0-20％

Office buildings

Others0-30％

Portfolio after asset replacement（investment ratio by investment type）■ March 2019

（Based on acquisition）
Others（Based on acquisition（scheduled））
Others13.9％
Of fice buildings■ June 2021（scheduled）

14.3％
Retail

26.9％ 59.2％

Of fice buildings

31.5％

Retail54.2％

Tenjin Nishi-DoriBusiness Center

Higashi Hie
Business Center Ⅲ

LOGICITY WakamiyaHome Plaza NAFCO
at Park Place Oita

（Land with leasehold interest）（scheduled）

3,290 mm yen

1,700 mm yen

990 mm yen

7,700 mm yen

SourceSponcer

Outside party

Sponcer

Sponcer

Property
Name
Acquisition priceSponsor pipelines, etc

Gain onAsset
Sponsor Replacement
sale
support95 mm yen
（Prospect）◎Real estate development by Fukuoka Jisho Group●Join a number of redevelopment

projects in the Tenjin area
●Join a number of redevelopment
projects in the Hakata area, and thenumber of projects in the Hakata
area is expected to increase●Scheduled to continue development oflogistics facilities after the developmentof first logistics facility in September 2020
●Enhancement of coordination of pipeline
support by raising ratio of Fukuoka Realty
shares held by Fukuoka Jisho Co., Ltd.
●Fukuoka Jisho owns 9.18% of FRC’s
investment units through same-boat
investment （as of February 28, 2021）

Acquired from sponsor （＊）

16 /32

properties

35.3％

After
Replacement

64.7％

Asset to betransferred

202,019

71,329mm yenSponsorOutside party

Retailmm yen130,690mm yenProperty
Name（＊）Because the Higashi Hie Business Center that was acquired in the 10 th FP, August 31, 2009, was acquired from both theoutside party and the sponsor, the purchase price has been added to the purchase prices from outside parties and thepurchase prices from the sponsor after calculation on a per capita basis. Furthermore, with regard to the number ofproperties, one property has been added to the number of properties acquired from the sponsor. Furthermore, theindicated figures are those after the asset replacement scheduled for June 1, 2021, is implemented.

CANAL CITY Hakata・B
Grand Building（88.28% co-ownership interest in Grand Building）（scheduled）

Disposition price7,700 mm yen

Buyer

Outside party

Asset replacement and growth strategy

3

Historical trends of asset’s size by investment type [based on acquisition]
Asset size is 201.9 billion yen at the end of the 33rd fiscal period （based on acquisition）
RetailOffice buildings

Residence

Logistics

LTV

Hotel

PO（Mar. '18）

（mm yen）

200,000（%）

80

PO（Apr. '15）

180,000

PO（Mar. '13）
PO（Mar. '11）

160,00070

140,000
PO（Sept. '06）

120,000

60

100,000

80,000LTV

43.8％ 43.8％

60,00050

Capacity up to 45% approx. 13,500 mm yen

45

46.0％ 46.5％
42.4％ 42.4％ 42.4％ 42.3％

41.2％ 41.4％

41.0％
40,00044.7％ 44.6％ 44.6％ 44.6％

Capacity up to 50% approx. 34,500 mm yen

39.9％ 39.9％ 40.1％

39.5％

38.1％

37.6％ 37.4％

39.3％ 38.9％ 39.1％ 39.7％ 39.7％ 39.8％

41.4％ 41.3％ 40

35.6％

35

20,000
30.4％
0

2nd

Aug.
2005

3rd

Feb.
2006

4th

Aug.
2006

5th

Feb.
2007

6th

Aug.
2007

7th

Feb.
2008

8th

Aug.
2008

9th

Feb.
2009

10th

Aug.
2009

11th

Feb.
2010

12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd
Aug.
2010

Feb.
2011

Aug.
2011

Feb.
2012

Aug.
2012

Feb.
2013

Aug.
2013

Feb.
2014

Aug.
2014

Feb.
2015

Aug.
2015

Feb.
2016

Aug.
2016

Feb.
2017

Aug.
2017

Feb.
2018

Aug.
2018

Feb.
2019

Aug.
2019

Feb.
2020

Aug.
2020

30

Feb.
2021

＊As the senior equity interest in an anonymous partnership managed by CCH Bridge Y.K. was redeemed in the 14 th FP, it is excluded from total acquired assets from the 14 th FP onward. Since interest in the anonymous partnership managed by Limited Liability Company
FRC1 was redeemed on in the 26 th FP, it is excluded from total acquired assets from the 26 th FP onward.

Asset replacement and growth strategy

4New acquisition property for the 34th FP
Tenjin Nishi-Dori Business Center （Land with leasehold interest） 〜Land of Office Building along Meiji-dori Avenue in the Tenjin Area〜◎Over view of the property
June 1, 2021

Acquisition Price

7,700 mm yen

Appraisal value

7,790 mm yen

SellerFukuoka Jisho Co., Ltd.（Sponcer）

Location（address）

2-149 Tenjin, Chuo Ward, Fukuoka City, and 4 lots

Area

1,343.51㎡

NOI yield（＊1）

3.5％

100m
Ave.
a-doriShow

Land to be acquired

TenjinMitsui
Building

FukuokaTenjinCenter Building.

ri AveFukuoka
Heiwa
Building

Fukuoka
ShokenBuilding

The Bank ofFukuokaHead Officeeko Linay K uw

al Subunicip

kaM
Fukuo

Hulic
Kyowa Fukuoka Fukuoka
Sumitomoseimei Building Asahi
Building
KaikanFukuoka Tenjin
BuildingNK
BuildingdoMeiji-（＊1）The figure is calculated based on the NOI of the appraisal value.

Shin

ict

Nishitetsu
Fukuoka （Tenjin） Sta.

ri

TenjinPrime

FukuokaPARCO

g distr

oppin

o sh
tench

Fukuoka
PARCO
Shinkan

Tenjin Sta.

ori

hi-d
Nis
jin Ave.

Ten
Nishitetsu
Grand HotelG Building
Nishidori 01

TenjinBuilding

-do
abe
tan .
Wa AveAcquisition date （scheduled）◎Subject area

Employed land lease agreement so that stable rental inc ome can be obtained from
Fukuoka Jisho Co., Ltd., the lessee, even during the redevelopment at the proper ty anda rental income in line with market fluctuations can be obtained after the completion of
the redevelopment （construction completion）.

◎Assumed development schedule
Year
Assumedschedule
Rent
conditions
Notes

2021

2022

2023

2024

2025

demolition
Conclusion
constructionof sales➡ settlement ➡ of existing ➡ start➡ completionbuilding
agreement

Fixed rent（318 mm yen annual）

2026

2027

2028

● Redevelopment scheduled for completion

Variable rent（＊2）●Tenjin Big Bang Project

to complete（December 2026）（＊2）Variable rent will be applied for the period starting on either March 1 or September 1 that will first arrive after nine months have passed since the completion of theredevelopment, and will be calculated by the following formula: Rent after change (variable rent) = Initial rent (fixed rent) x Most recent amount of actual income of
the building after redevelopment/Standard amount of rent income of the building after redevelopment

Asset replacement and growth strategy

5Property to be transferred in the 34th fiscal period and Canal City Hakata as a whole
Collaboration with Hoshino Resorts REIT, Inc. 〜 Promoting revitalization of Canal City Hakata as a whole 〜Over view of CANAL CITY Hakata ・ B Grand Building （88.28% co-ownership interest in Grand Building）
Transfer date （scheduled）●Implemented disposition of asset to lower the investment ratio of retail facilities based on thechange in investment policy.
●FRC has considered various options including renewal of floors that are not accommodation-category floors,stabilizing earnings through change of use, as well as transfers while engaging in dialogue with its tenants, but as
there was an offer to acquire the property from Hoshino Resorts REIT, Inc., the buyer, for some time, and upon
comprehensively considering that the transfer would lead to medium- to long-term stability of the portfolio and thatthe transfer to Hoshino Resorts Group is expected to increase demand from domestic customers as well as otherfactors, FRC decided to dispose the property based on the judgement that it would lead to the maximization ofunitholder value over the medium to long term.
●After the disposition, FRC will cooperate with Hoshino Resorts REIT, Inc. to maximize the synergistic effects of thecommercial facilities and the office portion owned by FRC and work to revitalize Canal City Hakata as a whole.
●Fukuoka Jisho Group and Hoshino Resorts Group has concluded a basic agreement on collaboration, andfurther development and continuous value enhancement of Canal City Hakata can be expected.

June 1, 2021

Disposition price （scheduled） 7,700 mm yen

Appraisal value

7,640 mm yen

Book value （＊１）

7,510 mm yen

Buyer

Hoshino Resorts REIT, Inc.

Location（address）

1-2-82 Sumiyoshi, Hakata Ward, Fukuoka City（＊1） The gain（loss）on disposition including expenses for the disposition, etc. is estimated to be 95 million yen.

Facility Conceptual Diagram of Canal City Hakata as a whole
Canal City Hakata

Canal City Hakata・B

South Building

Canal City Business Center Building

Center Walk

Asset to be transferred（88.28% co-ownership interest）（＊2）

North Building

Grand Building

Business Center Building

CANAL CITY Hakata・B Grand Building

Energy Center

Canal City ・Fukuoka
Washington Hotel（Guest room）

United Cinema
Canal City13
Parking（＊3）

Grand Hyatt
FukuokaRamen Stadium

5FStoresTheaterentrance

4F

NITORI

3F

SUPER SPORTS XEBIO

MUJI

2F

StoresStores1FStores

B1F

OPA

B2F

Offices

Canal City Theater

Ticket officeOPA

88.28%
co-ownership interest
to be transferred
Showrooms

StoresStoresClinics
Grand plaza

StoresOverview of Canal City Hakata as a whole

Parking

Parking（owned by Fukuoka REIT Corporation）（＊3）（＊2） After the Disposition, the income and expenditure will belong to Hoshino Resorts REIT, Inc., the buyer, excluding the first floor below ground which the current sublessee as of March 18, 2021, FJ. Entertainment Works Co., Ltd. operates as Grand Hyatt Fukuoka, in Grand Building.
（＊3）Fukuoka REIT does not own Canal City Theater in the North Building and has no plan to acquire it as of April 16, 2021.
＊The facility conceptual diagram conceptually shows the placement of the buildings and the shape and area ratio may differ from the current situation.

Asset replacement and growth strategy

6Impact of COVID-19 infection on retail properties
Status of Rent Reduction and Deferment of Rent Payment

Year-on-year comparison of sales （March 2020 - February 2021）
SC Sales Statistic （large cities）

SC Sales Statistic [nationwide average]

32nd

Canal City Hakata/Canal City Hakata ・B（total）
Park Place Oita＊

Konoha Mall Hashimoto

Apr.

SunLive City Kokura

Jun.

Jul.

Aug. Sept. Oct. Nov. Dec. Jan. Feb.

259 mm yen…Effective period of the state of emergency in Fukuoka

（%）

May

33 rd

140.0

January 14〜
February28

April 7〜
May 1484 mm yen

Number of tenants

Number of tenants

288 cases （＊1）

Rent
Reduction

Subject properties：

49 cases （＊1）

Subject properties：

Properties
Canal City Hakata （＊3）
temporarily closed（＊2）

120.0Deferment ofRent Payment

100.0●Start of rent reduction：

Jun. 38 cases, Sept. 10 cases, Oct. 1case＊Rent reduction ended mostly during the 33rd period●Already fully collected for all 285 cases●No new arrangement conducted

285 cases （＊1）（＊1） The number of tenant cases is a cumulative figure.
（＊2） Canal City Hakata, Canal City Hakata ・ B, and the Canal City Business Center Building（only some retail stores） , Konoha Mall Hashimoto,
Marinoa City Fukuoka （Marina Side Building) and Park Place Oita are covered.
（＊3） Canal City Hakata, Canal City Hakata ・ B, and the Canal City Business Center Building （only some retail stores） are covered.

80.0

Breakdown of retail rents （all 11 properties）
60.0

Variable rent s 941[17.4%]

Fixed rent s 4,474

31st

5,416

[82.6%]

Feb. 2020

Variable rent s 511

40.0[10.8%]

32[89.2%]

Aug. 2020

20.0

0

Fixed rent s 4,237

nd

13Home Plaza NAFCO at Park Place Oita
（Acquired at the 32nd FP）
Fixed rent s 4,323

33rd
Mar.
2020

Apr.
2020

May
2020

Jun.
2020

Jul.
2020

Aug.
2020

Sept.
2020

32nd

Oct.
2020

Nov.
2020

Dec.
2020

Jan.
2021

33rd

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from Sales Statics on the website of the Japan Council of Shopping Centers.

＊Sales at the newly acquired Home Plaza NAFCO at Park Place Oita in July 2020 are added.

Feb.
2021

[85.9%]

Feb. 2021

0

1,000

2,000

3,000

4,749
Variable rent s 709[14.1%]

5,032

39
4,000

5,000

6,000

（mm yen）＊ "Fixed rent" is indicated the amount of "leasing revenues-real estate" - "variable rents".
＊"Variable rents" are the sum of the portion of rents collected from tenants with variable and GOP rents that varies as a function of the tenants’sales.Variable rents are included Canal City Hakata, Canal City Hakata ・ B, Park Place Oita, SunLive City Kokura and Konoha Mall Hashimoto.

Impact of COVID-19
infection
資産規模の拡大

7

Statements of Income （compared with the previous fiscal period）
Increase in income through new acquisition of properties and recovery in sales of retail properties- unit : mm yen （Figures rounded down to the nearest mm yen）

Account

33rd

A■Operating profit and loss

Difference

B〜Feb. 28, 2021

B-A

385

Total operating revenues

8,518

8,904

Leasing revenues-real estate

7,912

8,306

393

605

597

（8）

Total operating expenses

5,551

5,842

290

Expenses related to leasing business

4,897

5,180

520

524

4

Asset custody fees

7

7

0

Administrative service fees

57

58

1

Director’s compensations

9

9

-

Other operating expenses

60

61

1

Operating income

2,966

3,061

95

Total non-operating revenues

0

1

0

Total non-operating expenses

379

386

6

Interest expenses（incl. investment corporation bonds）

278

282

3

Financing related expenses

94

97

2

Others

5

5

0

2,587

2,677

89

2,587

2,677

89

0

1

0

Profit

2,586

2,675

88

Total dividends

2,587

2,675

88

Dividend per unit（yen）

3,250

3,361

111

Other leasing revenues-real estate

Ordinary profit and loss

Operating profit and loss

Asset management fees

Non-Operating
profit and loss

Ordinary income
Profit before income taxes
Total income taxes

Dividend

32nd〜Aug. 31, 2020①②

Sign indicates impact on profit （ unit : mm yen）

283

① Acquired properties at the 32nd FP（LOGICITY Wakamiya）Leasing contract started in Nov. 2020 ＋53（Full-period contribution of Higashi Hie Business Center Ⅲ）＋45
Canal City Hakata・B＋122
Park Place Oita
＋85
Konoha Mall Hashimoto＋67
Office buildings（excl. Higashi Hie Business Center �）＋18［ -of which, increase in leasing revenues-real estate, etc. ＋26]
［ -of which, decrease in income from utilities

Tissage Hotel Naha
Others

（7）]

（14）
＋9
Total : ＋385

② Increase in outsourcing expenses（258）
Increase in repair & maintenance expenses（118）
Decrease in expenses from utilities＋27
Decrease in depreciation and amortization expenses ＋62
Decrease in other expenses＋4
Total : （283）

Financial statements

8

Statements of Income （compared with the forecast）
Reducing operating expenses led to a dividend 61 yen above the forecast- unit : mm yen （Figures rounded down to the nearest mm yen）

Account
Total operating revenues

33rd

A
33rd
Forecast at 32nd

8,903

Leasing revenues-real estate

8,904

①

0

Ordinary profit and loss

Operating profit and loss

5,889

5,842

②

▲312 （47）5,180

Asset management fees

7

Administrative service fees

58

Director’s compensations

9

Other operating expenses

61

Non-Operating
profit and loss

Operating income

3,013

3,061

48

Total non-operating revenues

1

1

0

Total non-operating expenses

385

386

0

Interest expenses（incl. investment corporation bonds）

282

Financing related expenses

97

Others

5
2,628

2,677

48

2,628

2,677

48

1

1

0

Profit

2,627

2,675

48

Total dividends

2,626

2,675

48

Dividend per unit（yen）

3,300

3,361

61

Profit before income taxes
Total income taxes［ -of which, decrease in income from utilities

＋12
（19）

（9）]

Office buildings
OthersTotal :

＋4
＋3

0

＋15
② Decrease in outsourcing expenses＋29
Decrease in expenses from utilities
Decrease in depreciation and amortization expenses ＋7
Increase in selling general and administrative expenses （7）＋3OthersTotal : ＋47

524

Asset custody fees

① Canal City Hakata・B
Park Place Oita

［ -of which, decrease in other miscellaneous revenue（14）]597

Expenses related to leasing business

Ordinary income

Dividend

B-A

8,306

Other leasing revenues-real estate
Total operating expenses■Operating profit and loss

Difference

B〜Feb. 28, 2021

Sign indicates impact on profit （ unit : mm yen）

Financial statements

9

Business forecast （the 34th fiscal period, Aug. 2021）
By covering the decrease in earnings due to property sale with the increase in revenue from owned properties and gain on sale, dividend per unit is forecast to be 3,500 yen

Forecast in the 34 th fiscal period- unit : mm yen （Figures rounded down to the nearest mm yen)Account

Operating revenues
Operating revenues
excluding gain on sales
Gain on sales

34th
Forecast
at 33rd

34th
Forecast
at 32nd33
Actual
rd

A

B

C

33rd
Actualdifference

34th
Forecast
difference

75

（148）

C-A

■Difference between the 33rd FP actualand the 34 th FP forecast

C-B

8,904

9,127

8,979

8,904

9,127

8,883

①

（20）

（243）

-

-

95

②

95

95

（39）

（150）

3,176

114

2

0

0

（0）

-

386

387

389

3

2

Ordinary income

2,677

2,787

2,787

110

-

Profit

2,675

2,786

2,786

111

-

Operating expenses

5,842

5,953

5,803

Operating income

3,061

3,174

Non-operating revenues

1

Non-operating expenses③

Sign indicates impact on profit （unit : mm yen）

① Full-period contribution of LOGICITY Wakamiya＋26
Acquired property at the 34th FP＋79（Tenjin Nishi-Dori Business Center（Land with leasehold interest））
Canal City Hakata＋49
Canal City Hakata・B（232）
Office buildings（excl. Tenjin Nishi-Dori Business Center ＋26（Land with leasehold interest））［ -of which, increase in leasing revenues-real estate, etc.

＋15]

［ -of which, increase in income from utilities＋10]

Tissage Hotel Naha
OthersTotal :

＋14
＋18
（20）

② CANAL CITY Hakata・B Grand Building＋95（88.28% co-ownership interest in Grand Building）Gain on sales③ Decrease in outsourcing expenses
Increase in expenses from utilities
Decrease in taxes and other public charges
Decrease in depreciation and amortization expenses

Increase in selling general and administrative expenses
Increase in other expenses

Total :

＋44
（45）
＋14
＋65
（30）
（9 ）
＋39

◎
Difference between the 33 rd FP actual（Canal City Hakata・B）

and the 34 th FP forecast

Total dividends
Dividend per unit （yen）

2,675
3,361

2,786
3,500

2,786
3,500

110
139

-

Decrease in leasing revenues-real estate（232）

Decrease in outsourcing expenses＋75

Decrease in taxes and other public charges＋32

Decrease in depreciation and amortization expenses＋32

Decrease in other expenses＋11

Decrease in operating income（82）

Business forecasts

10

Business forecast （the 35th fiscal period, Feb. 2022）
Dividend per unit is expected to be maintained despite the absence of gain on sale in the previous fiscal period
Forecast in the 35 th fiscal period- unit : mm yen （Figures rounded down to the nearest mm yen)

34
Forecast
at 33rd35
Forecast
at 33rdth

Account

A

Operating revenues
Operating revenues
excluding gain on sales
Gain on sales

34
Forecast
difference

th

th

B

■Variance from updated the 34 th FP forecast

B-A

8,979

8,724

8,883

8,724

95

-

（255）
①

Sign indicates impact on profit （unit : mm yen）

（159）
（95）

① Full-period contribution of Tenjin Nishi-Dori Business Center ＋79（Land with leasehold interest）
Canal City Hakata（19）
Canal City Hakata・B（215）
SunLive City Kokura＋12
Office buildings（excl. Tenjin Nishi-Dori Business Center ＋2（Land with leasehold interest））［ -of which, increase in leasing revenues-real estate, etc.
［ -of which, increase in income from utilities

（247）

5,803

5,555

Operating income

3,176

3,168

（7）

Non-operating revenues

0

0

-

Non-operating expenses

389

382

（7）

2,787

2,787

（0）

Ordinary income

②

（12）]

（18）
Total : （159）

OthersOperating expenses＋14]② Decrease in outsourcing expenses
Decrease in expenses from utilities
Decrease in taxes and other public charges
Decrease in depreciation and amortization expenses

＋76
＋29
＋32
＋68
Decrease in selling general and administrative expenses ＋26＋16
Decrease in other expenses
Total : ＋247◎
Variance from updated（Canal City Hakata・B）

the 34 th FP forecast

Profit

2,786

2,786

（0）

Total dividends

2,786

2,786

-

Dividend per unit （yen）

3,500

3,500

-

Decrease in leasing revenues-real estate（215）

Decrease in outsourcing expenses＋79

Decrease in taxes and other public charges＋32

Decrease in depreciation and amortization expenses＋62

Decrease in other expenses＋18

Decrease in operating income（24）

Business forecasts

11

Situation of active retail①
Sales are on a recovery trend●Canal City Hakata●Canal City Hakata・B

Sales（annual total（＊1））
Mar. 2020 - Feb. 2021

14.1 bn yen

YoY （52.9）%

Given two emergency declarations, almost all facilities wereclosed from April 7 to May 15, 2020, and business hours wereshortened in January/February 2021. In October to December,sales recovered to around 70% of year-earlier results due to thesuccess of the “Demon Slayer” movie and “Go To” campaigns.
For now, we are working to increase sales to domestic
customers with NITORI, a new store, and other measures.

●Konoha Mall Hashimoto●Park Place Oita

Sales（annual total（＊2））
Mar. 2020 - Feb. 2021

22.5 bn yen

YoY （8.6）%

Sales dropped sharply in March to May, impacted by the
emergency declaration, but have remained mostly flat
year-on-year since June. Stores handling daily necessities
and cinemas performed well. We will work increase thenumber of events and increase eatery sales by further
reinforcing infection control measures.

Sales（annual total）
Mar. 2020 - Feb. 2021

●SunLive City Kokura

13.0 bn yen

YoY （16.5）%

Given two emergency declarations, almost all facilities wereclosed from April 7 to May 15, 2020 and business hours wereshortened in January and February 2021. Sales haveremained roughly at around 90% of year-earlier results sinceJune due to strong sales of fresh food and other daily
necessities. Stable sales are expected going forward as neweatery stores are opened even amid the COVID-19 pandemic.

Sales（annual total（＊3））
Mar. 2020 - Feb. 2021ー

YoY （14.6）%

Sales dropped sharply in April/May given the emergency declaration twice, but have remained at around
90% of year-earlier results since then. Sales of fresh
foods remained strong. Work to further activate thefacility by renewing tenants in autumn 2021 as a target
and implementing common area renovation plan.

＊Sales figures are rounded down to the nearest 100 mm yen.
（＊1）Combined sales of Canal City Hakata and Canal City Hakata・B, properties owned by Fukuoka REIT. （＊2）Sales at the newly acquired Home Plaza NAFCO at Park Place Oita in July 2020 are added. （＊3）Sales figures are omitted because SunLive did not consent to their disclosure.

Year-on-year comparison of sales / Period-end occupancy rates
Year-on-year comparison of sales

Property name

32nd

33 rd

Infection Control Measures at Retail Properties

Period-end occupancy rates◎About the measures at Canal City Hakata

32ndIntroduced daily endeavors with “Canal City Hakata Morning Routines[Preventive Measures Against COVID-19]” video on YouTube

33 rd（ Aug. 2020）（Feb. 2021）（ Aug. 2020）（Feb. 2021）

Canal City Hakata

35.1％

57.5％

100.0％

97.7％

Canal City Hakata・B

35.1％

61.3％

99.5％

99.5％

Park Place Oita （＊2）

82.9％

100.2％

100.0％

100.0％

Konoha Mall Hashimoto

75.8％

91.5％

100.0％

97.8％

SunLive City Kokura

81.2％

89.6％

100.0％

100.0％

Other retail properties （＊4）

90.2％

96.7％

100.0％

100.0％（＊4）Square Mall Kagoshima Usuki, Kumamoto Intercommunity SC, Hanahata SC, Kurume Higashi Kushiwara SC, K's Denki Kagoshima, Marinoa City Fukuoka (Marina Side Building) are listed as other retail properties.

Portfolio overview

12Situation of active retail②
Increase visitors from neighboring trade zones; attract customers from wider areas in Japan over the medium to long term by offering experiential value, renovation and tenant replacement

Canal City Hakata

Store replacement■Vitalization measures with hit movies
and popular characters as a hook
◎Hit movie-related

measures・ Lottery using movie

ticket stubs

・Shopping card points

for repeat viewers

・Interior environmental

decoration

Factor of favorable
33rd period results↑Reproduced wisteria trellis with LEDs
← Set up a shelf to hang ema（wooden plaques with prayers） anddedicated those ema to Kamado
Shrine （Fukuoka prefecture）■ e-sports event■Farmers Marche

Held the final match of "Kyushu
E-Sports Student Championship2021" on April 18 at the specialv e n u e i n t h e f a c i l i t y. T h echampionship, held for the firsttime, was the fir st e-spor t s
event implemented at Canal
City Hakata.

Provided a venue to sell farm
products produced at facilities for
persons with disabilities（March 20）

・ Aqua Panorama■Konoha Mall Hashimoto

Providing experiential
value projected
for 34th period■Opening of large-scale NITORI store downtown（approx.3,645 ㎡） on March 12◎EVANGELION

Newly invited eateries and clinics, etc. to maintainoccupancy and promote vitalization even under
the COVID-19 pandemic.

Opened on January 4

performance

・Official store opening
・Setting large character

figures・Distributing movie screening

commemorative original
postcards

Contributing to attracting
customers in early 34th period©khara, inc.

Opened on February 24

Domesticneighborhood demand■Canal City Hakata ・ B◎Year-on-year change of domestic sales of existing

NITORI stores◎GUNDAM（bn yen）

800
700
600
500
400
300
200
100
0

・ Aqua Panorama
performance （April 24〜）・Selling limited plastic models（@"THE GUNDAM BASEFUKUOKA" official store）
・Holding "GUNDAM docks,"a large-scale event

Providing experiential value projected
for 34th period©SOTSU・SUNRISE

Sales

Feb. 2017

Y-o-Y change of domestic sales of existing storesFeb. 2018

Feb. 2019Feb. 2020Feb. 2021

Specialty shop for Hiroshima okonomiyaki

（％）

120
115
110
105
100
95
90
85
80

（savory, Japanese-style pancakes）「Denkosekka」 （opened first in Kyushu）

Source: Prepared by Fukuoka Realty Co., Ltd. based on NITORI Co. Ltd. Year-on-Year Changeof Domestic Monthly Sales on the website of NITORI Holdings Co., Ltd.

Portfolio overview

13Trends in the Fukuoka office market
Fukuoka business district / Vacancy rates and supply and demand of office buildings◎Progress made in informal determination of tenants for office buildings to be completed in 2021
（tsubo）

50,000Completed floor space（total floor space）［left axis］（Includes non-office use area）

45,00040,00035,00030,000 10.99

Net absorption（absorption demand）［left axis］

Completed floor space（total floor space）is different fromtotal leased floor space as the former includes common areas etc.

Vacancy rate［right axis］

15.38

6.56 ％
Central Tokyo（5 wards） 5.42 ％SendaiFukuoka 4.02％

13.23

4.01％
3.91％
2.72％

NagoyaOsaka
Sapporo

11.98
10.86

25,00020,000

7.70
6.30
4.26

5,000

3.79 4.02

3.07
2.04

（10,000）（15,000）（20,000）

14

110

12

100

10

90

8

80

4

Fukuoka(%)

130

Central Tokyo（5 wards）

As of Mar. 2021
Central Tokyo
Fukuoka

21,541
11,094（yen／tsubo）

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

（year）＊The figures from 2005 to 2020 are as of December 31 every year.
Source: Prepared by Fukuoka Realty Co., Ltd. based on data from “Office Market Data” Miki Shoji Co., Ltd.

Fukuoka business district / Average vacancy rate
◎Average vacancy rate in Fukuoka’ s business districts is rising only moderately
(%)

10.0

Fukuoka

Central Tokyo（5 wards）

2015

2016

0

0
（5,000）

Average asking rent of the Fukuoka business district rose 2.5% in the 12 months from Mar. 2020 to Mar. 2021.

120

2

2.09

◎Average asking rents during the past year [Y2005=100]16

615,00010,00020
18

As of Mar. 2021

14.72

(％)

Fukuoka business district / Average asking rents

Tenjin BusinessCenterFormer Daimyo Elementary
School Site Utilization Project
Building overview（＊）

Office and hotel building（25F）
Office: 3F and 5-16F
Leasable area: approx. 9,800 tsubo（Maximum assumption）
Community building （11F）
Event hall
（1F）

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 （year）（scheduled）（scheduled）＊Statistics from 2008 to 2020 are based on the figures at the end of December.
＊Office building-related data for each city are data for areas and buildings included in surveys conducted by Miki Shoji Co., Ltd.
＊Net absorption（absorption demand）shows the change in the occupied floor space during a specific period. It is calculated by subtracting the occupied floor space on December 31 of
the previous year from the occupied floor space on December 31 of the applicable year. （The figure for 2021 is as of March 31.） Completed floor space（total floor space）figures for 2021 and 2022 have not been finalized, and the floor space and expected completion dates are subject to change.
Source: Prepared by Fukuoka Realty Co., Ltd. based on data from “Office Market Data” Miki Shoji Co., Ltd.
（＊）Prepared by Fukuoka Realty Co., Ltd. based on the press releases of Fukuoka City Government and relevant enterprising bodies.

8.0

6.0

4.0

2.0

0

2017

2018

2019

2020

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from “Office Market Data” Miki Shoji Co., Ltd.

Portfolio overview（year）

2021

14

Office demand underpinning the Fukuoka office market
Change in the number of companies with headquarters functions/in growth area established in Fukuoka City
No. ofcompanies
established
No. ofemployees(No. of companies)(people)Of which, 6 have headquarters functions
and 15 are foreign/foreign-affiliated firms

80
70
60
50
40
30
20
10
0

5,000
4,000
3,000
2,000
1,000
0

2016

2015
No. of companies
established
No. of employees

2017

2018

2019

62

58

57

57

53

2,213

2,989

1,041

1,334

1,058

Knowledge creation

33

28

40

38

38

Call center

8

12

9

7

2

（No. by industry）

Source:Prepared by Fukuoka Realty Co., Ltd., based on data from “Headquarters functions/in growth area” by the Fukuoka City Economy,
Tourism & Culture Bureau.

Companies Subsidized by Fukuoka City Business Establishment
Support Program■ Companies subsidized in 2019 （rental type, selected from those granted 10 million yen or more）
CompanyZOZO Technologies, Inc.
KYUSHU F-LINE CORPORATION / HOUSE Logistics Service Corporation

Yahoo Japan Corporation
Sekisui House, Ltd. / FUKUOKA Shoji Co., Lid.

Mercari, Inc.
SoftBank Group Corp.

Location

Subject fields

Tenjin, Chuo Ward
Minatokashii, Higashi Ward
Tenjin, Chuo Ward
Kashiiteruha, Higashi Ward
Hakataekihigashi, Hakata Ward
Nakasu, Hakata Ward

Knowledge creation
Logistics
Headquarters functions
Large-scale customer attraction facilities
Call center, etc
Call center, etc■ Companies subsidized in 2018 （rental type, selected from those granted 10 million yen or more）
Company

Creditsafe Japan
TechJIN
Human Relation Inc.
Fukuoka City Business
Establishment
Support Program

Location

Kamigofukumachi, Hakata Ward
Tenjin, Chuo Ward
Tenjin, Chuo Ward

Cases of Office Functions
Transfer to Fukuoka

Subject fields

Call center, etc
Knowledge creation
Call center, etc

A subsidy program for companies establishing a new base in Fukuoka City, covering suchfields as knowledge creation, call centers, medicine, healthcare and welfare, environment andenergy-related, logistics, headquarters functions, and global business

Source: Prepared by Fukuoka Realty Co., Ltd., based on data from “Business Establishment Support Program Results” by the Fukuoka City Economy, Tourism & Culture Bureau.

JAPANET HOLDINGS Co., Ltd.

Moving major functions
from Tokyo to Fukuoka City （＊）

Launched “JAPANET@ FUKUOKA”,
a project to newly make Fukuoka
City one of its major bases
Will move 12 divisions including HR and
Accounting to the Fukuoka office andincrease mid-career employment, creating
ne w emplo yment in Fukuok a andexpanding new ser vices, spor t s, andregional revitalization initiatives all overJapan from Nagasaki, its place of founding,as well as from Kyushu.
（＊）Move-in to Tenjin Business Center (see P60) confirmed

Leasing Capabilities of Sponsor（Fukuoka Jisho）◎Share of managed office floor space in Fukuoka’ sbusiness districts exceeds 10%; high occupancy also maintained(tsubo)(％)

Managed floor space

80,000Vacancy rate ofmanaged floor space

60,00040,00020,000

1.6％

1.7％

1.5％

2018

2019

0.6％
0

2016

2017

＊Figures are as of December 31 of each year.

10
9
8
7
6
5
4
3
1.3％ 21
02020 （year）

Source:Prepared by Fukuoka Realty Co., Ltd., based on data from
Fukuoka Jisho Co., Ltd.

Initiatives of Attracting International Financial Functions
by Fukuoka City Government
Promotion of Attracting International Financial Functions●Projects to attract international financial functions to Fukuoka
Operate one-stop support counter specialized in international finance “Global Finance Centre”
and provide support to FinTech operators, etc.

●Promotion of attracting foreign financial

institutions, etc.

Implement promotions for foreign financial institutions,etc. to attract international financial functions

The first invitee: MCP
Holdings Limited opening
an office in Fukuoka City

〜Establishing a base forsupervising operations in Japan〜●Projects to enhance living environment for foreign residents in Japan
Life guidance upon move-in procedures, international exchange in the region,
multilingual support at ward offices （like telephone interpretation） , surveys on problems, etc.
Source: Prepared by Fukuoka Realty Co., Ltd., based on Overview of Initial Draft Budget for Fiscal 2021 by the Finance Bureau, Fukuoka City Government
dated February 16, 2021, and the press announcement by the Economy, Tourism & Culture Bureau, Fukuoka City Government dated February 12, 2021.

Portfolio
overview
保有物件の運営状況

15

Implementation Status of Remote Work in Fukuoka and Initiatives by Fukuoka City Government
Comparison of Rate of Business Starts Among Major Urban Areas （2019）

Rate of remote work implementation by region （2020）◎The rate of remote work implementation in Fukuoka Prefecture is lower than
the Tokyo metropolitan area or Osaka Prefecture.
Implementation
rate in November

Rank
1

Prefecture

Implementation
rate in April

Implementation
rate in November

49.1％

Tokyo

45.8％

Change in
implementation
rate from April（3.3）％◎Fukuoka Cit y has the highest rate of business star ts
(％)

6.0

5.3

2

Kanagawa

42.7％

34.9％

（7.8）％

3

Chiba

38.0％

26.2％

（11.8）％

3.0

4

Osaka

29.1％

24.4％

（4.7）％

2.0

5

Saitama

34.2％

24.0％

（10.2）％

1.0

12

Fukuoka

23.8％

16.4％

（7.4）％

Tokyo

Source: Prepared by Fukuoka Realty Co., Ltd. based onda t a f r om “ Glob al P o w er Ci t y Inde x
YEARBOOK 2019” by the Institute for Urban
Strategies, The Mori Memorial Foundation

3.9

Niigata27

3.9

Shizuoka

Fukuoka

3.9

Hamamatsu

54.0

Hiroshima

Barcelona

4.1

Sendai

4

4.3

Sakai

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from 2018 Housing and Land
Survey by the Statistics Bureau of the Ministry of Internal Affairs and Communications

Frankfurt

4.5

Sagamihara

Fukuoka City

3

4.5

Okayama

23 wards of Tokyo

Vienna

4.5

Kyoto

31.8％

2

4.7

Kawasaki

58.1％

In Fukuoka City,
58.1% ofcommuters
commute inless than
30 minutes

Geneva4.8

Osaka

Less than 30 minutes

52.7％

1

4.8

Kitakyushu

30 minutes to less than 1 hour

Yokohama

1 hour to less than 1.5 hours

City

4.8

23 wardsof Tokyo

33.5％

Rank

4.8

Kobe

2 hours or more
1.5 hours to less than 2 hours

4.8

Chiba

Others (home/unknown)

5.0

Kumamoto

5.4％

Saitama

1.1％
0.7％
1.3％

Nagoya12.4％（comparison with the world’s cities）

0

Sapporo

1.1％
0.3％
1.6％

Short commuting time
to work and school

5.1

3.2

Fukuoka

Comparison of commuting times（Fukuoka City and 23 wards of Tokyo）

5.2

5.0
4.0

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from “Emergency Survey on the Impact of COVID-19 on Telework” and “The Fourth
Emergency Survey on the Impact of COVID-19 on Telework (Preliminary Report),” PERSOL RESEARCH AND CONSULTING CO., LTD.

5.8

Source:Prepared by Fukuoka Realty Co., Ltd., based on data from “The general condition of the Fukuoka city economy” by the Fukuoka
City Economy, Tourism & Culture Bureau.

Initiatives of Startup Support by Fukuoka City Government
A City of Startups Connected to the World●Promote formation of a base city for startup ecosystem

Support creation of unicorn companies by utilizing the Cabinet Office’s“Strategies for Creation of Startup Ecosystem”●Programs to support growth of startups aiming
for new listing through external human resources
Support startups aiming at new listing to utilize experienced
professionals in solving management issues, etc.

●Operation of startup support facilities

Operate Fukuoka Growth Next, a startup support facility

photo by Ikunori Yamamoto

Source: Prepared by Fukuoka Realty Co., Ltd., based on Overview of Initial Draft Budget for Fiscal 2021 by the Finance Bureau, Fukuoka City
Government dated February 16, 2021.

Portfolio
overview
保有物件の運営状況

16

Historical and projected office buildings’ occupancy rates
Maintaining high occupancy levels while steadily increasing rent per unit area（％）

1

Canal City Business Center Building
Total leasable floor space：23,029.92㎡

2

Gofukumachi Business Center
Total leasable floor space：19,905.34㎡

3

Sanix Hakata Building
Total leasable floor space：6,293.75㎡

4Taihaku Street Business Center （＊1）
Total leasable floor space：11,249.92㎡

5Higashi Hie Business Center
Total leasable floor space：13,614.59㎡

6

Tenjin Nishi-Dori Center Building
Total leasable floor space：3,339.32㎡

7Tenjin North Front Building
Total leasable floor space：5,252.41㎡

8

Higashi Hie Business Center Ⅱ
Total leasable floor space：6,214.77㎡

9

Higashi Hie Business Center Ⅲ
Total leasable floor space：2,981.14㎡

Average occupancy rates（historical and projected）
Total leasable floor space：91,881.16㎡

100.0
90.0

99.1

99.8

100.0

100.0

80.0
100.0
90.0

100.0

100.0

100.0

100.0

100.0

80.0
100.0
90.0

100.0

100.0

100.0

98.2

99.1

100.0

99.9

99.7

100.0

100.0

80.0
100.0
90.0
80.0
100.0
90.0

100.0

100.0

100.0

100.0

100.0

80.0
100.0
90.0

100.0

100.0

100.0

100.0

100.0

100.0
90.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

80.0
100.0
90.0
80.0
90.0

92.7（＊2）

80.0

90.0
80.0

99.1

99.6

56,020 mm yen

Investment ratio

27.7％

Average age

17 years 3 months

Tenants

228

Total leasing
revenues-real estatein the 33rd FP

2,424 mm yen

Rent positivegap＋25.2％ （＊4）（＊3）The figures are indicated as of February 28, 2021.
（＊4）Rent positive gap indicated the gap between current rent: contract rent with common
charges and market rent, and is calculated as “current rent – market rent /current rent”. Moreover, market rent indicated average of assumed newly

Trend in rent unit price index
of owned properties （＊5）（index）

108.0

350

31

94.1

99.5

100.0

Leasing to complete with move-ins for remaining
sections （approx. 52 tsubo） starting in April 2021
99.7

99.8

99.9

106.0
105.0
104.0
103.0
102.0
101.0
100.0

737

Move inMove out

Total amountof acquisition

107.0

100.0

100.0

Major indicators of owned properties（＊3）

closed rent assessed by CBRE as of Feb. 2021.

80.0（tsubo）

Move-in/move-out floor space

96.5

0
22

202

32

33

180

123

101

172

0

34

35

st
nd
rd
th
th
＊Occupancy rates are calculated as a weighted average during period.
〜Feb. 29, 2020
〜Aug. 31, 2020〜Feb. 28, 2021
〜Aug. 31, 2021
〜Feb. 28, 2022
＊Total leasable floor space is figured as of the end of period.
（forecast）（forecast）＊Percentages and ratios are rounded off to the second decimal place.
（＊1）Residential floor spaces are removed from the total leasable floor space of Taihaku Street Business Center.（＊2）Since Higashi Hie Business Center � was acquired on May 29, 2020, the occupancy rate is shown from the 32nd fiscal period.

99.0

24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd
Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb.
2016 2017 2017 2018 2018 2019 2019 2020 2020 2021（＊5）The rent unit price index is based on the average rent per unit area at the endof each fiscal period compared with the rent per unit area at the end of the 24th
fiscal period（August 2016）, which is set as 100. This covers all office building
properties excluding Higashi Hie Business Center � and Higashi Hie BusinessCenter �（But, for Canal City Business Center Building, only the spaces fromthe 2nd floor and above are covered）.

Portfolio overview

17Office building rent revisions and tenant replacement situation
Increase in rent has continued
Change in monthly rent due to rent revisions and tenant replacements （＊1）（thousand yen）

Newly occupied floor space and number of new occupants（tsubo）

7,000

Change due to tenant replacements

800

Change due to rent revisions

Newly occupied floor space（％）

Rent’s rate of increase/decrease （＊2）

80

700

6,500
6,000
5,500
5,000

600

60

500

50

400

40

300

30

200

20

100

10

0

4,500
4,000

70

29th

30th

31st

32nd

33rd

Feb. 28, 2019

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020Feb. 28, 2021

Number of
new occupants

0

6

7

0

4

Average freerent period（＊3）-

0.3 months

0.2 months-

1.3 months0（＊2） Based on calculation of the rate of change in rent with respect to the contract rent with the previous tenant at the time of tenant replacement.
（＊3） Based on calculation of the average over the free rent period of new contract.

3,500
3,000

Floor space subject to rent increase and number of properties subject to rent increases（＊1）

2,500

5,000
4,500
4,000
3,500

（tsubo）

2,000
1,500
1,000
500
0

29th

Feb. 28, 201930th

Aug. 31, 201931st

Feb. 29, 2020

32nd

Aug. 31, 2020

33rd

（％）

Rent’s rate of increase/decrease （＊4）

10
9
8
7

3,000
2,500
2,000

6
5
4

1,500
1,000
500
0

3
2
1
0

Feb. 28, 2021

＊Covers all office buildings owned at the end of each fiscal period（However, for Canal City Business Center Building, only the spaces from the 2nd floor and above arecovered and Higashi Hie Business Center � is not included）.
（＊1）There were no revisions to the rent reductions.

Floor space subject to rent increase

Number ofrent increase

29th

30th

31st

32nd

33rd

Feb. 28, 2019

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020Feb. 28, 2021

6

16

10

14

8

（＊4） Rate of increase/decrease calculated based on previous rent at rent revision.

Portfolio overview

18

Situation of other assets （Hotel, Residence）
Over view of Hotel

Residential properties（occupancy rate by property at end of period）

Grand Hyatt Fukuoka（＊1） Fukuoka Washington Hotel[Canal City Hakata・B][Canal City Hakata]

Hotel FORZA Oita

Tissage Hotel Naha

occupancy rates

Hotel

Type
Leasing Form
Area

◎Residential properties have continued to operate at a high occupancy rate.

Full-service

Specialized foraccommodation

Specialized foraccommodation

Specialized foraccommodation

Fixed＋Variable rents

Fixed＋Variable rents

Fixed rents

Fixed＋Variable rents

Fukuoka City

Fukuoka City

Oita City

Naha City

Rooms

372

423

205

132

Operator

FJ Hotels（Fukuoka Jisho Group）

WHG Nishinihon（Fujita Kanko Group）

FJ Hotels（Fukuoka Jisho Group）

Nest Hotel Japan
Corporation（＊1）Scheduled to transfer in June 1, 2021.

◎Trends in lodging occupancy index （monthly average）（index）

80.0

Tokyo

Fukuoka

Oita

Okinawa

Applicable period for the“Go To Travel” campaign

29th

30th

31st

32nd

33rd

（Feb. 2019）（Aug.2019）（Feb. 2020）（Aug.2020）（Feb. 2021）

Amex Akasakamon Tower

98.8%

98.5%

95.0%

90.6%

98.8%

City House Keyaki Dori

95.6%

92.3%

93.3%

100.0%

97.8%

Aqualia Chihaya

99.3%

100.0%

97.9%

97.9%

97.9%

D-Wing Tower（＊4）

95.0%

94.0%

97.7%

96.7%

95.1%

Granfore Yakuin Minami

98.0%

100.0%

97.0%

99.0%

96.0%

The weighted average of 5 properties

97.3%

96.9%

96.6%

96.3%

97.0%

（＊4）The figure for D-Wing Tower includes the retail portion.

◎Rate of increase/decrease in new rent and percentage of caseswith rent increase/decrease

60.0

（％）

100

40.0
20.0

80

0

19 019 019 019 019 019 019 019 2019 019 019 019 020 020 020 020 020 020 020 020 020 020 020 020 021 021 021
2
2
2
2 .2
2
2
2
2
2 y2 .2 .2
2
20
2
2 y2
2
2 g. 2.2.2.2
t. 2 v.
t. 2 v.
c.
g.
c. an. eb.
n. eb.
b.
npt.
pt.
a Jun Jular Apr.
ara Jun. Jul.
ar Apr.
a
J
J
Oc No De Ja
Oc No
M
F
M
F
M
Au Se
M
Fe
M
Au
De
Se

60

Source: Prepared by Fukuoka Realty Co., Ltd. based on the data of "DATA SALAD", Kyushu Economic Research Center.

40

Canal City Hakata ／Canal City Hakata・B◎Average year-on-year comparison of RevPAR （＊2）

year-on-year

32 nd（Aug. 2020）

33 rd（Feb. 2021）（85.0） ％（53.7） ％＊The f igure is c alculated as the aver age value for Gr andHyatt Fukuoka and Canal City Fukuoka Washington Hotel.

53.3％

Tissage Hotel Naha

66.7％

57.6％

70.5％

53.7％

20

33 rd
32 nd
compared with
（Aug. 2020） （Feb. 2021） the previous FP
Room occupancy
rates

36.0％

67.9％

＋31.9％ADR （＊3）

5,031 yen

4,237 yen（794） yen

RevPAR（＊2）

1,812 yen

2,878 yen

＋1,066 yen（＊2） Revenue Per Available Room = Total accommodation-category sales over a certain period of time divided by the total number of guest rooms available for sale for the same period.
（＊3） Average Daily Rate = Total accommodation-category sales over a certain period of time divided by the total number of guest rooms sold over the same period.

0
No. of tenant
replacement
Rent’s rate ofincrease/decrease

29th

30th

31st

32nd

33rd

Feb. 28, 2019

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020Feb. 28, 2021

60

45

33

44

41

2.2％

0.2％

0.9％

0.9％

0.4％

（＊5）
（＊5） Rate of increase/decrease calculated based on previous rent at tenant replacement.

Portfolio overview

19Situation of other assets （Logistics）
Supply and demand of logistic facilities and vacancy rates
New supply（tsubo）

New demandvacancy rate

40,00010

HakataPort（Completed on March 27, 2021）

495

2
2020

Koga

Fukuoka I.C.

Itoshima

方
面

崎

至
長

43,233.72㎡

24,505.65㎡

17,556.32㎡

Acquisition
timingMarch 2014

Occupancy
rate

100.0％March 2015

June 2017100.0％

100.0％

Asakura鳥栖＊

Tosu JCT area

200m

Ukiha

Oita Expressway

Asakura I.C.
Haki I.C.

Hita I.C.

in Line

JR Kudai Ma

Kurume Kurume I.C.

ine

aki L

agas

JR N

100.0％

386

Tosu Logistics Center大分県
Green Logistics Park
Tosu

Tosu I.C. Chikugoogori Amagi
Saga Pref.
y
I.C.
Tosu I.C.
sswa
e
r
Ogori
p
ki Ex
a
s
a
Higashiseburi I.C.
Nag

June 2020

3

31

385

Sagayamato I.C.

Tashiro Sta.

322

496

Omuta Line4,173.29㎡

yTotal leasable
floor space

323

swa

1,700 mm yen

res5,050 mm yen

211

鳥栖市役所I.C.
Chikushino道路

8,150 mm yen

久留米基山筑紫野

1,250 mm yen

Expcarried out

Acquisition
price

Dazaifu I.C.
17

shu

（ Renovation work ）

田川市
Tosu
IC

Fukuoka Pref. Kama

Kyu

October 2020

新幹

January 2015

九州

April 201434

17

inkansen
Kyushu Sh 線

February 2005

500
34

205

Fukuoka

Fukuo山浦PA
ka U
E xpress wrban
ay

Iizuka

201

201

ki
sway
asa y
Oita Expr es
Nag esswa
r
E xp
500
Tosu JCT

Kyushu Expressway

nekuhi Li200

Nishitetsu Tenjin

LOGICITY
Wakamiya

JR Chi

May 2008

322
至長崎

88

131

Kag JRosh
Line ima

LOGICITY
Hisayama

HigashiKyushu
Expressway Yukuhashi
弥生が丘

en

Sa

LOGICITY
Minato Kashii

329

Fukuokaony

Hakata Port,10
Fukuoka IC areanskaProperty
name

Built
timingKoga I.C.
inSh

Tenjin1km

17NogataMiyawaka I.C.
Miyawaka

3

Overview of Logistics
Tosu Logistics
Center

都
北九州

LOGICITY Wakamiya
Fukutsu

Fukuoka Airport

速市高Hakata Sta.

Tenjinkita

0（year）＊The figures are covered total floor spaces (more than 5,000㎡) which owned by real estate investment company and real estate development
company in Fukuoka and Saga.
Source: Prepared by Fukuoka Realty Co., Ltd. based on data of CBRE

607

JR Sasaguri Line

線

2019

Fukuoka IC

3

本

2018

21

下関市

68

豊

2017

Sanyo Shinkansen

3

3

Munakata西公園

Kyushu Expresway

日

2016

Kaizuka495

4

10,0003

HakataBay

620,0000KashiiHama

Fukuoka Urban Expressway
Route 6（Island city Line）

8

30,000

North

JR ii
h
KasineL

12

LOGICITY Hisayama

LOGICITY Minato Kashii

10km

（％）

50,000LOGICITY Minato KashiiFuku
E x p ok a Ur
r es
s w abany◎There continues to be no vacancies

Major logistics area

Hirokawa I.C.

is owned by Fukuoka REIT Corporation（As of April 16, 2021）. ＊is owned by Fukuoka Jisho Group（As of April 16, 2021）.

Portfolio overview

20Key financing events in the 33rd fiscal period and the 34th fiscal period
Extension of commitment line agreement and long-term financing （10 years） achieved
New Borrowing

Extension of commitment line agreement period （33rd）◎Result of long-term financing in the 34 th fiscal period（Aug. 31, 2021）◎Extended the commitment line agreement with The Nishi-Nippon City Bank
serving as the agent by 1 year during the ongoing agreement period,
setting the remaining term （commitment period） at 3 years◎Secured flexible and stable financing means
PeriodLenderCredit Limit（mm yen）

Start

End

Committed
line ofcredit 1

The Bank of Fukuoka
Resona Bank

6,000

Aug. 1, 2018

Jul. 31, 2023

Committed
line ofcredit 2

The Nishi-Nippon City Bank
Resona BankThe Oita Bank
The Bank of Nagasaki
The Bank of Saga

7,000

Mar. 2, 2020 Feb. 29, 2024

Total

13,000

AmountDate

LenderMarch 31,2021

The Juhachi-Shinwa Bank

（mm yen）

1,000

Term

Interest rate

10-year（Fixed）

0.59%

The Juhachi-Shinwa Bank will donate a portion of
the profits from this loan to Nagasaki University
as funds for research and development of a
COVID-19 vaccine.

The Juhachi-Shinwa Bank
Merger Commemorative
Business Loan “JS”

Diversification of debt maturities（As of February 28, 2021）
Floating（mm yen）

14,00013,00012,000

Fixed

Investment corporation bonds

Committed line of credit 13,000 mm yen

10,000
8,000
6,000
4,000

2,000
6,300

5,600

2,000
0

0
34

th

2021

35

th

5,900

400

0

36

37

th

2022

th

38

th

2023

2,500

4,200

2,000

700

39

40

th

th

2024

2,000

1,900

300

41

42

43

st

nd

2025

rd

6,600

4,400

7,000

7,000

5,400

1,500
44

th

2026

45

th

1,200
700

46

th

2027

47

th

48

th

2028

49

th

2,700
50

th

2029

4,200
51

st

4,900
2,000
nd

56th

1,000
68th

2030

2032

2038

52

Financial strategy

21

Financing condition①
Establishment of stable financial base
Fixed andfloating
rate

Average interest rate （＊1） and duration
Average interest rate（％）

Duration （years）（years）

（％）

1.3

7

1.1

6

6.0

1. 0

6.1

6.0

5.9

0.72

0.71

29th
Feb. 28, 201930th
Aug. 31, 201931st
Feb. 29, 2020

0.6

2

0.69

0.69

32nd
Aug. 31, 2020

33rd
Feb. 28, 2021

R&I

Long-term
rate

3

0.73

AA-

（Stable）

4

0.8
0.7

JCR

at the end of Fixedthe 33rd FP 94.1％

5

5.4

0.9

0.5

5.9％

8

1.2

Credit ratings （＊2）

Floating

A＋

100％（Stable）

1
at the end of
the 33rd FP

0（＊2）JCR: long-term issuer rating obtained fromJapan Credit Rating Agency, Ltd.
R &I: issuer rating obtained from Rating andInvestment Information, Inc.

（＊1）Interest rates are rounded off to the second decimal place.

LTV
（％）

50

45

44.6％

44.6％

46.0％

46.5％
42.4％

42.4％

42.4％

42.3％
39.9％

40

39.9％

40.1％
38.1％

39.3％

38.9％

39.1％

39.7％

39.7％

39.8％

26th

27th

28th

29th

30th

31st

41.4％

41.3％

32nd

33rd

35

30

14th
Aug.
2011

15th
Feb.
2012

16th
Aug.
2012

17th
Feb.
2013

18th
Aug.
2013

19th
Feb.
2014

20th
Aug.
2014

21st

Feb.
2015

22nd
Aug.
2015

23rd
Feb.
2016

24th
Aug.
2016

25th
Feb.
2017

Aug.
2017

Feb.
2018

Aug.
2018

Feb.
2019

Aug.
2019

Feb.
2020

Aug.
2020

Financial strategy

Feb.
2021

22

Financing condition②
A stable network of sponsor banks and other lenders
Breakdown of debt by lenders
Investment
corporation bonds 6.1％
Aozora Bank

1.2％

Shinsei Bank

1.2％

The Norinchukin
Bank
3.0％
Resona Bank

5.0％

A regional bank transaction network

Investment corporation bonds

Sponsor banks

Development
Bank of Japan

14.2％

mm yenat the end of
the 33rd FP

Sumitomo Mitsui
Banking Corporation 3.2％
Sumitomo Mitsui
Trust Bank

4.0％

MUFG Bank

5.9％

Mizuho Bank

8.7％

Committed line of credit

The Oita Bank
Borrowing

500
300

Committed line of credit

1,500
500

The Miyazaki Bank
Borrowing

700

The Juhachi-Shinwa Bank
1,500
BorrowingThe
Nishi-Nippon
City Bank

13.7％

The Bankof Fukuoka
Megabanks, Trust banks

The Bank of Saga
Borrowing

21.6％（ex sponsor banks）

82,400
Others＊As of February28, 2021
Borrowings:（mm yen）

The Bank of Fukuoka
The Nishi-Nippon City Bank The Kitakyushu Bank
10,000 Borrowing
11,300 Borrowing
2,200
Borrowing
5,000 Committed line of credit 5,000
Committed line of credit

Regional banks

Regional
banks◎Sharing of information networks unique to regional banks toutilize for our investment strategy in the area

12.1％

The Bank of Nagasaki
Committed line of credit

The Higo Bank
Borrowing

500

1,300

The Kagoshima Bank
Borrowing

The Hiroshima Bank
2,000
Borrowing
The Iyo Bank
Borrowing

800

1,200

◎Green financeCategory

LenderLong-term
debt（Green Loan）

Mizuho Bank
The Bank of Saga
The Higo Bank

Balance Average
Interest（mm yen）
Rate
2,200

0.521％（＊1）

Drawdown Repayment
Date
Date
Jul. 31
2019

Jul. 312029

Description
No collateral, No guarantee
Lump-sum upon maturity
Fixed interest rate
Green loan rating : Green 1（＊2）（＊1）FRC has concluded a swap agreement to practically fix interest rate on debt. The indicated interest rate reflects the effect of the swap agreement.
（＊2）FRC was assigned the comprehensive assessment of Green 1, the highest rank, regarding the compatibility to the Green Loan Principles fromJapan Credit Rating Agency, Ltd. （JCR）.

Financial strategy

23

Appraisal value
Maintained unrealized gains for all properties （＊1）
- unit : mm yen （Figures rounded down to the nearest mm yen）

Appraisal value
Property nameAcquisition
price

Acquisition
cap rate（＊2）

RetailOffice buildings
OthersCanal 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)
Total of retail
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
Total of office buildings
Amex Akasakamon Tower （Residence）
City House Keyaki Dori（Residence）
Aqualia Chihaya（Residence）
D-Wing Tower（Residence）
Granfore Yakuin Minami（Residence）
Hotel FORZA Oita
（Hotel）
Tissage Hotel Naha
（Hotel）
Tosu Logistics Center（Logistics）
LOGICITY Minato Kashii（Logistics）
LOGICITY Hisayama（Logistics）
LOGICITY Wakamiya （Logistics）
Total of others
Total properties

32,00028,70019,610
6,633
10,000
5,300
2,400
1,130
2,500
3,550
5,250
117,073
14,600
11,200
4,400
7,000
5,900
2,600
2,800
4,230
3,290
56,020
2,060
1,111
1,280
2,800
1,100
1,530
2,835
1,250
8,150
5,050
1,700
28,866201,959

6.0%
5.4%
6.0%
6.6%
5.3%
6.3%
6.5%
6.4%
6.1%
5.7%
5.5%
6.3%
6.3%
5.9%
6.0%
6.0%
5.4%
6.1%
4.9%
4.4％
5.4%
5.5%
6.8%
5.9%
5.6%
6.6%
5.3%
5.9%
5.2%
5.1%
6.4％
-

Difference

Feb. 28, 2021

Aug. 31, 2020

32nd

Book value
at 33rd①②③

30,70028,90021,2008,440
10,300
4,960
2,740
1,200
2,740
3,660
6,080
120,920
16,80015,200
6,510
9,180
8,280
3,140
4,400
4,580
3,320
71,410
1,840
1,030
1,900
3,580
1,340
1,890
2,860
1,320
9,100
5,340
2,370
32,570224,900

31,50029,70021,3008,440
10,400
4,940
2,750
1,250
2,790
3,710
6,080
122,860
16,60014,900
6,410
9,090
8,030
3,100
4,380
4,600
3,300
70,410
1,840
1,140
1,860
3,500
1,320
1,890
2,880
1,300
8,910
5,270
2,360
32,270225,540

29,58428,701
20,195
5,439
9,913
4,296
1,956
967
2,010
2,930
5,416
111,412
12,922
8,796
3,763
5,698
4,405
2,663
2,447
4,023
3,275
47,996
1,652
891
1,157
2,652
1,088
1,364
2,834
1,162
7,789
4,800
2,167
27,563
186,972

33rd

From
Appraisalvalue at 32nd
①-②
（800）
（800）
（100）

0
（100）
20
（10）
（50）
（50）
（50）
0
（1,940）
200
300
100
90
250
40
20
（20）
20
1,000
0
（110）
40
80
20
0
（20）
20
190
70
10
300
（640）

Direct capitalization values

FromBook value
at 33rd
①-③

1,115
198
1,004
3,000
386
663
783
232
729
729
663
9,507
3,877
6,403
2,746
3,481
3,874
476
1,952
556
44
23,413
187
138
742
927
251
525
25
157
1,310
539
202
5,006
37,92733rd
Cap rate④

32nd
Cap rate
⑤

4.5%
4.7%
5.4%
5.8%
5.1%
5.7%
5.6%
5.4%
5.5%
5.4%
4.8%
4.4%
4.3%
4.1%
4.4%
4.5%
3.9%
4.1%
4.5%
4.3%

-

-

Tanizawa Sogo Appraisal

0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%

Tanizawa Sogo Appraisal

Tanizawa Sogo Appraisal
Japan Real Estate InstituteJapan Real Estate InstituteTanizawa Sogo Appraisal
Japan Real Estate InstituteJapan Real Estate InstituteTanizawa Sogo Appraisal
Tanizawa Sogo Appraisal
Tanizawa Sogo Appraisal
Tanizawa Sogo Appraisal

Tanizawa Sogo Appraisal
Japan Real Estate InstituteJapan Real Estate InstituteTanizawa Sogo Appraisal
Japan Real Estate InstituteJapan Real Estate InstituteTanizawa Sogo Appraisal
Tanizawa Sogo Appraisal

4.5%
4.5%
4.8%
4.6%
4.4%
5.1%
4.9%
5.2%
4.4%
4.6%
5.7%

-

0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-

4.4%
4.3%
4.1%
4.4%
4.5%
3.9%
4.1%
4.5%
4.3%

4.5%
4.5%
4.7%
4.5%
4.3%
5.1%
4.9%
5.1%
4.3%
4.5%
5.6%

Appraiser

④-⑤

4.5%
4.7%
5.4%
5.8%
5.1%
5.7%
5.6%
5.4%
5.5%
5.4%
4.8%
-

-

Difference

0.0%
0.0%
（0.1） %
（0.1） %
（0.1） %
0.0%
0.0%（0.1） %
（0.1） %
（0.1） %
（0.1） %-

Daiwa Real Estate Appraisal
Daiwa Real Estate Appraisal
Japan Real Estate InstituteTanizawa Sogo Appraisal
Tanizawa Sogo Appraisal
Japan Real Estate InstituteTanizawa Sogo Appraisal
Japan Real Estate InstituteTanizawa Sogo Appraisal
Tanizawa Sogo Appraisal
Tanizawa Sogo Appraisal（＊1） Unrealized gain is calculated by subtracting period-end book value （excluding construction in progress in trust） from the latest appraisal value.
（＊2） “Acquisition price” indicates the amount excluding such expenses as fees and taxes and other public charges.

Appraisal value

24

Historical appraisal values （unrealized gains）
Maintained continuously since the 3rd fiscal period （Unrealized gains 37,927 mm yen, 20.3% ratio of unrealized gains at the 33rd FP ）（＊1）

Historical appraisal values
Book value at the end of period( * 2)（mm yen）

250,000

Unrealized gains = (latest appraisal value – book value at the end of period( * 2))

29,467200,000

16,777 19,830

8,243
6,498
150,000
20,799

5,543

6,066

9,138

11,09736,92331,804 34,087

37,648 37,927

22,878 25,541

24,255
21,152

14,434

6,522

21,07012,465 9,300

18,742

8,953

9,394

6,989

13,955
7,894

100,000

1,893-411
146,621146,246
146,621
146,246 150,603

50,00081,771

0

2nd

Aug.
2005

86,777

3rd

Feb.
2006

93,556

4th

Aug.
2006

103,025 107,338

5th

Feb.
2007

6th

Aug.
2007

112,001 115,560 115,195

7th

Feb.
2008

8th

Aug.
2008

152,422

158,851 158,007 159,128 159,246

172,406 171,555 168,902

182,352 184,715 183,532 182,336 187,891 186,972
164,527 169,031 168,138

120,299 119,486 118,686 118,411

9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd

Feb.
2009

Aug.
2009

Feb.
2010

Aug.
2010

Feb.
2011

Aug.
2011

( * 1)Ratio of unrealized gains = （latest appraisal value – book value at the end of period( * 2)）／book value at the end of period（＊2）.
( * 2)Book value at the end of period does not include construction in progress.

Feb.
2012

Aug.
2012

Feb.
2013

Aug.
2013

Feb.
2014

Aug.
2014

Feb.
2015

Aug.
2015

Feb.
2016

Aug.
2016

Feb.
2017

Aug.
2017

Feb.
2018

Aug.
2018

Feb.
2019

Aug.
2019

Feb.
2020

Aug.
2020

Appraisal value

Feb.
2021

25

Sustainability
Materially significant issues
Policies and targets

Reduction ofenvironmental load

● Coordinate with Property Management and Building Management on promotion of management and reduction ofenergy consumption, greenhouse gas emissions, water consumption, and waste output

Maintenance andenhancement ofenvironmental andconstruction performance● Carry out performance and function evaluation of properties on a regular basis and ameliorate any deterioration in
performance, etc.
● Maintain and improve competitiveness by acquiring green building certifications and through visual representationof building performance

Asset
manager● Improve quality of operations by enhancing and expanding employee education system and promoting acquisitionof qualifications● Continue to improve office environments and work on providing pleasant working environments● Give consideration to work-life balance and boost employee satisfaction

Tenant● Promote improvement of employee satisfaction and work towards increasing job satisfaction of tenant employees

Environment

Materially significant issues

Creation ofpleasant
workplaces

Environment ➡ P36

SocialGovernanceContribution to boosting
attractiveness andvitalization of Fukuoka
and Kyushu● Enhance dissemination of information regarding strengths and charms of Fukuoka and Kyushu● Support research and studies on local economy and industries and promote attractive urban development incollaboration with local business circles

Involvement inlocal community● Deepen dialogue and collaboration with local community through participation in community activities and various
initiatives using properties under our management to grow and develop together with the local community

Information disclosureand dialogue
with stakeholders● Disclose financial and non-financial information to stakeholders in an appropriate and timely manner● Build relationships of trust through proactive dialogue with stakeholders and reflect stakeholder feedback inmanagement strategy

Compliance /Risk management● Ensure thorough compliance including compliance with laws and ordinances and elimination of conflict of interest
with interested parties, and develop and operate an appropriate internal risk management system to maintain andimprove corporate value

Certification from external organizations ➡ P35
and information disclosure■Publication of “Integrated Report2020”: （becoming the only J-REIT to do so）

and local heavy rains due to global warming

Following the replacement and new installation of water stops at Canal City Hakata inthe 32nd fiscal period, newly installed water stops as countermeasure against flooding
caused by typhoons at Tissage Hotel Naha in the 33 rd fiscal periodSocial ➡ P37、38■Support for town creationand vitalization in
investment target areas●Provided support to 7

districts in total by utilizing
the Corporate Version ofHometown Tax System

Tosu city donation ceremony
Left:Fukuoka Realty CEO Etsuo Matsuyuki
Right:Mayer Hashimoto

Governance ➡ P39■External evaluation■Green Building certificate●The GRESB survey 2020

●Green Building certificate
acquisition ratio

Certificatedproperties

Integrated Report Card

■Measures against river flooding caused by typhoons

Received the rating of “GreenS t ar ” and “ 3 s t ar ” in t he
GRESB survey 2020

79.8％
※As of Febrary 28, 2021
（based on total floor space）■Changes to the asset

management fee structure●Effective on September 1, 2020
（beginning of the 33rd fiscal period）
The Management Fees 1 and 3
were reviewed for the purpose of
fur ther r einf or cing the link age
between unitholder interest and theasset management fee structure

・ Management Fee 1

Reduced the rate of total assets at
the end of the fiscal year from 0.3%
to 0.25%

・ Management Fee 3

Raised the rate from 2.0% to 3.6%
on the amount av ailable f or
distribution before payment of the
management fee 3

Sustainability

26

サステナビリティへの取り組み

Appendix27

Profile
Special features of Fukuoka REIT Corporation

1
2
3
4
5

Proven track record over 33 fiscal periods as a region-specific REIT

◎Investment type
Portfolio summary （＊2）

rdAsset management leveraging our in-depth knowledge of the real estate environmentof Fukuoka and Kyushu region, one of our greatest strengths

Number of properties /Asset size （＊3）
Of which,acquisition from sponsors （＊4）

15 / 122,990 mm yen

Excellent portfolio centered on Fukuoka metropolitan area

Unrealized gains

37,927 mm yen

A portfolio of carefully selected investments in the high growth area of Fukuoka City
attention from around Japan and overseas

Total leasable floor space

608,557.70 ㎡

Occupancy rate

99.5％

Solid support from a sponsor company involved in property development
Asset portfolio expansion and high occupancy rates facilitated through coordination
with our sponsors

Establishment of stable financial baseConservative control of interest-bearing debt ratio, long-term diversificationof repayment deadlines

DPU kept at a constant level ever since the IPO
Maintain and improve of the dividend provision through effective
asset management

Total debt

82,400 mm yen

LTV

41.3％

Fixed rate

94.1％

Average interest rate

0.69％
JCR AA−（Stable）
R &I A＋ （Stable）

Overview of Fukuoka REIT Corporation （＊1）

Investment unit price （＊2）

Name

Fukuoka REIT Corporation

Unit price

Security code

8968

Listed dateJune 21, 2005 （Tokyo Stock Exchange, Fukuoka Stock Exchange）

Fiscal period

February ・ August

Asset manager

Fukuoka Realty Co., Ltd.

Sponsors

Fukuoka Jisho Co., Ltd., Kyushu Electric Power Co., Inc.,
THE BANK OF FUKUOKA, LTD., THE NISHI-NIPPON CITY BANK, LTD.,
Nishi-Nippon Railroad Co., Ltd.,SAIBUGAS HOLDINGS CO., LTD. Kyudenko Corporation,
Kyushu Railway Company, Development Bank of Japan Inc.

（＊1） The information is as of April 16, 2021.

Outstanding units
Market capitalization
Net assets value per unit
Market net assets value per unit （＊5）

Dividend （actual）
Dividend yield

Others31 / 201,959 mm yen

Financial highlight （＊2）

Credit ratings（based on acquisition price）

14.3％
Office buildings

Retail

27.7％

58.0％

◎Investment area（based on acquisition price）

Other
Kyushu areas

23.4％

Fukuoka
metropolitan area

76.6％

168,500 yen
796,000 unit
134,126 mm yen （unit price ＊ outstanding units）
127,656 yen
171,943 yen
3,361 yen per unit （Days in fiscal period 181days） at the 33rd FP
4.0％ { （Dividend / days in fiscal period ＊ 365） / Unit price}（＊2） The figures are as of February 28, 2021 (excl. average interest rate)（＊3）The figures are total of acquisition price.
（＊4） Because the Higashi Hie Business Center that was acquired in the 10th fiscal period （period ended August 31, 2009） was acquired from both outside parties andsponsors, the purchase price has been added to the purchase prices from outside parties and the purchase prices from sponsors after calculation on a percapita basis. Furthermore, with regard to the number of properties, one property has been added to the number of properties acquired from sponsors.

（＊5） Market net asset value per unit=（Total net assets + Unrealized gains - Total amount of dividends）/ Total number of investment units outstanding

Appendix28

A real estate investment trust specializing in regional properties
Investment policy

Sponsors （＊1）

◎Investment area

THE BANK OF FUKUOKA

THE NISHINIPPON CITY BANK, LTD.

5％

5％

5％

THE BANK OFFUKUOKA, LTD.

THE NISHI-NIPPONCITY BANK, LTD.

Development
Bank of Japan Inc.

55％
Fukuoka Jisho
Co., Ltd （＊2）

社外

Outsidedirector

Director

Fukuoka Realty Co., Ltd.
(Asset Manager)

10％
Kyushu ElectricPower Co., Inc.

60-90％

10-30％
0-10％

Other Kyushu areas（Including Okinawa and Yamaguchi prefectures）

Others◎Investment type
Others（Hotel, Residence, Logistics, and Other facilities）

Office buildings

5％

5％

5％

5％

SAIBUGAS HOLDINGS
CO., LTD.

Kyudenko
Corporation

Nishi-Nippon
Railroad Co., Ltd.

Kyushu Railway
Company（＊1） The information is as of April 16, 2021.
（＊2） Concluded MOU with Fukuoka REIT and Fukuoka Realty concerning pipeline support.

Fukuoka metropolitan area

Retail0-30％

20-50％

40-70％
Appendix29Current situation of Fukuoka City ①
Distribution Chart of Net Increase/Decrease in Population

Trends in number of population growth in Fukuoka City
◎Cities with high population growth rate
5.12％

1,600

3.49％

Rank3 Sendai

3.46％

Rank4 Saitama

3.40％

Rank5 Sapporo

Surpassed
1.6 million
peopleapporox.
5 times

1,550

Surpassed
1.5 million
people

1,500

1,553

1,567

1,579

1,592

1,603

1,538
1,524
1,450

1,509
1,494

Social increase/decrease

2.03％
Average of
1.10％
government
ordinance-designated 0
1
2
3
4
5 （％）
cities
Source: Prepared by Fukuoka Realty Co., Ltd. based on Ministry of Internal
Affairs and Communications “Population Census of Japan in 2015”

35,000Osaka

Social increase

thousand（ people ） Rank2 Kawasaki

Number of populationin Fukuoka City

（ Net increase in in-migrants: number of in-migrants / number of out-migrants）（Rate of increase from October, 2000 to July, 2015）

Rank1 Fukuoka

Ranked 1stamong government
ordinance-designatedcities（comparison of ordinance-designated cities）（2019）30,00025,00020,000
Yokohama
NagoyaFukuoka

15,000Saitama

SapporoKawasaki

10,000
Chiba
Kyoto
Kobe

Sendai

5,000

Sagamihara
Okayama

Hamamatsu

Kitakyushu Shizuoka
Niigata

Sakai

Kumamoto

Natural increase0

Hiroshima（5,000）（10,000）

1,400（8,000）（6,000）（4,000）（2,000）

0

2,000

4,000

Natural increase/decrease
2012

2013

2014

2015

2016

2017

2018

2019

2020

（year）＊The number of population is the figure as of October 1. (Year 2020 is the figure as of September 1)
Source: Prepared by Fukuoka Realty Co., Ltd. based on data from “Estimated Population”（Fukuoka City General Affairs and Planning Bureau）
and “Population,
Demographics and Number of Households Based on the Basic Resident Register”（Local Administration Bureau, Ministry of Internal Affairs and Communications）（Net increase in the number of births: Number of births － Number of deaths）
Source: Source: Prepared by Fukuoka Realty Co., Ltd. based on data from “Population, Demographics and Number of Households Based on the
Basic Resident Register （2020） ” （Local Administration Bureau, Ministry of Internal Affairs and Communications） .

Appendix30

Current situation of Fukuoka City②
Youth and working-age population ratios of nationwide and major cities（2015）

16.5

Kumamoto

Okayama

16.0
15.0

Kobe

Sagamihara

14.5

Chiba

Sakai

14.0
Kitakyushu

13.5

57.0

58.0

Yokohama
SapporoHamamatsu

Nationwide

Shizuoka【Nationwide】Youth population: 14.5%
Working-age population: 60.0%

60.0

61.0

62.0

63.0

64.0

65.0

66.0 （％）

Interregional migration of university students in Kyushu（people）

1,409

Students fromoutsideStudents
prefecturefrom within[12,001]
prefecture[14,817]

44.7%

Enrolled in universities in Saga

3,488人1,208

Enrolled in universities in Nagasaki

55.3%

Saga
Oita

Nagasaki
Kumamoto

5,618

1,333
Enrolled in universities in Kumamoto

7,141

842
847

2,000

574

1,500

183

1,000

167

800
143

671
（＊）

89

161
2,205

2,414

2,141

1,631

1,392

MiyazakiKagoshima

0

2015

2016

2017

2018

2019

45
297
267
2020

7
（year）

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from “Statistics on Legal Migrants”（Ministry of Justice） and “Number of Passengers
on Overseas Routes”（Port and Airport Bureau, Fukuoka City）.
（＊） The number was 674,000 people （including preliminary figures） as of the 32nd fiscal period. However, the final figure is 671,000 people.

Source: Prepared by Fukuoka Realty Co., Ltd. based on Ministry of Internal Affairs and Communications “Population Census of Japan”

26,8183,000

Number of persons landing on ships on overseas
irregular service routes

500

59.0

Working-age population （Percentage of city population aged 15 to 64）

University students
in Fukuoka

Port of Hakata

Fukuoka Airport

2,500

Saitama

Hiroshima

Niigata

Kawasaki
Tokyo

Osaka

Nagoya

15.5

3,500

Fukuoka

Sendai

Kyoto

17.0

Youth population（ Percentage of city population aged 15 to 29
）

17.5

13.0

thousand（ people ）【Fukuoka City】Youth population: 17.4% （ranked 1st）
Working-age population: 64.8% （ranked 3rd）

（％）

18.0

Change in number of overseas visitors

5,123

Two International Convention Centers Opened in Hakata Ward,
Fukuoka City （April 2021）
Name

Marine Messe Fukuoka Hall B

Outside of Kyushu

Hakata International Exhibition Hall
& Conference Center

1,046
Enrolled in universities in Oita

4,249
820

Enrolled in universities in Miyazaki

4,207
1,062

Enrolled in universities in Kagoshima

6,161

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from FY2020 School Basic Survey（Preliminary Results）（Statistic Bureau,
Ministry of Internal Affairs and Communications）

Photo by Fukuoka Economic Editorial Department

Total floor
space

10,622㎡

apporox. 18,000㎡

Numberof rooms

1 Multi-purpose exhibition hall（ 5,000㎡）
2 large meeting rooms（ approx.400㎡）

2 halls（ 3,000㎡）, 16 meeting rooms（approx.40〜200㎡）（after split ）Scheduled
eventsVaccination venues, MICE,The FINA World Championships （2022）, etc.

Exhibitions, trade fairs,
international / academic conferences, etc.

Appendix

31

Portfolio properties' occupancy rates
Maintained high occupancy rates
Historical occupancy rates [the weighted average during the period]
Fukuoka REIT Corporation（＊1）

（％）

100.0
99.8

99.0

99.4 99.2

99.7

98.4 98.4 98.4

98.5 98.3

J-REIT average（＊2）

99.3

99.3 99.1
99.2 99.3 99.1
99.0 99.0 99.1 99.0

98.9 98.7

98.1
98.1 97.9

97.6

97.2 97.2 97.0 97.1

97.4 97.6 97.6

97.9 98.1

99.1

99.8 99.7 99.6 99.7 99.6 99.6 99.7
99.5 99.5 99.6 99.6 99.4
99.3

99.2 99.2 99.2 99.2 99.1 98.9
98.8 99.0（＊3）（＊3）
98.5 98.5 98.6 98.7 98.6 98.7 98.7

95.0

90.0

2nd

Aug.
2005

3rd

Feb.
2006

4th

Aug.
2006

5th

Feb.
2007

6th

Aug.
2007

7th

Feb.
2008

8th

Aug.
2008

9th

Feb.
2009

10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd
Aug.
2009

Feb.
2010

Aug.
2010

Feb.
2011

Aug.
2011

Feb.
2012

Aug.
2012

Feb.
2013

Aug.
2013

Feb.
2014

Aug.
2014

Feb.
2015

Aug.
2015

Feb.
2016

Aug.
2016

Feb.
2017

Aug.
2017

Feb.
2018

Aug.
2018

Feb.
2019

Aug.
2019

Feb.
2020

Aug.
2020

Feb.
2021

（＊1） The investment corporation’ s occupancy rates in the 2nd fiscal period through the 4th fiscal period were the occupancy rates at the end of each fiscal period. For the 5 th fiscal period through the 33rd fiscal period, the occupancy rates are the weighted average occupancy rates during the fiscal periods.
The ratio of total leased floor area to leasable floor area is shown.
（＊2） The overall J-REIT occupancy rate is the occupancy rate at the end of each fiscal period based on the Association for Real Estate Securitization’ s AJPI-J-REIT Databook.
（＊3） The overall J-REIT occupancy rates for the 32nd and 33rd fiscal periods are preliminary figures. The figures for the 33rd fiscal period are the figures for November 2020.

Occupancy rates [the weighted average during the period]
Category

Investment ratio（based on acquisition price）

29 th〜 Feb. 28, 201930 th

〜 Aug. 31, 201931st

〜 Feb. 29, 2020

32nd

〜 Aug. 31, 2020

33 rd

〜 Feb. 28, 2021

Retail

58.0％

99.8％

99.8％

99.9％

99.8％

99.2％

Office buildings

27.7％

99.8％

99.0％

99.1％

99.5％

99.5％

Others

14.3％

99.1％

99.2％

99.2％

99.1％

99.4％

Total

100.0％

99.7％

99.6％

99.6％

99.7％

99.3％
Appendix32Dividend and NAV per unit
■22nd
■29th
■32nd
LOGICITY Minato Kashii
Tissage Hotel Naha 2,835
Higashi Hie Business Center Ⅲ 3,290
8,150 ■26th
Marinoa City Fukuoka（Marina Side Building） 5,250
1,700
LOGICITY Wakamiya
LOGICITY
Hisayama
5,050
th
th
■14
■18
Park Place Oita（adjacent land）
Park Place Oita（Home Plaza NAFCO） 990
590
D-Wing Tower
Canal City Hakata・B 28,700
2,800 ■21st
■28th
■25th
Hotel FORZA Oita
1,530
Granfore Yakuin Minami 1,100
Park Place Oita（Sports Club NAS）1,470 Konoha Mall Hashimoto 10,000
Tenjin North Front Building 2,800
AEON Hara Shopping Center（Sold） （5,410） Higashi Hie Business Center Ⅱ 4,230■16th（adjacent land）860（2,800） Park Place Oita
Aqualia Kego（Sold）
th
Cruiseship■20
Aqualia Kego
2,800
passenger
Kumamoto
Tosu
Logistics
Center
1,250
Aqualia Chihaya 1,280
earthquake■17th
Tenjin Nishi-Dori Center Building 2,600

Dividend per unit
（yen）

5,000

shopping sprees

4,000
3,293

3,384

3,324

3,238

3,257

3,291

3,243

3,278

13th

14th

15th

16th

17th

18th

19th

20th

3,435

3,563

3,574

3,479

3,398

3,422

3,512

3,593

3,687

21st

22nd

23rd

24th

25th

26th

27th

28th

29th

3,693

3,642

COVID-19

3,250

3,361

32nd

33rd

3,000
2,000
1,000
0

30th

31st

Feb. 2011 Aug. 2011 Feb. 2012 Aug. 2012 Feb. 2013 Aug. 2013 Feb. 2014 Aug. 2014 Feb. 2015 Aug. 2015 Feb. 2016 Aug. 2016 Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Aug. 2019 Feb. 2020 Aug. 2020 Feb. 2021

NAV per unit （＊）（yen）

200,000
180,000
160,000
140,000
120,000
100,000

125,647 123,001 121,447 122,299 123,041 127,080

13th

14th

15th

16th

17th

18th

128,375 131,215

19th

20th

136,051

21st

144,472

22nd

148,558

152,259 150,328 152,639

23rd

24th

25th

26th

156,20427th

167,118
161,315 164,250

28th

29th

30th

170,680 171,592 171,943

31st

32nd

33rd

Feb. 2011 Aug. 2011 Feb. 2012 Aug. 2012 Feb. 2013 Aug. 2013 Feb. 2014 Aug. 2014 Feb. 2015 Aug. 2015 Feb. 2016 Aug. 2016 Feb. 2017 Aug. 2017 Feb. 2018 Aug. 2018 Feb. 2019 Aug. 2019 Feb. 2020 Aug. 2020 Feb. 2021
＊ A 5-for-1 split of investment unit was effectuated on March 1, 2014. A 5-for-1 split of dividends and NAV per units before the 19th FP.
（＊）Market net asset value per unit=（Total net assets + Unrealized gains - Total amount of dividends）/ Total number of investment units outstanding

Appendix33

Earthquake risk in Fukuoka, etc.
All properties owned by Fukuoka REIT are covered by earthquake insurance
Probabilistic earthquake prediction map
Probability of occurrence of an earthquake with a magnitude of nearly 6 orhigher in the next 30 years ［Average case / all earthquakes］［Reference date: January 1, 2020］

Basic Rate of Earthquake Insurance◎Earthquake insurance with coverage starting on January 1, 2021 and thereafter●In Fukuoka Prefecture, earthquake insurance can be bought at a relatively smaller cost than inother areas.FRC has bought earthquake insurance for all of its owned properties.

27,500

Tokyo
Aichi

11,800Osaka

11,8007,400

Fukuoka

0

5,000

10,00015,00020,00025,000（yen）

30,000＊The basic rate is per 10 million yen of insurance amount mainly for steel-frame and concrete structure buildings over the insurance period of one year.

Source: Prepared by Fukuoka Realty Co., Ltd. based on data from Basic Rate of Earthquake Insurance (earthquake insurance contract with coveragestaring on January 1, 2021 and thereafter) by the Ministry of Finance.

Example of measures taken by the Fukuoka City government against
other natural disasters [Fukuoka City flooding countermeasures]◎Storm water storage facilities●Capacity of storm water storage facilities

FY2019 128,300 ㎥

FY1999 No storm water storage facilities

Storm water management capacity increased from 59.1mm/h to 79.5 mm/h （city center）◎Instances of building inundation in Fukuoka Cityof
（Numberbuilding ）Instances of building inundation
steadily declining

3,000
2,000

0

probability
Source: Office of the Headquarters for Earthquake Research Promotion, Earthquake and Disaster-Reduction Research Division,
Research and Development Bureau, Ministry of Education, Culture, Sports, Science and Technology

Maximum hourly
precipitation（mm/h）

Storm water drainage
capacity has
increased significantly.

3,173

1,000

Between
FY2000 and FY2019…

1,721

1,122

3

Since the launch of
the project in FY2000…

Instances of inundation
have steadily declined.

June 29,
1999

July 19,
2003

July 24,2009

August 30,
2013

79.5

104

116

72.5

＊Number of buildings: Total number of buildings inundated above and below floor level; Period: June 29, 1999 to December 31, 2018
Source: Prepared by Fukuoka Realty Co., Ltd. based on data from the “Storm Water Management Action Plan 2026” pamphlet about the Fukuoka City
Storm Water Emergency Control Plan.

Appendix34

Certification from external organizations and information disclosure
External evaluation

Institution of signatory
Signing of the PRI and PFA21 as of September 2018
◎Principles for Responsible
Investment （PRI）◎ The GRESB survey 2020

Publication of “Integrated Report 2020”（the second issue, becoming the only J-REIT to do so）
FRC published the “Integrated Repor t 2020,” which
integrally provides its financial and non-financial
inf or mation and enc ompasses it s initiatives f orsustainable growth and medium-to long-term corporate
value creation, as of December 2, 2020.
Aimed at demonstrating FRC’s value-creation process inan easy-to-understand manner, the Report presents its
history, management philosophy, value-creation activities
and the foundations underpinning management, etc.
This r epor t was c ompiled in r efer enc e to“International Integrated Reporting Framework” by◎Principles for Financial Action

towards a Sustainable Society（Principles for Financial Action
for the 21st Century）

For the second consecutive year, wepar ticipated in GRESB Real Est ate

Assessment of GRESB（Global Real Estate
Sustainability Benchmark）conducted in
2020, Received the rating of “GreenStar”and “3 star” in the GRESB survey 2020.

the International Integrated Reporting Council（IIRC）
and “Guidance for Collaborative Value Creation” by
the Ministry of Economy, Trade and Industry.

DBJ Green Building Certification

Integrated Report Card

◎DBJ Green Building Certification
Fukuoka REIT has obtained DBJ Green Building Certification, a system by Development Bank of Japan Inc.（DBJ）tocertify real estate properties evincing high environmental and social awareness for the following 11 properties.

Certificatedproperties

79.8％（based on total floor space）

5-star●Canal City Hakata （2018） ●Canal City Hakata ・B（2018）4-star●Park Place Oita（2018） ●Canal City Business Center Building（2018）●Konoha Mall Hashimoto（2017）3-star●LOGICITY Minato Kashii （2020） ●LOGICITY Hisayama （2020）●Gofukumachi Business Center （2018） ●Higashi Hie Business Center （2018）●Higashi Hie Business Center Ⅱ（2017）

1-star●SunLive City Kokura（2019）●Marinoa City Fukuoka（Marina Side Building）（2019）◎Green Building certificate acquisition ratio [as of Febrary 28, 2021]
Green Building certification obtained for 79.8% of entire portfolio◎Improvements from the previous report● Macroeconomic Environment around Fukuoka City
● CEO’s Message● Strategies of Each Depertment

BELS （Building-Housing Energy-efficiency Labeling System） Evaluation
This is a system in which a third party evaluates and announces
the energy-conservation performance of non-residential buildings
based on the “Guidelines for Evaluation of Energy Conservation

Performance of Non-residential Buildings（2013）.” Four properties
owned by the Fukuoka REIT corporation were certified.
Higashi Hie Business Center Ⅱ

Higashi Hie Business Center

LOGICITY Minato Kashii

LOGICITY Hisayama

Aim to enhance the environmental performance of owned properties through external
evaluation in order to help realize a sustainable society and maximize unitholder value
over a medium to long term.

Appendix

35

ESG Initiatives （Environment）
Installation of Solar Panels

Fukuoka REIT

Greening

Konoha Mall Hashimoto

Fukuoka REIT

Countermeasures to Flooding Risks Fukuoka REIT

（installation of water stops）

Canal City Hakata

Canal City Hakata

Park Place Oita

Tissage Hotel Naha

Posting power発電量等を共用部へ掲示
generation, etc. in common areas

LOGICITY Minato Kashii, others

Canal City Hakata
NEW

NEW

Mobile phone charging station

Newly installed water stops and added automatic doors on
the side of the entrance to prevent water intrusion upon typhoons

Water reuse system

Reduction of Air-Conditioning Load Fukuoka REIT

Fukuoka REIT

（shielding paint on skylights）
Park Place Oita

Canal City Hakata

Rainwater

Groundwater

Kitchen drainage

Block ultraviolet
ray by approx.

Exterior

Block infrared
ray by approx.

Interior

films containing
Skylight Coating
shielding paint attached
Room temperature decreaseby blocking infrared rays
-2℃〜-5℃

50%

90%Energy-saving effect by adjusting the set temperature of air-conditioners

Appendix36

ESG Initiatives （Society①）
Consideration for the Elderly, People with Disabilities, etc. Fukuoka REIT

Child-rearing support

Konoha Mall Hashimoto

Konoha Mall Hashimoto

Installed intercoms

Certified as excellent type for the Welfare Town
Creation Ordinance （by Fukuoka City Government）

Promote Co-Creation with Local Communities
Konoha Mall Hashimoto

Fukuoka REIT

Canal City Hakata

Library book drop

Acquisition of pedestrian bridge naming rights（Use naming rights fee for road maintenance）“Park and Ride ”
recommended“One Person, One Flower” campaign

Fukuoka REIT

Children's Plaza in Hashimoto, Nishi Ward
Tenant moved in

OtherPark Place Oita

（Jointly conducted with
communities and schools)）

Tie-up with local festivals

Parking lot dedicated topregnant women and stroller users（crime prevention, disaster response, improved convenience）

Crime prevention patrol（Setting up a yamakasa decorative float andAqua Panorama performance）

Installed a wash-basinfor hands and feetCollecting plastic bottle caps（for supporting vaccinationin developing countries）

Fukuoka REIT

Canal City Hakata, others

Police liaison office

EV charging station

Rental smartphone charger

Installed AED（Free to use upon disaster）（automated external defibrillator）

Rental umbrella service

Rental bike service

Appendix37

ESG Initiatives （Society②）
Corporate Version ofHometown Tax System

Fukuoka Realty
NEW

Utilized the Corporate Version of Hometown Tax
System for 7 cities (Kurume, Miyawaka, Tosu, Oita,
Kumamoto, Kagoshima, and Naha) from the cities
where FRC owns properties, with regard to projects
related to industry and tourism.

Anti-infection measures
Park Place Oita

NEW

●Major anti-infection measures
●
●

●
●

Initiatives for tenants■Support for tenants（restaurant/eatery）●Lunch box market●●●

Canal City Hakata
restaurants sell
take-out lunch
boxes

●

Improve the employee
lounge environment
Emergency drills
Various training
program
Employee discountCanal City Hakata

NEW

Fukuoka Realty《Fukuoka Realty: Numbers of credentialed personnel》

Install alcohol disinfectants and anti-splash screens
Call for attention to social distancing
Conduct thorough health management of tenants’
employees by taking their temperature, etc.
Install acrylic plates in the employee lounge NEW
Conduct antibacterial treatment for handrails andescalator belts, etc. NEWof permanent employees: 9 years and 1 month■Full-time personnel: 41 [Male:20 Female:21] ※51.2％ Female●●

Employees seconded from sponsors：2
Employees seconded to a sponsor：4

●

●

●

●

Real estate brokers : 27

ARES Certified Masters : 23

Certified Building Administrators : 4First-class registered architect : 2
Real estate appraisers : 3

●

●

●

●

●

●

●
●

Participates in Hakata Town Planning Promotion
Council （as director）
Participates in Fukuoka Directive Council
Hosts the Kyushu IR Workshop
Hosted the Real Estate, Finance and Economic
Networking （2019）
Participates in the ESG Dialogue Platform by the
Ministry of the Environment
Participates in the Kyushu SDGs Forum
Hosts the Fukuoka International Architectural
Design Competition

●
●
●

●

Install alcohol disinfectants at the entrance
Strengthen ventilation in common areas, etc.
Post warnings about anti-infection measures inelevators
Install space sterilization devices NEW
Broadcast video on efforts with infection control
measures NEW《Support for flexible working styles》
●

●
●
●
●

●

Child-rearing support（maternity leave,
childcare leave system）
Nursing care leave
Leave for voluntary work
No overtime days
Employee welfare（401K, cumulative
investment system, etc.）
Encouraging use of paid holidays, etc.

The KYUSHU IR Workshop held online《Training for employees》
Regular lectures by Kyushu Economic Research Center
Compliance training● ESG training● Nursing care training● In-house recreation, etc.
●●

《Career development support》■Number of credentialed personnel●●

Fukuoka Realty●Major anti-infection measures（As of February 28, 2021）■The average number of years of continuous service●■Office buildings●

Initiatives for employees●■Retail●Fukuoka REIT

Other activities

Fukuoka REIT

Attorneys : 1

MBA : 1

Administrative Scrivener : 1

SME management consultant : 1

●
●
●
●

●

Employee satisfaction survey
Self-assessment system
Career interview
Secondment system（dispatching of employees
to sponsor companies）
Promotion from contract employee topermanent employee status, etc.

Offering of training programs tailored to eachmanagement level
System for supporting acquisition of qualifications（Real Estate Securitization Master, Real EstateTransaction Agent, etc.）
Support for language learning, etc.

●

●

●

Appendix38

ESG Initiatives （Governance）
Governance System

Fukuoka Realty

Fukuoka REIT

Fukuoka Realty has established a Basic Policy on Compliance, as well as compliance regulations
and other internal r ules to prevent c onf lic ts of interest. We c onduc t c onf lic t of interest risk
management per taining to our dealings with stakeholders in an appropriate manner based on theabovementioned rules and regulations with preliminary assessment carried out by the ComplianceDepar tment general manager and deliberations c onduc ted by the Complianc e A ssessment
Committee (consisting of the Compliance Department general manager and three outside experts).

◎Decision-making process
Proposals by responsible department

Third-party assessment
by external experts

Matching unitholder interests and sponsor interests, etc.

Fukuoka Realty
Fukuoka REIT・Same-boat investment by sponsor

Fukuoka Jisho Co., Ltd., the main sponsor, has 9.18% of FRC’s investment units
as of the end of the 33 rd fiscal period.

・ Cumulative investment system for investment units（42.9% of the officers and employees perticipated in the system）

A cumulative investment system for investment units was introduced for the Asset Manager
officers and employees in April 2015 in order to enhance their mindset for FRC’s investment
unit price and better performance as well as promote their assets formation.

Appointment of Outside Directors（other than interested persons）

Fukuoka Realty

Secure transparency and fairness of the Board of Directors［Real estate appraisals］
Inspection by Compliance Department
general manager

Deliberations by the Investment
Management Committee■ Japan Real Estate Institute■ The Tanizawa Sogo Appraisal Co., Ltd.

■ Daiwa Real Estate Appraisal Co., Ltd.
［Market reports］■ Analysis on trade areas andcompetition situation

Changes to the asset management fee structure

The Management Fees 1 and 3 were reviewed for the purpose of further reinforcing the linkage between
unitholder interest and the asset management fee structure, and the following changes were resolved at
the ninth General Meeting of Unitholders held on May 26, 2020 for further enhancing unitholder value.
The changes became effective on September 1, 2020（beginning of the 33rd fiscal period）

Asset management fees

■ Adequate rent levels, etc.
Deliberations/resolution
by the Compliance Assessment Committee

Resolution/decision-making report
by Board of Directors

Fukuoka REIT Corporation Board
of Executive Officers[Engineering reports]■ Law abidance andearthquake resistance■ Check of soil contamination,
toxic substance and use status■ Replacement market price,
expenses for long-term maintenanceand repairs, etc.

Fukuoka Realty

Management Fee 1（based on total assets）

Calculation method【3 months from the day following the last day of the immediately preceding fiscal period】
Total assets at the end of the immediately preceding fiscal period
× 0.25%（previously 0.3%）× number of days / 365【From the day following the last day of the period above to the end of the fiscal period】（Total assets at the end of the immediately preceding fiscal period +value of acquired assets - value of disposed assets）
× 0.25%（previously 0.3%）× number of days / 365

Management Fee 2
Operating revenue for the immediately preceding fiscal period × 2.0%
（based on operating revenue）
Management Fee 3（Distributable amount before paying Management Fee 3（based on distributable profit） for the immediately preceding fiscal period）× 3.6%（previously 2.0%）
Management Fee 4（acquisition fee）

Value of acquired assets × 0.5%
（Value of acquired assets × 0.25% in the case of acquisition from interested parties）

Management Fee 5（transfer fee）

Value of transferred assets × 0.5%
（Value of transferred assets × 0.25% in the case of transfer to interested parties）（＊） The prior consent of the investment corporation’ s Board of Directors is obtained in cases falling under the provisions of Article 201-2 (1)of the Act on Investment Trusts and Investment Corporations.

Appendix39

IR initiatives
IR activities under the COVID-19 Pandemic◎IR for domestic institutional investors

Major Public Relations Activities◎Full renewal of website

・ Financial results briefing for analysts and institutional investors

Indicates unitholder price in real time

（Following on-line live streaming） Post the video on the website the next day.
・ Roadshows on financial results （conference calls）

Established a "Newsroom" to facilitate
access to latest information includingpress releases◎IR for overseas institutional investors
・ Articipation in global conferences （online） sponsored by securities companies
・ Roadshows on financial results （North America, Europe and Asia, etc）
・ Timely information disclosure （held simultaneously as the delivery ofJapanese press releases）

Integrates information on sustainability◎IR for individual investors

Cover design created by local designers
to convey the diversity of a REIT withcomprehensive asset types and the charac t er is tic s o f a REIT specializing inregional properties

・ Participates in online briefings and fairs- Nikkei J-REIT Seminar
Live broadcast on the website
without audience- Kyushu IR Fair Live Streaming- Fukusho IR Fair Online
・ Responding to individual calls

Nikkei J-REIT Seminar Nov. 2020

Status of integration into indexes （as of February 28, 2021）◎Global indexes, etc

FTSE EPRA/NAREIT
Global Real Estate Index

S&P Global REIT
Index

FRC’s website, which was awarded for the eleventh consecutive year
since 2010 in the overall ranking and sector ranking of the All Japanese
Listed Companies' Website Ranking conducted by Nikko Investor Relations Co., Ltd., has been renewed for the first time in about 5 years.

Other Activities
The Kyushu IR Workshop, which started in collaboration with the Japan Investor Relations Association, is entering its
eleventh year in 2021. It is utilized as a venue to study the latest IR trends with IR staff of companies from Fukuoka andKyushu and to build networks among such companies. In 2020, the workshop was held by partially utilizing online functions due to the impact of COVID-19.

Date

FTSE Developed
Small CapMSCI Japan Small Cap
Index

Theme & lecturer

1st workshop
August 2020

Initiatives for Constructive Dialogues between Institutional Investors and Issuers

2nd Workshop
February 2021

Latest IR Trends and Future Prospects: IR Activities Under COVID-19

Mr. Shunji Okumura, General Manager of Investor Relations Department,
Global Investor & Brand Communications Headquarters, OMRON Corporation

Ms. Yoshiko Sato, Executive Managing Director, Japan Investor Relations Association

Appendix40Asset management company’s organization
Shareholders General Meeting

Corporate Profile
Established : December 26, 2003

Auditor

Paid-in capital ： 200 million yen
Certifications, etc. :◎Obtained license for real estatetransaction services
February 27, 2004／
License No.（4）15052 issued
by the Governor of Fukuoka（updated on February 28,2019）

Board of Directors

Compliance Department

Compliance Committee
・General manager of compliance department［Attorneys］
・Outside compliance committee members［Attorneys］［Certified Public Accountant and tax accountant］［Real estate appraisers］◎Certified as discretionary real estatetransaction agent under the Building Lots
and Buildings Transaction Business Act
April 27, 2004／
Certification No. 21 issued by the Ministerof Land,
Infrastructure, Transportation and Tourism

CEO & Representative Director◎Obtained certification to conduct businesses
related to investment trust management→ Consults on compliance-related matters

June 25, 2004／
Certification No. 31 issued
by the Prime Minister of Japan

Risk Management Committee→ Consults on risk management

Executive Committee→ Decision-making on management mattersin general

Investment Committee→ Decision-making on investments andmanagement of Fukuoka REIT’s assets◎Registered for a financial instruments business（investment management business）
September 30, 2007／
Registered No.
（Kinsho）10 registered by
the Director of Fukuoka Local FinanceBranch Bureau

Sustainability Promotion Committee→Decision-making on sustainability promotion

Property Management
Department

Investment Department

Finance Department

Planning Department
Appendix41

Unitholders’ data
No. of unitholders and investment units held by unitholder category

Distribution by investor category [breakdown of investment units]（units）

800,000

796,000

796,000

10.82%

10.41%[86,164]

796,000
9.92%[82,909][78,972]

796,000

796,000

13.68%

12.80%[108,922][101,953]

700,000
14.82%[118,040]

600,000

14.55%[113,013][115,855]

12.34%

12.95%

3.88%

4.70%

5.53%

[30,940]

13.65%[108,709]

12.81%[98,295]

500,000

14.19%[102,039][103,148][37,482][44,063]

15.13%[120,464]

13.41%

13.16%

4.22%

2.79%

[106,781][33,625][at the end of the 33rd FP]（As of February 28, 2021）

No. of unitholders

Percentage

Investment
units held

Individual・other

13,22695.72％

101,953

12.80％

Foreign individuals

226

1.63％

120,46415.13％

Other domestic
corporations

258

1.86％

104,754

13.16％

Stock brokers

23

0.16％

22,242

2.79％

Financial institutions

84

0.60％

446,587

56.10％（Of which held by trust banks）

11

0.07％

339,11242.60％

13,817100.00％796,000

100.00％[104,754]

Total[22,242]

Major investors [at the end of the 33rd FP]
400,000

58.11%[462,561]

57.85%

57.03%[460,557][453,962]

55.02%[437,963]

56.10%[446,587]

300,000

200,000

42.27%[336,533]

40.15%

42.22%[319,608][336,145]

41.34%[329,071]

42.60%[339,112]

100,000

0

29th
30th
February 28, 2019 August 31, 2019

Financial institutions

Of which held by trust banks＊Percentages and ratio are rounded off to two decimal places.

31st
February 29, 2020

Stock brokers

33rd
32nd
August 31, 2020 February 28, 2021

Other corporations

Percentage

Foreign corporations

Individual

Rank

Name

（As of February 28, 2021）

Investment
units held

Percentage

1

Custody Bank of Japan, Ltd.（Trust account）

173,018

21.73％

2

The Master Trust Bank of Japan, Ltd.（Trust account）

101,398

12.73％

3

Fukuoka Jisho Co., Ltd.

73,136

9.18％

4The Nomura Trust and Banking Co., Ltd.
（Investment trust account）

30,703

3.85％

5

Custody Bank of Japan, Ltd.
（Securities investment trust account）

19,847

2.49％

6

NORTHERN TRUST CO.（AVFC） RE HCR00

15,518

1.94％

7The Shinkumi Federation Bank

14,7601.85％

8STATE STREET BANK WEST CLIENT - TREATY 505234

11,976

1.50％

9MetLife, Inc.

10,227

1.28％

10

Shikoku Railway Company

9,130

1.14％

Appendix42

Unit price chart
Investment unit price （＊1）

Turnover （＊2）：134,126 mm yen■Market capitalization（as of Feb. 28, 2021）（yen）（units）

300,000

33rd

120,000

April 27, 2015
4th PO

250,000

100,000

June 21, 2005
ListedMarch 1, 2013
3rd PO

200,000

March 1, 2018
5th PO

80,000March 1, 2011
2nd PO

60,000150,000

September 7, 2006
1st PO

100,000

40,00050,00020,00000Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 28, Aug. 31, Feb. 29, Aug. 31,Feb. 28,
2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 20102011
2011 2012 2012 2013 2013 2014 2014 2015 20152016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021（＊1） A 5-for-1 split of Fukuoka REIT investment units was effectuated on March 1, 2014. Accordingly, investment unit prices and issuance prices until February 25, 2014 have been divided by 5.
（＊2） Turnover by February 25, 2014 was multiplied by 5.

Appendix43

Financial highlights
Dividend per unit was 3,361 yen- unit : mm yen （Figures rounded down to the nearest mm yen）

Category

29

30

th

31

33rd

〜 Aug. 31, 2020
A

〜 Feb. 29, 2020

〜 Aug. 31, 2019

〜 Feb. 28, 2019

32nd

st

th

34th

Difference〜 Feb. 28, 2021
B

B−A

35th

〜 Aug. 31, 2021
（forecast）〜 Feb. 28, 2022
（forecast）

9,242

9,231

9,162

8,518

8,904

385

8,979

8,724

-

-

-

-

-

-

95

-

5,591

5,633

5,596

5,307

5,347

39

5,331

5,323

1,622

1,651

1,660

1,686

1,623

（62）

1,558

1,489

Operating income

3,306

3,318

3,273

2,966

3,061

95

3,176

3,168

Ordinary income

2,935

2,939

2,900

2,587

2,677

89

2,787

2,787

Profit

2,934

2,939

2,899

2,586

2,675

88

2,786

2,786

Dividend per unit （yen） （①）
Latest dividend forecast
per unit （yen）②

3,687

3,693

3,642

3,250

3,361

3,600

3,680

3,650

3,150

3,300

3,500

3,500

Difference from forecast （yen） ① - ②
Total number of investment units（units）
outstanding（at period-end）

＋87

＋13

（8）

＋100

＋61

-

-

796,000

796,000

796,000

796,000

796,000

796,000

796,000

Total assets（at period-end）

195,433

195,106

194,795

199,004

199,559

Total liabilities（at period-end）

93,55993,22892,95897,47897,944

Total net assets（at period-end）

101,874

101,878

101,837

101,525

101,614

Days in fiscal period（days）

181

184

182

184

181

Number of investment properties

29

29

29

31

31

（＊1）
Number of tenants（at period-end）

1,011

1,020

1,007

1,016

1,011

580,665.27

580,664.27

580,662.77

591,021.51

608,557.70

（＊2）
（％）
Occupancy rate（at period-end）

99.7

99.6

99.7

99.7

99.5

（＊3）
FFO （Funds from Operation）（mm yen）

4,557

4,591

4,559

4,273

4,299

FFO per unit（yen）

5,725

5,767

5,728

5,368

5,401

Operating revenues
Gain on sales
Leasing NOI
Depreciation and amortization
expenses（at period-end）

Total leasable floor space（at period-end）（㎡）（＊1） The number of tenants shown is based on the total for properties Fukuoka
REIT owns. As for the number of tenants in pass-through master leasing
properties, the total number of sections stipulated in the tenancy
agreements with end tenants is shown.
（＊2） “Occupancy rate”=“Total leased floor space at period-end” ／ “Total
leasable floor space at period-end”（＊3） The FFO is calculated by the following method.
"FFO" = Profit + Loss on sale of real estate - Gain on sale of real estate +Depreciation

Appendix44Balance sheets（compared with the previous fiscal period）- unit : mm yen（Figures rounded down to the nearest mm yen）

Account

32nd

Aug. 31, 2020
A

11,157
6,596
3,742
528
287
3
188,369
181,419
1,156
20
1
989
69,528
1,200
870
182
107,452
16
5,569
5,545
24
1,380
0
10
327
1,042
32
199,559

33rd

Total current liabilities
Operating accounts payable
Current maturities of long-term debt
Account payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total non-current liabilities
Investment corporation bonds
Long-term debt
Tenant leasehold and security deposits

9,027
340
6,300
12
355
0
1,123
894
88,451
5,000
71,100
366

9,501
561
6,300
22
415
1
316
1,088
793
88,4435,000
71,100450

Tenant leasehold and security deposits
received in trust

11,984

11,892（92）

Total liabilities

97,47897,944466

Total unitholders’ equity
Unitholders’ capital
Surplus
Total net assets

101,525
98,938
2,587
101,525

101,61498,938
2,675
101,61488
88
88

Total liabilities and net assets

199,004

199,559554

Aug. 31, 2020
A

Feb. 28, 2021
B

■Liabilities and net assets■Assets＋687① Capital expenditures
Depreciation and amortization expenses（1,623）
LOGICITY Wakamiya renovation costs, etc ＋345

32nd

Difference
B－A
473
220
②
10
60
0
316
（34）
（100）
（7）
②
84

Account

Net assets

9,901
3,733
4,660
1,043
282
177
3
189,064
182,014974
17830
70,403
1,229
891
196
107,452
18
5,575
5,545
29
1,475
0
10
327
1,138
37
199,004

Feb. 28, 2021
B

Difference
B－A
1,256
2,862
（917）
（515）
4
（177）
（0）
（695）
①
（594）
182
3
1
158
（875）
（28）
（21）
（14）
（1）
（5）
（5）
（95）
0
（95）
（5）
554

Liabilities

AssetsTotal current assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
OthersTotal non-current assets
Total property, plant and equipment
Buildings
Structures
Tools and fixtures
Lands
Buildings in trust
Structures in trust
Machinery and equipment in trust
Tools and fixtures in trust
Lands in trust
Construction in progress in trust
Total intangible assets
Leasehold right in trust
Other intangible assets in trust
Total investment and other assets
Deferred tax assets
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Total deferred assets
Total assets

33rd

Others（4）② No debt maturing in the 33 rd fiscal period

Total : （594）Appendix45

Cash flow statements（compared with the previous fiscal period）- unit : mm yen （Figures rounded down to the nearest mm yen）

Category
Net cash provided by （used in） operating activities
Profit before income taxes
Depreciation and amortization expenses
Amortization of investment corporation bond issuance expenses
Amortization of investment unit issuance expenses
Interest received
Interest expenses
Decrease （increase） in operating accounts receivables
Decrease （increase） in consumption taxes refund receivable
Increase （decrease） in accrued consumption taxes
Increase （decrease） in operating accounts payable
Increase （decrease） in accounts payable-other
Increase （decrease） in accrued expenses
Increase （decrease） in advances received
Increase （decrease） in deposits expenses
Decrease （increase） in prepaid expenses
Decrease （increase） in long-term prepaid expenses
Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by （used in） investment activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from restricted trust deposits
Payments for restricted trust deposits
Net cash provided by （used in） financial activities
Proceeds from short-term debt
Repayments of short-term debt
Proceeds from long-term debt
Repayments of long-term debt
Dividends paid
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

32nd A

33rd B〜Aug. 31, 2020

Difference〜Feb. 28, 2021
3,450
2,587
1,686
2
3
（0）
278
（384）
（177）
（191）
（3）
（6）
（20）
40
26
5
（123）
3
3,726
0
（274）
（1）
（7,136）（1,809）（5,371）
29
（66）
316
（238）
5
（2）
2,000
6,400
（6,400）5,900（1,000）（2,899）（1,684）
10,032
8,348

B－A

5,374
2,677
1,623
2
3
（0）
282
515
177
316
25
10
60
（34）
（100）
（4）
95
6
5,657
0
（282）
（0）
（842）
（355）
（479）
84
122
（214）
2
（2）
（2,586）（2,586）
1,944
8,348
10,293

1,923
89
（62）
0
（0）
3
899
355
507
28
16
80
（75）
（126）
（10）
219
3
1,931
0
（7）
0
6,293
1,454
4,892
54
66
（193）
23
（3）
（0）
（4,587）（6,400）6,400（5,900）
1,000
312
3,629
（1,684）
1,944

Appendix46

Income and expenditure by properties （Retail）- unit : mm yen （Figures rounded down to the nearest mm yen）

Category

Canal City Hakata

Canal City Hakata・B

Konoha Mall
Hashimoto

SunLive City Kokura

Active retail

1,018
964
54
462
298
21
80
6
20
36
555
223
332
3.5％
194

①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures
Square Mall
Kagoshima
Usuki

1,429
1,393
35
792
536
32
165
11
40
5
636
283
353
4.4％
125
Kumamoto
Intercommunity
SC

Hanahata SC

181 days
1,198
1,037
161
599
294
50
94
5
135
18
599
217
382
6.1％
124

262
262
0
45
7
1
34
1
0
217
47
169
6.5％
-

Kurume Higashi
Kushiwara SC

K’s Denki
Kagoshima

778
643
134
517
285
25
42
2
85
76
260
88
171
5.2％
23
Marinoa City
Fukuoka（Marina Side Building）

4,688
4,302
385
2,418
1,422
131
417
27
282
136
2,269
860
1,408
4.7％
467
33rd
Total
A

181 days︵ Others︶
RetailDifference
A－B

184 days
4,409
4,030
378
2,098
1,174
42
418
30
295
136
2,311
902
1,408
4.8％
660

（3） days
278
271
7
320
247
88
（0）
（2）
（13
0
（42）
（41）
（0）
（0.1）％
（192）

32nd
Total
B

Difference
A－B

184 days
748
718
29
149
48
13
56
2
23
4
599
116
482
6.0％
19

（3） days
14
11
2
5
0
4
（0）
（0）
（2）
3
8
0
8
0.1％
20

Forecast Difference
A－C
C （＊）

4,694

（6 ）

2,474

（55）

2,220

48

Forecast Difference
A－C
C （＊）

33rd FP（Sept. 1, 2020 〜Feb. 28, 2021）（Length）①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures

32nd
Total
B

33rd FP（Sept. 1, 2020 〜Feb. 28, 2021）（Length）

Category

Park Place Oita

33rd
Total
A

252
223
28
84
38
3
17
0
21
2
167
37
129
6.3％
26

89
89
10
2
0
5
0
1
79
12
67
6.7％
-

40
40
0
9
1
4
3
0
0
31
5
25
5.5％
-

88
88
0
10
2
0
5
0
1
78
16
61
6.3％
-

112
111
1
14
1
4
7
0
0
98
22
75
5.5％
-

178
177
1
25
1
3
18
0
0
152
22
130
5.8％
13

762
730
32
154
48
17
56
2
21
7
607
116
490
6.0％
40

759

3

154

0

605

2

（＊）Forecast at the financial results of the 32nd fiscal period.

Appendix47

Income and expenditure by properties （Office buildings・Others）- unit : mm yen （Figures rounded down to the nearest mm yen）

Category

Office buildings

Category

TenjinNishi-Dori
Center Building

Tenjin North
Front
Building

Higashi Hie
Business
Center Ⅱ

Higashi Hie
Business
Center �

144
122
22
46
10
7
8
0
17
1
97
33
64
7.0％
11

162
150
12
54
18
1
9
0
11
10
108
40
67
5.1％
-

92
88
3
11
6
0
4
0
80
19
61
4.9％
-

33rd
Total
A

641
640
1
199
136
6
47
1
5
1
442
89
353
6.1％
21

557
498
58
172
73
8
37
2
45
4
385
80
304
6.9％
58

Amex

Akasakamon City House

Tower

Keyaki Dori

Aqualia
Chihaya

181 days
351
327
23
134
42
4
16
1
23
45
217
41
175
7.4％
2

318
318
0
92
55
6
27
1
2
225
77
147
6.4％
1

205
191
14
68
19
8
22
0
12
4
137
41
95
6.2％
51
D-WingTower

Granfore
YakuinMinami

Hotel
FORZA
Oita

86
86
20
1
3
15
0
0
66
9
56
5.1％
2

Tissage
Hotel Naha

Tosu
Logistics
CenterLOGICITY
MinatoKashii

LOGICITY LOGICITY
Hisayama Wakamiya

2,560
2,424
136
800
365
46
185
10
121
71
1,760
434
1,326
6.3％
151
33rd
Total
A

181 days

OthersDifference
A－B

184 days
2,497
2,352
144
775
354
25
185
10
131
68
1,721
465
1,255
6.3％
96

（3） days
63
71
（8）
24
10
21
（0）
（0）
（9）
2
39
（31）
70
0.0％
54

32nd
Total
B

Difference
A－B

184 days
863
810
52
187
33
11
12
83
5
29
12
675
201
473
5.0％
13

（3） days
29
39
（9）
（5）
0
3
（5）
（0）
0
（3）
（1）
34
10
24
0.1％
13

Forecast Difference
C （＊1）
A－C

2,555

4

804

（4）

1,751

9

Forecast Difference
C （＊1）
A－C

33rd FP（Sept. 1, 2020 〜Feb. 28, 2021）（Length）①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures

32nd
Total
B

33rd FP（Sept. 1, 2020 〜Feb. 28, 2021）（Length）①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures

Higashi Hie
Business
CenterTaihaku Street
Canal City
Gofukumachi
Sanix Hakata
Business
Business
Business
Building
CenterCenterCenter Building

66
63
2
17
5
1
2
5
0
0
2
48
19
29
4.7％
3

39
39
8
2
1
3
0
0
1
30
10
20
5.5％
0

60
58
1
13
3
1
1
4
0
0
1
46
12
34
7.3％
-

112
107
5
23
7
1
1
7
0
2
2
89
17
71
6.4％
0

38
37
1
9
2
1
0
2
0
0
1
29
10
19
5.3％
0

63
63
11
0
1
7
0
0
51
22
29
6.8％
0

28
28
7
0
0
5
0
0
21
24
（2
1.5％
5

Nondisclosure

Nondisclosure

Nondisclosure

Nondisclosure

（＊2）

（＊2）

（＊2）

（＊2）

117
38
79
4.6％
-

51
9
41
9.1％
10

37
9
28
6.0％
3

185
37
147
4.6％
2

892
849
42
182
33
15
7
83
5
26
10
709
211
498
5.1％
27

893

（0）

191

（8）

701

8

（＊1）Forecast at the financial results of the 32nd fiscal period. （＊2）Information is not disclosed because the permission of tenants has not been obtained.

Appendix48

Income and expenditure by properties （Total） /Repair and maintenance expenses, capital expenditures, and depreciation- unit : mm yen （Figures rounded down to the nearest mm yen）

Category

33rd
Total

32nd
Total

Sept. 1, 2020 〜
Feb. 28, 2021

Mar. 1, 2020 〜
Aug. 31, 2020

181 days

184 daysA（Length）

Total①Total leasing business revenues
Leasing revenue-real estate
Other leasing revenue-real estate②Total leasing business expenses
Outsourcing fees
Repair and maintenance expenses
Expenses for restoration to former state
Tax and other public charges
Insurance premiums and trust compensation
Utilities expenses
Other expenses③NOI（=①-②）④Depreciation and amortization expenses⑤Leasing business profit（=③-④）⑥NOI yield （acquisition price）⑦Capital expenditures

Difference

C （＊）

A－C

（3）days
385
393
（8）
345
258
118
（5）
（0）
（3）
（27）
5
39
（62）
102
0.0％
（103）

8,518
7,912
605
3,210
1,611
92
12
743
49
479
221
5,307
1,686
3,621
5.3％
790

8,904
8,306
597
3,556
1,870
211
7
743
45
452
226
5,347
1,623
3,723
5.3％
687

Difference

Forecast

A－B

B

8,903

0

3,603

（47）

5,299

48

（＊）Forecast at the financial results of the 32nd fiscal period.

Repair and maintenance expenses, capital expenditures, and depreciation- unit : mm yen（Figures rounded down to the nearest mm yen）

（mm yen）

1,686
1,623 1,558
1,622 1,651 1,660
1,489

1,800

1,200

947

600
221
0

29th

123

116

92

30th

31st

32nd

211
33 rd

209

208

34th

35 th

（forecast）（forecast）

Repair and maintenance expenses

29th

790
476

465

30th

31st

32nd

980
687

33 rd

Capital expenditures

725

34th

35 th

（forecast）（forecast）

29th

30th

31st

32nd

33 rd

34th

35 th

（forecast）（forecast）

Depreciation
Appendix49

List of Interest-bearing debt
■List of borrowings
Category（As of February 28, 2021）

LenderCurrent
maturity of（＊1）
long-term debt Mizuho Bank, and others

Development Bank of Japan
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank
Development Bank of JapanThe Bank of Fukuoka
The Nishi-Nippon City Bank
Development Bank of JapanThe Bank of Fukuoka
The Nishi-Nippon City Bank
Mizuho Bank
Shinsei Bank
Sumitomo Mitsui Trust Bank
Development Bank of Japan, and others （＊3）
The Bank of Fukuoka
Resona Bank
The Higo BankMUFG Bank
The Bank of Fukuoka, and others （＊4）

Long-term
debt

Development Bank of JapanThe Bank of Fukuoka
The Nishi-Nippon City Bank
The Nishi-Nippon City Bank, and others（＊5）
Resona Bank
The Bank of Fukuoka
Development Bank of JapanThe Nishi-Nippon City Bank
Sumitomo Mitsui Trust BankMUFG Bank
Resona Bank
Development Bank of Japan
MUFG Bank
The Nishi-Nippon City Bank
The Bank of Fukuoka
Mizuho Bank
Sumitomo Mitsui Banking Corporation
MUFG Bank
Sumitomo Mitsui Trust BankThe Oita Bank

Balance（mm yen）

Drawdown
Date

Repayment
Date

Term

Fixed/ Average Interest（year） Floating
Rate

6,300

Jul.31, 2014

Jul.30, 2021

7.0

Fixed

0.83500%（＊2）

4,000
1,600
1,500
4,000
400
400
2,000
2,000
2,000
500
700
300
2,100
1,500
600
300
800
6,000
1,800
2,000
2,000
1,500
2,000
1,500
500
1,900
1,100
1,500
600
2,500
600
600
500
500
500
500
400
400

Aug.29, 2014

Aug.31, 2022

Jun.30, 2015

Jun.30, 2022

Jul.31, 2015

Jul.31, 2023

Aug.31, 2015

Aug.31, 2023

Aug.31, 2015

Aug.31, 2022

8.0
7.0
8.0
8.0
7.0
8.0
9.0
8.0
8.0
8.0
8.0
9.0
9.0
10.0
10.0
8.0
8.0
9.0
9.5
10.0
10.0
10.0
10.0
10.0
10.0
10.0
9.0
8.0
10.0
10.0
8.0
10.0
10.0
10.0
7.0
9.0
9.0
10.0

Fixed
Fixed
Fixed
Fixed
Floating
Fixed
Fixed
Floating
Fixed
Fixed
Fixed
Floating
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed

1.01000%
0.79000% （＊2）
0.56400% （＊2）
0.88000%
0.42909%0.87000% （＊2）
0.62000%
0.42909%0.44000%（＊2）
0.44000%（＊2）
0.40000%
0.42309%0.71750%
0.42909%
0.65846%
0.48130%
0.48130%
0.77677%0.65000%
0.79195%
0.89195%
0.84952%
0.49350% （＊2）
0.81209%0.68000%
0.75000% （＊2）
0.60000% （＊2）
0.50000%
0.56700% （＊2）
0.72000%
0.48000%
0.80219%0.80219%0.63000%
0.50400% （＊2）
0.49000%
0.57600% （＊2）
0.64630%

Aug.31, 2015

Aug.31, 2023

Feb.29, 2016

Feb.28, 2025

Feb.29, 2016

Feb.29, 2024

Feb.29, 2016

Feb.29, 2024

Feb.29, 2016

Feb.29, 2024

Jul.29, 2016

Jul.31, 2024

Sept.30, 2016

Sept.30, 2025

Dec.30, 2016

Dec.30, 2025

Dec.30, 2016

Dec.30, 2026

Mar.31, 2017

Mar.31, 2027

Mar.31, 2017

Mar.31, 2025

Mar.31, 2017

Mar.31, 2025

Jun.30, 2017

Jun.30, 2026

Jun.30, 2017

Dec.31, 2026

Jul.31, 2017

Jul.31, 2027

Jul.31, 2017

Jul.31, 2027

Aug.31, 2017

Aug.31, 2027

Sept.29, 2017

Sept.30, 2027

Dec.29, 2017

Dec.30, 2027

Dec.29, 2017

Dec.30, 2027

Feb.28, 2018

Feb.29, 2028

Feb.28, 2018

Feb.26, 2027

Feb.28, 2018

Feb.27, 2026

Feb.28, 2018

Feb.29, 2028

Mar. 1, 2018

Mar. 1, 2028

Mar.30, 2018

Mar.31, 2026

Mar.30, 2018

Mar.31, 2028

Mar.30, 2018

Mar.31, 2028

Mar.30, 2018

Mar.31, 2028

Mar.30, 2018

Mar.31, 2025

Mar.30, 2018

Mar.31, 2027

Mar.30, 2018

Mar.31, 2027

Mar.30, 2018

Mar.31, 2028

Category

Lender
The Hiroshima Bank
Shinsei Bank
Sumitomo Mitsui Banking Corporation
MUFG Bank
The Nishi-Nippon City Bank
The Bank of Fukuoka
The Oita Bank
The Kagoshima Bank
The Higo Bank
Resona Bank
Mizuho Bank, and others （＊6）

Long-term
debt

The Norinchukin BankMUFG Bank
The Nishi-Nippon City Bank
Mizuho Bank
Aozora Bank
Resona BankMUFG Bank
The Kagoshima Bank
Development Bank of Japan
Mizuho Bank
The Kitakyushu BankThe Iyo Bank

Total

Balance（mm yen）

400
300
500
500
400
300
200
200
200
200
2,200
1,500
500
2,500
1,700
1,000
700
500
500
1,500
1,000
500
200
77,400Drawdown
Date

Repayment Term Fixed/ Average Interest（year） Floating
Date
Rate

Jun. 30, 2020

Jun. 28, 2030

Jun. 30, 2020

Jun. 29, 2029

Jun. 30, 2020

Jun. 30, 2028

Jul.31, 2020

Jul.31, 2030

Jul.31, 2020

Jul.31, 2030

Jul.31, 2020

Jul.31, 2030

Jul.31, 2020

Jul.31, 2030

0.64630%
10.0 Fixed
0.40000%
7.0 Fixed
0.65528%
10.0 Fixed
0.59000%
9.0 Fixed
10.0 Floating 0.42909%
10.0 Floating 0.42909%
0.33380%
7.0 Fixed
0.33380%
7.0 Fixed
0.33380%
7.0 Fixed
0.48845% （＊2）
10.0 Fixed
0.52100% （＊2）
10.0 Fixed
0.30300%
7.5 Fixed
0.48000%
9.0 Fixed
0.48000% （＊2）
10.0 Fixed
0.42000%
10.0 Fixed
0.56922%10.0 Fixed
0.56922%10.0 Fixed
0.60000%
9.0 Fixed
0.46500%
8.0 Fixed
0.53000%
10.0 Fixed
0.47000%
10.0 Fixed
0.52630%
10.0 Fixed
0.52630%
10.0 Fixed

Issue date

Maturity
Date（year）

Term

Coupon （year）

Mar.30, 2018

Mar.31, 2028

Mar.30, 2018

Mar.31, 2025

Jan.31, 2019

Jan.31, 2029

Jan.31, 2019

Jan.31, 2028

Jan.31, 2019

Jan.31, 2029

Jan.31, 2019

Jan.31, 2029

Feb.28, 2019Feb.27, 2026

Feb.28, 2019Feb.27, 2026

Feb.28, 2019Feb.27, 2026

Feb.28, 2019Feb.28, 2029

Jul.31, 2019

Jul.31, 2029

Jul.31, 2019

Jan.29, 2027

Sept. 25, 2019

Sept.29, 2028

Feb. 28, 2020Feb. 28, 2030

Feb. 28, 2020Feb. 28, 2030

Jun. 30, 2020

Jun. 28, 2030

■Investment corporation bonds
Category

Issue

Balance（mm yen）

Investment The first series of unsecured bonds
corporation The second series of unsecured bonds
bonds
The third series of unsecured bonds

2,000

Dec.30,2013

Dec.29, 2023

10.0

1.32000％

2,000

Jul.31, 2017

Jul.30, 2032

15.0

1.00000％

1,000

Jul.31, 2018

Jul.30, 2038

20.0

1.20000％

Total

5,000

■Committed line of credit
Category

LenderCredit Limit（mm yen）

Start

PeriodEnd

Committed line The Bank of Fukuoka, and others （＊7）
of credit 1
Committed line The Nishi-Nippon City Bank and others （＊8）
of credit 2

6,000

Aug.1, 2018

Jul.31, 2023

7,000

Mar.2, 2020Feb.29, 2024

Total

13,000＊ For floating-rate debts, the interest rates applicable as of February 28, 2021 are indicated. ＊All debts have been borrowed with no collateral and no guarantee, to be repaid in lump-sum upon maturity.
（＊1） The lenders are Mizuho Bank・The Norinchukin Bank・The Hiroshima Bank・The Kitakyushu Bank・The Iyo Bank・The Higo Bank （＊2） FRC has concluded a swap agreement to practically fix interest rate on debt. The indicated interest rate reflects the effect of the swap agreement.
（＊3） The lenders are Development Bank of Japan・The Oita Bank・The Kagoshima Bank・The Kitakyushu Bank・The Juhachi-Shinwa Bank・The Hiroshima Bank （＊4） The lenders are The Bank of Fukuoka・The Nishi-Nippon City Bank・The Oita Bank・The Kitakyushu Bank・The Miyazaki Bank・
The Juhachi-Shinwa Bank・The Iyo Bank （＊5） The lenders are The Nishi-Nippon City Bank ・ The Bank of Fukuoka ・The Oita Bank・The Kitakyushu Bank・The Juhachi-Shinwa Bank・The Hiroshima Bank（＊6） The lenders are Mizuho Bank・The Bank of Saga ・The Higo Bank （＊7） The lenders are The Bank of Fukuoka・Resona Bank （＊8） The lenders are The Nishi-Nippon City Bank・ Resona Bank・ The Oita Bank・The Bank of Nagasaki・The Bank of Saga

Appendix

50

Portfolio table（As of February 28, 2021）

Real estate property name

Age
（＊1）

Acquisition
price（mm yen） （＊2）

Investment
ratio

Acquisition
timingSource（＊3）

Total leasable
floor space（㎡）

Occupancy
rate

Tenants

Primary tenants（＊4）

Canal City Hakata

24yr10m

32,00015.8%

2004/11/9

Sponsor46,585.57

97.7%

Canal City Hakata ・ B

24yr10m

28,70014.2%

2011/3/2

Outside party

68,824.95

99.5%

45 Grand Hyatt Fukuoka and OPA

Park Place Oita

18yr 11m

19,6109.7%

2004/11/9

Sponsor

121,212.26

100.0%

104 AEON and K’s Denki

46 Washington Hotel and United Cinema

SunLive City Kokura

15yr 11m

6,633

3.3%

2005/7/1

Outside party

61,450.22

100.0%

Konoha Mall Hashimoto

9yr 11m

10,0005.0%

2018/3/1

Sponsor

22,121.05

97.8%

123 SunLive and The Super Sports XEBIO

1 SunLive

RetailOffice buildings

Square Mall Kagoshima Usuki

14yr 5m

5,300

2.6%

2006/9/28

Sponsor

14,602.88

100.0%

13 Sports Depo / Golf5 and Edion

Kumamoto Intercommunity SC

14yr 3m

2,400

1.2%

2006/11/30

Sponsor

6,968.66

100.0%

2 Sports Depo / Golf5 and Starbucks Coffee

Hanahata SC

13yr 7m

1,130

0.6%

2007/9/3

Sponsor

2,801.15

100.0%

2 BON REPAS and Matsumoto Kiyoshi

Kurume Higashi Kushiwara SC

13yr 2m

2,500

1.2%

2008/2/1

Sponsor

6,467.80

100.0%

1 Sports Depo / Golf5

K’s Denki Kagoshima

13yr 3m

3,550

1.8%

2008/3/27

Outside party

7,296.17

100.0%

1 K’s Denki

Marinoa City Fukuoka （Marina Side Building）

20yr 4m

5,250

2.6%

2015/5/1

Sponsor

33,069.82

100.0%

Total or the weighted average of retail－

117,073

58.0%

－

－

391,400.53

99.5%

339

Canal City Business Center Building

24yr10m

14,6007.2%

2004/11/9

Sponsor

23,029.92

100.0%

62 TOTO and Bell System24

Gofukumachi Business Center

17yr 4m

11,2005.5%

2004/11/9

Sponsor

19,905.34

100.0%

36 SMBC CONSUMER FINANCE and Sumitomo Mitsui Banking Corporation

Sanix Hakata Building

19yr 11m

4,400

2.2%

2005/9/30

Outside party

6,293.75

100.0%

16 SANIX and The Nishi-Nippon City Bank

Taihaku Street Business Center

18yr 11m

7,000

3.5%

2006/3/16

Sponsor

14,677.30

98.8%

68 NTT COMWARE and Tokio Marine & Nichido Outsourcing Management

Higashi Hie Business Center

12yr 0m

5,900

2.9%

2009/3/13 Outside party＋Sponsor

13,614.59

100.0%

27 Fujitsu and Forest Holdings

Tenjin Nishi-Dori Center Building

24yr 5m

2,600

1.3%

2013/2/1

Outside party

3,339.32

100.0%

1 The Nishi-Nippon City Bank

Tenjin North Front Building

11yr 1m

2,800

1.4%

2013/3/28

Outside party

5,252.41

100.0%

11 Rakuten Card and Prudential

1 FJ. Entertainment Works Ltd.
－

OthersHigashi Hie Business Center Ⅱ

5yr 0m

4,230

2.1%

2018/3/1

Sponsor6,214.77

100.0%

2 FUJITSU KYUSHU SYSTEMS LIMITED and Seven-Eleven Japan Co.,LTD

Higashi Hie Business Center Ⅲ

0yr 11m

3,290

1.6%

2020/5/29

Sponsor

2,981.14

94.1%

5 Mitsui Home Co.,LTD and NIPPON ENGINEERING CONSULTANTS CO.,LTD

Total or the weighted average of office buildings－

56,020

27.7%

－

－

95,308.54

99.6%

228

－

Amex Akasakamon Tower （Residence）

15yr 7m

2,060

1.0%

2006/9/1

Outside party

4,821.25

98.8%

66

－

City House Keyaki Dori（Residence）

13yr 3m

1,111

0.6%

2007/12/20

Outside party

2,710.86

97.8%

41

－

Aqualia Chihaya（Residence）

13yr 2m

1,280

0.6%

2012/3/1

Outside party

5,619.69

97.9%

103

－

D-Wing Tower（Residence）

15yr 0m

2,800

1.4%

2013/3/1

Outside party

7,187.59

95.1%

132

－

Granfore Yakuin Minami（Residence）

13yr 2m

1,100

0.5%

2014/11/4

Outside party

2,496.06

96.0%

95

－

Hotel FORZA Oita

（Hotel）

12yr 6m

1,530

0.8%

2013/3/1

Sponsor

5,785.44

100.0%

1 FJ Hotels

Tissage Hotel Naha

（Hotel）

3yr 0m

2,835

1.4%

2018/12/7

Outside party

3,758.76

100.0%

1 Nest Hotel Japan Corporation

Tosu Logistics Center（Logistics）

12yr 9m

1,250

0.6%

2014/3/28

Outside party

4,173.29

100.0%

1 non-disclosure

LOGICITY Minato Kashii（Logistics）

6yr 10m

8,150

4.0%

2015/3/27

Outside party

43,233.72

100.0%

2 Fukuoka Logistic System and F-LINE CORPORATIONLOGICITY Hisayama（Logistics）

6yr 1m

5,050

2.5%

2017/6/1

Outside party

24,505.65

100.0%

1 KASEI.inc Co., Ltd.

LOGICITY Wakamiya（Logistics）

16yr 0m

1,700

0.8%

2020/6/30

Outside party

17,556.32

100.0%－

28,866

14.3%

－

－

121,848.63

99.4%

444

－

18yr 0m

201,959

100.0%－－

608,557.70

99.5%

1,011

－

Total or the weighted average of others
Total or the weighted average of all properties

1 Tsukasa Kigyou（＊1） The age of the building is listed with the end of the period as the starting date. The total or average figures for all properties are the weighted average.
（＊2） Acquisition price does not include fees, public charge and expenses.
（＊3） Properties acquired through arrangement by a sponsor company are indicate with “sponsor” in the column of seller. （＊4） Parking contracts, etc., are excluded from “Number of tenants”.

Appendix51

Portfolio map

Uminonakamichi
Seaside Park

hii

Kas

e

Lin

Island City

29

FUKUOKA
PayPay DOME
Nishijin Sta.

Subwayne
Airport Li

uhi Line

Nishi-kyushu Expressway

5

Su
Nana bway
kuma
Line

1km
263

500m

1 Canal City Hakata

2 Canal City Hakata・B■Address ： 1-chome, Sumiyoshi,
Hakata Ward, Fukuoka City

3 Park Place Oita

202

Yakuin-odori
Sta.

Ropponmatsu Sakurazaka
Sta.
Sta.

5 Konoha Mall Hashimoto■Address：2-chome, Hashimoto,
Nishi Ward, Fukuoka City

6 Square Mall Kagoshima Usuki■Address：2-chome, Usuki,

Kagoshima City

7 Kumamoto Intercommunity SCUrJRHa Subw
koz ayaki
Line

Ten Nishjin- itet
Om su
uta
Lin

9 Kurume Higashi Kushiwara SC■Address ： Higashi kushiwara,
Kurume City

10 K’s Denki Kagoshima■Address ： Tokai-cho, Kagoshima City

7

Nagasaki

Kumamoto

Fukuoka
AirportKyushu Shinkansen

BEST DENKI
Stadium

JR LineExpressway

Ka

Okinawa
6
10

Ur

go

sh

im

aL

13 Gofukumachi Business Center■Address ： Kami Gofukumachi,
Hakata Ward, Fukuoka City

14 Sanix Hakata Building■Address ： 2-chome, Hakataekihigashi,
Hakata Ward, Fukuoka City

11 Marinoa City Fukuoka（Marina Side Building） 15 Taihaku Street Business Centerineba
Da n E
za xp
ifu reLi ssw
ne ay

21 Amex Akasakamon Tower■Address ： 2-chome, Maizuru,
Chuo Ward, Fukuoka City

22 City House Keyaki Dori

■Address ： 2-chome, Kego,
Chuo Ward, Fukuoka City

17 Tenjin Nishi-Dori Center Building■Address ： 2-chome, Tenjin,
Chuo Ward, Fukuoka City

18 Tenjin North Front Building■Address ： 4-chome, Tenjin,
Chuo Ward, Fukuoka City

19 Higashi Hie Business Center Ⅱ

23 Aqualia Chihaya■Address ： 4-chome, Chihaya,
Higashi Ward, Fukuoka City

24 D-Wing Tower■Address：2-chome, Daimyo,
Chuo Ward, Fukuoka City

25 Granfore Yakuin Minami■Address ： 1-chome, Kozono,
Higashi Ward, Kumamoto City

■Address：2-chome, Odo, Nishi Ward,
Fukuoka City

■Address ： Gokushomachi,
Hakata Ward, Fukuoka City

■Address ： 1-chome, Higashi-hie,
Hakata Ward, Fukuoka City

■Address ： 1-chome, Hirao, Chuo Ward,
Fukuoka City

4 SunLive City Kokura

8 Hanahata SC

12 Canal City Business Center Building

16 Higashi Hie Business Center

20 Higashi Hie Business Center Ⅲ

26 Hotel FORZA Oita

■Address： 4-chome, Hanahata,
Minami Ward, Fukuoka City

■Address ： 1-chome, Sumiyoshi,
Hakata Ward, Fukuoka City

27

Kagoshima■Address ： 2-chome, Koen Dori Nishi,
Oita City■Address ： 2-chome, Kami Kuzuhara,
Kokura Minami Ward, Kitakyushu City

26
3

Fukuoka-kuko（Airport）
Stn.

e

8

Oita

Miyazaki

25

Fukuoka
University

Urban Expressw
Kanjo Line ay

Fukuoka IC

Yakuin Sta.

202

Hashimoto Sta.

■Address ： 1-chome, Sumiyoshi,
Hakata Ward, Fukuoka City

Nakasu13
Kawabata
15
Sta.
Gion Sta.
Higashi-Hie
18
21 24
Hakata 19 Sta.
1
Tenjin16
12
17
14
Akasaka Sta.
2
20
Tenjin-minami Sta.
Watanabe-dori Sta.
22

Kyu
/Hak shu Shinata M kans
inam eni LineJR Chik

Urban
Ex
Kasuy pressway
a Line
sen
kan
hin
S
nyo
Sa
JR Sasaguri Line

Kaizuka Sta.

Ohorikoen（Ohori Park）Sta.

Tojinmachi Sta.

ssway

Marina-TOWN

Fukuoka
28
9

Saga

e

11

Urban Expressway
Kanjo Line

Najima Sta. 3ywa
ss
pre inexL
n E rtba po
Ur Air

Chuo
Port

31

Lin

NokonoshimaIsland4

Fukuoka City

hii

Hakata Bays
Ka

HakozakiPort

Sea-Side
MOMOCHI

Chihaya Sta.

23

JR

ba
n
Ka Expsh resii L sw
ine ayUrban Expressway
Route 6 Island City Line30

u ExpreJR

Kyush

ShikanoshimaIslandu
ets e
hit LinNis ukaiz
Ka

Fukuoka City

■Address ： 3-chome, Higashi-hie,
Hakata Ward, Fukuoka City

■Address ： 4-chome, Higashi-hie,
Hakata Ward, Fukuoka City

■Address ： 1-chome, Chuo-machi,
Oita City

27 Tissage Hotel Naha

■Address：2-chome, Nishi, Naha City

28 Tosu Logistics Center■Address ： Himekata-cho,Tosu City, Saga,

29 LOGICITY Minato Kashii■Address：2-chome, Minatokashii,
Higashi Ward, Fukuoka City

30 LOGICITY Hisayama■Address：Hisayama-machi, Kasuya-gun,
Fukuoka City

31 LOGICITY Wakamiya■Address： Shimoaruki, Miyawaka City

RetailOffice buildings
OthersAppendix

52

Portfolio
Retail 11 properties

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

Office buildings 9 properties

Kurume Higashi Kushiwara SC

K’ s Denki Kagoshima

Marinoa City Fukuoka（Marina Side Building） Canal City Business Center Building Gofukumachi Business Center

Sanix Hakata Building

Taihaku Street Business Center Higashi Hie Business Center

Others 11 properties
Residence

Residence

Tenjin Nishi-Dori Center Building Tenjin North Front Building Higashi Hie Business Center Ⅱ Higashi Hie Business Center Ⅲ Amex Akasakamon Tower City House Keyaki DoriResidence

Aqualia Chihaya

Residence

D-Wing Tower
Total

Residence

Hotel

Hotel

Logistics

Logistics

Logistics

Logistics

31

properties

Total acquisition price201.9

bn yen（As of Febrary 28, 2021）

Granfore Yakuin Minami

Hotel FORZA Oita

Tissage Hotel Naha

Tosu Logistics Center

LOGICITY Minato Kashii

LOGICITY Hisayama

LOGICITY Wakamiya＊Figures round down to nearest
100 mm yen

Appendix53

Top tenants by leased floor area
Ordinary lease

LesseeTenantShare of totalleased space（＊1）

1

SunLive Co., Ltd.

SunLive

10.7％

2

AEON Kyushu Co., Ltd.

AEON

9.7％

Grand Hyatt Fukuoka

34th〜Aug. 31, 2021

35th

〜Feb. 28, 2022

Fixed-term lease （As of February 28, 2021）

36th〜Aug. 31, 2022

Remaininglease term

(years) （＊2）●SunLive City Kokura

4●Konoha Mall Hashimoto

10●Park Place Oita

1

●Canal City Hakata・B （*3）

3●Hotel FORZA Oita

7

●Marinoa City Fukuoka（Marina Side Building）

14●Canal City Hakata

2●Canal City Hakata・B

1

3

FJ. Hotels Co., Ltd

4

FJ. Entertainment Works Ltd.

ー

5.8％

5

Canal City OPA Co., Ltd.

OPA

4.3％

6

KASEI inc Co., Ltd.

ー

4.0％

●LOGICITY Hisayama

3

7

Fukuoka Logistic System
Corporation

ー

3.8％

●LOGICITY Minato Kashii

38

F−LINE CORPORATION

ー

3.3％

●LOGICITY Minato Kashii

nondisclosure

9

Alpen Co., Ltd.

10 Tsukasa Kigyou

Hotel FORZA Oita

Sports Depo,
Golf 5

ー

7.3％

（＊4）

3.0％

2.9％

（＊5）

●Square Mall Kagoshima Usuki

5●Kumamoto Intercommunity SC

5●Kurume Higashi Kushiwara SC

6●LOGICITY Wakamiya

9（＊1）Share of total leased space is calculated using the formula “Leased floor area by tenant / Total leased floor space,” with residential space excluded from leased floor space by tenant.
（＊2）Remaining lease periods shown are the remaining periods of lease contracts as of February 28, 2021 with periods shorter than one year rounded down to the nearest whole year.
（＊3）The sublease agreement with FJ. Hotels Co., Ltd. will be terminated as of the date of transfer （June 1, 2021） as stated in FRC’s press release “Fukuoka REIT Corporation Concludes Agreement to Dispose Asset and Terminate Lease Agreement” announced on March 18, 2021.
（＊4）The 5.8% includes a 0.3% office portion.（5 ordinary leases have been concluded for Canal City Business Center Building.）（＊5）Information is not disclosed because the permission of tenants has not been obtained.

Appendix54

Breakdown of variable rents
Breakdown of active retail rents by property
Fixed rents（＊1）

Variable rent s（＊2）（mm yen）

3,000（mm yen）

2,734
519

3,000

2,734
317

505

（＊3）

2,000

0

2,214

2,045

2,229

30 th

31st

〜Aug.31,
2019

（＊3）

〜Feb.29,
2020

32nd

〜Aug.31,
2020◎The 32nd FP

Variable rents

Variable rents（709 mm yen）

（511 mm yen）

6.5％

245

178
205

320

2,038

33 rd

（＊3） 2,000

1,000

0

〜Feb.28,
2021

1,037

208

940
150

197

Fixed rents

Fixed rents

800

789

839

（3,592 mm yen）

（7,401 mm yen）

1,001

1,008

206
794

30 th

〜Aug.31,2019

Canal City Hakata／Canal City Hakata・B（mm yen）

31st〜Feb.29,
2020

32nd

〜Aug.31,
2020

83.5％

93.5％

33 rd

〜Feb.28,2021

Park Place Oita
（mm yen）

3,000

3,000

Breakdown of Tissage Hotel Naha

8.5％

（mm yen）（709 mm yen）

500
1,000

1,000
284
262

30

th

〜Aug.31,
2019

21

281
262

31

18

st

〜Feb.29,
2020

262

262

262

262

32

33

nd

〜Aug.31,
2020

SunLive City Kokurard〜Feb.28,
2021

0◎The 33rd FP
Variable rents

2,000

2,000

0

Portfolio overall◎The 33rd FP

16.5％

2,358

299 2,251

（＊3）

1,000

Breakdown of active retail rents

665

661
208

576
154

643

209
455

452

421

452

30

31

32

33

th

st

〜Aug.31,2019〜Feb.29,2020

nd〜Aug.31,2020

Konoha Mall Hashimoto

191

rd

〜Feb.28,
2021

250
88
0

30

th

〜Aug.31,
2019

45
42

68

31

st

〜Feb.29,
2020

32
36

43

32

43

nd

〜Aug.31,
2020

28

28

33 rd

〜Feb.28,
2021

Fixed rents

91.5％（7,597 mm yen）

Tissage Hotel Naha

＊Variable rents are included Canal City Hakata, Canal City Hakata・B, Park Place Oita, SunLive City Kokura, Konoha Mall Hashimoto and Tissage Hotel Naha.
（＊1） "Fixed rent" is indicated the amount of "leasing revenues-real estate" - "variable rent".
（＊2）Variable rents are the sum of the portion of rents collected from tenants with variable and GOP rents that varies as a function of the tenants’ sales. （＊3）The figures are included parking fee in variable rents of Canal City Hakata / Canal City Hakata・B.

Appendix

55

The condition of suburb area in Fukuoka
B

C

D

E
1km

Fukuoka East & West Coast Project
Fukuoka City has not only full urban functions but also nature in abundance
nearby, such as the ocean and mountains. Such compactness is one of themost attractive features of the city. In the eastern part of Fukuoka City, there
is Shikanoshima Island, which is surrounded by the beautiful blue ocean andhas historic discoveries and sites including the Kinin （gold seal） and Shikaumi
Shrine. In the western part of the city is the Kitazaki area with a beautiful
coastline, photo spots, many stylish cafes, and more, and many people comefrom within the city and beyond to enjoy the beach and relax.
Aiming to create a city where people can devote their energy to both work andplay, the Fukuoka East & West Coast Project promotes tourism andvitalization of the region by further enhancing the charms of beautiful
Shikanoshima Island and the seaside of the Kitazaki district.

IKEA

Fukuoka Urban Expressway
Route 6（Island city Line）

ShikanoshimaIsland
e
Lin
hii

la

←

Sa

ha

ino
Mt. BishamonyamamaKitazakiImazu Sports Park

Kyushu University
Hakozaki Campus Site

11

Seaside Momochi
Beach Park

Marina Town

13 15

Ikinomatsubara

Ohori
Park

18
17

TenjinRuins of
Fukuoka 22
Castle25

JR Chikuhi LinelegendHakata Connected＊Please refer to P52 regarding the number of properties.＊

5

Waterfront Next

is owned by Fukuoka REIT Corporation（ As of April 16, 2021）.

Mt. Konosusan

S
Nanakubway
uma L
ine

Fukuoka
University
Hospital

Mt. Aburayama

19

16
20

Fukuoka Airport

BEST DENKI
Stadium

Canal City Hakata
Nis

ets

uO

JR

mu

ta

Nanakuma subway line
extention project

Fukuoka
University

Fukuoka Urban Expressway
Kanjo Line

14

Lin

Ka

e

go

sh

im

aL

ine

Hanahata SC
8

an
rb y
a U wa eok s inku res u L
Fu xp zaif
E aD

Tenjin Big Bang

Nishi-kyushu
Expressway

sen
kan
hin
S
nyo JR Sasagu
Sari LineHakata Sta.

2 1 12hit

Fukuoka City Zoologicaland Botanical Gardens

Konoha Mall Hashimoto

Fukuoka IC

anse

4

JR （Kagoshima Line/Sasaguri Line/Kashii Line/Chikuhi Line/Uminonakamichi Line）
Shinkansen（Kyushu Shinkansen/Sanyo Shinkansen）
Nishi-Nippon Railroad （Tenjin-Omuta Line/Kaizuka Line）
Fukuoka Municipal Subway （Kuko Line/Hakozaki Line/Nanakuma Line）
Fukuoka Urban Expressway（Kanjo/Dazaifu/Kuko/Kasuya/Kashii）
Kyushu Expressway
Nishi Kyushu Expressway〈Redevelopment Project in Fukuoka City〉

ka Urban
Kasuy Expressway
a LineSasaguri
Forestof Kyushu
University

n
ba
Ur y
ka wa
uo resst Linek
FuExp porAir

Fukuoka Urban
Expressway Kanjo LineFUKUOKA Subway K
uko Line21 24
PayPay DOME

Atago Shrine
Nagatare Seaside Park

Chuo
Port

Fu
Fe Mun kuok Marinoa City Fukuoka
rry ic a
Se ipal （Marina Side Building）
rvice

Kyushu University
Ito Campus

Fukuo

Hakozaki
Port

ki

TORIUS
Hisayama

n

e
〜 M
nd

3

Hakata Bay

NokonoshimaIsland Park

NokonoshimaIsland

za

hink

sla

oI

on

ito

shu
S

Or

nd

23

esswayIs

Aqualia Chihaya

ine

a

Kyu

im

ii L

sh

sh

no

Ka

ika

30

LOGICITY Minato Kashii
JRSh

Uminonakamichi
Seaside Park

Kyushu Expr

Kinin Park←←

Fukuokashi
Umizuri Park

Kyushu Sangyo
University

29nShikanoshima Island

Futamigaura

LOGICITY Hisayama

Vegefru stadium(Fresh produce market)

Kas

Bu

sa

Fukuoka West Coastu
ts ne
ite Lish ka
Ni izuKa←（Completed on March 27, 2021）

Fukuoka East Coast

Source: Fukuoka City

2

Koga IC

500m

JR

1

F

Fu
kuo
ka
Ur
Ka banshi Exi Li preHa Su
ne ssw
ko bw
ay
za ay
ki
Lin
e

A

Appendix

56

The condition of Fukuoka city center

Nanakuma subway line extension project will be completed by FY2022
550

蔵本

B
Naraya-machiShow
Av a-de. oriShiminkaikan-mae

Fukuoka Prefectural
Museum of Art

KBC
Kyushu Asahi Nanotsu-guchi
Broadcasting

Fukuoka Central wholesalemarket fish market

Shimokawabata-machi

Suzakikoen-mae

Tenjin Nishi-DoriBusiness Center（＊1） Tenjinbashi-guchi

Homukyoku-mae

SubwGrand Hotel
Former Daimyo
Elementary
School Site

Chuo Ward
OfficeShinnippon Building

TenjinPrime

Denki
Building North
Denki
Building Shinkan
Denki
Building

Ave.

Hotel New Otani
602

Tsuyukiri-hashi.
veri A Crown Plazadohios
Fukuoka
Ana
iy
m
Su

Otowa

C

SUNLIFE No.3
Building

Sanix Hakata hikushBuilding
i-dHigashi Hie
Business Center �

Yutoria Hakata

us

hi

-d

or

i

Sannoh Park
Sanno 1chome

555

Takasago
Minoshima-kita

Inukai
ShrineShiroganekindergarden

Kiyokawa2chome

Hakataeki-minami
Minoshima 553

Fukuokakobayashi
Post Office

575

602

ri
do

ri

do Fukuoka Eartheonri
Building

Higashisumiyoshi
JHS

385

Hirao

do

n-

Hakataeki
minamitaa-Nakahie
Park

Higashihie

HakataekihigashioeiSumiyoshi
ES

Takasago1chome

iy

ek

or

i
sh

m

hi

Sta.

ke
Ta

ka

ori

ka

Miyajima

31Ta

ui-d

Na

HakataKITTE Hakata Hankyu

JRJP Kamiyo
Hakata Hakata
Building Chuo
Building
Hakata-ekimae
Hakata3chomeFukamiPark Building

The Basics
Fukuoka

Godochosha-mae

Higashi-Hie

Higashi Hie
Business Center Ⅱ◎Progress Status of Extension Work for the City Subway Nanakuma Line
Ch
[Midway Station （provisional name）]
ik

Yanagibashi
Kiyokawa

Takasago1chome

Jos

Higashihie

Hakataeki(Chikushiguchi)

Hotel Clio

JR Hakata City Court Hakata

FBS Fukuoka
Broadcasting

Yakinkoban-mae

300m

Hakata-ekimae
4chomeHakata Sta.

Higashi Hie
Business Center

Chikushi-guchi Ⅱ

JR Hakata Sta.

The Nishi-nippon
City Bank

Hakata Ekimae
Business Center

Hotel FORZA Hakataeki

Hakata 500m radius

TakasagoaN

AmuPlaza
HakataFukuoka
Center Building

Sumiyoshi Shogakko Mae

Watanabe-dori
Nishi

Yakuin Sta.

Hotel FORZA
HakataekiⅠ
Chikushi-guchi
385
Oriental Hotel Fukuoka
Hakata Station

Watanabe-dori Sta.

Denki
Watanabe-dori
1chomeBuilding
Kyosokan
Yakuin-ekimae

NOF Hakata-ekimae
Building
Hakata Bus
Terminal

Hakataeki higashi

Canal City Hakata 500m radius

i
or
i-d
ek .
ss ve
Ni A

ay

k
na

Haruyoshi
ES

3

Hakata-ekimae 1chome

Takeshita-dori

Watanabe-dori Kita

ne

Li

ta.

Sumiyoshi Shrine

a

100m

Jotobashi
Jotobashi
Nishi

ne

bw

Su
Fukuoka zoo-mae

Sumiyoshi-jinja
Mae

m

a

um

4

Haruyoshi

Minami-yakuin

Li

Hakata-ekimae-dori Ave. Hakata-ekimae
2chomeCanal City BusinessCenter Building

ku

Kogarasu
Shrine

Yak

oad

ri S

odo

uin-

Yakuin-odori-nishi

Canal City Hakata

Toko JHS

FukuokaAsahi Building

Hotel NIKKO
Fukuoka

Hakatakuyakusho
MinamiguchinaYakuinChikushijogakuendaigakufuzoku
Kindergarden

Canal City Hakata／
Canal City Hakata・B

Naural R

Nishitetsu Yakuin Sta.

refectHakatakeisatsusho
Iriguchi

553

YutakaKatakasu ES

Hotel FORZA
Hakata Sta.
Hakata exit

Watanabe-dori

Line

shi P

Yakuin-Mutsukado

Canal City Hakata Hakata Ward
East Building
OfficeHakata Police Office

ay

muta
Nishitetsu Tenjin-O

Chiku

HakataKuyakusho
IriguchiCanal City Hakata
East Buildinge.

Av

Toko-kitaPark

The Nishi-Nippon bank
Administrative
Hakata-ekimae
Head Office
SquareBuilding

Smile Hotel
Hakata-ekimae

Bivi Tenjin

Ku

ri

do

ko

er

The Nishi-Nippon bank
Head Office Annexbw

Imaizumi
Park

City House
Keyaki Doriuoka

JPR Hakata
Building

Su

UrbanBLD
TenjinTenjin 500m radius

31 FukShokokaigisho
IriguchiGion-machi

Haruyoshibashi
Higashi

Sankoubashi

Shinkawa-bashi

Tenjin MENT
Building

Kego
Akasakar

Tenjin121 BuildingriTenjin LUCE

Imaizumi

Max
Value

Nakasu1chomeve

202

Mitsukoshi Watanabe-dori 4chomeori

Kego ES

Riv

Toko 2chome

Mangyo-ji

Haruyoshi

Tenjin122
Nishitetsu
Building
Daimaru
Fukuoka (Tenjin) Sta.
FukuokaTenjin-minami Sta.

do
eab .
an AveKego KOBAN

Kego 2chome

i-d
ash
ninb
Sho

.

Ave

asa

Hakataekimae

at

ve.

-dori A

dori

aki-

Key

Mik

Joten-ji

W

Taisho3

202

Ri

Nishinakasu

Plaza

ve.

i-

Na

Tenjin Chuo
Park

Fukuoka City Hall

Tenjin MMT Building

Kego-jinja Mae

A
doro

uta
Kok

Kego

Fukuoka Shiyakusho-mae

TENJIN216
TenjinNishi-dori
SquareGionmachi
Nishi

ka

Best Denki
Fukuoka Main Store

Hakata Gion
M-SQUARE

KushidaShrineChukan Sta.
(provisional name）

NakasuAcros
FukuokaTenjin 1-chome 11th Block
Development Project: provisional nameParkbuilding
Tenjinkirameki-dori Kego

102

Dimyo 1chome

Shimin Center
TaiikukanSu
Ta bwaiha yku Kuk-dor o Li Tocho-ji
i A neve.

Gion Sta.

gate’s（planned completion in Sept. 2021）

-dori
meki
SOLARIAKiraIwataya
Main StoreResoraTenjinNishi-doriClass
Keyaki Dori

Iwataya
Shinkan

TenjinTenjin Nishi-Dori
Building
Center Building G Tenjin
DaimyoIMSn-dori VIORO

Saza

dori

Akasaka Sta.

Ave.
-dori
MeijiNishitetsu

ishi-

Akasaka
nishi

uko
ay K

Line

jin N

Chuo-kuyakusho

Ten

2

Reisen-machi

Kamikawabata-machi

inkawanshkuiYa

Maizuru

202

Tenjin Business Center

The Bank of Tenjin
Tenjin 1chome
Fukuoka Fukuoka Building
Tenjin Head OfficeTenjin Sta.
Center Buildingve.
Ari
Fukuokaa-doTenjin Mitsui
FukuokaShow
Building
Building
Securities PARCO Fukuoka
Tenjin-nishi
Building
Shinkan PARCO

Maizuru
2chomeYutaka JCT

Gokusho-machi

Taihaku Street
Tenya-machiBusiness Center

アクロス福岡前

Maizuru
1chomeKatakasu

Shofuku-ji

Nishi-ohashi

Nishitetsu Inn Fukuoka

Chuoyubinkyoku-mae

Hinode Tenjin
Building

552

Katakasu
1chomeGionmachi

Fukuoka Kogin BuildingF

43

Nakasu-Kawabata Sta.
NakasuD-WingTower

Maizuru JHS

Gofukumachi
Business Center

Gofukumachi Sta.

Hakata-za
Hotel
Theater
Okura Fukuoka
HakataRiverain
Business Center

Tenjin North
Front Building
Bank ofJapan

Maizuru ES

Nagahama

ve

ri A

-do

tsu

nu
Na

空港通

吉塚1丁目

E

福岡高校

Yutaka 1chome

Kamigofuku-machi

Gofuku machi

Higashinakajimabashi

Tenjin Reverfront

Amex
Akasakamon
Tower

Meiji-DoriBusiness Center
Main building / Annex

Suzaki-machi
SuzakiPark

Fukuoka Dai-ichi
Building

Tsunaba-machi

KBC
Cinema 1・2

1

D

中呉服町

do
ri

天神北出入口

C

M
ei
ji-

A

Kiyokawa

Harusumi
ES

Shirogane

Granfore Yakuin Minami
Hirao 1chome

Oomiya＊ Please refer to P52 regarding the number of properties.
31
is owned by Fukuoka REIT Corporation（As of April 16, 2021）＊.
＊
is owned by Fukuoka Jisho Group（As of April 16, 2021）.
（＊1） Fukuoka REIT Corporation will acquire the land with leasehold interest from the owner of theHirao-kita
office building Fukuoka Jisho Co., Ltd. on June 1, 2021.

Kiyokawa3chome

555

Construction of platforms and stairs completed
Photo by Fukuoka City Transportation Bureau

Hakata-ekiminami
5chomeStatus of railroad track construction＞

Appendix57

Redevelopment in Tenjin area （Tenjin Big Bang）
2-year extension until the end of Tenjin Big Bang project in the end of Year 2026 （＊1）
Tenjin Northfront
Building■ Completed before 1978

Tenjin Riverfront Business Center

AEON Shoppers Fukuoka

Image of the area subject to Tenjin Big Bang
（Source:Fukuoka City）

abe
tan
Wa

Tenjin Meiji-dori district（relaxation of height restriction）●
Bank of JapanNa

ka●Fukuoka
Fukuoka Chuo Post Office

Riv

er

l
nicipaka Mu
eFukuo y Kuk o Lin
a
Subw

side】
【East

iA
dor

side】
【West

Tenjin 1-chome north block（14th Block）（relaxation of floor space ratio restriction）

EntityFukuoka Jisho Co.,Ltd

Location

1-Chome, Tenjin, Chuo Ward, Fukuoka City

Land area
Total floor
space

3,917.18㎡
61,091.35㎡

Floors19 aboveground floors, penthouse 2 floors, basement 2 floors

Use

Office, shops, parking, etc.

Heightapprox. 89ｍ

September 2021（scheduled）

Completionve.

Fukuoka Kogin
BuildingaSt .
Ten jinTenjin 1-chome
Fukuoka
11th Block
Hulic Fukuoka PARCO
Development Project
Building◎Tenjin Business Center

D-Wing
Tower

.
i Ave
a-dor
Show
Tenjin Nishi-DoriBusiness Center （＊2）
e.
i Av
-dor
ji
i
e
M

（provisional name）

Former Daimyo
Elementary School Site（relaxation of height
and floor space ratio）

Tenjin 2-chome south block along Meiji-dori Ave.
（relaxation of floor space ratio restriction）

Iwataya Main Store●

Tenjin Nishi-Dori
CenterBuilding

100m＊

is owned by Fukuoka REIT Corporation（As of April 16, 2021）. ＊◎Main deregulation in the Tenjin Meiji-dori area

Tenjin Chuo Park●

Tenjin MMT BuildingIMS

e t suNishit ok aukFu jin）（Ten .
St a

●
Acros
Fukuoka

Fukuoka
City Hall●
Hall

Tenjin 1-chome south block（relaxation of floor spaceratio restriction）

TenjinTwin Building

Tenjin Kirameki-DoriBusiness Center
Kego Park●

Fukuoka
Mitsukoshi

Kok

ut

Nishi-Nippon
Watanabe
Building

A
or o
ai-d

m
in a
in-mt a.
j
n
Te S

i

e
Lin
ay t
w
b
c
u
a S pr oje
kum sionan
Na ex ten

Tenjin 1-chome district（relaxation of height restriction）（＊1） The deadline of phased or successive re-construction projects spreading multiple blocks will be determined individually.（Limited to projects that submit plan summaries to the city government by the end of 2022）（＊2） Fukuoka REIT Corporation will acquire the land with leasehold interest from the owner of the office building Fukuoka Jisho Co., Ltd. on June 1, 2021. （＊3） Includes properties co-owned with other companies
Source: Prepared by Fukuoka Realty Co., Ltd. based on Tenjin Meiji-dori Avenue Grand Design 2009 authored by the Tenjin Meiji-dori Development Council and each company●Tenjin MM Building（IMS）to close

City Hall
approx.67m（15 floors）●Tenjin Meiji-dori district（West of the center of Watanabe-dori） approx.115m（26 floors）（East of the center of Watanabe-dori） approx.76m （17 floors）●Tenjin 1-chome district 〜approx.100m（22 floors）
approx. 80m （18 floors） ～approx. 96m （21 floors）②City original Deregulation of floor space ratios●Tenjin 1-chome south block 800％→1,400％（maximum）●Tenjin 2-chome south block （along Meiji-dori Ave.） 700％→1,300％（maximum）●Tenjin 1-chome north block（14th Block）600％→1,250％（maximum）●Urban central areas

Anti-infection measures in central urban areas were added as a newitem of floor area ratio assessment to the measures facilitate renewal ofcity center functions.
Completion deadline of buildings
Relaxation of floor
that take anti-infection measures isarea ratio by up toextended to December 31, 2026
（Tenjin Big Bang Area）

50％＊The deadline of phased or successive re-construction projects spreading multiple blocks will be determined
individually. （Limited to projects that submit plan summariesto the city government by the end of 2022)

Redevelopment schedule in Tenjin area

●Completion of Tenjin Business Center（September）●Around Fukuoka◎Initiatives for becoming an infection-controlling cityve.

3）
is owned by Fukuoka Jisho Group（As of April 16, 2021）（＊3）.

Year 2021①Relaxation of restrictions

Year 2022●Completion of Daimyo Elementary School site
redevelopment construction work（December）●Tenjin 1-chome 11th Block Development Project （provisionalname） scheduled to start new construction●Reconstruction work for Tenjin MM Building （IMS） scheduled to startYear 2024● Hulic Fukuoka Building Rebuilding Project
to be completed（July）●Opening of Tenjin 1-chome 11th Block
Development Project: provisional name（with in the year）

Year 2026 and beyond●Tenjin Big Bang Project to complete（December 2026）

Source: Prepared by Fukuoka Realty Co., Ltd. based on press releases of each company.

Appendix58

Redevelopment in Hakata area（Hakata Connected）
Initiative to expand the vitality and bustle of Hakata Station area out further to the surroundings（approx. 500m radius from the station, covering about 80 hectares）
Hakata Connected target area
Image of the area subject to Hakata Connected（Source:Fukuoka City）

Ta

iha

ku

-d

or

iA

.

The Nishi-Nippon
City Bank
Head Office Annex

Hakata River

Canal City Hakata
East Buildinge.

Av

Hakata-Eki
Higashi 1-chome
Development Project（provisional name）●Miyako Hotel
HakataSu
bw

ay

Sanix Hakata Building●Hakata Fukami
Park Building

Crown Plaza
ANA Fukuoka

Chowned by Fukuoka Jisho Group（As of April16, 2021）
. ＊

ika

sa

Ri

ve

●
THE BASICSFUKUOKA

Ku
ko

Lin
e

iku

SUNLIFE
No.3 Building

sh

i-d

or

iA

r

Hakata Connected Bonus◎Expand the system to relax the floorarea ratio requirement （measure tofacilitate renewal of city center functions)①Increase the floor area ratio （up to 50%） for buildings
contributing to expand the bustle, such as creation ofopen spaces that generate connections and expanse.
Existing
systemto relax floorarea ratio

ve

.

e.

Su

Takeshita-dori Av

Naka River

i

sh

yo
mi

ri
-do

The Nishi-Nippon City Bank Head Office Main Building
during dismantling （photo taken on April 9）

M

The Nishi-Nippon
City Bank
Head Office
Main Building

Canal City BusinessCenter Building

is owned by Fukuoka REIT Corporation（As of April16, 2021）.＊

for the Fukuoka Higashi
General Prefectural
Office Building Site
Utilization Project

Hotel FORZA Hakataeki
Hakata-guchi●

Nanakuma Subway Lineextension project
Hakata-ekimae-dori Ave.
JR Hakata Sta.

●
Sumiyoshi Shrine

Hotel FORZA Hakataeki
Chikushi-guchi Ⅱ

Hotel FORZA Hakataeki
Chikushi-guchi Ⅰ●

Fukuoka Asahi Building●
Hotel NIKKO Fukuoka

Hakata Ekimae
Business Center

＊

.
ve
iA
r
o
-d
ko
u
K

ve

Canal City Hakata／
Canal City Hakata・B

Chukan Sta.（provisional name）

Majority of the buildings around Hakata
Station were constructed between the timeof relocation of the station in 1963 and theopening of the Sanyo Shinkansen in 1975.

The Nishi-Nippon
City Bank
Administrative
Head Office
Building

100m

Represents projects for which the Fukuoka Jisho Group participates in the development.

New incentive
Floor area
ratio of up to

50 ％●High-quality, high-value-added buildings●Provide floors for tenant relocation＊Solving problems specific to the area around Hakata Station（limited to the period of Hakata Connected）

Redevelopment schedule in Hakata area
Before year 2022
●Demolition to start for The Nishi-Nippon
City Bank Head Office Main Building（2020）●Completion of Hakata-Eki Higashi 1-chome
Development Project: provisional name（July 2022）●Construction to start for new facilities for the
Fukuoka Higashi General Prefectural Office
Building Site Utilization Project（2022）

Year 2024

Year 2025

Year 2028●Completion of The Nishi-Nippon City Bank New
Head Office Building（February）●Completion of new facilities for the Fukuoka

Higashi General Prefectural Office Building Site
Utilization Project（March-April）●Demolition to start for The Nishi-Nippon City

Bank Head Office Annex and Administrative
Head Office Building●Completion of The Nishi-Nippon City Bank

Head Office Annex and Administrative Head
Office Building （September）

Source: Prepared by Fukuoka Realty Co., Ltd. based on press releases of each company.

Appendix59

Sponsor pipeline （Fukuoka Jisho Group）
Overview of Fukuoka Jisho Co., Ltd.
Fukuoka Jisho Co., Ltd.

Name

Tenjin Business Center

Net sales

Established

July 1961

Ordinary income

Industries

Real estate（comprehensive developer）

Total assets

Representative Ichiro Enomoto, President and C.E.O

Borrowings

Employees

Equity ratio

213（as of May 31, 2020）

30.3 billion yen(period ended May 31, 2020）
5.8 billion yen(period ended May 31, 2020）
198.2 billion yen(period ended May 31, 2020）
106.0 billion yen(period ended May 31, 2020）
31.0％(period ended May 31, 2020）◎Property photography◎Infection control measures
Simultaneously conducts ventilation and disinfection
to realize comfortable air environment
PM 2.5 control
measures filter

ventilationequipment

Disinfection unit connected
to ventilation equipment duct

Outsideair
ExhaustExhaustReturn air
Clean air of comfortable temperature

Major properties owned by Fukuoka Jisho Group

Officebuildings

Total floor
space◎Automatic opening and closing toilet booth

9,962㎡

Realized non-contact door opening and closing andlocking for the first time in Japan （＊2）

Fukuoka Daiichi Building（during dismantling）

1961

2

Fukuoka Kogin Building

1970

15,160㎡

3

Fukuoka Asahi Building

1970

44,762㎡

1974（Main Building）/ 1986（Annex）

9,844㎡

1978

8,262㎡

4

Meiji-Dori Business Center

5

Sun Life No. 3 Building

6

Tenjin Nishi-Dori Business Center （＊1）

1978

10,394㎡

7

Tenjin MMT Building（during dismantling）

1979

19,874㎡

8

Tenjin Riverfront Business Center

1999

4,106㎡

9

Hakata Ekimae Business Center

1999

23,542㎡

10

Naha Business Center

2018

8,994㎡

11

Tenjin Business Center

FY2021（scheduled）

61,116㎡

12

Marinoa City Fukuoka（Outlet Building）

2000（Building Ⅰ）/ 2004
（Building Ⅱ）/
2007（Building Ⅲ）

46,663㎡

Tenjin Kirameki Dori Building

2003

24,525㎡

Canal City Hakata East Building

2011

18,534㎡

Class Keyaki Dori2008

6,500㎡

Hotel FORZA Hakataeki Chikushi-guchi Ⅱ

20194,876㎡

16
17

Hotel FORZA Sapporo Ekimae

2020

11,344㎡

18

LOGICITY Minato Kashii North

2020

47,150㎡＊Includes properties owned by the Fukuoka Jisho Group and properties co-owned with other companies.
（＊1） Fukuoka REIT Corporation will acquire the land with leasehold interest from the owner of the office building Fukuoka Jisho Co., Ltd. on June 1, 2021.

（Image）（Image）（＊2） As of June 2020

◎Floor map◎Floor plan

SubwayTenjin Sta.
concourse

Officeentrance
AtriumOffice lobby
Entrance Parking
Self-propelled bicycle parking lot
Shop/Restaurant

RF
19F
18F
17F
16F
15F
14F
13F
12F
11F
10F
9F
8F
7F
6F
5F
4F
3F
2F
1F
B1F
B2F

11th floor plan
66.8m

531.19㎡

526.49㎡

approx. 145.89㎡ 145.89㎡
21m

approx.5m
126.43㎡

126.43㎡

125.22㎡

125.22㎡

approx.18m

52.2m

13
14

（planned to install in some areas）

Lower level floor

Logistics

Year of completion

1

Residence 15
Hotel

Name

Higher level floor

Retail

No.

46.3m

Use

152.52㎡

207.03㎡

Rental room area on the 11th floor（＊The area varies by floor.）

155.90㎡

2,368.21㎡＊Prepared by Fukuoka Realty Co., Ltd. based on data from Fukuoka Jisho Co., Ltd.

Appendix60