Provisional translation only
October 12, 2017EARNINGS BRIEFING FOR THE PERIOD ENDED AUGUST 2017
Name of issuer:
Code number:
URL:
Stock listings:

Fukuoka REIT Corporation (FRC)8968
http://www.fukuoka-reit.jp/eng/
Tokyo Stock Exchange, and Fukuoka Stock Exchange

Representative:

Etsuo Matsuyuki CEO & Representative Director

Asset manager:
Representative:
Contact:

Fukuoka Realty Co., Ltd.
Etsuo Matsuyuki CEO & Representative Director
Akira Eguchi
Executive Managing Director and General Manager ofPlanning Dept.
Phone: +81-92-272-3900

Expected date for submitting securities report:
November 28, 2017
Expected commencement date of dividend payments:
November 17, 2017
Supplementary documents for earnings briefing
Yes
Analyst meeting (for institutional investors and analysts) Yes(Figures rounded down to nearest mm yen)

1. Performance and situation of assets for the period ended August 2017
(March 1, 2017 to August 31, 2017)(1) Performance(% shows percentage change from previous period)

Operating revenues
mm of yen
Period ended

August 2017
Period ended

February 2017

Operating income%

mm of yen

Ordinary income%

mm of yen

Profit%mm of yen

%

8,122

(16.5)

2,920(36.3)

2,562(39.0)

2,556(39.1)

9,730

18.2

4,585

49.4

4,199

60.5

4,198

347.5

Profit per unit
Period ended

August 2017
Period ended

February 2017

Return on net assets

Ratio of ordinary
Ratio of ordinary income
to operating revenues
income to total assets

3,422 yen

2.7%

1.5%

31.5%

5,621 yen

4.5%

2.4%

43.2%

(2) Dividends
Dividend
per unit

Total
dividend(excl. dividend in(excl. dividend inexcess ofexcess of earnings)
earnings)
Period ended

August 2017
Period ended

February 2017

Dividendin excess ofearnings
per unit

Total
dividend

Dividend
per unit

in excess ofearnings(incl. dividend inexcess of earnings)

Total dividend(incl. dividend inexcess of
earnings)

Payoutratio

Ratio ofdividend
to netassets3,422 yen

2,556 mm yen

0 yen

0 mm yen

3,422 yen 2,556 mm yen

100.0%

2.7%

3,398 yen

2,538 mm yen

0 yen

0 mm yen

3,398 yen 2,538 mm yen

60.5%

2.7%

(Note) For the period ended February 2017, profit amounted to 4,198 mm yen as a result of recording 1,657 mm yen as gain on sale.
However, because 1,660 mm yen in reserve for temporary difference adjustments was reversed, total dividend obtained bydeducting the amount of the reserve for temporary difference adjustments from unappropriated surplus of 4,199 mm yen came
to 2,538 mm yen. The payout ratio after taking into account the reversal of the reserve for temporary difference adjustments
stood at 100.0%.

(3) Financial condition
Period ended

August 2017
Period ended

February 2017

Ratio of net assets tototal assets

Total assets

Net assets

Net assets per unit

178,063 mm yen

93,699 mm yen

52.6%

125,434 yen

175,063 mm yen

93,681 mm yen

53.5%

125,410 yen(4) Cash flows condition
Cash flows fromoperating activities
Period ended

August 2017
Period ended

February 2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at
end of period

3,590 mm yen(6,029) mm yen

667 mm yen

7,134 mm yen

3,685 mm yen

4,220 mm yen(7,872) mm yen

8,905 mm yen

1

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

2. Forecast of performance for the period ending February 2018 (September 1, 2017 to February
28, 2018) and the period ending August 2018 (March 1, 2018 to August 31, 2018)(% shows percentage change from previous period)

Operating revenues

Period ended

August 2017
Period ended

February 2017

Operating income

Ordinary income

ProfitDividend
per unit

mm of yen(excl.
dividend inexcess of
earnings)

in excess ofearnings
per unit

mm of yen%

mm of yen%

mm of yen

%

8,134

0.2

2,939

0.7

2,593

1.2

2,592 1.4 3,470 yen

0 yen

8,110

(0.3)

2,950

0.4

2,593

0.0

2,592 0.0 3,470 yen

0 yen(Reference) Forecast profit per unit:
Forecast profit per unit:

Period ending February 2018
Period ending August 2018%

Dividend

3,470 yen
3,470 yen

3. Other(1) Changes in accounting policies, changes in accounting estimates and restatement of accounting errors(i) Changes in accounting policies accompanying amendments to accounting standards, etc.: No(ii) Changes in accounting policies other than above (i):No
(iii) Changes in accounting estimates:No(iv) Restatement of accounting errors:No(2) Number of investment units outstanding(i) Number of investment units outstanding at end of period (including treasury investment units):
As of August 2017
747,000 units
As of February 2017 747,000 units(ii) Treasury investment units at end of period:
As of August 2017
0 unitAs of February 2017
0 unitNote: Regarding the number of investment units, a basis for calculating profit per unit, please refer to “Per unit information,”on page 12.

* Statement on Implementation Status of Audit Procedure
This Earnings Briefing (“Kessan Tanshin” in Japanese) report is outside the scope of the auditing
procedure under the Financial Instruments and Exchange Act. As of the publication of this report, noauditing procedure under the Financial Instruments and Exchange Act has been completed for thefinancial statements.
* On the adequate use of performance forecasts and other items warranting special mention
Forecast figures are calculated based on information available on the date of release of the forecast andcontain uncertain factors to a large extent. Actual operating revenues, operating income, ordinary income,profit, and dividend per unit may differ due to changes in the business environment. The forecast should
not be construed as a guarantee of actual dividend. Concerning details of the preconditions for the above
forecast figures please refer to “2. Portfolio Management Policy and Management Situation, (2)Management situation – Preconditions for the performance forecast for the period ending February 2018
(September 1, 2017 to February 28, 2018) and the period ending August 2018 (March 1, 2018 to August
31, 2018)” on page 5.

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

Concerning the contents hereinafter, items that FRC judges “can be omitted from the disclosure from the standpoint ofimportance” are not shown in conformity with the “Format and Guidance for Preparation of Earnings Briefing for REITs”(January 2016).
1. Investment Corporation-Related Organizations
The disclosure is omitted, since there are no significant changes from the “Structure of the investment corporation”
disclosed by the latest securities report (submitted on May 30, 2017).
2. Portfolio Management Policy and Management Situation(1) Portfolio management policy
The disclosure is omitted, since there are no significant changes from “Investment policy,” “Investment target” and“Dividend policy” disclosed by the latest securities report (submitted on May 30, 2017).
(2) Management situation(i) Summary of the current fiscal period(a) Brief history of the investment corporation
Fukuoka REIT Corporation (hereinafter “FRC”) was established on July 2, 2004 based on the “Act on
Investment Trusts and Investment Corporations” (Act No. 198 in 1951 including later revisions) and listed on
the Tokyo Stock Exchange Group Inc. and the Fukuoka Stock Exchange on June 21, 2005 as the nation’s
first real estate investment trust specializing in regional properties (code number: 8968). FRC invests in realestate throughout all of Kyushu (including Okinawa Prefecture), with a central focus on Fukuoka City, andYamaguchi Prefecture (hereinafter the “Fukuoka/Kyushu area) by turning regional characteristics in the realestate industry, into strengths.
FRC started asset management activities on November 9, 2004 after acquisition of four properties such as
Retail in Canal City Hakata (excluding some areas of specialty shops, hotels, theaters, offices and common
space), a commercial complex where specialty shops, cinema complex, theaters, amusement facilities,
hotels and offices are integrally developed (hereinafter “Canal City Hakata”). As of the end of the current
fiscal period (August 31, 2017), FRC manages a total of 26 properties comprising 10 Retail, 7 Office buildings
and 9 Others.
(b) Investment environment and portfolio performance
During the fiscal period under review (the 26th fiscal period), the Japanese economy remained on course fora modest recovery. Looking ahead, with the employment and income environment continuing to improve, theeconomy is expected to recover moderately due to various political measures proving effective, among otherfactors.
In the Fukuoka and Kyushu area, the core investment target area for FRC, the economy is expanding
moderately, although variations are seen according to regions in the area and business types. With regard
to the outlook, the area is expected to see strong overseas demand and solid domestic demand, including
rehabilitation from the Kumamoto Earthquake, continue going forward.
As for land price trends, the pace of decrease in combined national average for residential and commercial
land over the past year from July 2016 has decelerated, according to the 2017 Land Price Survey. By land
type, residential land price continued to show a decelerating pace of decrease and commercial land priceturned to an increase from the level-off seen last year. In Fukuoka City, the central area of FRC's investment
targets, land prices continued rising for five consecutive years, up 9.6% year-on-year for commercial land
and up 3.3% year-on-year for residential land, marking higher rates of increase than last year.
Under such circumstances in the 26th fiscal period, FRC acquired LOGICITY Hisayama on June 1, 2017. On
top of these, FRC continued its efforts to reinforce competitive advantages and customer drawing ability at
Canal City Hakata and other major retail properties, and focused on maintaining and increasing theoccupancy rate of its owned properties. As a result of these endeavors, the average occupancy rate of allproperties FRC owns was 99.8% at the end of the 26th fiscal period.When analyzing FRC’s portfolio (on an
acquisition price basis) by investment target area, the investment ratio in the Fukuoka urban area accounted
for 77.0%; when analyzing by property type, Retail, Office buildings, and Others accounted for 59.1%, 27.2%
and 13.7%, respectively.
(c) Summary of fundraising
In the 26th fiscal period, FRC borrowed funds to acquire the above-mentioned property and conductedrefinancing. As a result, the balance of interest-bearing debt outstanding (including investment corporation
bonds) at the end of the 26th fiscal period totaled 69,900 mm yen, with the loan-to-value ratio (ratio of interestbearing debt (including investment corporation bonds) to total assets) at 39.3% and the ratio of fixed-interest
rate debt (including investment corporation bonds) at 79.8% as of the same date. In the fiscal period underreview, FRC also issued the Second Series of Unsecured Bonds with a maturity of 15 years, in order todisperse the debt repayment dates and increase the average length of time until debt maturity. Going forward,
FRC will continue its endeavors for dispersion of debt repayment dates and extension of debt duration in asimilar manner, in an effort to reduce refinancing risks. At the same time, FRC will work to mitigate risks ofrising interest rates by shifting to fixed-interest rate borrowings and through other measures.

3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

Moreover, the credit ratings assigned to FRC as of the end of the current fiscal period are as follows.
Credit Rating Agency
Rating Type
RatingRating Outlook
S&P Global Rating Japan Inc.
(S&P)
Rating and Investment
Information, Inc. (R&I)
Japan Credit Rating Agency, Ltd.
(JCR)

Long-term Corporate Credit Rating

A−

Positive

Short-term Corporate Credit Rating

A−2—

Issuer Rating

A+

StableLong-term Issuer Rating

AA−

Stable(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 8,122 mm yen and operating income
after excluding operating expenses such as expenses related to leasing business and asset management
fees totaled 2,920 mm yen. Ordinary income was 2,562mm yen and net income amounted to 2,556 mm yen.
Management decided to make a dividend of 3,422 yen per investment unit to meet the requirements of special
tax measures for an investment corporation (as stipulated in Article 67-15 of the Act on Special Measures
Concerning Taxation of Japan [Act No. 26 in 1957 including later revisions]). Under this law, an investment
corporation is allowed to deduct the maximum amount of dividends paid to investors from its taxable income.
Furthermore, the Appropriation of balance rerated to amended return in the statement of income refers to thepayment amount of taxes that accrued in accordance with revised tax returns of income taxes, and shall beborne by the asset management company based on the asset management agreement. This has no impact
on the dividend FRC pays for the 26th fiscal period.
(ii) Forecast for the next fiscal period(a) Portfolio management policy
FRC will further reinforce management and leasing capabilities by cooperating with property managementcompanies including sponsor companies even in a weak consumer spending environment, and secure andmaintain the stable operation of the properties by making the most use of their advantages.
FRC will make investments based on the basic policy stipulated in its Articles of Incorporation and its basic
philosophy: focusing on “specialized areas in which FRC can demonstrate its competitive edge” that are in“high growth potential markets.” By geographic location, of Fukuoka and Kyushu areas, FRC will invest 60%
to 90% of its assets in the Fukuoka urban area, since the Fukuoka urban area is expected to have a highpopulation growth rate in the future. In addition to the Fukuoka urban area, management has decided toactively acquire properties in major cities, if there are regions or properties where FRC can generate
investment merits from community-oriented viewpoints. FRC will acquire high quality properties with adequate
use of its advantages, such as information gathering ability in the areas, good knowledge of regional
properties and close relations with the local business community and governments, so that investors cancontinue to invest in FRC with assurance. Meanwhile, FRC will build stronger relationships with financial
institutions to realize stable fundraising and try to maintain a solid financial structure.
(b) Significant events that have occurred after the end of the current fiscal period: No relevant items.
(c) Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending February 2018 (September 1,
2017 to February 28, 2018) and the period ending August 2018 (March 1, 2018 to August 31, 2018).
Concerning preconditions for the forecast, please refer to “Preconditions for the performance forecast for theperiod ending February 2018 (September 1, 2017 to February 28, 2018) and the period ending August 2018
(March 1, 2018 to August 31, 2018)” on page 5.
Period ending February 2018
Operating revenues
Operating income
Ordinary income
ProfitDividend per unit
Dividend in excess of earnings per unit

8,134 mm yen
2,939 mm yen
2,593 mm yen
2,592 mm yen
3,470 yen
0 yen

Period ending August 2018
Operating revenues
Operating income
Ordinary income
ProfitDividend per unit
Dividend in excess of earnings per unit

8,110 mm yen
2,950 mm yen
2,593 mm yen
2,592 mm yen
3,470 yen
0 yen

Note: The above forecast figures are calculated based on certain preconditions. The forecast should not be construed asa guarantee of actual performance since actual operating revenues, operating income, ordinary income, profit,
dividend per unit and dividend in excess of earnings per unit may differ due to changes in the business environment.

4

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

Preconditions for the performance forecast for the period ending February 2018 (September 1, 2017 to February 28,2018) and the period ending August 2018 (March 1, 2018 to August 31, 2018)
Item
Preconditions
Calculation period
Assets undermanagement
Total number ofinvestment units
outstanding

Interest-bearing
debt andrefinancing

Operatingrevenues

OperatingexpensesNon-operating
expensesDividend per unit

27th fiscal period: September 1, 2017 to February 28, 2018 (181 days)
28th fiscal period: March 1, 2018 to August 31, 2018 (184 days)
 It is assumed that FRC will own 26 properties as it did as of August 31, 2017.
 In practice, the number may fluctuate due to changes in assets under management.
 It is assumed that there will be no issuance of new investment units until August 31, 2018.
 The balance of interest-bearing debt outstanding at the end of the period ending February
2018 (February 28, 2018) is expected to total 68,900 mm yen, a decrease of 1,000 mm yenfrom the end of the current period (August 31, 2017). The loan-to-value ratio (interestbearing debt  total assets  100) is expected to stand at around 38.7% (as of August 31,
2017, the loan-to-value ratio stands at 39.3%).
 The balance of interest-bearing debt outstanding at the end of the period ending August
2018 (August 31, 2018) is expected to total 68,900 mm yen, same as the end of the period
ending February 2018 (February 28, 2018). The loan-to-value ratio (interest-bearing debt total assets  100) is expected to stand at around 38.7%.
 Of leasing revenues – real estate, revenues from properties FRC has already acquired are
calculated based on tenancy agreements that are valid as of October 12, 2017 by taking
into account the competitiveness of the properties and the market environment.
Of leasing revenues– real estate, revenues from percentage lease contracts are calculated
based on past results by taking into account sales fluctuation factors of the relevant tenants.
 For leasing revenues – real estate, tenant vacancies are taken into account to a certain
extent. It is assumed that there will be no rent arrears or non-payments by tenants.
 When acquiring investment properties, the property taxes and city planning taxes for theassets will be proportionally calculated according to the holding period and adjusted withthe former owner. FRC will not write them off since it will include the relevant adjusted
amount in the acquisition cost.
 FRC writes off estimated repair costs for buildings for the calculation periods (the periods
ending February 2018 and August 2018). Actual repair costs may differ significantly fromthe estimated amounts since there is the possibility that repair costs are incurred urgently
due to damages to buildings caused by unforeseeable factors, repair costs generally differ
largely from period to period, and repair costs are not regularly incurred.
 Concerning outsourcing expenses, FRC anticipates 1,584 mm yen for the period ending
February 2018 and 1,584 mm yen for the period ending August 2018.
 Concerning taxes and other public charges, FRC anticipates 644 mm yen for the period
ending February 2018 and 648 mm yen for the period ending August 2018.
 Concerning depreciation and amortization expenses, FRC anticipates 1,502 mm yen for theperiod ending February 2018 and 1,517 mm yen for the period ending August 2018.
 Concerning interest expenses (including interest expenses on investment corporation
bonds) and expenses related to financing, FRC anticipates 340 mm yen for the period
ending February 2018 and 356 mm yen for the period ending August 2018.
 Dividend (dividend per unit) is calculated based on the dividend policy stipulated in FRC’s
Articles of Incorporation.
 Dividend per unit may fluctuate due to fluctuations in leasing revenues caused by changes
in assets under management and tenants or various factors including unexpectedoccurrences of repair.

Dividend in excessof earnings perunit Dividend in excess of earnings (dividend in excess of earnings per unit) is not planned at
the moment.

Other It is assumed that there will be no significant revisions to laws and regulations, the tax
system, and accounting standards that may influence the forecast figures.
 It is also assumed that there will be no significant unexpected changes in general economic
conditions and the real estate market.

(3) Investment risks
The disclosure is omitted, since there are no significant changes from the “Investment risks” disclosed in the latest
securities report (submitted on May 30, 2017).

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

3. Financial Statements(1) Balance sheet(thousands of yen)Account

25th fiscal period(as of February 28, 2017)

26th fiscal period(as of August 31, 2017)

AssetsCurrent assets
Cash and deposits

4,434,396

2,253,209

Cash and deposits in trust

4,513,353

4,926,483

Operating accounts receivable

376,449

431,417

Prepaid expenses

251,873

248,026

Consumption taxes receivable-

258,416

Deferred tax assets

9

-

3,836

13,2199,579,918

8,130,772

OthersTotal current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Structures in trust
Accumulated depreciation
Machinery and equipment in trust
Accumulated depreciation

84,307,621(23,045,241)(601,047)(308,501)

872,187

700,368

Lands in trust
Construction in progress in trust
Total property, plant and equipment(635,047)

944,282(344,218)

920,123747
405

1,280,623(1,005,845)

63,565,699

1,264,341

747
(342)

(24,412,671)

1,579,329

1,008,869

Accumulated depreciation

Accumulated depreciation

61,262,379

1,473,234

Vehicles and transport equipment in trust

Tools and fixtures in trust

87,978,370

(389)

357

1,297,196
274,777(1,026,204)

270,991

99,631,188

101,545,140

178,535

21,825

162,919,841

167,268,420

1,765,318

1,765,318

20,605

19,551

1,785,924

1,784,869

104,078-

Intangible assets
Leasehold right in trust
Other intangible assets in trust
Total intangible assets
Investment and other assets
Investment securities
Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

110,000

110,000

Long-term prepaid expenses

528,547

720,744

Total investment and other assets

752,626

840,744

165,458,391

169,894,034

13,42732,25912,1596,547

25,58738,806

175,063,897

178,063,613

Total non-current assets
Deferred assets
Investment corporation bond issuance
expenses
Investment unit issuance expenses
Total deferred assets
Total assets

6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

(thousands of yen)Account

25th fiscal period(as of February 28, 2017)

26th fiscal period(as of August 31, 2017)

Operating accounts payable

595,539

387,054-

1,500,000

23,875,000

10,200,000

Accounts payable-other

24,687

21,833

Accrued expenses

335,540

327,884854

666

Accrued consumption taxes

239,564-

Advances received

973,313

997,414

Deposits received

752,271

1,054,757

26,796,772

14,489,611

Investment corporation bonds

2,000,000

4,000,000

Long-term debt payable

40,800,000

54,200,000

368,897368,837

11,416,934

11,305,882

54,585,831

69,874,720

81,382,604

84,364,331

91,142,766

91,142,766

Reserve for temporary difference adjustments(1,660,581)-

Total deduction from unitholders’ capital(1,660,581)-

89,482,185

91,142,766

Unappropriated surplus

4,199,108

2,556,515

Total surplus

4,199,108

2,556,515

Total unitholders’ equity

93,681,293

93,699,282

Total net assets

93,681,293

93,699,282

Total liabilities and net assets

175,063,897

178,063,613

Liabilities
Current liabilities

Short-term debt
Current maturities of long-term debt

Income taxes payable

Total current liabilities
Non-current liabilities

Tenant leasehold and security deposits
Tenant leasehold and security deposits received
in trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital

Unitholders’ capital, net
Surplus7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017(2) Statement of income(thousands of yen)Account

25th fiscal period

26th fiscal period(September 1, 2016 to
February 28, 2017)(March 1, 2017 toAugust 31, 2017)

Operating revenues
Leasing revenues – real estate
Other leasing revenues – real estate
Gain on sale of real estate

7,603,068

7,605,973

469,211

511,797

1,657,588-

974

Dividends income

9,730,842

4,873

8,122,643

Operating expenses
Expenses related to leasing business

4,517,495

4,593,665

476,894

479,496

Asset custody fees

6,676

6,618

Administrative service fees

51,646

51,583

Director’s compensations

9,600

9,600

Other operating expenses

83,042

Asset management fees

5,145,355

61,643

4,585,487

Operating income

5,202,607
2,920,036

Non-operating revenues
Interest received
Appropriation of balance rerated to amended
returnOthers

40

35

-

7,833

946

987

672

8,541

Non-operating expenses
Interest expenses
Interest expenses on investment corporationbonds
Amortization of investment corporation bondissuance expenses
Amortization of investment unit issuance
expensesFinancing related expenses
Others276,464

253,565

13,20014,866

982

1,093

5,612

5,612

90,391

87,187

15

386,664

4,093

366,418

Ordinary income

4,199,809

2,562,159

Net income before income taxes

4,199,809

2,562,159

Income taxes-current
Income taxes based on amended return
Income taxes-deferred

860

666

-

5,189

17

Profit

878

9

5,864

4,198,931

2,556,294

Surplus brought forward

177

221

Unappropriated surplus

4,199,108

2,556,515

8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017(3) Statement of changes in net assets
25th fiscal period (September 1, 2016 to February 28, 2017)(thousands of yen)
Unitholders’ Equity

Item

Balance as of
September 1,
2016
Changes in
the current
fiscal period
Dividend of
surplusDividend inexcess of
earnings
using reserve
for temporary
difference
adjustments
ProfitTotal ofchanges in
the current
fiscal period
Balance as ofFebruary 28,
2017

Unitholders’ capital
Deduction from unitholders’capitalTotal
Reserve fordeduction
temporaryfromdifference
unitholders’adjustments
capitalUnitholder
s’ capital

91,142,766-(1,660,581)-(1,660,581)

Surplus
Unappropr
Unitholders’capital, net

Total
net assets

surplusTotal
unitholders’equity938,409938,409

92,081,175

92,081,175(938,232)(938,232)(938,232)(938,232)(1,660,581)(1,660,581)

Total
iated
surplus91,142,766(1,660,581)

4,198,931

4,198,931

4,198,931

4,198,931-(1,660,581)(1,660,581)(1,660,581)

3,260,699

3,260,699

1,600,118

1,600,118

91,142,766(1,660,581)(1,660,581)

89,482,185

4,199,108

4,199,108

93,681,293

93,681,293

26th fiscal period (March 1, 2017 to August 31, 2017)(thousands of yen)
Unitholders’ Equity

Item

Balance as ofMarch 1, 2017
Changes in
the current
fiscal period
Dividend of
surplus
Reversal ofreverse fortemporarydifference
adjustment
ProfitTotal ofchanges in thecurrent fiscal
periodBalance as ofAugust 31,
2017

Unitholders’capital91,142,766

Unitholders’ capital
Deduction fromunitholders’ capital
Total
Reservefordeduction
temporarydifference
adjustments

fromunitholders’capital(1,660,581)(1,660,581)

1,660,581

1,660,581

Surplus
Unappropri
Unitholders’capital, net

Total
net assets

surplusTotal
unitholders’equity4,199,108

4,199,108

93,681,293

93,681,293(2,538,306)(2,538,306)(2,538,306)(2,538,306)(1,660,581)(1,660,581)－－

2,556,294

2,556,294

2,556,294

2,556,294

Total
ated
surplus89,482,185

1,660,581－

1,660,581

1,660,581

1,660,581(1,642,592)(1,642,592)

17,98817,98891,142,766－－

91,142,766

2,556,515

2,556,515

93,699,282

93,699,282

9Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017(4) Dividend statement
Account

25th fiscal period

26th fiscal period(September 1, 2016 to February 28, 2017)(March 1, 2017 to August 31, 2017)

4,199,108 thousand yen

2,556,515 thousand yen

1,660,581 thousand yen- thousand yen

1,660,581 thousand yen- thousand yen

2,538,306 thousand yen

2,556,234 thousand yen[Dividend per investment
unit][3,398 yen]

[3,422 yen]

IV. Surplus brought forward

221 thousand yen

281 thousand yen

I.
II.

Unappropriated surplus
Addition to unitholders’capitalOf which, reversal of reserve
for temporary difference
adjustments

III. Total

Method for calculating dividends

The amount of dividends shall be decided in The amount of dividends shall be decided
accordance with the dividend policy stipulated in accordance with the dividend policyin Article 38-1-1 of FRC’s Articles of stipulated in Article 38-1-1 of FRC’s Articles
Incorporation and must exceed 90% of FRC’s of Incorporation and must exceed 90% of
distributable profits as stipulated in Article 67- FRC’s distributable profits as stipulated in
15-1 of the Special Taxation Measures Act. Article 67-15-1 of the Special Taxation
Following the above policy, FRC shall decide to Measures Act. Following the above policy,
distribute 2,538,306 thousand yen, which is FRC shall decide to distribute 2,556,234
almost the entire amount obtained by deducting thousand yen, which is almost the entire
the reversal of reserve for temporary difference amount of unappropriated surplus, asadjustments from unappropriated surplus earnings dividends. Moreover, dividend in(4,199,108 thousand yen), as earnings excess of earnings as stipulated in Article
dividends. Moreover, dividend in excess of 38-2 of FRC’s Articles of Incorporation will
earnings as stipulated in Article 38-2 of FRC’s not be provided.
Articles of Incorporation will not be provided.
(Note) Amounts other than the amounts of dividend per investment units are rounded off to the nearest thousand yen.

10

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017(5) Cash flows statement(thousands of yen)Account
Net cash provided by (used in) operating activities
Net income before income taxes
Depreciation and amortization expenses
Amortization of investment corporation bond issuance
expenses
Amortization of investment unit issuance expenses
Interest received
Interest expenses
Gain on sale of real estate
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
Insurance income
Payments for loss on disaster
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Proceeds from sales of property, plant and equipment in trust
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 redemption of investment securities
Purchase of investment securities
Proceeds from restricted trust deposits
Payments for restricted trust deposits
Net cash provided by (used in) investment activities
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
Proceeds from issuance of investment corporation bonds
Payments of investment corporation bond issuance expenses
Dividends paid
Net cash provided by (used in) financial activities
Net increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at end of period

11

25th fiscal period

26th fiscal period(September 1, 2016 to
February 28, 2017)(March 1, 2017 toAugust 31, 2017)

4,199,809
1,455,895

2,562,159
1,474,387

982

1,093

5,612
(40)
289,664(1,657,588)
39,693132,386
3,547
11,659(6,027)(97,675)(450,682)
9,282
17,37920,251
3,974,151
40(296,961)
75,052(65,923)(1,248)3,685,111

5,612
(35)
268,432(54,967)(258,416)(239,564)(15,854)(3,248)
1,124
24,101
302,485
3,846(192,196)(4,514)
3,874,444
35(277,213)(6,604)
3,590,662

7,862,034(3,250,588)
5,208(8,077)
172,380(482,527)(103,928)
29,511(4,010)4,220,004(5,995,095)(20,197)(60)
144,468(255,520)
100,000(150)
3,819(7,078)(6,029,813)

3,000,000(7,000,000)
3,900,000(5,175,000)(2,597,440)(7,872,440)
32,676
8,873,147
8,905,823

14,500,000(13,000,000)
15,000,000(15,275,000)
2,000,000(19,924)(2,537,240)
667,834(1,771,317)
8,905,823
7,134,506

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017(6) Notes on the going concern assumption
No relevant items.
(7) Significant accounting policies
The disclosure is omitted, since there are no significant changes from contents disclosed by the latest securities report(submitted on May 30, 2017).
(8) Notes to financial statements
FRC omits the disclosure of notes to balance sheet, statement of income, statement of changes in net assets, andcash flows statement, as well as notes on lease transactions, financial instruments, securities, derivative transactions,related-party transactions, tax-effect accounting, retirement benefits, asset retirement obligations, rental properties,
segment information and equity method income, etc. since it does not find substantial need for disclosure in theearnings briefing.
(Per unit information)
25th fiscal period

26th fiscal period(September 1, 2016 to February 28, 2017)

Net assets per investment unit: 125,410 yen
Profit per investment unit:
5,621 yen

(March 1, 2017 to August 31, 2017)

Net assets per investment unit: 125,434 yen
Profit per investment unit:
3,422 yen

Note 1: Profit per investment unit is calculated by dividing profit by the weighted average number of investment units outstanding
during the fiscal period. Diluted profit per investment unit is not shown since there are no potential investment units.
Note 2: Calculation of profit per investment unit is based on the following.

Account

25th fiscal period

26th fiscal period(September 1, 2016 to
February 28, 2017)(March 1, 2017 toAugust 31, 2017)

4,198,931

2,556,294——

Profit attributable to common investment units (thousands of yen)

4,198,931

2,556,294

Average number of investment units during the fiscal period (units)

747,000

747,000

Profit (thousands of yen)Amount not attributable to common shareholders (thousands of yen)

(Significant subsequent events)
No relevant items.
(9) Change in the number of investment units outstanding
No relevant items.

12Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

4. Change in Directors(1) Change in directors in FRC
No relevant items.
(2) Change in directors at Fukuoka Realty Co., Ltd.
Hidenori Hara resigned from the post of Senior Managing Director (as of May 31, 2017).
Masaru Ito resigned from the post of Director (as of June 23, 2017).
Akira Eguchi was newly appointed as Executive Managing Director (as of June 23, 2017).
Hidenori Hara was newly appointed as Director (as of June 23, 2017).
Officers of FRC as of October 12, 2017 are listed below.
(as of October 12, 2017)

Title

CEO &
Representative
Director

Name

Etsuo
Matsuyuki

Career Summary

April1980
June 2004
April 2005
July 2006

July 2009

August 2010

June 2011

January 2012
June 2012
May 2014
Executive
Managing
Director

Akira Eguchi

April 1982
March 1989
July 2002
October 2005
August 2010
June 2012
June 2017
June 2017

Director

Hiroshi
Shimuta

October 2000
December 2003

April 2004
April 2005
June 2007
June 2007
September 2013

August 2017

Joined Japan Development Bank (currently
Development Bank of Japan)
Appointed as Manager, Human Resources
Division
Appointed as General Manager, Management
Division
Seconded to Fukuoka Jisho Co., Ltd. Appointed
as Deputy General Manager, Development
Business Group
Joined Fukuoka Jisho Co., Ltd.
Appointed as Executive Officer and Deputy
General Manager, Development Business Groupand General Manager, Building Division
Appointed as Executive Officer and General
Manager, Accounting & Finance Division and in
charge of General Affairs Division and Finance
Division
Appointed as Senior Managing Director andGeneral Manager, Planning Dept., Fukuoka Realty
Co., Ltd.
Appointed as Senior Executive Officer, Fukuoka
Jisho Co., Ltd.
Appointed as CEO & Representative Director,
Fukuoka Realty Co., Ltd. (current position)
Appointed as CEO & Representative Director,
Fukuoka REIT Corporation (current position)
Joined Okumura Corporation
Joined Fukuoka Jisho Co., Ltd.
Assigned to Housing Business Division
Appointed as Assistant General Manager,
Construction Division
Appointed as General Manger, Construction
Division
Appointed as Executive Officer in charge ofConstruction Division
Appointed Senior Executive Officer in charge ofConstruction Division
Joined Fukuoka Realty Co., Ltd. Appointed as
General Manager of Planning Dept.
Appointed as Executive Managing Director andGeneral Manager, Planning Dept., Fukuoka Realty
Co., Ltd. (current position)
Registered as attorney in law
Appointed as Auditor, Fukuoka Realty Co., Ltd.
Appointed as Head of Compliance OfficeAppointed as General Manager of Compliance
Dept.
Joined Nishimura Tokiwa Law Office (currently,
Nishimura Asahi Law Office)Appointed as Director, Fukuoka Realty Co., Ltd.
(current position)
Appointed as General Manger, Fukuoka Jisho
Co., Ltd. Legal Division
Appointed as Vice President Board of Directors
and General Manger of Legal Division Fukuoka

13

Numberof units
owned
0

0

0

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

Director

Tomoyuki
AramakiApril 1975
July 1997
July 2004
June 2007
June 2009
July 2010

June 2012

June 2015

June 2016
April 2017

Director

HidenoriHara

April 1985
June 1990
August 2005
August 2009
June 2012
June 2014
September 2014
September 2014

February 2015
June 2017

June 2017
AuditorMasanori
TasakaApril 1978
August 2000
July 2003
October 2004
April 2005

April 2006
June 2006

Jisho Co., Ltd. (current position)
Joined Kyushu Electric Power Co., Inc.
Appointed as Manager of Personnel Dept.,
Personnel Division
Appointed as General Manager, Personnel andLabor Division
Appointed as Representative Director andPresident, Kyushu Sougou Service Co., Ltd.
Appointed as Managing Executive Officer, Kyushu
Electric Power Co., Inc.
Appointed as Managing Executive Officer,
General Manager of Business Promotion Division
and General Manager of Human Resources
Vitalization Group
Appointed as Board Director and Senior Managing
Executive Officer, General Manager of Human
Resources Vitalization Group and General
Manager of President OfficeAppointed as Executive Vice President in chargeof matters related to President Office and CSR,
and as Crisis Manager
Appointed as Director, Fukuoka Realty Co., Ltd.
(current position)
Appointed as Executive Vice President in chargeof matters related to President Office and Crisis
Manager, Kyushu Electric Power Co., Inc. (current
position)
Joined the Bank of Fukuoka
Joined Sumitomo Realty & Development Co., Ltd.
Joined Fukuoka Jisho Co., Ltd.
Appointed as General Manager, Development
Business Group
Appointed as Executive Officer and General
Manager, Housing Business Division
Appointed as Executive Officer in charge of
Housing Business Division
Appointed as Executive Officer
Seconded to Fukuoka Realty Co., Ltd.
Appointed as Senior Managing Director
Appointed as Senior Managing Director andGeneral Manager of Planning Department
Appointed as Senior Executive Officer in charge ofRetail Business Group and Housing Business
Division (current position)
Appointed as Director, Fukuoka Realty Co., Ltd.
(current position)
Joined Fukuoka Sogo Bank, Ltd. (currently, The
Nishi-Nippon City Bank, Ltd.)
Appointed as Deputy General Manager ofPlanning Division
Appointed as General Manager of Planning
Division and Manager of Risk Management OfficeAppointed as Senior Manager supporting
Business Planning Division
Seconded to NCB Management Information
Service Co., Ltd. (currently, NCB Research &Consulting Co., Ltd.) and appointed as General
Manager of Business Alliance Division
Opened Masanori Tasaka Tax & Accounting Office(current position)
Appointed as Auditor, Fukuoka Realty Co., Ltd.
(current position)

0

0

0

(Note)Etsuo Matsuyuki concurrently serves as CEO & Representative Director of Fukuoka Realty Co., Ltd., the asset
management company for FRC, and as CEO & Representative Director of FRC. A notification regarding the concurrent officehas been filed to the Commissioner of the Financial Services Agency, based on the provisions of Article 31-4-1 of the Financial
Instruments and Exchange Act.

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017

5. Reference Information(1) Investment situation(as of August 31, 2017)

Type ofasset

Location

Purpose(Note 1)

Total value of
properties held

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

Fukuoka urban area

66,213

37.2

Other Kyushu areas

36,487

20.5

Fukuoka urban area

42,79824.0

Other Kyushu areas——

Fukuoka urban area

20,876

11.7

Other Kyushu areas

2,654

1.5

169,031

94.9

9,032

5.1

178,063100.0(169,053)(94.9)

RetailReal estatein Trust

Office buildings

OthersSubtotal
Deposits and other assets
Total amount of assets (Note 4)

Note 1: “Fukuoka urban area” refers to cities, towns and villages where 10% or more of the population commute to Fukuoka City forschool and work, according to the 2010 census, which states “the number of workers and students aged 15 years or older(students including those aged 14 years or younger: particular reference) including commuting between their homes andplaces of work or school” conducted by Fukuoka City and the Statistics Bureau of the Ministry of Internal Affairs andCommunications. “Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka urban area).
Note 2: “Total value of properties held” is based on the value on the balance sheet (the value of real estate in trust is the book value
after depreciation).
Note 3: Concerning the “Percentage of total assets,” the figures are rounded off to one decimal place. The total of individual
percentages in the above table may not equal 100%.
Note 4: Figures in parentheses for “Total amount of assets” refer to the value and percentage of real estate held in effect to the total
amount of assets.
(as of August 31, 2017)

Value on balance sheet

Percentage of total amount of assets(mm of yen)(%)

Total amount of liabilities

84,364

47.4

Total amount of net assets

93,69952.6(2) Investment assets(i) Primary issues of investment securities
No relevant items.
(ii) Real estate investment portfolio
No relevant items.

15

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017(iii) Other primary investment assets(a) Values and investment ratios at end of period are as follows.
(as of August 31, 2017)

Real estate property nameAcquisitionvalue(mm of yen)
(Note 1)

Value onbalance sheet(mm of yen)

Period-end
appraisal value(mm of yen)
(Note 2)

Canal City Hakata

32,00030,51831,900Canal City Hakata･B

28,70029,21329,900Park Place Oita

17,76018,932

19,100SunLive City Kokura

6,633

5,770

7,930

Square Mall Kagoshima Usuki

5,300

4,521

5,420

Kumamoto Intercommunity SC

2,400

2,042

2,720

Hanahata SC

1,130

1,008

1,250

Kurume Higashi Kushiwara SC

2,500

2,127

2,790

K’s Denki Kagoshima

3,550

3,091

3,710

Marinoa City Fukuoka (Marina
Side Building)Retail subtotal:
Canal City Business Center
Building

5,250

5,473

5,940

105,223

102,701

110,660

14,60013,395

14,900Gofukumachi Business Center

11,2009,313

13,400Sanix Hakata Building

4,400

3,906

5,430

Taihaku Street BusinessCenter

7,000

6,219

7,590

Higashi Hie Business Center

5,900

4,637

6,710

Tenjin Nishi-Dori Center
Building

2,600

2,709

2,970

Tenjin North Front Building

2,800

2,617

3,580

Office buildings subtotal:

48,50042,79854,580Amex Akasakamon Tower

2,060

1,765

1,940

City House Keyaki Dori

1,111

950

1,090

Aqualia Chihaya

1,280

1,190

1,630

D-Wing Tower

2,800

2,749

3,420

Granfore Yakuin Minami

1,100

1,149

1,290

Hotel FORZA Oita

1,530

1,431

1,860

Tosu Logistics Center

1,250

1,223

1,420

LOGICITY Minato Kashii

8,150

8,008

8,800

LOGICITY Hisayama

5,050

5,062

5,220

Others subtotal:
Total

24,331
178,054

23,531
169,031

26,670191,910Note 1:
Note 2:

Note 3:

Investment
ratio

Real estate appraiser(%) (Note 3)

18.0 Tanizawa Sogo
Appraisal Co., Ltd.
16.1 Tanizawa Sogo
Appraisal Co., Ltd.
10.0 Japan Real Estate
InstituteJapan Real Estate
3.7 InstituteJapan Real Estate
3.0 InstituteJapan Real Estate
1.3 Institute
0.6 Tanizawa Sogo
Appraisal Co., Ltd.
1.4 Tanizawa Sogo
Appraisal Co., Ltd.
2.0 Tanizawa Sogo
Appraisal Co., Ltd.
Tanizawa Sogo
2.9 Appraisal Co., Ltd.
59.1
Tanizawa Sogo
8.2 Appraisal Co., Ltd.
6.3 Tanizawa Sogo
Appraisal Co., Ltd.
2.5 Japan Real Estate
Institute
3.9 Japan Real Estate
InstituteTanizawa Sogo
3.3 Appraisal Co., Ltd.
Japan Real Estate
1.5 InstituteJapan Real Estate
1.6 Institute
27.2
1.2 Daiwa Real EstateAppraisal Co., Ltd.
0.6 Daiwa Real EstateAppraisal Co., Ltd.
Japan Real Estate
0.7 InstituteTanizawa Sogo
1.6 Appraisal Co., Ltd.
Tanizawa Sogo
0.6 Appraisal Co., Ltd.
0.9 Japan Real Estate
Institute
0.7 Japan Real Estate
Institute
4.6 Tanizawa Sogo
Appraisal Co., Ltd.
Tanizawa Sogo
2.8 Appraisal Co., Ltd.
13.7
100.0

“Acquisition value” refers to the amount (purchasing prices shown on the purchasing contracts) not including expenses forthe acquisition of relevant properties (agency fees and taxes and other public charges).
“Period-end appraisal value” refers to the evaluation value based on appraisals by a real estate appraiser in conformity withthe method and standards for asset evaluation stipulated in FRC’s Articles of Incorporation and rules stipulated by theInvestment Trusts Association, Japan.
“Investment ratio” is obtained by dividing each property’s acquisition value by the total acquisition value. The total ofindividual percentages in the above table may not equal 100%, since the figures are rounded off to one decimal place.

16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2017(b) Summary of the real estate leasing business(as of August 31, 2017)

Real estate property name

Numberof tenants(Note 1)

Canal City Hakata
Canal City Hakata･B
Park Place Oita
SunLive City Kokura
Square Mall Kagoshima
Usuki
Kumamoto Intercommunity
SC
Hanahata SC
Kurume Higashi KushiwaraSC
K’s Denki Kagoshima
Marinoa City Fukuoka(Marina Side Building)Retail subtotal:
Canal City Business Center
Building
Gofukumachi BusinessCenterSanix Hakata Building
Taihaku Street BusinessCenterHigashi Hie Business Center
Tenjin Nishi-Dori Center
Building
Tenjin North Front Building
Office buildings subtotal:
Amex Akasakamon Tower
City House Keyaki Dori
Aqualia Chihaya
D-Wing Tower
Granfore Yakuin Minami
Hotel FORZA Oita
Tosu Logistics Center
LOGICITY Minato Kashii
LOGICITY Hisayama
Others subtotal:
Total

Note 1:

Note 2:

Note 3:Note 4:Note 5:Note 6:

Occupancy
Total
rate
leasable floor(%) (Note 3)
space (m2)

Totalleased floor
space (m2)

Totalleasingrevenues(mm of yen)
(Note 4)

Percentage
of totalleasingrevenues(%) (Note 5)

1 [49]
1 [50]
1 [107]
1

100.0
100.0
100.0
100.0

46,602.94
68,820.27
113,837.73
61,450.22

46,602.94
68,820.27
113,837.73
61,450.22

1,250
1,598
1,228
292

15.4
19.7
15.1
3.6

12

100.0

14,602.88

14,602.88

257

3.2

2

100.0

6,968.66

6,968.66

89

1.1

2

100.0

2,801.15

2,801.15

40

0.5

1

100.0

6,467.80

6,467.80

88

1.1

1

100.0

7,296.17

7,296.17

111

1.4

1

100.0

33,069.82

33,069.82

177

2.2

100.0

361,917.64

361,917.64

5,134

63.3

1 [61]

100.0

23,031.09

23,031.09

639

7.9

35

100.0

19,905.34

19,905.34

540

6.7

16

100.0

6,293.75

6,293.75

199

2.5

1 [68]

98.8

14,677.27

14,499.25

299

3.7

1 [25]

100.0

13,614.59

13,614.59

334

4.1

1

100.0

3,339.32

3,339.32

86

1.1

11
66 [217]100.0

5,252.41

5,252.41

139

1.7

99.8

86,113.77

85,935.75

2,239

27.6

1 [60]
1 [39]
1 [103]
1 [136]
1 [91]
1

91.1
92.2
98.2
99.4
91.9
100.0

4,821.25
2,710.86
5,619.69
7,187.59
2,496.06
5,785.44

4,391.95
2,500.14
5,519.95
7,144.29
2,293.60
5,785.441

100.0

4,173.29

4,173.29

65
36
59
113
37
63
Undisclosed

0.8
0.5
0.7
1.4
0.5
0.8
Undisclosed

23 [226](Note 2)

(Note 2)2
1
10 [434](Note 2)99 [877]

100.0

43,233.72

43,233.72(Note 6)(Note 6)

Undisclosed

Undisclosed(Note 6)(Note 6)

Undisclosed

Undisclosed(Note 6)(Note 6)100.0

24,505.65

24,505.65

99.0

100,533.55

99,548.03

743

9.2

99.8

548,564.96

547,401.42

8,117

100.0

(Note 2)
“Number of tenants” is based on the total number of sections stipulated in the tenancy agreements for retail and officebuildings among relevant properties. For the number of tenants in pass-through master leasing properties, the number ofsections stipulated in the tenancy agreements with end tenants is shown in parentheses. The Taihaku Street BusinessCenter is an office building with a residential tower. Its number of tenants comprises 12 offices and 56 residences.
The subtotal and total of all the tenants in other than pass-through master leasing properties and the number of sections
stipulated in the tenancy agreements with end tenants for pass-through master leasing properties is shown in parentheses
in the totals column for “Number of tenants.”“Occupancy rate” refers to the percentage of total leased floor space to total leasable floor space and the figures are rounded
off to one decimal place.
“Total leasing revenues” is the total of real estate leasing revenues and other revenues from real estate rent in the current
fiscal period.
“Percentage of total leasing revenues” is obtained by dividing each property’s total leasing revenues by the total amount of
total leasing revenues. The total of individual percentages in the above table may not equal 100%, since the figures arerounded off to one decimal place.
The figures are not disclosed as no consent to disclosure has been obtained from the tenants.

(3) Investment target
The disclosure is omitted, since there are no significant changes from the “Investment target” disclosed by the latest
securities report (submitted on May 30, 2017).

17