Fukuoka REIT Corporation
Q&A Summary for the 31st Fiscal Period (Period Ended February 2020)
Earnings Briefing Session for Institutional Investors/Analysts
Date: April 14, 2020 (Tue.), 15:30pm – 16:15 pm (web conference)
Q1: As I see it, the new property acquisition and other measures you have announced willraise the LTV ratio to over 40%. Do you intend to reduce the rate in the future, or doyou plan to conduct operations with a higher target level for LTV than before?
A1: The acquisition of Higashi Hie Business Center III will be funded by borrowings.
Accordingly, the LTV ratio is expected to be slightly over 40% after the acquisition. We
have long kept our LTV policy unchanged, and we will continue to keep the level within
the scope of 35% to 45%. As long as it remains within that scope, we may want toacquire excellent properties with funds procured through debt financing.
Q2: How have you factored into FRC’s performance forecasts the impact of temporary
closures at your retail properties which began on April 9?
A2: At this point in time we are unable to estimate the impact of temporary closures at Canal
City Hakata, Konoha Mall Hashimoto and Marinoa City Fukuoka (Marina Side Building)on revenues and expenses. However, we assume sales of our retail properties for theentire 32nd fiscal period to be around 50% for Canal City Hakata and at a level of 70%
for Park Place Oita, Konoha Mall Hashimoto and other properties compared with sales
from a year earlier. With such stress placed on sales, we presume a decrease in variable
rents for these properties. Because of this, we will elaborately negotiate with eachtenant with consideration given to the extent of such decrease.
Q3: With regard to the fixed rent portion, not including the variable rent, of your retailproperties, do you have any tenants with whom you are negotiating a reduction orexemption in a specific manner in light of the request by the Ministry of Land,
Infrastructure, Transport and Tourism? In addition, have you factored into yourperformance forecast the decrease in fixed rent revenues?
A3: At present, there are no tenants with whom we are negotiating a reduction or exemptionof rents specifically. We recognize that the request of the Ministry of Land, Infrastructure,Transport and Tourism was related to respite of rent payment. As for the decrease in
fixed rent revenues, such has not been factored into the performance forecast. However,with stress placed on sales, we assume a decrease in variable rents. We are preparedto negotiate with each tenant elaborately with consideration given to the extent of thedecrease.
Note: In consideration of how COVID-19 infection is spreading, the latest analyst meeting
was held online on the website. Some analysts who participated in the online meeting
reported that they could not transmit their questions due to the connection. We willcontinue looking into methods, etc. for holding the briefing session under such asituation.

※This material contains statements on future business performances, plans, management targets and strategies, etc.
These forward-looking statements are based on the latest judgments made by Fukuoka REIT Corporation and Fukuoka
Realty Co., Ltd., and the actual results of Fukuoka REIT Corporation may differ materially from those in the forward-looking
statements due to various factors. Therefore, Fukuoka REIT Corporation and Fukuoka Realty Co., Ltd. do no guarantee theirrespective future performances described in this material or in the explanations made on the basis of this material.
Although Fukuoka REIT Corporation and Fukuoka Realty Co., Ltd. have prepared this material based on the information
believed to be reliable, it makes no guarantee as to the accuracy, rationality or completeness of the content. Please notethat all the descriptions of this material are effective as of the date when this material was prepared, and may be subject tochange without prior notice. This material is solely for the purpose of providing information to investors, and is not intended
for soliciting investment or other activities. When making a final decision on investment, investors are kindly requested to
do so based on their own judgment and responsibility, fully recognizing and understanding the investment-related risks
including a decrease in investment value.