Security code

Overview of the 34th fiscal period performance［8968 ］March 1st,2021〜 August 31st,2021

Executive summary

1

New Acquisition of property[scheduled] and growth strategy 2
Impact of COVID-19 infection

5

Devidend per unit

6

Financial statements

7

Business forecasts

9

Portfolio overview

11

Financial strategy

19

Appraisal value

22

Sustainability

23

Appendix

24

Overview of the 34th fiscal period performance［Security code 8968］March 1st,2021〜August 31st,2021＊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.

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.

Executive summary
Despite a state of emergency being declared twice for Fukuoka Prefecture, dividend per unit for the 34th period surpassed the forecast by 1.1%

Asset replacement （June 1, 2021）

Owned properties■ Capture the medium- to long-term growth potential of office buildings in the Tenjin area

■ Retail properties Conducted workplace vaccination mainly at major facilities for tenants’ employees■ Reduce the risk of having a full-service hotel that is subject to large impact of COVID-19

SponsorsupportTenjin Nishi-DoriBusiness Center

Property
Name（Land with leasehold interest）

Acquisition
price

Property
Name

Asset
Replacement

CANAL CITY Hakata・B
Grand Building（88.28% co-ownership interestin Grand Building）

Disposition
Gain on sale price7,700 mm yen

104 mm yen： Launched a project team for drastic investigation on anti-infection
・ Canal City Hakata
Initiatives
measures, attraction of visitors and renovations, etc. after COVID-19 is containedby each： “A playground for children” is planned to reinforce attraction of families
・ Park Place Oita
facility・ SunLive City Kokura ： Renovation of common spaces in line with invitation of strong tenants■ Office buildings Continued to achieve upward revision of rents, with the period-end occupancy rate at 100.0%■ Others

7,700 mm yen

FRC owns only hotels specialized for accommodation and has kept close coordinationof information with the operators.Occupancy rate for residence is 96.1%, and rent
increase due to tenant replacements has continued. Vacancy rate of 0% has continued
for logistics facilities in Northern Kyushu（＊2）（＊2）Medium- to large-scale rental logistics facilities that have a total floor space of at least 5,000 ㎡ in Fukuoka and Saga Prefectures.

New acquisition of property （scheduled on March 1, 2022 ）Property nameHakata Chikushi-Dori
Center Building

LocationHakata Ward, Fukuoka City

Acquisition
price（scheduled）

4,320 mm yen

Appraisal value

4,540 mm yen

NOI yield （＊1）

5.3％

Financial Management■ Procured 6,300 mm yen at 0.51% on average interest rate with a debt duration of 10 years（＊3）
Committed line

Fixed rate

Average remaining
duration to maturity

mm yenmm yen94.1％

J-REITs' average：4.3 years

82,40013,000■ External evaluation NEW

3,642
3,250

3,539

3,361

Recover
31st

41.2％

（＊5）

J-REITs' average：44.4％

E S G
GRESB2021 “4 Stars” ・ Green Building certification obtained for 78.8%（based on total floor space）

Dividend per unita（yen）Feb. 2020（＊5）

calculated by Fukuoka Realty based on their disclosure materials.

4,000
3,500

5.7 年

LTV （＊4）（＊3）Interest rates are rounded off to the second decimal place. （＊4）LTV is calculated as total interest-bearing debt divided by total assets.
（＊5）Indicates the average value of the latest account settlement figures of all investment corporations as of August 2021,（＊1）The indicated figure is based on the NOI described in the appraisal report.

3,000

Total debt

32nd

Aug. 2020

33rd

Feb. 2021

3,409

34 th

Aug. 2021

130（Gain on sale）【Dividend per unit】

3,500

3,500

The actualof the 34th FP

3,539 yen

35th Forecast 3,500 yen

35 thFeb. 2022[forecast]

36 th

Aug. 2022[forecast]（compared with theprevious FP ＋5.3％
compared with theforecast＋1.1％）

36th Forecast 3,500 yen               

1New acquisition of property for the 36th FP
Hakata Chikushi-Dori Center Building

March 1, 2022

100m

Acquisition price（scheduled） 4,320 mm yen

Total floor space

8,621.96㎡

NOI yield（＊1）

5.3％（assumed NOI yield for the 36th period:3.9%）

Positive rent gap（＊2）＋33.9％（＊1）The indicated figure is based on the NOI described in the appraisal report.
（＊2）Rent positive gap indicated the gap between current rent （contract rent with common charges） and market rent, and is calculated as“market rent – current rent / current rent”. Moreover, market rent indicated average of assumed newly closed rent assessed by CBRE as of August 2021.

Higashi Hie
The Basics
Business Center
Fukuoka
Fukuoka
Higashi Hie Businesslocal government
Center Ⅱ
officeHigashi Hie
Su
About 8 min. walkbw
Nakahiea y Kuko L ine Higashi Hie
Park
SUNLIFE No.3
Business Center Ⅲ
Building

Sanix Hakata Building
KITTE
HakataMeiji
Park
Crown Plaza
ANA Fukuoka

Yodobashi
CameraHakataFukamiPark Building

Ninjin
Park

Otowa
Park

385

er

12

Miyako Hotel
HakataJR Hakata City

Takeshita-doriTenants

JR Hakata

Hakata Chikushi-Dori
Center Building
Ch Mizuho
iku Park
sh
i-d
or
i

as
hido
ri

January 1992

JR Hakata-mina
mi LineBuilt timing

FukuokaAsahi Buildingiv

2-5 Hakataeki-minami, Hakata Ward, Fukuoka City

R

LocationHakata Bus
Terminalsa

4,540 mm yenaikMAppraisal valueFu
Ex kuoKa pre ka U
nj ss rb 3
o w a
Li ay nne
Renovation of station-front
Toko Park
square at Hakata Station
Hakataeki higashi
Chikushi Exit
（June 2021 〜 March 2022）

Hy
ak
un
en
b

Acquisition date（scheduled）

Area map
JR Kagoshima
Line

Overview of the property

Hie
Park

Hakata Station East area

Urban Center
Hakata西田ビル

Features of the property
An acquisition of the property by utilizing the information ability and know-how
of the Asset Manager●The property to achieve internal growth after the acquisition is expected●Located about an eight-minute walk from JR “Hakata” Station in anarea where hotels and government offices are concentrated●Highly competitive in the area, with a standard floor rental room area of over 240 tsubos
New Acquisition of property [scheduled] and growth strategy2External Growth Initiatives
Aiming for an asset size of 250 billion yen by diversifying risks by investment type as a comprehensive REIT
Sponsor pipelines, etc●Several redevelopment projects are under-

Acquired from sponsor （＊1）

way in the Tenjin and Hakata areas

16/32
properties

SponsorOutside party● Scheduled to continue development of logis-

tics facilities after the development of firstlogistics facility in September 2020

35.3％

202,019mm yen64.7％

at the end of
the 34th FP（Aug. 31,2021）（＊1）Because the Higashi Hie Business Center that was acquired in the

71,329mm yenMajor income-generating properties

130,690mm yenMajor development properties

Office buildings● Powerful companies leading the Kyushu businessworld provide backup as sponsors of the AssetManager

Logistics

in a meticulous and stable manner is possible

Open bid

Solution proposal（Land with leasehold interest）（provisional name）

Tsunabaproject（＊2）

LOGICITY Minato Kashii North（＊2）

ACT LOCAL, THINK GLOBAL

Internal Growth
Logistics

Tenjin Nishi-Dori Business Center

Office buildings

Fukuoka
Realty● Following acquisition, community-based operation

Office buildings

Tenjin Business Center（＊2）

Naha Business Center （＊2）

of the Asset Manager which is well versed in individual conditions in the Fukuoka andKyushu area（ex. leaseback, base consolidation, putting land with leasehold interest off the balance sheet, etc.）

ment units through same-boat investment（as of August 31, 2021）

Office buildings● Acquire properties from external sources by utilizing the information ability and know-how●Propose wide-ranging CRE strategies by grasping customers’ needs as early as possible●Fukuoka Jisho owns 9.18% of FRC’s invest-

10th FP, August 31, 2009, was acquired from both the outside party
and the sponsor, the purchase price has been added to thepurchase prices from outside parties and the purchase prices fromthe sponsor after calculation on a per capita basis. Furthermore,with regard to the number of properties, one property has been
added to the number of properties acquired from the sponsor.

Community-based sourcing strategy

Logistics

Logistics sitein Koga city

Limitedopportunitiesforacquisition

Propose solutions to win
trust and “achievetransactions,” and “enhance property value”
by pursuing internal
growthLOGICITY Wakamiya
Office buildings（＊2）

Involved from the development stage,adding a viewpoint of sustainability

Hakata Chikushi-Dori Business Center（＊2）The above properties are owned by Fukuoka Jisho, and FRC has no plan to acquire them at present. For details of the sponsor pipeline, please see page 59.

New Acquisition of property [scheduled] and growth strategy

3

Historical trends of asset’s size by investment type （based on acquisition）
Asset size is 202.0 billion yen at the end of the 34th fiscal period （based on acquisition）
RetailOffice buildings

Residence

Logistics

2.1％

PO（Mar. '18）

（mm yen）

200,000

LTV

Hotel

（%）

80

PO（Apr. '15）

7.8％
4.1％

180,000

PO（Mar. '13）
PO（Mar. '11）

160,000

70
33.0％

140,000
PO（Sept. '06）

120,000

60

100,000

80,00050

Capacity up to 50% approx. 35,000 mm yen

LTV
46.0％ 46.5％
43.8％ 43.8％

60,00041.2％ 41.4％

41.0％

44.7％ 44.6％ 44.6％ 44.6％

39.5％
40,00045

Capacity up to 45% approx. 13,600 mm yen

42.4％ 42.4％ 42.4％ 42.3％

37.6％ 37.4％

53.0％
39.9％ 39.9％ 40.1％
38.1％

39.3％ 38.9％ 39.1％ 39.7％ 39.7％ 39.8％

41.4％ 41.3％ 41.2％

40

35.6％

35

20,000
30.4％
0

30

As of
2nd 3rd 4th 5th 6th 7th 8th 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 34th March
Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb.
Aug. Feb. Aug. 2022 1,2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021（scheduled）＊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.
＊Properties are classified in accordance with their main use. Fukuoka Washington Hotel, which is a tenant of Canal City Hakata, is included in the Retail category.

New Acquisition of property [scheduled] and growth strategy

4Impact of COVID-19 infection
Active retail properties are also anticipated to recover as COVID-19 is contained
Trends in sales in comparison with last year （for 32 and 33 periods）
and two years ago （for 34 period）
nd

Occupancy ratesrdth●Community-based suburban SCs have surpassed the national average● Canal City Hakata repeatedly seesawing due to prolonged impact of COVID-19 and
（%）

140

SunLive City Kokura

33 rd

34 th

（Feb. 2021）（Aug. 2021）

Canal City Hakata

97.7 ％

97.9％

Canal City Hakata・B

99.5％

9 8.1％

Park Place Oita

100.0％

99.9％

Konoha Mall Hashimoto

97.8 ％

98.7％

SunLive City Kokura

100.0％

100.0％

Other retail properties （＊4）

100.0％

100.0％

3,500

Park Place Oita（＊2）

SC Sales Statistic （nationwide）

Konoha Mall Hashimoto

SC Sales Statistic （large cities）… Effective period of the state of emergency in Fukuoka

4/7〜5/14

Property name（people）

lack of inbound tourist demand
Canal City Hakata/Canal City Hakata ・B（total）（＊1）

120

Period-end occupancy rates…Effective period of the priority measures to prevent the spread of disease in Fukuoka

1/14〜2/28

5/12〜6/20

8/20〜9/30

3,000

8/2〜8/19
6/21〜7/11

100

2,500

80

2,000
③Aim for a phased recovery in sales （＊3）

60

1,500

（＊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.

Status of Rent Reduction and Deferment of Rent Payment●In the 34th fiscal period, the amount and number of rent reductions and exemptions decreased.

1,195

Deferment of payment was not conducted.

32nd

（％）

40

1001,000
No. of people who tested positive
for COVID-19 in Fukuoka Pref. Max. no. per day
Vaccination rate （second dose） in Fukuoka Pref.

20

36 th
（forecast）

27 mm yen

12 mm yen

0.5 mm yen

19 cases

10 cases

2 cases

ー

ー

ー

34 th

259 mm yen

84 mm yen288

49 cases

Jun.
Aug.

634

①Progress in vaccination （＊3）

50 500411②Decrease in COVID-19 cases （＊3）

1690Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.

2020
32 nd・ 33 rd（comparison with last year ）35 th（forecast）

33 rd

Apr. , May
2020

2021
34 th（comparison with two years ago）

0 0

35 th

Source: Prepared by Fukuoka Realty based on data from Sales Statistics on the Japan Council of Shopping Centers website, the Government CIO Portal,
and the Fukuoka Prefecture website.
（＊1） Sales of the portion to be disposed （88.28% co-ownership interest） of Canal City Hakata·B Grand Building, which is part of Canal City Hakata·B,
are excluded from June 1, 2021, the disposition date.
（＊2） Sales at the newly acquired Home Plaza NAFCO at Park Place Oita in July 2020 are added.
（＊3） Sales in September 2021 and thereafter are an illustrative indication of the targeted recovery and are not based on performance forecasts, etc.
The graphs of vaccination rate and COVID-19 cases in October 2021 and thereafter are also illustrative indications only, and may differ from actual results.

Rent
Reduction
Numberoftenants

cases

（＊ 5）

Defermentof Rent
Payment
（＊5）

285
cases

ー

●Already fullycollected for all
285 cases●No newarrangement
conducted（＊5） The number of tenant cases is a cumulative figure.

Impact of COVID-19
infection
資産規模の拡大5

Dividend per unit
Dividend per unit recovered to 3,500 yen
Variation factors in dividends （34th Actual）

Dividend per unit
① May 12 〜 Jun. 20

（yen）

4,000
3,800
3,600
3,400
3,200
3,000
2,800
2,600
2,400
2,200

② Aug. 20 〜 Sept. 30● Reached 3,539 yen, +178 yen period-on-period, as the impact of lack of NOI due to asset replacement

Effective period of the state of emergency in Fukuoka
3,539

was reduced by gain on sale and full-period earning contributions of newly acquired properties earnings

3,500

3,500

3,361

3,250

3,900

3,409
（excl. gain on sale）

n →
32
d

3,700

2.5％
riod ＋h pecaef salege overa gain onth
35 A excl.
＊

32nd

33rd

34 th

Feb. 2021

Aug. 2021

Of which,
rent reduction （34）

130
99

35 th

36 th

●Despite a state of emergency being declared twice for Fukuoka Prefecture, which was not assumed at the begininng of

the 33rd period, dividend per unit came to surpass the forecast for the 34th period by 1.1%. Although the impact of
COVID-19 is assumed to linger in the 35th period and thereafter, dividend forecast per unit remains unchanged at 3,500 yen.
● When gain on sale is excluded, dividend is assumed to recover by 2.5% on average for each period（32nd through 35th）

Variation factors in dividends （35th Forecast）

23

3,539

depreciation
andamortization
expenses

Others34 th
ActualOf which, Canal City Hakata(overall): （27）

（168）

3,100

50

（47）

3,300

Feb. 2022[forecast] Aug. 2022[forecast]

73

18

3,361

compared withthe forecast

Aug. 2020

Impact due toproperty replacement 61

3,500

＋1.1％

2,000

（yen）

2,900
Grand Building Tenjin Nishi-Dori（88.28% co-ownership

Business Center
33rd
interest）（Land with leasehold interest）
Actual Lack of revenues Contribution torevenue（NOI after depreciation）

Gain
on
sale

Full-period
repair &contribution of
LOGICITY maintenance（Leasing business revenues） Wakamiya
expenses

Activeretail（NOI after depreciation）（NOI after depreciation）

Variation factors in dividends （36th Forecast）● Forecast to be 3,500 yen, as lack of gain on sale and lack of NOI due to asset replacement will

●Forecast to be 3,500 yen, as accrual of property and city planning taxes for newly acquired property and increase in repair andbe covered by recovery of active retail properties

other expenses will be covered by contributions of newly acquired property to earnings and recovery of active retail properties

（yen）

（yen）

3,900

3,900

3,700

3,539

Impact due toproperty replacement （236）

3,500

3,700

Of which,
rent reduction（15） （＊）

34

39

3,100
2,900
34 th
ActualLack ofgain onsale

Grand Building Tenjin Nishi-Dori（88.28% co-ownership Business Centerinterest）（Land with leasehold interest）

（67）

3,500

59

2,900

Lack of revenues Contribution to （Leasing business revenues）

repair &maintenanceexpenses（14）

97

Of which, Canal City Hakata(overall)：93,100

Of which, Canal City Hakata(overall)：40
Activeretail

（25）

3,500
（50）

3,300

65
（205）

83

3,500

3,500

（24）

99

（130）

3,300

Of which,
rent reduction（0）（＊）

depreciation
andamortization
expenses

Others

35 th
Forecast

35 th
Forecast

Full-period
repair &contribution of
Hakata Chikushi-Dori maintenanceAccrual of property and （Leasing business revenues） Business Center
expenses
Tenjin Nishi-DoriBusiness Center（Land with leasehold interest）

ActiveretailOf which, outsourcing expenses （35）expenses from utilities （43）Owned properties
28（excl. active retail）
depreciation
andamortization
expenses

Procurement
costs

city planning taxes
revenue（NOI after depreciation）（NOI after depreciation）（NOI after depreciation）＊Active retail refers to Canal City Hakata, Canal City Hakata ・B, Park Place Oita, Konoha Mall Hashimoto and SunLive City Kokura. ＊Canal City Hakata (as a whole) refers to Canal City Hakata and Canal City Hakata ・B.
＊The amounts of impact of newly acquired properties and the disposed property are stated based on NOI after depreciation. （＊） The currently estimated amount is indicated. Besides, rent reduction, etc. will be made in response to the impact of possible spread of COVID-19.

Others36 th
Forecast

Dividend per unit

6

Statements of Income （compared with the previous fiscal period）
Gain on sale and reduced expenses absorbed decrease in revenues due to property sale, with dividends up 5.3% period-on-period- unit : mm yen

Account

34th

A■Operating profit and loss

Difference

B〜Aug. 31, 2021

B-A

（36）

Total operating revenues

8,904

8,867

Operating revenues excluding gain on sales

8,904

8,762

①

（141）

-

104

②

104

Total operating expenses

5,842

5,662

Expenses related to leasing business

5,180

4,978

524

531

7

Asset custody fees

7

7

0

Administrative service fees

58

58

0

Director’s compensations

9

9

-

Other operating expenses

61

75

14

Operating income

3,061

3,204

142

Total non-operating revenues

1

0

（0）

Total non-operating expenses

386

387

1

Interest expenses（incl. investment corporation bonds）

282

286

4

Financing related expenses

97

98

0

Others

5

2

（3）

2,677

2,817

140

2,677

2,817

140

1

1

（0）

Profit

2,675

2,816

141

Total dividends

2,675

2,817

141

Dividend per unit（yen）

3,361

3,539

178

Gain on sale

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

33rd〜Feb. 28, 2021

Sign indicates impact on profit （ unit : mm yen）

（179）
③

（201）

①New acquisition property＋79（Tenjin Nishi-Dori Business Center（Land with leasehold interest））
Full-period contribution of LOGICITY Wakamiya ＋26
Canal City Hakata（22）
Canal City Hakata・B（263）［ Grand Building（88.28% co-ownership interest）（263）]

Lack of revenues due to disposition

Park Place Oita
（15）
Office buildings（excl. Tenjin Nishi-Dori Business Center ＋35（Land with leasehold interest））
Tissage Hotel Naha
＋14
Others＋4
Total : （141）② CANAL CITY Hakata・B Grand Building（88.28% co-ownership interest）＋104③Decrease in outsourcing expenses＋94
Increase in expenses from utilities（25）
Decrease in taxes and other public charges ＋19
Decrease in depreciation and amortization expenses ＋70
Decrease in repair & maintenance expenses ＋57
Increase in other expenses（16）
Total : ＋201

Financial statements

7

Statements of Income （compared with the forecast）
Decrease in revenues due to the impact of the declaration of a state of emergency was absorbed by cost reductions, etc. Dividend per unit came to +1.1% from forecast
Sign indicates impact on profit （ unit : mm yen）

- unit : mm yen

Account
Total operating revenues
Operating revenues excluding gain on sales
Gain on sale

Ordinary profit and loss

Operating profit and loss

Total operating expenses

34th■Operating profit and loss

Difference

B〜Aug. 31, 2021

B-A

（112）

8,979

8,867

8,883

8,762

①

（120）

95

104

②

8

5,803

5,662

③

▲312 （140）

Expenses related to leasing business

4,978

Asset management fees

7

Administrative service fees

58

Director’s compensations

9

Other operating expenses

75

Non-Operating
profit and loss

Operating income

3,176

3,204

28

Total non-operating revenues

0

0

（0）

Total non-operating expenses

389

387

（1）

Interest expenses（incl. investment corporation bonds）

286

Financing related expenses

98

Others

2
2,787

2,817

29

2,787

2,817

29

1

1

0

Profit

2,786

2,816

30

Total dividends

2,786

2,817

31

Dividend per unit（yen）

3,500

3,539

39

Profit before income taxes
Total income taxes①Canal City Hakata
Canal City Hakata・B
Park Place Oita

Konoha Mall Hashimoto
Office buildings
Others

（72）
（31）
（20）
（3）
＋8
（2）
Total : （120）② CANAL CITY Hakata・B Grand Building（88.28% co-ownership interest in Grand Building）

531

Asset custody fees

Ordinary income

Dividend

A
34th
Forecast at 33rd

＋8

③Decrease in outsourcing expenses＋51
Decrease in expenses from utilities＋20
Decrease in depreciation and amortization expenses ＋5
Decrease in repair & maintenance expenses ＋56
Decrease in taxes and other public charges ＋5
Decrease in selling general and administrative expenses ＋9
Increase in other expenses（6）
Total : ＋140

Financial statements

8

Business forecast （the 35th fiscal period, Feb. 2022）
Absence of gain on sale and the impact of asset replacement were absorbed by reduced expenses, etc., with dividend per unit at 3,500 yen
Forecast in the 35 th fiscal period
Sign indicates impact on profit （unit : mm yen）

- unit : mm yen

Account

35th
Forecast
at 33rd34th
ActualA

Operating revenues
Operating revenues
excluding gain on sales

35th
Forecast
at 34thB

C

34thActualdifference

35th
Forecast
difference

（246）

（103）

（141）

（103）

C-A

8,867

8,724

8,621

8,762

8,724

8,621

①

■Difference between the 34 th FP actualand the 35 th FP forecast

C-B① Full-period contribution of Tenjin Nishi-Dori Business Center ＋79（Land with leasehold interest）（11）
Canal City Hakata（220）
Canal City Hakata・B［Grand Building（88.28% co-ownership interest）（263）]

Lack of revenues due to disposition

Gain on sales

104

-

-

②

（104）

-

Operating expenses

5,662

5,555

5,464

③

（198）

（90）

3,204

3,168

3,156

（47）

（12）

Non-operating revenues

0

0

0

0

-

Non-operating expenses

387

382

370

（17）

（12）

Ordinary income

2,817

2,787

2,787

（30）

（0）

Profit

2,816

2,786

2,786

（30）

（0）

Total dividends

2,817

2,786

2,786

（31）

-

Dividend per unit （yen）

3,539

3,500

3,500

（39）

-

Operating income

Park Place Oita
Konoha Mall Hashimoto
Office buildings（excl. Tenjin Nishi-Dori Business Center（Land with leasehold interest））

＋3
＋16
＋2

［ -of which, increase in leasing revenues-real estate, etc.

＋7]

［ -of which, decrease in income from utilities（5 ） ]（6）（6 ）Total : （141）

Tissage Hotel Naha
Others② CANAL CITY Hakata・B Grand Building（88.28% co-ownership interest）

（104）

＋54
③ Decrease in outsourcing expenses＋5
Decrease in expenses from utilities＋47
Decrease in repair & maintenance expenses＋11
Decrease in taxes and other public charges＋63
Decrease in depreciation and amortization expenses
Decrease in selling general and administrative expenses ＋13＋1
Decrease in other expenses
Total : ＋198

Business forecasts

9

Business forecast （the 36th fiscal period, Aug. 2022）
Dividend forecast to be 3,500 yen, with newly acquired property contributing to earnings to cover increase in expenses
Forecast in the 36 th fiscal period
Sign indicates impact on profit （unit : mm yen）

- unit : mm yen

Account

Operating revenues

Operating expenses

Operating income

Non-operating revenues

35th
Forecast at 34th

36th
Forecast at 34th

35th
Forecast difference

A

B

B-A

8,621

5,464

3,156

0

8,834

5,665

3,169

0

①

②

■Variance from updated the 35th FP forecast

213

200

12

-

＋112

① Acquired property at the 36th FP（Hakata Chikushi-Dori Center Building）
Active retail＋77-of which, Canal City Hakata／Canal City Hakata・B

Park Place Oita

＋20

Konoha Mall Hashimoto＋19

SunLive City Kokura

＋29

＋6
＋6
＋10
Total : ＋213

Office buildings
Tissage Hotel Naha
Others② Increase in outsourcing expenses
Increase in expenses from utilities
Increase in taxes and other public charges［ Tenjin Nishi-Dori Business Center（Land with leasehold interest）

Non-operating expenses

370

382

11

2,787

2,787

0

2,786

2,786

0

Total dividends

2,786

2,786

-

Dividend per unit （yen）

3,500

3,500

-

（19 ）]（45）（Hakata Chikushi-Dori Business Center）
Active retai

Profit

（44）
（41）
（18）

（38）
Increase in depreciation and amortization expenses
Increase in repair & maintenance expenses（57）
Decrease in other expenses＋2
Total : （200）-of which, Acquired property at the 36 th FP

Ordinary income

＋7

（59）

Business forecasts

10

Situation of active retail①
Impact of COVID-19 is limited on community-based retail properties●Canal City Hakata●Canal City Hakata・B

Sales（annual total（＊1））
Sept. 2020 - Aug. 2021

●Konoha Mall Hashimoto●Park Place Oita

16.3 bn yen

Sales（annual total（＊2））
Sept. 2020 - Aug. 2021

vs. 2 years ago （47.4）%（YoY（18.0）%）

Continued to be affected by the decrease in the number of visitors
to city-center retail facilities as a whole and reduced tourism
demand under the COVID-19 pandemic. Work to deepen thefundamental customer base by capturing neighborhood customers(through tenant replacement, sales promotion and announcement
activities, etc.), and aim to recover future sales through suchinitiatives as supporting vaccination of tenants’ employees.

24.1 bn yen

vs. 2 years ago （3.1）%（YoY ＋7.0%）

Remained strong as it is a suburban mall anchored by a GMS
and tenants involved in daily necessities as well as because
no state of emergency was declared in Oita Prefecture forthe past 12 months. Aim to increase sales by thoroughly
implementing anti-COVID-19 measures, tenant replacement
and various renovation work, etc. on a continuous basis.

Sales（annual total）
Sept. 2020 - Aug. 2021

13.8 bn yen

vs. 2 years ago（13.4）%（YoY ＋1.0%）

Remained stronger compared with city-center retail facilities as it
is a community-based mall anchored by a supermarket andtenants involved in daily necessities, although impacted by the
declaration of a state of emergency in Fukuoka Prefecture.
Conducted tenant replacement for the Hashimoto Marche zone inautumn 2021, reinforcing attractiveness of food-related offerings.

●SunLive City Kokura

Sales（annual total（＊3））
Sept. 2020 - Aug. 2021

ーvs. 2 years ago （15.1）%（YoY （5.6）%）

A community-based mall anchored by a supermarket andtenanst involved in daily necessities. Remained stronger
compared with city-center retail facilities despite a temporary
decrease in sales associated with tenant replacement andrenovation on top of the impact of the state of emergency
declared in Fukuoka Prefecture.

（＊1）Combined sales of Canal City Hakata and Canal City Hakata・B, properties owned by Fukuoka REIT. Sales of the portion to be disposed （88.28% co-ownership interest） of Canal City Hakata·B Grand Building, which is part of Canal City Hakata·B, are excluded from June 1, 2021, the disposition date.
（＊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.

Change in sales from a year earlier （from 2 years ago）
33 rd

34 th

YoY comparisonof salesYoY comparisonof salesChange in sales
from 2 years ago

Canal City Hakata ／ Canal City Hakata・B （＊1）（64.9）％（40.0）％（50.5）％［＋41.0％]Park Place Oita （＊2）（17.1）％＋0.2％（4.6）％［＋15.1％]

Konoha Mall Hashimoto（24.2）％（8.5）％（14.1）％［＋13.4％]

SunLive City Kokura（18.8）％（10.4）％（18.6）％［＋ 0 .3％]

Other retail properties （＊４）（8.3）％（1.7）％（5.9）％［＋ 2.7％]

Property name32nd

［ 34 th ]［YoY comparison]of sales◎Other retail properties （Fixed rents）
Sales of roadside retail facilities remained strong due to growing demandfor home appliances and golf goods under the COVID-19 pandemic

Kumamoto Intercommunity SC

K's Denki Kagoshima

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.
（＊4）

Portfolio overview

11Situation of active retail②
Current situation at Canal City Hakata （overall）● Continued endeavors to attract domestic and neighboring customers in the 34 th period, given the prolonged impact of COVID-19.
● In the 35 th and 36 th periods, aim for a phased recovery in the number of domestic visitors while paying close attention to anti-infection measures, andassume sales recovering by about 75% from the 29 th and 30 th periods （ not anticipating foreign tourists ）
34 th

35 th

●Anti-infection measures

37th〜●Phased resumption of customer-attracting events

Short-term responses

・ Adopted mobile ordering system
・ Conducted antibacterial coating for
handrails, etc./video streaming
・ Thoroughly conducted disinfection andtemperature measurement
・Held events while avoiding crowding●Tenant support

36 th

Hold customer-attracting events in a phased manner in association with easing of movement restrictions and take advantage of facilities being
located in the center of Fukuoka’ s urban areas.Work to create visit opportunities by providing experiential value, a strength of Canal City Hakata.

Adopted mobile ordering system

・Issued coupons to employees of housed tenants・ Guided customers via events in thefacilities and decorations●Attraction of domestic and＊Reference photos （past events, etc.）

neighboring customers©khara, Inc.

●Renewal of merchandise through renovation

・Held open market and flea market
・ Offered discounts for visitors using ETC
・Issued coupon booklet

FLEA MANIACS

Major tenant replacement and renovation are under study at any time.
Conduct renovation in response to changes in consumer behavior.

300m

New subway station
opening（FY2022）●Changes in the external environment

Conducted COVID-19 vaccination for about
2,350 applicants at special venues in the facilities（in July and August 2021）

A vaccination venue（The Asset Manager employees also cooperated at reception, etc.）▼

Medium- tolong-term responses●Workplace vaccination for tenant employees

・ The entire area is expected to be vitalized with a subway station
opening for better access to the neighborhood, among other factors.
・Progress is being made in infrastructure improvement and otherpreparations, such as the holding of international events （like the FINA
World Championships） and addition of international convention centers.
・Implement various initiatives mentioned above, while discerning theimpact of LaLaport Fukuoka （to be opened in spring 2022）

Haruyoshi Bridgereconstruction Creationof a bustling space（FY2021）

JR Hakata Sta.
Canal City Hakata
Road enhancement leading
to Tenjin Minami （completed）

HakataConnected

Trends in sales of Canal City Hakata /Canal City Hakata・B （＊）
（％）

120
100

80
60

Aim to expand sales over the medium to long term, not only throughnatural recovery of visitors in the phase of the pandemic calming down
but also by implementing various renovation and other measures

40
20
0

29th ・ 30th

31st ・ 32nd

33rd ・ 34th

35th ・ 36th（＊） Sales at the portion to be disposed （88.28% co-ownership interest） of Canal City Hakata·B Grand Building, which is part of Canal City Hakata·B, are not included. The graph indicates the ratio to combined sales for the 29 th and 30 th periods set at 100%.

Portfolio overview

12Situation of active retail③

Anticipate increase in rents through facility renovations, etc.

● Community-based malls with a large selection of daily necessities remained strong even under the COVID-19 pandemic.
● Various renovation works to further motivate customers to visit were investigated and conducted.
● Negotiations with tenants were conducted and settled smoothly.
SunLive City Kokura （completed in September 2021）

Konoha Mall Hashimoto （completed in October 2021）

Park Place Oita （scheduled for spring 2022）●Renovated common spaces (passages, toilets, food court, etc.)●At the same time, the supermarket section was renovated by●Expanded and renovated Hashimoto Marche, a food and goods● A “playground from children’s perspective” is planned tothe master lessee and strong subtenants were invited●Expects percentage-of-sales rent (75 million yen annually), whichsurpasses the percentage-of-sales rent that regularly accrued in
the past （60 million yen annually; not accrued since 32nd period）.

sales zone that performs solid even under the COVID-19
pandemic, at the opportunity of the 10th anniversary.
● Invited 9 new stores, with annual rent
expected to increase by approx. 28 million
yen.

Opening day of "UNIQLO" store（relocated from neighborhood to open on September 23, 2021）

reinforce attraction of family household customers.

●Strengthen the functions for children playing fun and safe toenhance competitive advantage●Disseminate “bustle” and “excitement” of the zone throughout the building→Expect to improve NOI by 20 million yen annually by attracting

more customers and replacing tenants, etc.

◎Subject section:◎Overview
Shangri-La on the 3rd floor ・ Newly establish a playground for children withthe themes of "adventure," "thinking" and"curiosity."

・ Planning and supervision: DENTSU LIVE INC.
・ Design: Mr. Keiichiro Sako, SAKO Architects
DENTSU LIVE INC.
・ Advisor and sound supervision: Mr. Tetsuya Sato,Sony Marketing Inc.
・ Area: approx. 2,256 ㎡ （approx. 684 tsubos）

Annual rent （target） : up 75 million yen

Annual rent expected to increase
by approx. 28 million yen （＊）

Annual NOI expected to increase
by approx. 20 million yen （＊）（＊） The increase in NOI and rent is calculated as increase in percentage-of-sales rent, etc. based on expected sales increase, and may differ from actual results.

Portfolio overview

13Trends in the Fukuoka office market
The competitiveness of office buildings owned by FRC is relatively highFukuoka business district / Vacancy rates and supply and demand of office buildings◎Progress made in informal determination of tenants for office buildings at good locations（tsubo）

50,000Completed floor space（total floor space）
is different from total leased floor space as
the former includes common areas etc.

Completed floor space（total floor space）［left axis］（Includes non-office use area）
Net absorption（absorption demand）［left axis］

40,000
15.38
14.72

20

16

10.86

12

Central Tokyo（5 wards）

Office buildings owned by FRC

＋2.4％

（1.8）
％

2016

2017

2018

2019

2021（year）

2020

Trend of office building vacancy rate in Fukuoka City by size
◎Vacancy rates are relatively low in large-scale and large-sized buildings

10.99

（％）

20,000Fukuoka

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

4.33％
2.89％

Osaka
Sapporo

（％）

9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

2015

Fukuoka 4.55％
13.23 11.98

30,000◎Average vacancy rate in Fukuoka’ s business districts is rising only moderately（％）

Vacancy rate［right axis］

As of Sept. 2021
6.51％
SendaiCentral Tokyo（5 wards） 6.43 ％4.92 ％
NagoyaFukuoka business district / Average vacancy rate

7.70

8
6.30
4.55

4.26
10,000

3.79
3.07
2.04

4

2.09

16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

Large-scale building
Medium-sized building

Large-sized building
Small-sized building

Office buildings owned by FRC
Large-scale building ： 7 properties
Large-sized building ： 2 properties

Definition

Area per floor

Large-scale building 200 tsubo or more
Large-sized building 100 tsubo or more and less than 200 tsubo
Medium-sized building 50 tsubo or more and less than 100 tsubo
Small-sized building 20 tsubo or more and less than 50 tsubo

3.1％
2.8％
2015

2016

2017

2018

2019

2020

2021（year）

Source: Prepared by Fukuoka Realty based on data “Office Market Monthly Survey（Time Series）” from Sanko Estate Co., Ltd.

00

Fukuoka business district / Average asking rents

Building overview（＊）
Office and hotel building（25F）（10,000）

Office5-16 F

Leasable area: approx. 9,100 tsubo

Community building （11F）
Event hall
（1F）
（20,000）

Tenjin Business Center
Former Daimyo Elementary
School Site Utilization Project（provisional name）

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 spaceon 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 August 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 based on data from “Office Market Data” Miki Shoji Co., Ltd.
（＊）Prepared by Fukuoka Realty based on the press releases of Fukuoka City Government and relevant enterprising bodies.

As of Sept. 2021
Central Tokyo 20,858
Fukuoka
11,155◎Average asking rents during the past year [Y2005=100]（yen／tsubo）

Average asking rent of the Fukuoka business district rose 4.7% in the 12 months from Jan. 2020 to Sept. 2021.
（％）

130
120
110
100
90
80

Fukuoka

Central Tokyo（5 wards）

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 based on data from “Office Market Data” Miki Shoji Co., Ltd.

Portfolio overview

14

Initiatives by Fukuoka City Government and Status of Office Workers
Office demand in Fukuoka will remain solid going forward
Change in the number of companies with headquarters functions/in growth area established in Fukuoka City

◎Number of newly located companies remained at as many as 50 in 2020
No. ofcompanies
established（No. of companies）

No. ofemployees

Major newly located companies
AISIN CORPORATION, Whoscall, D.A.Consortium Inc. , etc.

80
70
60
50
40
30
20
10
0

No. of employees

5,000

Rental office "CROSSCOOP Fukuoka Tenjin"
opened in Tenjin Business Center

4,000

Socialwire Co., Ltd. has decided to open ashared office in Tenjin Business Center toproactively invite companies in Japan aswell as from abroad including Asia, taking
advantage of the location characteristicsof Fukuoka City as a gateway for Asia. In
doing so, the company considered theaccelerating promotion of remote workand decentralized offices, and investigated
the feasibility of "regional decentralization"and "popularization of satellite offices.”

3,000
2,000
1,000
0
2016

No. of companies
established（people）

2017

2018

2020

2019

58

57

57

53

50

2,989

1,041

1,334

1,058

665

28
12

40
9

38
7

38
2

30
8

（No. by industry）
Knowledge creation
Call center

Shared Office Serving
to Accept Decentralized
Relocations of Companies, Etc.

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

Initiatives of Attracting International Financial Functions
by Fukuoka City Government
Promotion of Attracting International Financial Functions

Source: Prepared by Fukuoka Realty basedon presss releases of Social Wire andFukuoka Jisho dated June 1, 2021.

●Promotion of attracting foreign financial institutions, etc.

1.1％
0.3％
1.6％

12.4％

1.1％
0.7％
1.3％

5.4％

49.1％

47.3％

2

Kanagawa

42.7％

42.0％

3

Chiba

38.0％

35.6％

4

Saitama

34.2％

32.1％

5

Osaka

29.1％

27.5％

10

Fukuoka

23.8％

20.9％

Source: Prepared by Fukuoka Realty based on data from “Emergency Survey on the
Impact of COVID-19 on Telework” PERSOL RESEARCH AND CONSULTING CO., LTD.

Others (home/unknown)
2 hours or more

1 hour to less than
1.5 hours

Transportation used for commuting to work or school（Fukuoka City and 23 wards of Tokyo）
City

Railway

Transitbus

BicycleFukuoka
City
23 wardsof Tokyo

By foot
only

22.0％

17.9％ 28.5％ 22.6％

9.4％

60.1％

9.3％

8.5％

23 wards of Tokyo
Fukuoka City

Less than 30 minutes

58.1％〜Establishing a base for supervising operations in Japan〜

Source: Prepared by Fukuoka Realty 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.

Tokyo

30 minutes to less than
1 hour

52.7％

31.8％

Implementation
rate in Jul. andAug. 2021

Implementation
rate in
Apr. 20201

1.5 hours to less than
2 hours

33.5％

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

Life guidance upon move-in procedures, international exchange in the region,
multilingual support at ward offices （like telephone interpretation） , surveys on problems, etc.

Tokyo metropolitan area and Osaka Prefecture

Implementation
rate in Jul. andPrefecture
Aug. 2021
RANK

Comparison of commuting times

Implement promotions for foreign financial institutions, etc. to attract international financial functions●Projects to enhance living environment for foreign residents in Japan◎The need for office use is higher than in the（Fukuoka City and 23 wards of Tokyo）●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.

Rate of remote work implementation by region

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

23 wards of Tokyo Fukuoka City
Source: Prepared by Fukuoka Realty based on data from 2018 Housing and Land Survey
by the Statistics Bureau of the Ministry of Internal Affairs and Communications.

By foot
only

BicyclePrivate
car

6.4％

19.5％

Railway About 60% commute to

70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

work or school bymeans other thanpublic transportation

Transitbus

Privatecar

Source: Prepared by Fukuoka Realty based on data from the National
Census (2010), Statistics Bureau, Ministry of Internal Affairs
and Communications.

Portfolio
overview
保有物件の運営状況

15

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

100.0

1

Canal City Business Center Building
Total leasable floor space：23,030.30㎡

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㎡

90.0

99.8

99.8

100.0

99.2

Overview of Office Buildings◎Average occupancy rates（projected）： 35th ： 99.8％ 36th ： 99.7％

80.0
100.0
90.0

100.0

100.0

99.4

99.4

80.0
100.0
90.0

100.0

100.0

100.0

100.0

◎There were tenant move-outs in the 34th period, but the vacancies were filled
without any downtime due to existing tenants requiring expanded floor space◎Rent per unit increased as rent continued to rise through rent revision and

80.0

tenant replacement

Major indicators of owned properties（＊4）

100.0
90.0

99.7

100.0

100.0

100.0

80.0

Total amount of acquisition

63,720 mm yen

Investment ratio

31.5％

Average age（＊5）

17 years 9 months

Tenants

231

Total leasing revenues-real estate in the 33rd FP

2,675 mm yen

Positive rent gap（＊5）＋24.5％ （＊6）

100.0
90.0
80.0

100.0

100.0

100.0

100.0

100.0

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（＊2）（historical and projected）
Total leasable floor space：91,881.54㎡

90.0

10

（Land with leasehold interest）

Total leased floor space（land）：1,343.51㎡

100.0

100.0

80.0

90.0

100.0

100.0

99.6

100.0

100.0

100.0

100.0

100.0

80.0
100.0
90.0

90.0
80.0

Trend in rent unit price index
of owned properties （＊7）
99.0

100.0

100.0

94.1

99.7

99.9

99.8

99.7

105.0
104.0

202

225

59

180

172

394

354

103.0
102.0

0

101.0
100.0

100.0
100.0 （＊3）

90.0
80.0

108.0
107.0

80.0
Move in（index）

106.0

100.0
90.0

（＊4）The figures are indicated as of August 31, 2021.
（＊5）The average building age and the positive rent gap are calculated excluding Tenjin Nishi-Dori Business Center（Land with leasehold interest）.
（＊6）Positive rent gap indicated the gap between current rent: contract rent with common charges and market rent, and is
calculated as “market rent – current rent / current rent”. Moreover, market rent indicated average of assumed

newly closed rent assessed by CBRE as of Aug. 2021.

80.0
100.0

Move out

Tenjin Nishi-Dori Business Center

100.0

100.0

（tsubo）

Move-in/move-out floor space

100.0

100.0

rd
th
th
＊Occupancy rates are calculated as a weighted average during period.
＊Total leasable floor space is figured as of the end of period.
〜Feb.
28,
2021
〜Aug.
31,
2021
〜Feb.
28,
2022
＊Percentages and ratios are rounded off to the second decimal place.
（forecast）（＊1）Residential floor spaces are removed from the total leasable floor space of Taihaku Street Business Center.
（＊2）Average occupancy rates（historical and projected）are calculated excluding Tenjin Nishi-Dori Business Center （Land with leasehold interest）.
（＊3）Since Tenjin Nishi-Dori Business Cente（Land with leasehold interest）was acquired on June 1, 2021, the occupancy rate is shown from the 34th fiscal period.

33

34

35

100.0

36th

〜Aug. 31, 2022
（forecast）

99.0

24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th
Aug.
2016

Feb.
2017

Aug.
2017

Feb.
2018

Aug.
2018

Feb.
2019

Aug.
2019

Feb.
2020

Aug.
2020

Feb.
2021

Aug.
2021

（＊7）The rent unit price index is based on the average rent per unit area at the end of each fiscal period comparedwith the rent per unit area at the end of the 24th fiscal period（August 2016）, which is set as 100. And the figures
are calculated excluding Tenjin Nishi-Dori Business Center （Land with leasehold interest）.

Portfolio overview

16

Situation of other assets （Logistics）
Demand for logistic facilities is strong
Major logistics area

◎ 0% vacancy rate continues in 2021
50,000

North

（％）

12

Fukuoka Urban Expressway
Route 6（Island city Line）

8

30,000KashiiHama

HakataBay

1040,000（Completed on March 27, 2021）

6

20,000HakataPort

3

Kaizuka

607

495

2020

＊The figures are medium- to large-scale rental logistics facilities that have a total floor
space of at least 5,000 m2 in Fukuoka and Saga Prefectures.
Source: Prepared by Fukuoka Realty based on data of CBRE

2021

2021

0

LOGICITY
Hisayama

LOGICITY
Wakamiya

Logistics site in
Koga City

Hakata Port area

Fu kuoka
Fukuok a U
E xpress wrban
ay17,556.32㎡

Acquisition
timingMarch 2014

March 2015

June 2017

June 2020

Occupancy
rate

100.0％

100.0％

100.0％

100.0％

385

Amagi
I.C.

Tosu I.C. Chikugoogori
Saga Pref.
ay
Tosu I.C.
w
s
s
Ogori
xpre
E
i
k
a
s
Higashiseburi
I.C.
a
g

Na

Sagayamato I.C.
saki

aga
JR N

＊

Line

17

Haki I.C.

in Line34

Kurume I.C.

Tosu JCT
山浦PAarea

is owned by Fukuoka REIT Corporation ＊500
34

Tosu IC

鳥栖市役所
is owned by Fukuoka Jisho Group

ki
asa y
Nag esswar
E xp

日田 I.C.
205

Tashiro Sta.
3

17

Hirokawa I.C.

至長崎

Asakura I.C.

JR Kudai Ma

Kurume方面

24,505.65㎡

Oita Expressway Ukiha

崎43,233.72㎡

弥生が丘

Asakura至
長4,173.29㎡

386

131

496

Oita Expr es

Tosu JCT

200m

500

Tosu Logistics Center

Green Logistics Park Tosu
31

sway

Nishitetsu Tenjin
Omuta Line

Total leasable
floor space

88

329

KyushuExpressway

1,700 mm yen

17

Fukuoka

5,050 mm yen

323

Within a radius of 30 km
from Fukuoka IC

211

Kama

Kag JRosh
Line ima

8,150 mm yen

Hakata Port・Fukuoka IC・Inland area

1km

田川市

322

久留米基山筑紫野

1,250 mm yen

201

Chikushino I.C.

大分県
Tosu JCT area

道路

新幹

九州

Acquisition
price

shu ayKyuesswr
Exp

October 2020

work ）（ Renovation
carried out

Fu
xp k
re a
ss Ur
w ba
ay n

行橋市 E kuo

HigashiKyushu
Expressway

Dazaifu I.C.

hu
Kyus nsenka
Shin

January 2015

February 2005

Sue Smart IC
45

Ni
sh
O itet
m su
ut
a Te
Li nj
322
ne in

IizukaFukuoka Pref.

Inland area

April 201410

Fukuoka IC
area

JR Chikuhi LineMay 2008

Hakata Sta.

200

Fukuoka I.C. 201

Itoshima

Property
name

Built
timingakin NogataSh
Miyawaka I.C. nyo
Sa Miyawaka

Koga I.C.

LOGICITY
Minato Kashii

en

ns

3

Fukuoka Airport

TenjinFukutsu
Koga

91

北九州

LOGICITY Wakamiya（year）

1st Quarter 2nd Quarter

Overview of Logistics
Tosu Logistics
Center3

Tenjinkita 都市高速

西公園

Munakata線

2019

JR Sasaguri Line

本

2018

201

3

豊

2017

Fukuoka IC
3

日

2016

21
68

下関市

495

2

Kyushu Expresway

Sanyo Shinkansen

4

10,0000

LOGICITY Minato Kashii

10km

vacancy rate

New demand

LOGICITY Hisayama

JR iihKasineL

New supply（tsubo）

LOGICITY Minato KashiiFuku
E x p ok ar e s Ur basway nSupply and demand of logistic facilities and vacancy rates

線

Portfolio overview

17Situation of other assets （Hotel, Residence）
For hotels, FRC now owns only those specialized for accommodation, leading to reduced risks
Over view of Hotel
Fukuoka Washington Hotel[Canal City Hakata]

Residential properties
Hotel FORZA
Oita

Tissage Hotel
Naha◎Tissage Hotel Naha
33rd

34th

（Feb. 2021） （Aug.2021）

Hotel（ Specialized for ）accommodation

Room occupancy
rates

67.9％ 69.9％

ADR （＊1）

4,236 yen 3,840 yen

RevPAR（＊2） 2,878 yen 2,686 yen

205

132

Leasing Form Fixed＋Variable rents

Fixed rents

Fixed＋Variable rents

Area

Oita City

Naha City

423

Rooms

Operator

Fukuoka City

WHG Nishinihon
FJ Hotels
Nest Hotel Japan（Fujita Kanko Group） （Fukuoka Jisho Group）
Corporation＊ Not disclosed for Fukuoka Washington Hotel as
no consent for disclosure has been obtained
from the operator.
（＊1）Average Daily Rate = Total accommodation-category sales over a certain period of time
divided by the total number of guest rooms soldover the same period.
（＊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.

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

Tokyo

Fukuoka

Oita

Okinawa

the state of
emergency①

Applicable period for the“Go To Travel” campaign

the state of
emergency

the state of
emergency

the state of
emergency

②

③

④

Ja
n.
2
Fe 019
b.
2
M 01
ar 9
.2
Ap 019
r.
2
M 019
ay
2
Ju 019
n.
20
Ju 19
l. 2
Au 019g.
Se 201
pt 9
.
O 201
ct
.2 9
No 01
v. 9
De 201
c. 9
2
Ja 01
n. 9
2
Fe 02
b. 0
2
M 02
ar 0
.2
Ap 02
r. 0
2
M 02
ay 0
2
Ju 02
n. 0
20
Ju 20
l. 2
Au 02
g. 0
2
Se 02
pt 0
.2
O 02
ct
.2 0
No 02
v. 0
De 202
c. 0
2
Ja 02
n. 0
2
Fe 02
b. 1
2
M 02
ar 1
.2
Ap 02
r. 1
2
M 02
ay 1
2
Ju 02
n. 1
20
Ju 21
l. 2
Au 021
g.
20
21

80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0

＊The period of the declaration of a state of emergency indicates the period when it was issued to Tokyo.
Source: Prepared by Fukuoka Realty based on the data of "DATA SALAD", Kyushu Economic Research Center.

◎Trends in the sales index （3 hotels）（＊3）（index）

Jan.
2
Fe 019
b.
2
M 01
ar 9
.2
Ap 019
r.
2
M 019
ay
2
Ju 019
n.
20
Ju 19
l. 2
Au 019g.
Se 201
pt 9
.
O 201
ct
.2 9
No 01
v. 9
De 201
c. 9
2
Ja 01
n. 9
2
Fe 02
b. 0
2
M 02
ar 0
.2
Ap 02
r. 0
2
M 02
ay 0
2
Ju 02
n. 0
20
Ju 20
l. 2
Au 02
g. 0
2
Se 02
pt 0
.2
O 02
ct
.2 0
No 02
v. 0
De 202
c. 0
2
Ja 02
n. 0
2
Fe 02
b. 1
2
M 02
ar 1
.2
Ap 02
r. 1
2
M 02
ay 1
2
Ju 02
n. 1
20
Ju 21
l. 2
Au 021
g.
20
21

140.0
120.0
100.0
80.0
60.0
40.0
20.0
0

（＊3）The sales index represents the indexed value of combined sales for each month, with the combined sales amount of the three hotels（Fukuoka
Washington Hotel, Hotel FORZA Oita and Tissage Hotel Naha）in January 2019 set at 100.

◎Residential properties have continued to operate at a high occupancy rate.
30th（Aug.2019）31st（Feb. 2020）

32nd（Aug.2020）

33rd（Feb. 2021）

34th（Aug.2021）

Amex Akasakamon Tower

96.1%

94.6%

89.8%

96.2%

96.7%

City House Keyaki Dori

92.2%

92.9%

97.2%

97.6%

94.5%

Aqualia Chihaya

99.1%

98.8%

96.9%

98.6%

98.0%

D-Wing Tower（＊4）

94.6%

95.6%

97.9%

95.3%

94.3%

Granfore Yakuin Minami

99.3%

98.7%

98.0%

96.9%

97.7%

The weighted average of
5 properties

96.2%

96.2%

95.9%

96.7%

96.1%

occupancy rates＊The occupancy rate is calculated as a weighted average over the period.
（＊4）The figure for D-Wing Tower includes the retail portion.

◎Rate of increase/decrease in new rent and percentage of cases with rent increase/decrease
（％）

100
80
60
40

66.7％

20
0
No. of tenant
replacement
Of which, numberof rent increases
Rent’s rate ofincrease/decrease

30th

57.6％

31st

70.5％

32nd

53.7％

33rd

66.1％

34th

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020Feb. 28, 2021

Aug. 31, 2021

45

33

44

41

56

30

19

31

22

37

0.2％

0.9％

0.9％

0.4％

2.1％

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

Portfolio overview

18Key financing events in the 34th fiscal period
Conducted refinancing to extend debt duration while improving interest rate conditions
New Borrowing （Refinancing）

Commitment Line Period Maintained （3 Years）◎Extended the period of the commitment line agreement with The Bank of Fukuoka◎Procured 6,300 mm yen in total at fixed interest rates （0.50587% on average）

with a debt duration of 10 years
Dateserving as the agent by 1 year, keeping the commitment period at 3 years

LenderMarch 31, 2021

The JuhachiShinwa Bank

July 30, 2021

Mizuho Bank,
The Hiroshima Bank,
The Kitakyushu Bank,The Iyo Bank,
The Higo Bank

Amount（mm yen）

Term

Interest rate

1,000

10-year0.59000%（Fixed）

5,300◎Secured flexible and stable financing means
Lender0.49000%（Fixed）（＊1）

10-year

Total and the weighted average rates （＊2）

6,300

10-year0.50587%

Before refinancing

6,300

7-year

0.83500%（Fixed）（＊1）

Credit Limit（mm yen）

PeriodEnd
New
July 31,2024

Committed line ofcredit 1

The Bank of Fukuoka,
Resona Bank

6,000

Committed line ofcredit 2

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

7,000

Total

13,000February 29,2024（＊1）FRC has concluded a swap agreement to practically fix interest rate on debt.
（＊2）Amounts are totals, and terms and interest rates are weighted averages.

Diversification of debt maturities（As of August 31, 2021）

Floating

Fixed

Investment corporation bonds（mm yen）

14,00013,00012,000Committed line of credit 13,000 mm yen

10,000
8,000
6,000
2,000
4,000
5,900

5,600

2,500

2,000
0

0

400

0

35th

36th

37th

2021

2022

38th

2023

4,200

2,000

700

39th

40th

2024

2,000

1,900

300

41st

42nd

43rd

2025

6,600

4,400

7,000

7,000
5,400

1,500
44th

2026

45th

1,200
700

46th

2027

47th

48th

2028

49th

2,700
50th

2029

4,200

4,900

6,300
2,000

51st

1,000

52nd

54th

56th

68th

2030

2031

2032

2038

Financial strategy

19

Financing condition①
Establishment of stable financial base
Average interest rate （＊1） and duration
Duration （years）

Average interest rate（％）（％）（years）

1.3

8

1.2

7

1.1

6

6.1

6.0

1. 0

5.9

5.7

5.4

4

0.8

3

0.7
0.6
0.5

30th
Aug. 31, 201931st
Feb. 29, 2020

5.9％

JCR

at the end of Fixedthe 34 th FP 94.1％

AA（Stable）

0.69

0.69

0.69

32nd
Aug. 31, 2020

33rd
Feb. 28, 2021

34th
Aug. 31, 2021

R&I

Long-term
rate

2

0.71

Credit ratings （＊2）

Floating

5

0.9

0.72

Fixed andfloating
rate

A＋

100％

（Stable）

1
at the end of
the 34 th 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
46.0％

45

46.5％

44.6％
42.4％

42.4％

42.4％

42.3％
39.9％

39.9％

40.1％

40

39.3％

38.9％

38.1％

39.1％

39.7％

39.7％

39.8％

41.4％

41.3％

41.2％

35

30

15th

16th

17th

18th

19th

20th

21st

22nd

23rd

24th

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

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

Aug.
2021

Financial strategy

20

Financing condition②
A stable network of sponsor banks and other lenders
Breakdown of debt by lenders

A regional bank transaction network◎Sharing of information networks unique to regional banks toutilize for our investment strategy in the area

Investment corporation bonds

Sponsor banks

Investment
corporation bonds 6.1％
Aozora Bank

1.2％

Shinsei Bank

1.2％

Regional
その他banks

1.8％

Development
Bank of Japan

Resona Bank

5.0％

21.6％

Committed line of credit

Regional
banks

Others（ex sponsor banks）

15.4％

Megabanks, Trust banks

Sumitomo Mitsui
Trust Bank
4.0％
MUFG Bank

5.9％

Mizuho Bank

8.7％

The Oita Bank
Borrowing

500
300

Committed line of credit

1,500
500

The Miyazaki Bank
Borrowing

700

The Juhachi-Shinwa Bank
2,500
Borrowing

82,400mm yenat the end of
the 34 th FP

The Bank of Nagasaki

The
Nishi-Nippon
City Bank

13.7％

The Bankof Fukuoka

Sumitomo Mitsui
Banking Corporation 3.2％

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

The Bank of Saga
Borrowing

The Norinchukin
Bank＊As of August 31, 2021
Borrowings:（mm yen）

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

12.1％

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

21

Appraisal value
Maintained unrealized gains for all properties （＊1）
- unit : mm yen

Appraisal value
Property nameAcquisition
price
（＊2）

Canal City Hakata

RetailOffice buildings

Canal City Hakata・B （＊3）
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
Tenjin Nishi-Dori Business Center（Land with leasehold interest）（＊4）
Total of office buildings

OthersAmex 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

32,00021,06019,610
6,633
10,000
5,300
2,400
1,130
2,500
3,550
5,250
109,433
14,600
11,200
4,400
7,000
5,900
2,600
2,800
4,230
3,290
7,700
63,720
2,060
1,111
1,280
2,800
1,100
1,530
2,835
1,250
8,150
5,050
1,700
28,866
202,019

Acquisition
cap rate

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％
3.5％
5.4%
5.5%
6.8%
5.9%
5.6%
6.6%
5.3%
5.9%
5.2%
5.1%
6.4％
-

Difference

34th

33rd

Aug. 31, 2021

Feb. 28, 2021

Book value
at 34st①②③

30,60021,40021,2008,440
10,500
4,960
2,740
1,200
2,740
3,660
5,900
113,340
17,40015,600
6,510
9,190
8,270
3,140
4,490
4,690
3,380
7,790
80,460
1,880
1,040
1,950
3,660
1,330
1,890
2,880
1,360
9,210
5,450
2,400
33,050226,850

30,70021,20021,2008,440
10,300
4,960
2,740
1,200
2,740
3,660
6,080
113,220
16,80015,200
6,510
9,180
8,280
3,140
4,400
4,580
3,320
7,790
79,200
1,840
1,030
1,900
3,580
1,340
1,890
2,860
1,320
9,100
5,340
2,370
32,570224,990

29,47620,997
20,112
5,393
9,848
4,258
1,943
961
1,995
2,907
5,395
103,293
12,846
8,767
3,744
5,632
4,364
2,653
2,414
3,982
3,256
7,754
55,418
1,635
882
1,146
2,635
1,079
1,360
2,810
1,153
7,755
4,762
2,153
27,376
186,088

From
Appraisalvalue at 33rd
①-②
（100）
200

0
0
200
0
0
0
0
0
（180）
120
600
400
0
10
（10）
0
90
110
60
0
1,260
40
10
50
80
（10）
0
20
40
110
110
30
480
1,860

Direct capitalization values

FromBook value
at 34th
①-③

1,123
402
1,087
3,046
651
701
796
238
744
752
504
10,046
4,553
6,832
2,765
3,557
3,905
486
2,075
707
123
35
25,041
244
157
803
1,024
250
529
69
206
1,454
687
246
5,673
40,76134th
Cap rate

33rd
Cap rate

Difference

④

⑤

④-⑤

4.5%
4.6%
5.4%
5.8%
5.1%
5.7%
5.6%
5.4%
5.5%
5.4%
4.8%
-

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

4.3%
4.2%
4.1%
4.4%
4.4%
3.9%
4.1%
4.4%
4.2%
3.5%
-

4.4%
4.3%
4.1%
4.4%
4.5%
3.9%
4.1%
4.5%
4.3%
3.5%
-

4.4%
4.4%
4.6%
4.4%
4.2%
5.1%
4.9%
5.0%
4.2%
4.4%
5.5%
-

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

Appraiser

0.0%（0.1）%

Tanizawa Sogo Appraisal

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

Japan Real Estate Institute（0.1）%（0.1）%
0.0%
0.0%（0.1）%
0.0%
0.0%（0.1）%（0.1）%
0.0%（0.1）%（0.1）%（0.1）%（0.1）%（0.1）%
0.0%
0.0%（0.1）%（0.1）%（0.1）%（0.1）%-

Tanizawa Sogo Appraisal

Japan 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
Tanizawa Sogo Appraisal
Japan Real Estate InstituteJapan Real Estate InstituteTanizawa Sogo Appraisal
Japan Real Estate InstituteJapan Real Estate InstituteTanizawa Sogo Appraisal
Tanizawa Sogo Appraisal
Japan Real Estate InstituteDaiwa 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.
（＊3） Excludes the Grand Building portion （88.28% co-ownership interest） disposed in the 34th fiscal period. （＊4） The previous fiscal period’ s appraisal value and direct capitalization method’ s Cap Rate were the figures based on the appraisal value at the time of property acquisition.

Appraisal value

22

Sustainability
GRESB2021 “4 Stars” （announced on October 15, 2021）
Materially significant issues
Materially significant issues

Policies and targets

Environment ➡ P31
Environment

Reduction ofenvironmental load
Maintenance andenhancement ofenvironmental andconstruction performance
Asset
manager
Creation ofpleasant
workplaces
TenantSocialContribution to boosting
attractiveness andvitalization of Fukuoka
and Kyushu
Involvement inlocal community

Governance

Information disclosureand dialogue
with stakeholders

Compliance /Risk management● Coordinate with Property Management and Building Management on promotion ofmanagement and reduction of energy consumption, greenhouse gas emissions, water
consumption, and waste output● Carry out performance and function evaluation of properties on a regular basis andameliorate any deterioration in performance, etc.

● Maintain and improve competitiveness by acquiring green building certifications andthrough visual representation of building performance● Improve quality of operations by enhancing and expanding employee education

system and promoting acquisition of qualifications● Continue to improve office environments and work on providing pleasant working
environments● Give consideration to work-life balance and boost employee satisfaction● Promote improvement of employee satisfaction and work towards increasing job

satisfaction of tenant employees● Enhance dissemination of information regarding strengths and charms of Fukuoka andKyushu● Support research and studies on local economy and industries and promote attractive

urban development in collaboration with local business circles● Deepen dialogue and collaboration with local community through participation incommunity activities and various initiatives using properties under our management togrow and develop together with the local community■External evaluation●The GRESB Real Estate Assessment 2021
NEW・ Received a “4 Stars”and a“Green Star” in GRESB rating＊ It was a ”３Stars” and a “Green Star”
in the GRESB Real Estate Assessment 2020

《Major initiatives》
Added performance components (such as self-diagnosis of energy conservation and data collection)
Increased the participation rate of ESG training sessions for employees (100% participation)

Social ➡ P32・33●COVID-19 vaccination for applicants NEW
・ Conducted vaccination for employees of the Asset Manager andtenants of retail facilities at a venue in Canal City Hakata●Anti-COVID-19 measures
・ Installed AI thermographic cameras at entrances for tenants’ employees
・ Conducted high-performance antivirus and antibacterial coating
・ Conducted ventilation by periodically keeping doorways open
・ Installed disinfectants at doorways and toilets, etc.

● Disclose financial and non-financial information to stakeholders in an appropriate andtimely manner● Build relationships of trust through proactive dialogue with stakeholders and reflect

stakeholder feedback in management strategy● Ensure thorough compliance including compliance with laws and ordinances andelimination of conflict of interest with interested parties, and develop and operate an
appropriate internal risk management system to maintain and improve corporate value

Vaccination venue

Antivirus andantibacterial coating

Notice of ventilation
underway

Sustainability

23

サステナビリティへの取り組み

Appendix24

Profile
Special features of Fukuoka REIT Corporation
Portfolio summary （＊1）

Japan’s first region-specific REIT

1
2

◎Investment type（based on acquisition price）

Asset 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 （＊2）
Of which,acquisition from sponsors （＊3）

32 / 202,019 mm yen

Others

16 / 130,690 mm yen

14.3％

Excellent portfolio centered on Fukuoka metropolitan area

Unrealized gains

40,761 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 space572,215.71㎡

Occupancy rate

99.5％

Office buildings

Retail

31.5％

54.2％

Solid support from a sponsor company involved in property development

34
5

Asset portfolio expansion and high occupancy rates facilitated through coordination
with our sponsors

Financial highlight （＊1）

◎Investment area

Total debt

82,400 mm yen（based on acquisition price）

Establishment of stable financial base

LTV

41.2％

Conservative control of interest-bearing debt ratio, long-term diversificationof repayment deadlines

Fixed rate

94.1％

Other
Kyushu areas

Average interest rate

0.69％

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

Overview of Fukuoka REIT Corporation

Credit ratings

23.4％

JCR AA−（Stable）

Fukuoka
metropolitan area

R &I A＋ （Stable）

76.6％

Investment unit price （＊1）
Unit price

Name

Fukuoka REIT Corporation

Outstanding units

Security code

8968

Market capitalization

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

Net assets value per unit

Fiscal period

February ・ AugustMarket net assets value per unit （＊4）

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.

Dividend （actual）
Dividend yield

175,500 yen
796,000 unit
139,698 mm yen （unit price ＊ outstanding units）
127,833 yen
175,502 yen
3,539 yen per unit （Days in fiscal period 184days） at the 34th FP
4.0％ { （Dividend / days in fiscal period ＊ 365） / Unit price}（＊1） The figures are as of August 31, 2021 (excl. average interest rate)（＊2）The figures are total of acquisition price.
（＊3） 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.

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

Appendix25

A real estate investment trust specializing in regional properties
Investment policy

Sponsors◎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 （＊）

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（＊） Concluded MOU with Fukuoka REIT and Fukuoka Realty concerning pipeline support.

Fukuoka metropolitan area

Retail0-30％

20-50％

40-70％
Appendix26

Current situation of Fukuoka City ①
Trends in number of population growth in Fukuoka City
（Rate of increase from October, 2015 to July, 2020）

1,600

4.9％

Rank2 Saitama

4.8％
4.3％

Rank3 Kawasaki
2.4％

Rank4 Osaka
Average ofgovernment
ordinance-designated 0
citiesapprox.
4 times

1.6％

Rank5 Nagoya

1.2％
1

2

3

4

5 （％）

1,550

Surpassed
1.5 million
people

1,613

1,500

1,620

1,592
1,579
1,567
1,553
1,538

1,450

1,494

Yokohama

20,00015,000Saitama
Sapporo10,000Fukuoka
Kawasaki

Chiba

Nagoya

5,000

Sendai
Sagamihara
NiigataNatural decrease

Hamamatsu

OkayamaNatural increase0

Kobe

Shizuoka
Kitakyushu

Hiroshima Kumamoto
Sakai

Kyoto

（5,000）Social decrease

1,524
1,509

Osaka

Social increase/decrease

Source: Prepared by Fukuoka Realty based on Ministry of Internal Affairs
and Communications “Population Census of Japan in 2020”

25,000Social increase

thousand（ people ）Rank1 Fukuoka

Surpassed
1.6 million
peopleDistribution Chart of Net Increase/Decrease in Population（comparison of ordinance-designated cities）（2020）（ Net increase in in-migrants: number of in-migrants / number of out-migrants）

Ranked 1stamong government
ordinance-designatedcities◎Cities with high population growth rate

Number of
population in
Fukuoka City

（10,000）（8,000）（6,000）（4,000）（2,000）0（10,000）（15,000）

2,000

4,000

Natural increase/decrease
1,400

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

（year）＊The number of population is the figure as of October 1. (Year 2021 is the figure as of September 1)
Source: Prepared by Fukuoka Realty 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 based on data from “Population, Demographics and Number of Households Based on the
Basic Resident Register （2021） ” （Local Administration Bureau, Ministry of Internal Affairs and Communications） .

Appendix27

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

Change in number of overseas visitors
thousandFukuoka

Sendai

Kyoto

17.0
16.5

Kumamoto

Okayama

Kawasaki
Tokyo

Osaka

NagoyaKobe

574

Yokohama
Sapporo14.0

Hamamatsu
Kitakyushu

13.5

57.0

58.0

Shizuoka

1,000

60.0

61.0

62.0

63.0

64.0

65.0

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

44.7%

55.3%

Enrolled in universities in Saga

1,208
Enrolled in universities in Nagasaki

0

2015

Oita

Nagasaki
Kumamoto

MiyazakiKagoshima

2016

2017

2018

2019

45
297
267

7

2020

（year）

Increase Rate in Planned Construction Cost of Buildings
After Construction Starts （ordinance-designated cities）
5,123

Rank

City

Outside of Kyushu

Planned Construction
Cost of Buildings After
Construction Starts

2019

2014

284.1

（㎡）

（bn yen）

Increaserate

2,500,000

500

400

Total floor space
Planned construction cost

1

Fukuoka458.3
bn yenbn yen61.3％

2,000,000

2Kumamoto

206.8

136.3

bn yen51.7％

1,500,000

300

3Yokohama

814.9

540.8
bn yen50.7％

1,000,000

200

4Kawasaki

373.3

256.9
bn yen45.3％

500,000

100

5

Osaka

722.4

567.5

27.3％

0

1,046
Enrolled in universities in Oita

4,249

Saga

5,618
1,333

2,141

Source: Prepared by Fukuoka Realty based on data from “Statistics on Legal Migrants”（Ministry of Justice）and “Number of Passengers on Overseas
Routes”（Port and Airport Bureau, Fukuoka City）.

（people）

3,488人2,414

66.0 （％）

Interregional migration of university students in Kyushu

1,409

approx.
1/10

500

59.0

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

26,818

89

1,631

1,392

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

University students
in Fukuoka

671

161
2,205

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

800

167

183

1,500

Sakai

Nationwide

Number of persons landing on ships on overseas
irregular service routes

143

2,000

Chiba

14.5

13.0

Hiroshima

Niigata

15.0

842
847

Saitama

15.5

3,000
2,500

Sagamihara

16.0Port of Hakata

Fukuoka Airport

3,500

17.5

Youth population（ Percentage of city population aged 15 to 29）（ people ）【Fukuoka City】Youth population: 17.4% （ranked 1st）
Working-age population: 64.8% （ranked 3rd）

（％）

18.0

820
Enrolled in universities in Miyazaki

bn yenbn yen

4,207
1,062

Enrolled in universities in Kumamoto

Enrolled in universities in Kagoshima

7,141

6,161

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

bn yenbn yenbn yen02014 2015 2016 2017 2018 2019 （year）
Source: Prepared by Fukuoka Realty based on data from Survey of Building Construction Work Started by the Ministry of Land, Infrastructure, Transport and Tourism.

Appendix28

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

（yen）

10,00015,00020,00025,00030,000＊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 based on data from Basic Rate of Earthquake Insurance (earthquake insurance contract with coverage staring
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

FY2020 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 City （Zero since 2014）
of（Numberbuilding ）Instances of building inundation
steadily declining

3,000

Storm water drainage
capacity has
increased significantly.

2,000
3,173
1,000
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）

Between
FY2000 and FY2020…

1,721

3

Since the launch of
the project in FY2000…

Instances of inundation
have steadily declined.

1,122

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 based on data from the “Storm Water Management Action Plan 2026” pamphlet about the Fukuoka City Storm
Water Emergency Control Plan.

Appendix29

Certification from external organizations and information disclosure◎Principles for Responsible
Investment （PRI）（as of September 2018）◎Principles for Financial Action

towards a Sustainable Society（Principles for Financial Action
for the 21st Century）（as of September 2018）◎ GRESB◎DBJ Green Building

Certification◎BELS

R e f er s t o the six basic principles adv oc a t ed in 2006 b y K o fi Annan, the Unit ed Na tions
Secretary-General at the time, for the purpose of reflecting environmental, social and governance(ESG) fac tor s to the investment process, as well as the international net work of financial
institutions that affirm the principles.
The Asset Manager became a signatory to the Principles for Responsible Investment (PRI) in
September 2018 in order to implement practices at an international level when it promotes ESG
awareness in real estate investment and management operations.
Principles for Financial Action towards a Sustainable Society (Principles for Financial Action forthe 21st Century) refers to the principles prepared in October 2011, with the Ministry of theEnvironment serving as the secretariat, as action guidelines for financial institutions that want tofulfill the responsibilities and roles necessary for forming a sustainable society.
The Asset Management Company became a signatory in September 2018, affirming the ideas of
the Principles.

GRESB is a benchmark evaluation system that annually assesses the environmental, social andgovernance (ESG) awareness of real estate companies and funds, as well as the name of theorganization that operates it. GRESB was established in 2009 mainly by major European pension
funds that led the Principles for Responsible Investment (PRI).
FRC has been a participant since 2018.

The DBJ Green Building Certification is a certification system established in 2011 as an initiative tosupport real estate featuring "environmental and social considerations" and entities that own andoperate such estate. The system evaluates real estate sustainability from five ESG-based
perspectives.
FRC has acquired the certification for 12 properties.

BELS is a system in which third parties evaluate and indicate the energy conservation performance of
non-residential buildings based on the Evaluation Guidelines for the Building Energy-efficiency Labeling
System for Non-Residential Buildings (2013).
FRC has acquired the certification for 4 properties.

Appendix30

ESG Initiatives （Environment）
Reduction of environmental load

Enhancing energy efficiency Fukuoka REIT・ Replacement of air-conditioning equipment （34th period; Sanix Hakata Building） NEW
Replaced air-conditioning units in common spaces （already replaced in tenants’ exclusive areas in 32nd
and 33rd periods） , with power consumption expected to decrease by about 18%.
・ Promotion of replacement of lighting with LED lamps （34th period; Tenjin North Front Building） NEW
Replaced lighting equipment in common spaces with LED lamps
・ Utilization of renewable energy （solar power generation panels installed at Konoha Mall Hashimoto,
LOGICITY Minato Kashii and LOGICITY Hisayama）
・ Attachment of heat-shielding sheets for the top light section on the rooftop (34th term; Park Place Oita) NEW
・ Greening of common spaces ・ Arrangement of water
areas ・ Creation of shaded spaces
・ Installation of charging station for electric vehicles

Maintenance and enhancement of environmental and construction performance

GRESB2021
Received the rating of “Green Star” and“4 stars” in the GRESB survey 2021 NEW
Will further strengthen ESG endeavors.

Green Building certification obtained for
78.8% of entire portfolio■Ratio of environmental certificationacquisition

DBJ Green
Building
Certification

BELS Evaluation
Certification

14.3％

Waste reduction / Fukuoka REIT
resource recycling

78.8％

Certificatedproperties

78.8％

・ Greywater plant (kitchen drainage reuse system)
Kitchen water from restaurants is processed into
greywater and re-used as water for washing
toilets within the building （Canal City Hakata）
・ Separate collection of garbage
・ Collection of secondhand clothing（Konoha Mall Hashimoto） NEW
Before work

Environmental certification（By property ）●DBJ Green Building Certification” 12 properties owned by the Fukuoka REIT corporation were certified.

Reacquired certification for two properties. （June 2021） NEW

After work

＊As of August 31, 2021
（based on total floor space）

Konoha Mall Hashimoto

Higashi Hie Business Center Ⅱ

Properties with exceptionally high environmental& social awareness

Properties with excellent environmental& social awarenessAttachment of heat-shielding sheets for the food court’ s top
light section （Park Place Oita）

Campaign examples at Konoha Mall Hashimoto （September 2021）

By greening common spaces, creating shaded spaces and arranging
water areas, etc., facilitates easing of heat island phenomenon andpurifying air as well as provides a peaceful venue for employees
and visiting customers and a habitat for living creatures.

●BELS Evaluation” Four properties owned by the Fukuoka REIT corporation were certified.

Appendix31

ESG Initiatives （Society①）

Creation of pleasant workplaces （Asset manager）

Initiatives for employees《Support for flexible working styles》

Fukuoka Realty《Fukuoka Realty: Numbers of credentialed personnel》●（As of August 31, 2021）■The average number of years of continuous service●of permanent employees: 9 years and 6 month●●■Full-time personnel: 40 [Male:20 Female:20] ※50.0％ Female●●●

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

●

●

●

●

●

Real estate brokers : 28

ARES Certified Masters : 25

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

●

●

●

●

●

Attorneys : 1●●

MBA : 2●Administrative Scrivener : 1●

SME management consultant : 1●

CMA : 2

Initiatives for health management and prevention of infection spread

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

●

Initiatives to prevent infectious diseases such as influenza（Implementation of influenza vaccination and full coverage of vaccination costs）●

Initiatives for preventing spread of COVID-19（such as installation of thermographic monitors to measure temperature at office entrances NEW ; installation ofanti-splash panels and ozone sterilization equipment; desk arrangement in office spaces with social distance in mind;
distribution of masks, thermometers and antiseptic solution; periodical disinfection of tables, chairs and door knobs, etc.
●

Create an attractive workplace (tenants)
Training for tenants’ employees
Emergency drills to improve safety and security of tenants
Tenant satisfaction surveys
Distribution of sustainability guidelines
Support for tenants’ employees and part-time job recruitment（posted on property websites）

●

●
●
●
●

Regular lectures by Kyushu Economic Research Center
Compliance training● ESG training● Nursing care training● In-house recreation, 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.

●

●

●

Fukuoka Realty●●《Training for employees》《Career development support》■Number of credentialed personnel●

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.

●●●

Mandatory health checkups and comprehensive
medical examinations
Health counseling by public health nurses
Application system to restrict excessive overtime work
Assistance for use of sports clubs
COVID-19 vaccination at workplaces NEW
Special leave for illness after COVID-19 vaccination

Fukuoka REIT

Improvement of employee lounge
Improved the lounge environment at Konoha Mall Hashimoto with a focus on the health andcomfort of tenants’ employees. Similar arrangement is under study for other facilities.

Support of COVID-19 vaccination for applicants NEW（provision of venues for vaccination, etc.）●

Installation of thermographic
monitors to measure temperature（Fukuoka Realty office entrances）

Appendix32

ESG Initiatives （Society②）

Contribute to increased attractiveness and vitalization of Fukuoka and Kyushu area

Provision of regional information●Support for locally based professional sports

Fukuoka Realty

Information provision using website, social media, financial results briefing materials, etc.
Exchange of information and opinions with the governments, major companies and research
institutes in the region

Implementation of Corporate Version ofHometown Tax System

Fukuoka Realty

Fukuoka Realty

governments●Information provision on regional

events through social media

Provided support to 7 districts in total by utilizing the Corporate Version of Hometown Tax System

Linking with and provision of venues
for various regional events and festivals●Information provision on initiatives of local

・ Participation in Avispa Fukuoka Supporters’
Association
・ Installation of supporting monuments
for Oita Trinita football club

Fukuoka REIT

Support for Yamakasa Festival, Hakata Dontaku, Nakasu Jazz, Funa Norikomi (boatboarding; Kabuki stars unveiling their arrival) and locally based professional sports, etc.

“Victory Bell” for Oita Trinita

Posting on the integrated report

Involvement in local community

Initiatives for local communicaties, etc.
Fukuoka Realty
●

●

●

●

●

●

●

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

Others
●

●

●

●

●

Fukuoka Realty

Fukuoka REIT

Preventing the spread of new coronavirus infections
Consideration for the elderly, physically challenged, etc.
Child-rearing support
Participation in community cleanup activities by employees of theasset management company
Safty Town Council
At Park Place Oita, we estblished a ”Safty Town Council“ that partners
with related institutions and groups to conduct crime-prevention patrols
and proactively strives to prevent youth misconduct.

●Consideration for the Elderly, People with

Disabilities, etc.
Konoha Mall Hashimoto

Installed intercoms●Other （crime prevention, disaster response, improved convenience）

Park Place Oita

Certified as excellent type
Crime prevention patrol
for the Welfare Town
（Jointly conducted with
Creation Ordinancecommunities
and schools)）（by Fukuoka City Government）

Canal City Hakata, others

Police liaison officeRental smartphone charger（Free to use upon disaster）

Installed AED（automated external
defibrillator）

EV charging station

Rental umbrella service

Rental bike service●Child-rearing support

Installed aChildren's Plaza in
Parking lot
Hashimoto, Nishi Ward wash-basin for dedicated to pregnant
hands and feet women and stroller users
Tenant moved inCollecting plastic bottle caps（for supporting vaccinationin developing countries）

Appendix33

ESG Initiatives （Governance）
Compliance / Risk management

Governance System

Fukuoka Realty

Fukuoka REIT

Fukuoka Realty has established a Basic Policy on Compliance, as well ascompliance regulations and other internal rules to prevent conflicts ofinterest. We conduct conflict of interest risk management pertaining to ourdealings with stakeholders in an appropriate manner based on theabovementioned rules and regulations with preliminary assessment carriedout by the Compliance Department general manager and deliberations
conducted by the Compliance Assessment Committee (consisting of theCompliance Department general manager and three outside experts).

◎Decision-making process
Proposals by responsible department

Information disclosure to and communication with stakeholders

Matching unitholder interests andsponsor 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

・ Cumulative investment system for investment units

Publication of integrated report

Fukuoka REIT

（sole J-REIT with such publication）
Published second issue in 2020.
Expanded information disclosure from the first issue.
Communicates with stakeholders based on the report.

（40.5% 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 toenhance their mindset for FRC’s investment unit price and better
performance as well as promote their assets formation.

Appointment of Outside Directors

Fukuoka Realty（other than interested persons）

Secure transparency and fairness of the Board of Directors
Inspection by Compliance Department general manager

Deliberations by the Investment Management Committee

Deliberations/resolution by the Compliance Assessment Committee

Changes to the asset management
Fukuoka REIT
Fukuoka Realty
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 ofUnitholders held on May 2020 for further enhancing unitholder value. The changes
became effective on September 1, 2020（beginning of the 33rd fiscal period）
Asset management fees

Resolution/decision-making report by Board of Directors

Fukuoka REIT Corporation Board of Executive Officers◎Third-party assessment by external experts［Real estate appraisals］■ Japan Real Estate Institute■ The Tanizawa Sogo Appraisal Co., Ltd.
■ Daiwa Real Estate Appraisal Co., Ltd.
［Market reports］■ Analysis on trade areas and competition situation■ Adequate rent levels, etc.
［Engineering reports］■ Law abidance and earthquake resistance■ Check of soil contamination, toxic substance and use status■ Replacement market price, expenses for long-term maintenance and repairs, etc.

Calculation method【3 months from the day following the last day of theimmediately preceding fiscal period】
Total assets at the end of the immediately preceding fiscal period
Management Fee 1 × 0.25%（previously 0.3%）× number of days / 365【From the day following the last day of the period（based on
total assets）
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

Website renewal Fukuoka REIT NEW
Considered better visibility and usability
Arranged the top page to show real-time investment unit prices, etc.
Improved user flows to press releases, etc.

Management Fee 3 （Distributable amount before paying Management Fee 3（based on
for the immediately preceding fiscal period）× 3.6%（previously 2.0%）
distributable profit）

Information on attendance at board meetings Fukuoka REIT
34th period
Total fees

Attendance at board meetings

6,000

6 times（100％ attendance）（thousand yen） （Sep. 2020 - Aug. 2021; held 6 times in total）

Exective director

Etsuo Matsuyuki

Supervisory director Takashi Tanabe
Supervisory director Yasuo Kawasho

3,600

6 times（100％ attendance）
6 times（100％ attendance）（＊） The prior consent of the investment corporation’ s Board of Directors is obtained in cases fallingunder the provisions of Article 201-2 (1) of the Act on Investment Trusts and Investment Corporations.

Appendix34

IR initiatives
IR activities under the COVID-19 Pandemic

Major Public Relations Activities◎IR for domestic institutional investors
・ Financial results briefing for analysts and institutional investors（Following on-line live streaming） Post the video on the website the next day.
・ Roadshows on financial results （conference calls）◎IR for overseas institutional investors
・ Articipation in global conferences （online） sponsored by securities companies
・ Roadshows on financial results （Asia）
・ Timely information disclosure （held simultaneously as the delivery ofJapanese press releases）◎IR for individual investors
・ Participates in online briefings and fairs-Nikko Web IR Day（August - September 2021）-Nikkei J-REIT Seminar（August 2021）-Fukusho IR Fair Online（July 2021）-Radio NIKKEI 「Asazai」（April 2021）
・ Responding to individual calls◎Advertising (ZAIKAIKYUSHU)
Nikko Web IR Day Aug. - Sept. 2021

Status of integration into indexes （as of August 31, 2021）◎Global indexes, etc

FTSE EPRA/NAREIT
Global Real Estate Index

S&P Global REIT
Index

Posted an interview article with Zenji Koike,
President and CEO of Fukuoka Realty, in a local
economic magazine （September 2021 issue）

Other Activities◎TV coverage （"PASSION ~ Passionate Person~"by Fukuoka Broadcasting System Corp. （FBS））
The Asset Manager was covered in a local TV station’ s interstitial program, whichcasts a spotlight on business managers in Fukuoka to introduce their passion forbusiness and provide a corporate overview. On the air, Fukuoka Realty was introduced, with a focus on the interview with President and CEO Zenji Koike.
＊The photo is a scene taken during the interview. (Broadcast in September 2021)

The Kyushu IR Workshop, which started in collaboration with the Japan Investor Relations Association, is entering its eleventh year in 2021. More than 900 people have participated in a total of 31 sessions. It is utilized as a venue to study thelatest IR trends with IR staff of companies from Fukuoka and Kyushu and to build networks among such companies. This
year, the workshop was held by utilizing online functions as a measure to prevent the spread of COVID-19.

Theme & lecturer

Date
IR Trends in 2021

FTSE Developed
Small CapMSCI Japan
Small Cap Index

1stworkshopAugust 2021

～ Against the Backdrop of the Revised Corporate Governance Code ～Ms. Yoshiko Sato,
Executive Managing Director, Japan Investor Relations Association

Co-Creation IR Activities by the MARUI GROUP

Ms. Nahoko Kutsukake,
Investor Relations, IR Department, MARUI GROUP CO., LTD.

Appendix35

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
10.41%［82,909]

796,000
9.92%［78,972]

796,000
13.68%［108,922]

796,000
12.80%［101,953]

796,000
12.11%［96,448]700,000
14.19%［113,013]

14.55%［115,855]

13.65%［108,709]

600,000

500,000

12.81%［120,601]［103,148]

4.70%

5.53%

［44,063]

13.41%

13.16%

13.12%［106,781]［104,754]［104,456]

4.22%

2.79%

3.68%

［33,625]［22,242]（As of August 31, 2021）

No. of unitholders

Percentage

Investment
units held

Individual・other

12,73695.71％

96,44812.11％

Foreign individuals

218

1.63％

120,601

15.15％

Other domestic
corporations

248

1.86％

104,456

13.12％

Stock brokers

24

0.18％

29,338

3.68％

Financial institutions

80

0.60％

445,157

55.92％（Of which held by trust banks）

9

0.06％

341,02442.84％

13,306100.00％796,000

100.00％12.95%［102,039]［37,482]

15.13%［120,464]

15.15%[at the end of the 34 th FP]

Total

Percentage［29,338]

Major investors [at the end of the 34th FP]
400,000

57.85%［460,557]

57.03%［453,962]

55.02%［437,963]

56.10%［446,587]［445,157]

300,000

200,000

40.15%［319,608]

42.22%［336,145]

41.34%［329,071]

42.60%［339,112]42.84%［341,024]

100,000

030th
August 31, 2019

Financial institutions

32nd
34th
31st
33rd
February 29, 2020 August 31, 2020 February 28, 2021 August 31, 2021

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

Stock brokers

Other corporations（As of August 31, 2021）

55.92%

Foreign corporations

Individual

Investment
units held

Rank

Name

1

Custody Bank of Japan, Ltd.（Trust account）

176,957

22.23％

2

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

99,091

12.44％

3

Fukuoka Jisho Co., Ltd.

73,136

9.18％

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

31,279

3.92％

5

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

20,590

2.58％

6

The Shinkumi Federation Bank

14,7601.85％

7STATE STREET BANK WEST CLIENT - TREATY 505234

12,410

1.55％

8

NORTHERN TRUST CO.（AVFC） RE HCR00

11,504

1.44％

9

MetLife, Inc.

10,227

1.28％

10

Shikoku Railway Company

9,130

1.14％

Percentage

Appendix36

Unit price chart
Investment unit price （＊1）

Turnover （＊2）：139,698 mm yen■Market capitalization（as of Aug. 31, 2021）（units）（yen）

300,000

34th

120,000

April 27, 2015
4th PO

250,000

100,000

June 21, 2005
ListedMarch 1, 2018
5th PO
March 1, 2013
3rd PO

200,000

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, Aug. 31,
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 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.

Appendix37

Financial highlights
Dividend per unit was 3,539 yen- unit : mm yen

Category

30

st

th

31

32

〜 Feb. 29, 2020

〜 Aug. 31, 2019

33rd

nd

34th

〜 Aug. 31, 2021
B

〜 Feb. 28, 2021
A

〜 Aug. 31, 2020

Difference
B−A

35th

36th

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

9,231

9,162

8,518

8,904

8,867

（36）

8,621

8,834

-

-

-

-

104

104

-

-

Leasing NOI
Depreciation and amortization
expenses

5,633

5,596

5,307

5,347

5,336

（10）

5,316

5,382

1,651

1,660

1,686

1,623

1,552

（70）

1,489

1,527

Operating income

3,318

3,273

2,966

3,061

3,204

142

3,156

3,169

Ordinary income

2,939

2,900

2,587

2,677

2,817

140

2,787

2,787

Profit

2,939

2,899

2,586

2,675

2,816

141

2,786

2,786

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

3,693

3,642

3,250

3,361

3,539

3,680

3,650

3,150

3,300

3,500

3,500

3,500

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

＋13

（8）

＋100

＋61

＋39

-

-

796,000

796,000

796,000

796,000

796,000

796,000

796,000

Total assets（at period-end）

195,106

194,795

199,004

199,559

199,804

Total liabilities（at period-end）

93,22892,95897,47897,944

98,049Total net assets（at period-end）

101,878

101,837

101,525

101,614

101,755

Days in fiscal period（days）

184

182

184

181

184

Number of investment properties

29

29

31

31

32

（＊1）
Number of tenants（at period-end）

1,020

1,007

1,016

1,011

1,010

580,664.27

580,662.77

591,021.51

608,557.70

572,215.71

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

99.6

99.7

99.7

99.5

99.5

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

4,591

4,559

4,273

4,299

4,265

FFO per unit（yen）

5,767

5,728

5,368

5,401

5,358

Operating revenues
Gain on sales（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

Appendix38

Balance sheets（compared with the previous fiscal period）- unit : mm yen

Account

33rd
Feb. 28, 2021
A

34th
Aug. 31, 2021
B

Account

33rd
Feb. 28, 2021
A

675

Total current liabilities

9,501

34th
Aug. 31, 2021
B
9,566

Total current assets

11,157

11,833

Cash and deposits

6,596

6,948

352

Operating accounts payable

561

452

（108）

Cash and deposits in trust

3,742

4,015

273

Current maturities of long-term debt

6,300

6,000

（300）

Operating accounts receivable

528

Prepaid expenses

287

593

64

Account payable-other

22

17

（5）

272

（14）

Accrued expenses

415

420

4

Difference
B－A

-

-

-

Others32（0）188,369

187,941（427）

Total non-current assets

Income taxes payable

Liabilities

Consumption taxes receivable

Accrued consumption taxes
Advances received

Difference
B－A
65

1

0

（0）

316

705

388

1,088

1,057

（31）

793

912

118

88,44388,482

39

181,419

181,007（412）

Buildings

1,156

1,142

（13）

Total non-current liabilities

Structures

20

20

（0）

Investment corporation bonds

5,000

5,000

-

Tools and fixtures

1

1

（0）

Long-term debt

71,10071,400300

Total property, plant and equipment

Deposits received

989-

Tenant leasehold and security deposits

450

450

0

69,52865,904（3,623）

11,892

11,631（260）

Structures in trust

1,200

1,076

（124）

Tenant leasehold and security deposits
received in trust

97,944

98,049

104

870

791

（78）

Total liabilities

Machinery and equipment in trust
Tools and fixtures in trust

182

227

44

107,452

110,373

2,921

Total unitholders’ equity

101,614

101,755

141

16

480

463

Unitholders’ capital

98,93898,938-

Total intangible assets

5,569

5,561

（8）

Surplus

2,675

2,817

141

Leasehold right in trust

5,545

5,545

-

101,614

101,755

141

Other intangible assets in trust

24

15

（8）

Total investment and other assets

1,380

1,373

（6）

0

0

（0）

199,559

199,804

245

Lands
AssetsLands in trust
Construction in progress in trust

Deferred tax assets
Lease and guarantee deposits

10

10

-

Lease and guarantee deposits in trust

327

327

-

1,042

1,036

（6）

32

29

（2）

199,559

199,804245

Long-term prepaid expenses
Total deferred assets
Total assets

Net assets

989

Buildings in trust

Total net assets

Total liabilities and net assets

Appendix39

Cash flow statements（compared with the previous fiscal period）- unit : 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
Gain on sales of real estate property
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
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 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

33rd A

34th B〜Feb. 28, 2021

Difference〜Aug. 31, 2021
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

B－A
4,724
2,817
1,552
2
（0）
286
（104）
（64）
388
19
（6）
3
（31）
118
14
6
6
5,012
0
（285）
（1）
（1,425）（0）
7,608（8,771）
0
（0）
460
（721）
3
（4）
（2,674）6,300（6,300）（2,674）624
10,293
10,917

（649）
140
（70）
（3）
（0）
4
（104）
（579）
（177）
72
（5）
（16）
（56）
2
219
18
（88）
0
（645）
0
（3）
（0）
（583）
354
7,608
（8,292）
（84）
（0）
337
（506）
1
（2）
（87）
6,300
（6,300）（87）（1,320）
1,944
624

Appendix40Income and expenditure by properties （Retail）- unit : mm yen

Category

Canal City Hakata

Canal City Hakata・B

Active retail

Category

996
962
33
442
283
11
79
6
22
39
553
211
342
3.5%
102
Square Mall
Kagoshima
Usuki︵ Others︶
Retail

253
223
30
82
38
1
16
0
23
1
171
38
133
6.5％
0

184 days
1,183
1,017
165
598
293
31
99
5
146
21
585
202
382
6.0％
144

1,166
1,132
33
630
436
8
130
10
35
9
535
249
285
5.1％（＊2）
47
Kumamoto
Intercommunity
SC（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

Konoha Mall
Hashimoto

SunLive City Kokura

33rd
Total
B

Difference
A－B

181 days
4,688
4,302
385
2,418
1,422
131
417
27
282
136
2,269
860
1,408
4.7％
467

3 days
（301）
（296）
（5）
（173）
（105）
（59）
（31）
（1）
13
11
（127）
（60）
（67）
0.1％
（141）

33rd
Total
B

Difference
A－B

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

3 days
（1）
0
（1）
（7）
（0）
（7）
（0）
（0）
1
（1）
5
0
4
0.1％
（36）

Forecast Difference
A－C
C （＊1）

34th FP（Mar. 1, 2021 〜Aug. 31, 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

Park Place Oita

34th
Total
A

89
89
0
10
2
1
5
0
0
79
12
66
6.6％
-

Hanahata SC

Kurume Higashi
Kushiwara SC

34th FP（Mar. 1, 2021 〜Aug. 31, 2021）
184 days
40
88
40
88
10
10
1
2
5
0
3
5
0
0
0
1
30
77
5
16
24
61
5.4％
6.2％
1

778
631
147
527
296
18
41
2
90
77
251
89
161
5.0％
24

262
262
0
46
7
2
34
1
0
216
47
168
6.5％
6
K’s Denki
Kagoshima

111
111
0
11
1
0
7
0
0
100
22
77
5.6％
-

Marinoa City
Fukuoka（Marina Side Building）

177
177
22
1
0
18
0
0
154
22
131
5.9％
1

4,386
4,006
380
2,245
1,317
71
386
26
295
148
2,141
800
1,340
4.8％
325
34th
Total
A

761
730
30
147
48
10
56
2
23
6
613
117
495
6.1％
4

4,513

（126）

2,335

（89）

2,178

（36）

Forecast Difference
A－C
C （＊1）

760

0

146

1

613

（0）

（＊1）Forecast at the financial results of the 33rd fiscal period. （＊2）The Grand Building portion （88.28% co-ownership interest）that was disposed in the 34th fiscal period is included in NOI under the amount for three months and excluded entirely from the acquisition price.

Appendix41

Income and expenditure by properties （Office buildings・Others）- unit : mm yen

Category

Canal City
Gofukumachi
Business
Business
Center Building
CenterSanix Hakata
Building

Taihaku Street
Business
CenterOffice buildings

650
648
1
211
144
8
47
1
6
2
438
82
356
6.0％
6

571
509
62
181
73
14
36
2
50
2
390
70
319
7.0％
41

Amex

Category

Akasakamon City House

Tower

Keyaki Dori

205
192
13
64
19
4
22
0
12
3
140
42
98
6.4％
24
Aqualia
Chihaya

322
321
1
90
55
3
27
1
2
232
77
154
6.6％
12
D-WingTower（Length）

Others①Total 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

TenjinNishi-Dori
Center Building

Tenjin North
Front
Building

Higashi Hie
Business
Center Ⅱ

Higashi Hie
Business
Center �

Tenjin Nishi-DoriBusiness Center

164
150
13
54
19
0
9
0
12
11
110
40
69
5.2％
-

95
91
3
20
7
0
7
0
4
1
74
19
55
4.5％
-

79
79
79
79
4.1％
-

（Land withleasehold interest）

34th
Total
A

33rd
Total
B

Difference
A－B

2,675
2,530
145
822
375
47
191
10
130
66
1,852
418
1,434
6.1％
85

181 days
2,560
2,424
136
800
365
46
185
10
121
71
1,760
434
1,326
6.3％
151

3 days
114
105
8
22
10
1
6
（0）
8
（4）
91
（16）
108
（0.2）％
（66）

34th
Total
A

33rd
Total
B

Difference
A－B

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

3 days
46
41
5
27
0
7
5
4
0
1
6
19
5
14
0.0％
2

Forecast Difference
C （＊1）
A－C

34th FP（Mar. 1, 2021 〜Aug. 31, 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
Center

66
65
1
16
5
1
1
5
0
0
1
49
19
30
4.8％
1

37
37
0
7
2
0
3
0
0
1
30
10
19
5.4％
1

60
58
2
18
3
5
2
4
0
0
1
42
12
29
6.6％
1

112
106
6
33
7
2
5
7
0
2
6
79
18
61
5.7％
1

353
328
25
130
42
4
16
1
24
41
222
41
181
7.5％
0

Granfore
YakuinMinami184 days
86
86
19
1
2
15
0
0
67
9
57
5.2％
-

Hotel
FORZA
Oita

Tissage
Hotel Naha

146
122
23
49
11
9
8
0
19
0
96
33
63
6.9％
Tosu
Logistics
Center34th FP（Mar. 1, 2021 〜Aug. 31, 2021）
184 days
39
63
43
37
63
43
1
12
10
7
2
0
0
Non0
0
0 disclosure
（＊2）
2
2
7
5
0
0
0
0
3
0
0
35
27
52
35
9
10
22
24
26
17
30
11
5.7％
4.9％
6.9％
2.5％
1
18
-

LOGICITY
MinatoKashii

LOGICITY LOGICITY
Hisayama Wakamiya

Nondisclosure

Nondisclosure

Nondisclosure

（＊2）

（＊2）

（＊2）

186
37
148
4.6％
4

119
38
81
4.7％
-

70
14
56
8.4％
0

939
890
48
209
34
23
12
88
5
28
17
729
217
512
5.1％
30

2,666

8

850

（27）

1,816

36

Forecast Difference
C （＊1）
A－C

943

（3）

201

8

741

（11）

（＊1）Forecast at the financial results of the 33rd fiscal period. （＊2）Information is not disclosed because the permission of tenants has not been obtained.

Appendix42

Income and expenditure by properties （Total） /Repair and maintenance expenses, capital expenditures, and depreciation- unit : mm yen

Category（Length）

34th
Total

33rd
Total

A

B

Mar. 1, 2021 〜
Aug. 31, 2021

Sept. 1, 2020 〜
Feb. 28, 2021

184 days

181 days

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

Forecast

Difference

A－B

C （＊）

A－C

3 days
（141）
（148）
7
（130）
（94）
（57）
5
（19）
（0）
25
12
（10）
（70）
60
0.0％
（241）

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

8,762
8,157
605
3,425
1,775
153
12
723
44
477
238
5,336
1,552
3,784
5.4％
445

8,883

（120）

3,552

（126）

5,331

5

（＊）Forecast at the financial results of the 33rd fiscal period.

2,159

Repair and maintenance expenses, capital expenditures, and depreciation（mm yen）- unit : mm yenof which,
Canal City Hakata ／ Canal City Hakata・B
Park Place Oita
Konoha Mall Hashimoto

1,800

1,651 1,660 1,686 1,623
1,552 1,489 1,527

760
885
148

1,200
790
600

0

123

116

92

30th

31st

32nd

211

153

33 rd

34th

106

163

35 th

36th

（forecast）（forecast）

Repair and maintenance expenses

476

465

30th

31st

805

687
445

32nd

33 rd

34th

Capital expenditures

35 th

36th

（forecast）（forecast）

30th

31st

32nd

33 rd

34th

35 th

36th

（forecast）（forecast）

Depreciation
Appendix43

Portfolio table①（As of August 31, 2021）

Age （＊1）

Canal City Hakata
Canal City Hakata ・ B
Park Place Oita
SunLive City Kokura
Konoha Mall Hashimoto
Square Mall Kagoshima Usuki
Kumamoto Intercommunity SC
Hanahata SC
Kurume Higashi Kushiwara SC
K’s Denki Kagoshima
Marinoa City Fukuoka （Marina Side Building）
Total or the weighted average 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
Tenjin Nishi-Dori Business Center（Land with leasehold interest）
Total or the weighted average 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 or the weighted average of others
Total or the weighted average of all properties

25yr 4m
25yr 4m
19yr 5m
16yr 5m
10yr 5m
14yr11m
14yr 9m
14yr 1m
13yr 8m
13yr 9m
20yr10m－
25yr 4m
17yr10m
20yr 5m
19yr 5m
12yr 6m
24yr11m
11yr 7m
5yr 6m1yr 5m－－16yr 1m
13yr 9m
13yr 8m
15yr 6m
13yr 8m
13yr 0m
3yr 6m13yr 3m
7yr 4m6yr 7m16yr 6m－
18yr 3m

32,00021,06019,610
6,633
10,000
5,300
2,400
1,130
2,500
3,550
5,250
109,433
14,600
11,200
4,400
7,000
5,900
2,600
2,800
4,230
3,290
7,700
63,720
2,060
1,111
1,280
2,800
1,100
1,530
2,835
1,250
8,150
5,050
1,700
28,866
202,019

RetailReal estate property nameAcquisition
price（mm yen）（＊2）

Investment
ratio

Office buildings

Others

15.8%
10.4%
9.7%
3.3%
5.0%
2.6%
1.2%
0.6%
1.2%
1.8%
2.6%
54.2%
7.2%
5.5%
2.2%
3.5%
2.9%
1.3%
1.4%
2.1%
1.6%
3.8%
31.5%
1.0%
0.5%
0.6%
1.4%
0.5%
0.8%
1.4%
0.6%
4.0%
2.5%
0.8%
14.3%
100.0%

Acquisition
timingSource （＊3）

Sponsor
2004/11/9
Outside party
2011/3/2
Sponsor
2004/11/9
Outside party
2005/7/1
Sponsor2018/3/1
Sponsor2006/9/28
Sponsor2006/11/30
Sponsor2007/9/3
Sponsor2008/2/1
Outside party
2008/3/27
Sponsor2015/5/1－－
Sponsor
2004/11/9
Sponsor
2004/11/9
Outside party
2005/9/30
Sponsor2006/3/16
2009/3/13 Outside party＋Sponsor
Outside party
2013/2/1
Outside party
2013/3/28
Sponsor2018/3/1
Sponsor
2020/5/29
Sponsor2021/6/1－－
Outside party
2006/9/1
Outside party
2007/12/20
Outside party
2012/3/1
Outside party
2013/3/1
Outside party
2014/11/4
Sponsor2013/3/1
Outside party
2018/12/7
Outside party
2014/3/28
Outside party
2015/3/27
Outside party
2017/6/1
Outside party
2020/6/30－－－－

Total leasable
floor space（㎡） （＊4）

46,585.57
31,139.07
121,212.26
61,450.22
22,121.05
14,602.88
6,968.66
2,801.15
6,467.80
7,296.17
33,069.82
353,714.65
23,030.30
19,905.34
6,293.75
14,677.30
13,614.59
3,339.32
5,252.41
6,214.77
2,981.14
1,343.51
96,652.43
4,821.25
2,710.86
5,619.69
7,187.59
2,496.06
5,785.44
3,758.76
4,173.29
43,233.72
24,505.65
17,556.32
121,848.63
572,215.71

Occupancy
rate

97.9%
98.1%
99.9%
100.0%
98.7%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.4%
100.0%
100.0%
100.0%
99.2%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.9%
95.4%
95.6%
96.5%
94.4%
98.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.2%
99.5%

Tenants

Primary tenants

（＊5）

46
45
104
1
124
13
2
2
1
1
1
340
62
36
16
69
27
1
11
2
6
1
231
64
40
101
130
97
1
1
1
2
1
1
439
1,010

Washington Hotel and United Cinema
OPA and MUJI Canal City Hakata
AEON and K’s Denki
SunLive
SunLive and The Super Sports XEBIOSports Depo / Golf5 and Edion
Sports Depo / Golf5 and Starbucks Coffee
BON REPAS and Matsumoto Kiyoshi
Sports Depo / Golf5
K’s Denki
FJ. Entertainment Works Ltd.
－TOTO and Bell System24
SMBC CONSUMER FINANCE and Sumitomo Mitsui Banking Corporation
SANIX and The Nishi-Nippon City BankNTT COMWARE and Tokio Marine & Nichido Outsourcing Management
Fujitsu and Forest Holdings
The Nishi-Nippon City Bank
Rakuten Card and Prudential
Fujitsu Limited and Seven-Eleven Japan Co.,LTD
Mitsui Home Co.,LTD and NIPPON ENGINEERING CONSULTANTS CO.,LTD
Fukuoka Jisho Co., Ltd
－
－
－
－
－
－
FJ Hotels
Nest Hotel Japan Corporation
non-disclosure
Fukuoka Logistic System and F-LINE CORPORATIONKASEI.inc Co., Ltd.
Tsukasa Kigyou－－（＊1） The age of the building is listed with the end of the period as the starting date. For the property for which FRC owns the land only, “-” is indicated. 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） For the property for which FRC owns the land only, the leasable space of the land is indicated.
（＊5） Parking contracts, etc., are excluded from “Number of tenants”.

Appendix44Portfolio table②
Retail 11 properties

Canal City Hakata

Canal City Hakata ・ B

Park Place Oita

SunLive City Kokura

Konoha Mall Hashimoto

Square Mall Kagoshima Usuki

Sanix Hakata Building

Taihaku Street Business Center

Office buildings 10 properties

Kumamoto Intercommunity SC

Hanahata SC

Kurume Higashi Kushiwara SC

K’ s Denki Kagoshima

Marinoa City Fukuoka（Marina Side Building）

Canal City Business Center Building Gofukumachi Business Center

Others 11 properties

Higashi Hie Business Center

Tenjin Nishi-Dori Center Building

Residence

Residence

Tenjin North Front Building Higashi Hie Business Center Ⅱ Higashi Hie Business Center Ⅲ

Hotel

Hotel

Logistics

Tenjin Nishi-Dori Business Center（Land with leasehold interest）

Logistics

Residence

ResidenceAmex Akasakamon Tower

City House Keyaki Dori

Logistics

Logistics

Residence

Aqualia Chihaya

Total

32

properties

Total acquisition price

202.0
D-Wing Tower

Granfore Yakuin Minami

Hotel FORZA Oita

Tissage Hotel Naha

Tosu Logistics Center

LOGICITY Minato Kashii

LOGICITY Hisayama

LOGICITY Wakamiya

bn yen（As of August 31, 2021）

Appendix

45

Portfolio map
hii

Kas

e

Lin

Island City

30

Uminonakamichi
Seaside Park

Marina-TOWN

FUKUOKA
PayPay DOME

Tojinmachi Sta.

JR Chik

Subwayne
Airport Li

uhi Line

Ur

Ha Subw
koz ayaki
LineNakasu13
Kawabata
15
Sta.
Gion Sta.
Higashi-Hie18
22 25 21
Hakata 19 Sta.
1
Tenjin16
12
17
14
Akasaka Sta.
2
20
Tenjin-minami Sta.
Watanabe-dori Sta.
23

202

Yakuin-odori
Sta.

Ropponmatsu Sakurazaka
Sta.
Sta.

Oita

NagasakiFukuoka IC

Kumamoto
MiyazakiOkinawa

Fukuoka-kuko（Airport）
Stn.

Fukuoka
AirportKyushu Shinkansen

BEST DENKI
Stadium

JR LineExpressway

Yakuin Sta.

Kagoshima
RetailOffice buildings
Others

26

202

JR

Su
Nana bway
kuma
Line

1km
263

500m

Kyu
/Hak shu Shinata M kans
inam eni Line

5

Ur

Ka

go

Ten Nishjin- itet
Om su
uta
Lin

sh

im

aL

e

Fukuoka
University

Urban Expressw
Kanjo Line ay

8

ine

ba
Da n E
za xp
ifu reLi ssw
ne a
y

28

6
10

Nishi-kyushu Expressway

Hashimoto Sta.

27
3

7

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

Kaizuka Sta.

Ohorikoen（Ohori Park）Sta.

Nishijin Sta.

ssway

11

Urban Expressway
Kanjo Line

Fukuoka
29
9

Saga

e

Sea-Side
MOMOCHI

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

Chuo
Port

32

Lin

NokonoshimaIsland4

Fukuoka City

hii

Hakata Bays
Ka

HakozakiPort

Chihaya Sta.

JR

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

24

31

u ExpreJR

Kyush

ShikanoshimaIslandu
ets e
hit LinNis ukaiz
Ka

Fukuoka City

Tenjin Nishi-Dori Center Business Center

21 （Land with leasehold interest）

Address ： 2-chome, Tenjin,
Chuo Ward, Fukuoka City

27 Hotel FORZA Oita
■Address ： 1-chome, Chuo-machi,
Oita City

22 Amex Akasakamon Tower

28 Tissage Hotel Naha

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

■Address：2-chome, Nishi, Naha City

1 Canal City Hakata

5 Konoha Mall Hashimoto

9 Kurume Higashi Kushiwara SC

13 Gofukumachi Business Center

17 Tenjin Nishi-Dori Center Building

23 City House Keyaki Dori

29 Tosu Logistics Center■Address ： 1-chome, Sumiyoshi,
Hakata Ward, Fukuoka City

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

■Address ： Higashi kushiwara,
Kurume City

■Address ： Kami Gofukumachi,
Hakata Ward, Fukuoka City

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

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

■Address ： Himekata-cho,Tosu City, Saga,

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

6 Square Mall Kagoshima Usuki

10 K’s Denki Kagoshima

14 Sanix Hakata Building

18 Tenjin North Front Building

24 Aqualia Chihaya

30 LOGICITY Minato Kashii■Address：2-chome, Usuki,■Address ： Tokai-cho, Kagoshima City

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

■Address ： 4-chome, Tenjin,
Chuo Ward, Fukuoka City

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

■Address：2-chome, Minatokashii,
Higashi Ward, Fukuoka City

Kagoshima City

3 Park Place Oita

7 Kumamoto Intercommunity SC

11 Marinoa City Fukuoka（Marina Side Building） 15 Taihaku Street Business Center

19 Higashi Hie Business Center Ⅱ

25 D-Wing Tower

31 LOGICITY Hisayama■Address ： 2-chome, Koen Dori Nishi,
Oita City■Address ： 1-chome, Kozono,
Higashi Ward, Kumamoto City

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

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

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

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

■Address ： Gokushomachi,
Hakata 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 Granfore Yakuin Minami

32 LOGICITY Wakamiya■Address ： 2-chome, Kami Kuzuhara,
Kokura Minami Ward, Kitakyushu City

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

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

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

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

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

■Address： Shimoaruki, Miyawaka City

Appendix46

Dividend and NAV per unit
■32nd
■20th
■25th
■29th
Higashi Hie Business Center Ⅲ 3,290
Tosu Logistics Center 1,250
Tissage Hotel Naha 2,835
Park Place Oita（Sports Club NAS） 1,470
■17th
1,700
LOGICITY Wakamiya
AEON Hara Shopping Center（Sold） （5,410）■22nd（Home Plaza NAFCO） 990
Tenjin Nishi-Dori Center Building 2,600（2,800）LOGICITY Minato Kashii 8,150 Aqualia Kego（Sold）
th Park Place Oita■
34
Marinoa City Fukuoka（Marina Side Building） 5,250
■28th
7,700
Tenjin Nishi-Dori Business Center■18th（adjacent land） 590
Park Place OitastKonoha Mall Hashimoto 10,000 （Land with leasehold interest）■21
D-Wing Tower
2,800
Higashi Hie Business Center Ⅱ 4,230
Granfore Yakuin Minami 1,100
CANAL CITY Hakata・B Grand Building （7,640）■16thHotel FORZA Oita
1,530
■26th
（adjacent land） 860
Park Place Oita（＊1）
（88.28% co-ownership）（Sold）
Cruise ship
Aqualia Kego 2,800 Tenjin North Front Building 2,800
Kumamoto
passenger
LOGICITY Hisayama 5,050
earthquake
Aqualia Chihaya 1,280
shopping sprees
COVID-19

Dividend per unit
（yen）

5,000
4,000
3,324

3,238

3,257

3,291

3,243

3,278

15th

16th

17th

18th

19th

20th

3,435

3,563

21st

22nd

3,574

3,479

3,398

3,422

3,512

3,593

24th

25th

26th

27th

28th

3,687

3,693

3,642
3,250

3,361

32nd

33rd

3,539

3,000
2,000
1,000
0

23rd

29th

30th

31st

34th

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 Aug. 2021（＊1） The amount is the appraisal value at the time of transfer.

NAV per unit （＊2）（yen）

200,000
180,000
160,000

144,472
140,000

121,447 122,299 123,041

131,215
127,080 128,375

148,558

152,259 150,328 152,639

156,204

167,118
161,315 164,250

170,680 171,592 171,943

175,502

136,051

120,000
100,000

15th

16th

17th

18th

19th

20th

21st

22nd

23rd

24th

25th

26th

27th

28th

29th

30th

31st

32nd

33rd

34th

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

Appendix47

Historical appraisal values （unrealized gains）
Unrealized gain increased due to lower cap rate （Unrealized gains 40,761 mm yen （an increase of 1,860 mm yen） , ratio of unrealized gain 21.9% （＊1））
Historical appraisal values
Book value at the end of period( * 2)（mm yen）

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

250,000

37,648 37,927 40,761
36,92331,804 34,087
29,467200,000

16,777 19,830

8,243
6,498

6,066

9,138

11,09722,878 25,541

24,255
21,152

14,434

6,522

5,543

150,000
20,79921,07012,465 9,300

18,742

8,953

9,394

6,989

13,955
7,894
100,000
182,352 184,715 183,532 182,336 187,891 186,972 186,088

1,893
172,406 171,555 168,902-411
146,621 146,246 150,603

103,025 107,338

50,00081,771

86,777

112,001 115,560 115,195

152,422

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

164,527 169,031 168,138

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

93,556

0

2nd

3rd

4th

5th

6th

7th

8th

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 34th

Aug.
2005

Feb.
2006

Aug.
2006

Feb.
2007

Aug.
2007

Feb.
2008

Aug.
2008

Feb.
2009

Aug.
2009

Feb.
2010

Aug.
2010

Feb.
2011

Aug.
2011

Feb.
2012

( * 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.

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

Appendix

Aug.
2021

48

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

J-REIT average（＊2）
99.4 99.2
99.2 99.3 99.1 99.0 99.0 99.1 99.0 99.3 99.1
99.8 99.0
99.7

（％）

100.0

99.3

98.9 98.7

98.1
98.4 98.4 98.4 98.5 98.3
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
99.5 99.5 99.6 99.6 99.4
99.6 99.6 99.7 99.3 99.5

98.7 98.6 98.7 98.7 98.8
98.5 98.5 98.6

99.0 99.2 99.2 99.2 99.2 99.1 98.9 98.9
（＊3）

（＊3）

95.0

90.0

2nd

3rd

4th

5th

6th

7th

8th

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 34th

Aug.
2005

Feb.
2006

Aug.
2006

Feb.
2007

Aug.
2007

Feb.
2008

Aug.
2008

Feb.
2009

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. Aug.
2021 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 34th 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 33rd and 34th fiscal periods are preliminary figures. The figures for the 34th fiscal period are the figures for May 2021.

Occupancy rates [the weighted average during the period]
Category

Investment ratio（based on acquisition price）

30 th

31st

32nd

33 rd

34 th

〜 Aug. 31, 2019

〜 Feb. 29, 2020

〜 Aug. 31, 2020

〜 Feb. 28, 2021

〜 Aug. 31, 2021

Retail

54.2％

99.8％

99.9％

99.8％

99.2％

99.5％

Office buildings

31.5％

99.0％

99.1％

99.5％

99.5％

99.8％

Others

14.3％

99.2％

99.2％

99.1％

99.4％

99.3％

Total

100.0％

99.6％

99.6％

99.7％

99.3％

99.5％
Appendix49Top tenants by leased floor area
Ordinary lease

LesseeTenantShare of totalleased space（＊1）

1

SunLive Co., Ltd.

SunLive

Fixed-term lease

35th

36th

37th

〜Feb. 28, 2022

〜Aug. 31, 2022

〜Feb. 28, 2023

（As of August 31, 2021）

Remaininglease term
(years) （＊2）●SunLive City Kokura

3●Konoha Mall Hashimoto

9

11.4％

2

AEON Kyushu Co., Ltd.

AEON

10.3％

●Park Place Oita

03

FJ. Entertainment Works Ltd.

ー

6.2％

●Marinoa City Fukuoka（Marina Side Building）

13●Canal City Hakata

2●Canal City Hakata・B

04Canal City OPA Co., Ltd.

OPA

（＊3）

4.6％

5

KASEI inc Co., Ltd.

ー

4.3％

●LOGICITY Hisayama

3

6

Fukuoka Logistic System Corporation

ー

4.0％

●LOGICITY Minato Kashii

37

F−LINE CORPORATION

ー

3.5％

●LOGICITY Minato Kashii

nondisclosure

8

（＊4）

Alpen Co., Ltd.

Sports Depo,
Golf 5

3.2％●Square Mall Kagoshima Usuki

5●Kumamoto Intercommunity SC

5●Kurume Higashi Kushiwara SC

69Tsukasa Kigyou

ー

3.1％

●LOGICITY Wakamiya

9

10

K'S HOLDINGS CORPORATION

K’s Denki

2.4％●Park Place Oita

0（＊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 August 31, 2021 with periods shorter than one year rounded down to the nearest whole year.
（＊3）The 6.2% includes a 0.4% office portion.（6 ordinary leases have been concluded for Canal City Business Center Building.）（＊4）Information is not disclosed because the permission of tenants has not been obtained.

Appendix50Breakdown of variable rents
Breakdown of active retail rents by property
Fixed rents（＊1）

Variable rent s（＊2）（mm yen）

3,000

Breakdown of active retail rents（mm yen）

3,000

2,734
505

2,358

299 2,251
（＊4）

245

178

2,000

（＊4）

205

Portfolio overall◎The 34th FP◎The 33rd FP

Variable rents

Variable rents

16.7％

8.5％

（667 mm yen）

（709 mm yen）

2,094 （＊3）

（＊4）

241

320

2,000

（＊4）

312
1,000

2,229

2,045

2,038

1,782

1,008
1,000

208
800

0

31st

32nd

〜Feb.29,
2020〜Aug.31,
2020

33 rd

〜Feb.28,
2021

34 th

0

〜Aug.31,
2021

31st

〜Feb.29,
2020

Canal City Hakata／Canal City Hakata・B

940
150
789

32nd

〜Aug.31,
2020

1,037

1,017
176

197

840

839

33 rd

〜Feb.28,
2021

Fixed rents

Fixed rents

83.3％

91.5％

（3,338 mm yen）

（7,597 mm yen）

34 th

〜Aug.31,2021

Park Place Oita

（mm yen）（mm yen）

3,000

3,000

Breakdown of Tissage Hotel Naha
（mm yen）

2,000

2,000

◎The 34th FP
Variable rents

250

8.2％
（667 mm yen）

1,000

1,000
281
0

262
st

31

〜Feb.29,
2020

18

262

262

262

262

262

262

nd

rd

th

32

〜Aug.31,2020

33〜Feb.28,
2021

SunLive City Kokura

34〜Aug.31,
2021

0

661

643

631

208

576
154

191

178

452

421

452

453

st

nd

rd

th

31

〜Feb.29,
2020

32〜Aug.31,2020

33〜Feb.28,2021

34〜Aug.31,2021

Konoha Mall Hashimoto

125
68
32
36
0

st

31

〜Feb.29,
2020

43

32

nd

〜Aug.31,
2020

43

28
43

43

28

33

rd

〜Feb.28,
2021

34

th

〜Aug.31,2021

Fixed rents

91.8％（7,490 mm yen）

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） Sales of the portion to be disposed (88.28% co-ownership interest) of Canal City Hakata·B Grand Building, which is part of Canal City Hakata·B, are excluded from June 1, 2021, the disposition date.
（＊4） The figures are included parking fee in variable rents of Canal City Hakata / Canal City Hakata・B.

Appendix51Office building rent revisions and tenant replacement situation
Negotiations on rent increase remain underway
Change in monthly rent due to rent revisions and tenant replacements （＊1）（thousand yen）

7,000

Change due to tenant replacements（thousand yen）

Change due to rent revisions

30,000

Cumulative amount of change（Right axis）

6,500
6,000
25,0005,500
5,000

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

Rent’s rate of increase/decrease （＊2）

Newly occupied floor space

800

80

700

70

600

60

500

50

400

40

300

30

200

20

100

10

0
20,000

4,500
4,000

0

29th

30th

31st

32nd

33rd

34th

Feb. 28, 2019

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020Feb. 28, 2021

Aug. 31, 2021

Number of
new occupants

0

6

7

0

4

4

Average freerent period（＊3）-

0.3 months

0.2 months-

1.3 months

1.9 months（＊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.

15,0003,500

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

3,000（tsubo）

2,500
10,000
2,000
1,500
5,000
1,000

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

500
0

th

th

st

nd

rd

th

29

30

31

32

33

34

Feb. 28, 2019

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020Feb. 28, 2021

Aug. 31, 2021

0

＊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 are covered）.
（＊1 ）There were no revisions to the rent reductions.

Floor space subject to rent increase（％）

Rent’s rate of increase/decrease （＊4）

29th

30th

31st

32nd

33rd

34th

Feb. 28, 2019

Aug. 31, 2019Feb. 29, 2020

Aug. 31, 2020Feb. 28, 2021

Aug. 31, 2021

Number ofcontruct changes

29

34

30

36

20

31

Of which, number ofrevisions to increase

6

16

10

14

8

6

Ratio ofincrease or
decrease

20.7％

47.1％

33.3％

38.9％

40.0％

19.4％

10
9
8
7
6
5
4
3
1
2
0

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

Appendix52

List of Interest-bearing debt
■List of borrowings
Category
Current
maturity oflong-term debt

（As of August 31, 2021）

LenderSumitomo Mitsui Banking Corporation
Development Bank of JapanThe Bank of Fukuoka
Sumitomo Mitsui Trust Bank
Development Bank of JapanThe Nishi-Nippon City Bank
Development Bank of JapanThe Bank of Fukuoka
The Nishi-Nippon City Bank
Mizuho Bank
Shinsei Bank
Sumitomo Mitsui Trust Bank
Syndicated loan （＊2）

The Bank of Fukuoka
Resona Bank
The Higo BankMUFG Bank
Syndicated loan （＊3）

Development Bank of JapanThe Bank of Fukuoka

Long-term
debt

The Nishi-Nippon City Bank
Syndicated loan （＊4）

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
The Hiroshima Bank
Shinsei Bank

Balance（mm yen）

1,600
4,000
400
1,500
4,000
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
400
300

Drawdown
Date

Repayment
Date

Jun.30, 2015

Jun.30, 2022

Aug.29, 2014

Aug.31, 2022

Aug.31, 2015

Aug.31, 2022

Jul.31, 2015

Jul.31, 2023

Aug.31, 2015

Aug.31, 2023

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

Mar.30, 2018

Mar.31, 2028

Mar.30, 2018

Mar.31, 2025

Term
（year）

7.0
8.0
7.0
8.0
8.0
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
10.0
7.0

Fixed/ Average Interest
Floating
Rate

Fixed
Fixed
Floating
Fixed
Fixed
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
Fixed
Fixed

0.79000% （＊1）
1.01000%
0.40727%0.56400% （＊1）
0.88000%
0.87000% （＊1）
0.62000%
0.40727%0.44000%（＊1）
0.44000%（＊1）
0.40000%
0.41309%0.71750%
0.41909%
0.65846%
0.48130%
0.48130%
0.77677%0.65000%
0.79195%
0.89195%
0.84952%
0.49350% （＊1）
0.81209%0.68000%
0.75000% （＊1）
0.60000% （＊1）
0.50000%
0.56700% （＊1）
0.72000%
0.48000%
0.80219%0.80219%0.63000%
0.50400% （＊1）
0.49000%
0.57600% （＊1）
0.64630%
0.64630%0.40000%

Category

LenderSumitomo 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

Syndicated loan （Green loan）（＊5）
The Norinchukin Bank

Long-termdebt

MUFG 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 BankThe Juhachi-Shinwa Bank
Syndicated loan （＊6）

Total

Balance（mm yen）

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
1,000
5,300
77,400Drawdown
Date

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

Jan.31, 2019

Jan.31, 2029

Jan.31, 2019

Jan.31, 2028

Jan.31, 2019

Jan.31, 2029

Jul.31, 2020

Jul.31, 2030

Mar.31, 2021

Mar.31, 2031

Jul.30, 2021

Jul.31, 2031

10.0 Fixed 0.65528%
9.0 Fixed 0.59000%
10.0 Floating 0.40909%
10.0 Floating 0.40909%
7.0 Fixed 0.33380%
7.0 Fixed 0.33380%
7.0 Fixed 0.33380%
10.0 Fixed 0.48845% （＊1）
10.0 Fixed 0.52100% （＊1）
7.5 Fixed 0.30300%
9.0 Fixed 0.48000%
10.0 Fixed 0.48000% （＊1）
10.0 Fixed 0.42000%
10.0 Fixed 0.56922%
10.0 Fixed 0.56922%
9.0 Fixed 0.60000%
8.0 Fixed 0.46500%
10.0 Fixed 0.53000%
10.0 Fixed 0.47000%
10.0 Fixed 0.52630%
10.0 Fixed 0.52630%
10.0 Fixed 0.59000%
10.0 Fixed 0.49000% （＊1）

Issue date

Maturity
Date（year）

Term

Coupon （year）

Dec.30,2013

Dec.29, 2023

Jul.31, 2017

Jul.30, 2032

Jul.31, 2018

Jul.30, 2038

10.0
15.0
20.0

1.32000％
1.00000％
1.20000％

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

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

■Investment corporation bonds
Category

Issue

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

Balance（mm yen）

2,000
2,000
1,000
5,000

■Committed line of credit
Category
Committed line

LenderCommitted line 1 （＊7 ）Committed line 2 （＊8）
Total

PeriodCredit Limit（mm yen）

6,000
7,000
13,000Start

2018/8/1
2020/3/2

End
2024/7/31
2024/2/29＊ For floating-rate debts, the interest rates applicable as of August 31, 2021 are indicated. ＊All debts have been borrowed with no collateral and no guarantee, to be repaid in lump-sum upon maturity.
（＊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） The lenders are Development Bank of Japan・The Oita Bank・The Kagoshima Bank・The Kitakyushu Bank・The Juhachi-Shinwa Bank・The Hiroshima Bank（＊3） 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 （＊4） 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（＊5） The lenders are Mizuho Bank・The Bank of Saga ・The Higo Bank （＊6） The lenders are Mizuho Bank・The Hiroshima Bank・The Kitakyushu Bank・The Iyo Bank・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

Appendix53

Asset management company’s organization
Corporate Profile

Shareholders General Meeting

Established : December 26, 2003
Paid-in capital ： 200 million yen

Auditor

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）◎Certified as discretionary real estatetransaction agent under the Building Lots
and Buildings Transaction Business Act

Board of Directors

April 27, 2004／Certification No. 21 issued by the Ministerof Land,
Infrastructure, Transportation and Tourism

Compliance Department

Compliance Committee

June 25, 2004／Certification No. 31 issued by
the Prime Minister of Japan・General manager of compliance department［Attorneys］
・Outside compliance committee members［Attorneys］［Certified Public Accountant and tax accountant］［Real estate appraisers］◎Obtained certification to conduct businesses
related to investment trust management

CEO & Representative Director◎Registered for a financial instruments business（investment management business）

September 30, 2007／Registered No.
（Kinsho）10 registered by
the Director of Fukuoka Local Finance Branch Bureau→ Consults on compliance-related matters■Change of President and CEO（June 2021）

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

Sustainability Promotion Committee→Decision-making on sustainability promotion

Property Management
Department

Investment Department

Finance Department

Exective director of
Fukuoka REIT Corporation

Etsuo Matsuyuki

President and CEO of
Fukuoka Realty

Zenji Koike

Planning Department
Appendix

54

The condition of suburb area in Fukuoka
B

C

sh

im

a

Isl

an

sa

n

d

←
Sa

ito

ma

ha

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

Imazu Sports Park

Seaside Momochi
Beach Park

Kyushu University
Ito Campus

11★

Marina Town

Fukuoka Urban
Expressway Kanjo LineFUKUOKA
PayPay DOME

18
17

Atago Shrine
Nagatare Seaside Park★

uko Li22
ne25 21 Tenjin

Ohori
Park

Ikinomatsubara

legendHakata Connected＊Please refer to P46 regarding the number of properties.＊

19

16
20

Fukuoka Airport

way
ress

BEST DENKI
Stadium

Nis

hit

ets

Mitsui Shopping Park
LaLaport Fukuoka
Om （scheduled to open in spring 2022）
uta
Lin
Nanakuma subway lineeextention project
JR

uT

en

Mt. Konosusan

5

Waterfront Next

is owned by Fukuoka REIT Corporation（ As of August 31, 2021）
.

jin

S
Nanakubway
uma L

ine

Fukuoka
University

Fukuoka Urban Expressway
Kanjo Line
Mt. Aburayama

Hanahata SC
88

Ka

go

sh

im

aL

ine

n
rba y
aU a eok sw inku es L
Fu xpr aifu
E az
DTenjin Big Bang

14

JR Sasaguri Line

Canal City Hakata

Fukuoka City Zoologicaland Botanical Gardens

Konoha Mall Hashimoto★

Fukuoka Nishi Civic Pool

n

nse

n

4

Nishi-kyushu
Expressway

Fukuoka IC

26

JR Chikuhi Line

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〉

Hakata Sta.
2 1 12

Ruins of
Fukuoka 23
Castleka Urban
Kasuy Expressway
a Line

a
ink
Sh
nyo
Sa rbana U ayok sw eku es Lin
FuExprportr
AiMarine Messe★Fukuoka Holl
★ （A・B）

FUKUOKACONVENTION
13 15
CENTER

Subway K

Sasaguri
Forestof Kyushu
University

Fukuo

hink
anse

ino

Chuo
Port

NokonoshimaIslandTORIUS
Hisayama

Kyushu University
Hakozaki Campus Site

Fu
kuo

e
〜 M
nd

sla

HakozakiPortki

Hakata Bay

24

shu
S

oI

on

za

NokonoshimaIsland Park

Mt. Bishamonyama

3Exp

Aqualia Chihaya

ine

Bu

LOGICITY Minato Kashii

Kyu

←

Or

Fukuokashi
Umizuri Park

shu
Kyu

ne

no

31

ii L

←

Futamigaura

ika

30

sh

Source: Prepared by Fukuoka Realty based on data from Fukuoka Facts by the Strategic
Public Information Office, Fukuoka City Mayor’ s Office.

Uminonakamichi
Seaside Park

LOGICITY Hisayama

Ka

London, England

Sh

Kyushu Sangyo
UniversityJR

2

ShikanoshimaIsland ←Kinin Park

Public offering for
port-related sitesof Island City

Vegefru stadium(Fresh produce market)ka
Ur
Ka banshi Exi Li preHa Su
ne ssw
ko bw
ay
za ay
ki
Lin
e

Paris, France

Event Period （scheduled） : May 31 （Tue） - June 9 （Thu） , 2022 for 10 days＊★indicates the venue for each event.

i Li

Tokyo, Japan

IKEA

ich

Beijing, China

19th FINA World Masters Championships
2022 Kyushu

tsu
hite ine
Nis uka Liz
Ka

New York, USA

Koga IC

500m

Event Period （scheduled） : May 13 （Fri） - May 29 （Sun） , 2022 for 17 days

am

SingaporeFnak

San Francisco, USA

8 min.
No.2
8 min.
12 min.
Among
13 cities
in asia
20 min.
No.1
22 min.
26 min.
30 min.
31 min.
43 min.

19th FINA World Championships 2022 Fukuoka

ino

Fukuoka, JapanAmong
48 cities
in the world

Um

1

E
1km

Access time to the airport （major cities）
Boston, USA

D

JR

A

Appendix

55

The condition of Fukuoka city center
Nanakuma subway line extension project will be completed by FY2022
B

天神北出入口

中呉服町

C

福岡高校

D

空港通

吉塚1丁目

550

蔵本

A

E

F
Yutaka 1chome

Kamigofuku-machiNaraya-machi
Shiminkaikan-mae

Tsunaba Project（provisional name） （under development）

D-WingTower

Ave.

Nishitetsu
Grand Hotel
Former Daimyo
Elementary
School Site

Tenjindori

Tenjin Chuo
Park

Av
e.
do
ri
M
ei
ji-

Canal City Hakata
East Building

2
Canal City Hakata／
Canal City Hakata・B

Hakatakuyakusho
Minamiguchi

Canal City Hakata

1Haruyoshi

Smile Hotel
Hakata-ekimae

Watanabe-dori Kita

Haruyoshi
ES

Hakata-ekimae
4chomeNakahie
Park

Sanix Hakata
Building

Ch

16

20

do Fukuoka Eartheonri
Building

SUNLIFE No.3
Building

Otowa

Higashi Hie
Business Center �

iku

sh

i-d

or

i

Hakataeki
minami

Sumiyoshi Shogakko Mae

Yanagibashi

Denki
Watanabe-dori
1chomeBuilding
Kyosokan

Kiyokawa

Ch

Sumiyoshi

ikES◎Haruyoshi Bridge on National Route 202 Replacement
Project
Yakuin-ekimae

Hakata Chikushi-Dori
Center Building
Higashisumiyoshi
JHS

Watanabe-dori
Nishi↑Hakata

Current traffic zone

Yakuin Sta.

Sanno 1chome

385

July 2021

Traffic zone after traffic switching
Takasagoushiof Extension
Work
for Sannoh
the Park
City◎Progress StatusYutoria-dHakataoiSubway Nanakuma Line[Kushida rShrine
Sta.]
555

Minoshima-kita

YaNational Route 202（Kokutai-doroAve.）
FBS Fukuoka

Inukai
ShrineMiyajima

Broadcasting

ay
rw
de
un
tly
Takasago1chome
n
e
urr
nc
ctio
602
u
r
t
ns
Co

Shiroganekindergarden

Tsuyukiri-hashi

Detour bridge

Kiyokawa2chome

Hakataeki-minami

Naka
Riv erMinoshima 553

Takasago1chomeiy↓Tenjin

Hirao

a-

do

ri

HarusumiES

Image

Shirogane

Granfore
Yakuin Minami
Hirao 1chome31＊ Please refer to P46 regarding the number of properties.
is owned by Fukuoka REIT Corporation（As of August 31, 2021）＊. （including plans）＊
is owned by Fukuoka Jisho Group（As of August 31, 2021）.
（＊） The property is co-owned by the Fukuoka Jisho Group with the other company.

Kiyokawarim

Fukuokakobayashi
Post Office

575

o
-d

ori

19

n-

ita
sh
ke

ui-d

oe

Ta

Jos

Higashihie

HakataekihigashiekHotel New Otani
602

ka

300m

hi

Hakata 500m radius

Denki
Building

31Ta

Fukuoka zoo-maekaCanal City Hakata 500m radius

i
or
i-d
ek .
ss ve
Ni A

N

Na

14

Watanabe-dori Sta.

Denki
Building Shinkan

k
na

a

ay

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

.
ve
ri A
do
Crawn Plaza
hios
Fukuoka
iy
ANA
m
Su

Denki
Building North

Nakasu Kakehashi Bridge

Yakinkoban-maebw

JR Hakata Sta.

Sta.

Higashi Hie
Business Center Ⅱ

The Basics
Fukuoka

Godochosha-mae

Takeshita-dori

ne

Li

.

Sta

Hotel Clio

JR Hakata City Court HakataaJotobashi
Nishi

Li

Su

Hakata Ekimae
Business Center（＊）

Higashi-Hie

Higashihie

Hakataeki(Chikushiguchi)

Hakata Sta.

m

Jotobashi

AmuPlaza
HakataFukuoka
Center Building

HakataKITTE Hakata Hankyu

Canal City BusinessCenter Building

Higashi Hie
Business Center

385

Oriental Hotel Fukuoka
Hakata Station

The Nishi-nippon
City Bank

12

TakasagoaHakata-ekimae-dori Ave. Hakata-ekimae
2chomeHakataeki higashi

Building
Hakata Bus
Terminal

Hotel FORZA
Hakata Sta.
Hakata exit

Hakatakeisatsusho
IriguchiHaruyoshi

3

Hakata-ekimae 1chome
FukuokaAsahi NOF
Building（＊）
Hakata-ekimae

Hotel NIKKO
Fukuoka

Hakata Police Office

Nishinakasu

553

Minami-yakuin

um

100m

Hakata Ward
OfficeCanal City Hakata
East Building

Toko JHS

Katakasu ES

Sumiyoshi Shrine

Bivi Tenjinne4Haruyoshibashi
Higashiku

Yakuin-odori-nishi

Max
Value

na

dori

-o
kuin

r

Na

YakuinChikushijogakuendaigakufuzoku
Kindergarden

oad

Nishitetsu Yakuin Sta.

ural R

Yakuin-MutsukadoToko-kitaPark

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

HakataKuyakusho
IriguchiSumiyoshi-jinja
Mae

Line

refectKu

The Nishi-Nippon bank
Head Office Annex

Mangyo-ji

Nakasu1chome

ve

ay

muta
Nishitetsu Tenjin-O

shi P

JPR Hakata
Buildingbw

ori

City House
Keyaki Dori
Chiku

Shokokaigisho
IriguchiSu

Imaizumi
Park

Tenjin 500m radius

uoka

Ri

YutakaAv

Toko 2chome

Watanabe-doririUrbanBLD
TenjinKego

Kogarasu
Shrineka

Sankoubashi

Shinkawa-bashi

Tenjin MENT
Building

Imaizumi

31 Fukko

Hakataekimae

Gion-machi
Gionmachi
Nishi

202

Tenjin MMT Building（during dismantling）

do
eab .
an Ave

i-d
ash
ninb
Sho

Kego KOBAN

Kego 2chome

ri

do

Riv

Joten-jiatve.

-dori A
202

Kego ES

AkasakaTenjin LUCE

A
doro

i-

uta
Kok

23

Fukuoka Shiyakusho-mae

Kego-jinja Mae

ve.

Class
Keyaki Dori.

Former North
Annex Site
Reuse ProjectBest Denki
Fukuoka Main StoreTENJIN216
TenjinNishi-dori
Squareasa

er

W

Taisho102

Dimyo 1chome

Ave

Replacement Project

Tenjin Nishi-DoriTenjinNishi-dori Tenjinkirameki-dori building（＊）
Center Building
DaimyoKego

Haruyoshi Bridge on

NakasuNational Route 202

Tenjin121 Building（provisional name）
Tenjin122
Plaza
Nishitetsu
Building
Daimaru
Main StoreResora Fukuoka (Tenjin) Sta.
Tenjin-minami Sta.
TenjinFukuoka
Kego Park Mitsukoshi Watanabe-dori 4chome

G Building

e.

Mik

Gion Sta.

Hakata Gion
M-SQUARE

KushidaShrineNa

Acros
Fukuoka

New Fukuoka Building-dorimeki SOLARIAKiraIwataya

17

Former Daimyo Elementary
School Site Utilization Project（provisional name）

dori

n-dori VIORO

Saza

Iwataya
Shinkan

Kamikawabata-machi

Tenjin Business
アクロス福岡前Center

Hinode Tenjin
Building

Fukuoka City Hall

Shinnippon Building

Kushida Shrine Sta.

gate’sNishi-ohashi

Nishitetsu Inn Fukuoka

Chuoyubinkyoku-mae
Tenjinbashi-guchi

IMS

Tenjin
Prime

ishi-

Chuo Ward
Office

Meiji

jin N

Subw

Akasaka Sta.

Line

Ten

uko
ay K

aki-

Fukuoka Kogin Building（＊）

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

-dori

Key

Reisen-machi

Su 15
Ta bwaiha yku Kuk-dor o Li Tocho-ji
i A neve.
Gionmachi（Land with leasehold interest）

Chuo-kuyakusho

202

Nakasu-Kawabata Sta.

21

25

Homukyoku-mae

Gokusho-machi

Tenjin Reverfront Business Center

inkawanshkuiYa

MaizuruYutaka JCT

Shofuku-ji

Higashinakajimabashi

Maizuru
1chomeMaizuru
2chomeKatakasu

Katakasu
1chome43

Taihaku Street
Tenya-machiBusiness Center

18

Tenjin Nishi-DoriBusiness Center

552

Gofukumachi
Business Center

Gofukumachi Sta.

Hakata-za
Hotel
Theater
Okura Fukuoka
HakataRiverainTenjin North
Front Building

Maizuru ES

Shimin Center
Taiikukan

Shimokawabata-machi

Nakasu22

Akasakanishi

Suzakikoen-mae

Bank ofJapan

Maizuru JHS

2

ve

ri A

-do

tsu

nu
Na

Amex
Akasakamon
Tower
Nagahama

SuzakiPark

KBC
Kyushu Asahi Nanotsu-guchi
Broadcasting

Fukuoka Central wholesalemarket fish market

3

Suzaki-machi

KBC
Cinema 1・2

1

13

Tsunaba-machiShow
Av a-de. oriFukuoka Prefectural
Museum of Art

Gofuku machi

Oomiya26

555 will remain even
The plan calls for construction of the detour Kiyokawa3chomebridge as an eternal bridge thatafter the replacement of Haruyoshi Bridge, with an aim to create a bustling space that should
serve as the face of Fukuoka＞

Photo by Fukuoka National Highway Office, Kyushu Regional Development Bureau, Ministry of Land, Infrastructure, Transport and Tourism

Hakata-ekiminami
Completed
construction of entrance
5chomeand exit to and from the station

Photo by Fukuoka City Transportation Bureau

Hirao-kita

Appendix56

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）
ka
Na iverR

Tenjin Northfront
Building■ Completed before 1978

AEON Shoppers Fukuoka

Image of the area subject to Tenjin Big Bang

（Source:Fukuoka City）

Tenjin Riverfront Business Center●
Tenjin Meiji-dori district⑤
Hulic Fukuoka
Building

FukuokaPARCO②③ Tenjin Business●Acros
Fukuoka

New Fukuoka Center
Building（provisional name）

e t suNishituok akFu jin）（Ten .
St a⑥.

Tenjin 1-chome south block（relaxation of floor spaceratio restriction）④ Former North Annex Site Reuse Project①

Fukuoka
City Hall●
Hall

IMS

＊

is owned by Fukuoka REIT Corporation（As of August 31, 2021）.＊

Fukuoka Jisho Co.,Ltd

Location

1-Chome, Tenjin, Chuo Ward, Fukuoka City

Land area
Total floor space

3,917.18 ㎡
61,100.34 ㎡

Floors19 aboveground floors, penthouse 2 floors, basement 2 floors

Use

Office, shops, parking, etc.

Heightapprox. 89ｍ

Completion

September 2021（scheduled）◎Main deregulation in the Tenjin Meiji-dori area
①Relaxation of restrictions●Around Fukuoka
City Hall
approx.67m（15 floors）●

TenjinTwin Building

ve.

100m

●

EntityTenjin Chuo Parke
Project to utilize the former
Lin
ay t
w
Daimyo Elementary School sitebuec
Iwataya Main Store
Nishi-Nippona S roj（provisional name）●
um sion p
Tenjin Kirameki-Dori
WatanabekiamnBuilding
Business Center （＊3）
Na ex tenina
Tenjin 2-chome south block along Meiji-dori Ave. Tenjin Nishi-Doriin-mt a.
j
Kego Park Fukuokan（relaxation of floor space ratio restriction）
Te S
CenterBuilding◎Tenjin Business Center

Tenjin MMT Building（during dismantling）

iA
dor

e.
i Av
-dor
Meiji

Fukuoka Kogin
Building （＊3）

abe
tan
Wa

（Land with leasehold interest）

lnicipaka Mu
eFukuo y Kuk o Lin
a
Subw

ide】
【East sSt a
Ten jine.
ori Avw a- dTenjin Nishi-DoriBusiness Center（relaxation of floor space ratio restriction）●Fukuoka Chuo Post Office

side】
【West

Sho

Tenjin 1-chome north block （14th Block）

Bank of Japan（relaxation of height restriction）

D-WingTower

No. of applications for building
confirmation: 52 buildings（42 buildings completed）（＊2）

approx. 80m （18 floors） ～ approx. 96m （21 floors）

Mitsukoshi

Kok

ut

owned by Fukuoka Jisho Group（As of August 31, 2021）
. ＊

A
or o
ai-d

◎Initiatives for becoming an infection-controlling cityve.
Tenjin 1-chome district●Urban central areas（relaxation of height restriction）

Anti-infection measures in central urban areas were added as a newitem of floor area ratio assessment to the measures facilitate
renewal of city 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）

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

Redevelopment schedule in Tenjin area （schedules for 2022 and beyond are tentative）
Year 2021●Tenjin 1-chome district 〜approx.100m（22 floors）② City 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）（＊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） February 2015 to February 2021 after the start of Tenjin Big Bang （announced by Fukuoka City） . （＊3） The property is co-owned by the Fukuoka Jisho Group with the other company.
Source: Prepared by Fukuoka Realty based on Tenjin Meiji-dori Avenue Grand Design 2009 authored by the Tenjin Meiji-dori Development Council and each company①Closed（August）②Completed（September）●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）

Year 2022
Rebuilding work to start（in the fiscal year）③Rebuilding work to start（January）④Demolition work to start（After April）⑤Rebuilding work to start（August）⑥Completed（December）

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）

Year 2024 〜 Year 2025
To be opened（by the end of FY2024）
New facilities of former site reuse project scheduled to open
（2025）
Completed（2024）

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

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

Appendix57

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）
No. of applications for building
The Nishi-Nippon
confirmation: 15 buildings
City Bank Administrative（7 buildings completed） （＊1）
kuImage of the area subject to Hakata Connected
e.
Head Office Building
do（Source:Fukuoka City）
Mv
ri A
⑧
ri A ik
o
as
ve
d
.
oa
②Kyukan Jotenjidori
⑧
uk
Ri
K
Building
The Nishi-NipponveCanal City Hakata／rCity Bank
Canal City Hakata・B
Head Office Annex⑤Renovation of station-front squareat Hakata Station Chikushi Exit
Kushida Shrine Sta.
（June 2021〜March 2022）● Fukuoka Asahi Building（＊2）
Hotel NIKKO Fukuoka⑥ for the Fukuoka Higashi
General Prefectural Office
Canal City Hakata
Building Site Utilization Project
East Building

Hakata Connected target area

Ta

iha

Hakata River

Nanakuma Subway Lineextension project
Hakata-ekimae-dori Ave.

①Miyako Hotel
HakataJR Hakata Sta.

③
The Nishi-Nippon
City Bank Head Office
Main Building
Construction site

Hakata Ekimae
Business Center（＊2）

is owned by Fukuoka REIT Corporation（As of August 31, 2021）
.＊

S

i

sh

yo

i
um

e.

Av

④Hakata Fukami
Park Building

Crown Plaza
ANA Fukuoka

ayChowned by Fukuoka Jisho Group（As of August 31, 2021）. ＊THE BASICSFUKUOKA

Ku
ko

Lin
e

iku

SUNLIFE
No.3 Building

sh

i-d

or

iA

ve

.

Hakata Chikushi-Dori
Center Buildinge.

●Sumiyoshi Shrine

ri
-do

Su
bw

Sanix Hakata Building

Takeshita-dori Av

Naka River＊

Canal City BusinessCenter Building⑦Hakata-Eki Higashi
1-chome Development Project（provisional name）●

100m

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

The Nishi-Nippon City Bank Head Office Main Building
Construction site （photo taken on Sept. 8）

Hakata Connected Bonus◎Expand the system to relax the floorarea ratio requirement （measure tofacilitate renewal of city center functions）

Increase 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 system
to relax floorarea ratio

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）（＊1） January 2019 to February 2021 after the start of Hakata Connected （announced by Fukuoka City） . （＊2） The property is co-owned by the Fukuoka Jisho Group with the other company.

Redevelopment schedule in Hakata area （schedules for 2022 and beyond are tentative）
Before year 2022
①To be opened（2019） ②Completed（2020）③Demolition work to start（2020）④Completed（2021）⑤Completed（2022）⑥Construction work to start（2022）⑦Completed（2022）

Year 2024

Year 2025
Completed⑧Demolition work to startYear 2028
Completion（September）

Completed（March 〜 April）

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

Appendix58

Sponsor pipeline （Fukuoka Jisho Group）
Tenjin Business Center

Overview of Fukuoka Jisho Co., Ltd. （period ended May 31, 2021）
Name

Fukuoka Jisho Co., Ltd.

Net sales

20.4 billion yen

Ordinary income

6.2 billion yen

Established

July 1961

Industries

Real estate（comprehensive developer）

Total assets

202.9 billion yen

Representative

Ichiro Enomoto, President and C.E.O

Borrowings

113.7 billion yen

Employees

188

Equity ratio

35.1％◎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
Use

Officebuildings

RetailNo.

Total floor
space

Fukuoka Kogin Building

1970

15,160㎡

2

Fukuoka Asahi Building

1970

44,762㎡

3

Sun Life No. 3 Building

1978

8,262㎡

4

Tenjin Nishi-Dori Business Center （＊）

1978

10,394㎡

5

Tenjin Riverfront Business Center

1999

4,106㎡

6

Hakata Ekimae Business Center

1999

23,542㎡

7

Naha Business Center

2018

8,994㎡

8

Tenjin Business Center

2021

61,100㎡

9Tenjin MMT Building（during dismantling）

ー

ー

10

Tsunaba Project (provisional name)

ー

ー

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

46,663㎡

11

Marinoa City Fukuoka（Outlet Building）

12

Tenjin Kirameki Dori Building

2003

24,525㎡

13

Canal City Hakata East Building

2011

18,534㎡

Class Keyaki Dori2008

6,500㎡

15

Hotel FORZA Sapporo Ekimae

2020

11,344㎡

16

LOGICITY Minato Kashii North

2020

47,150㎡

17

Logistics site in Koga cityーー＊Includes properties owned by the Fukuoka Jisho Group and properties co-owned with other companies.
（＊1） Fukuoka REIT Corporation acquired the land with leasehold interest from the owner of the office building Fukuoka Jisho Co., Ltd. on June 1, 2021.

◎Automatic opening and closing toilet booth（install in some areas）

Realized non-contact door opening and closing and locking（Image）（Image）

Granted preferential negotiation rights for Former North Annex Site
Reuse Project by City of Fukuoka （to be opened around November 2025）◎A group represented by Fukuoka Jisho Co., Ltd.
Representative
company
Constituent
companies◎Perspective drawing

Fukuoka Jisho Co., Ltd.
Kyushu Electric Power Co., Inc., Kyudenko Corporation,
Shun Architect Office
MAEDA CORPORATION
Sunlife Co..Ltd,
Asahi Co., Ltd.

Tenjin Sta.
New Fukuoka
Building(provisional name)ve.
e-dori A
Watanab

Logistics

Year of completion

1

Residence 14
Hotel

Name

Tenjin Business Center
Former North Annex Site

IMS

Tenjin MMT Building

Fukuoka
City Hall

Tenjin Chuo
Park

100m

Source: Prepared by Fukuoka Realty based on the notice “Preferential Negotiation Rights Holder for Former North Annex Site Reuse Project
Determined” dated July 1, 2021, by the Finance Bureau, City of Fukuoka.

Appendix59Asset Replacement （conducted on June 1, 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

Asset to be acquired

Asset to be transferredTenjin Nishi-DoriBusiness Center

CANAL CITY Hakata・B
Grand Building（Land with leasehold interest）（88.28% co-ownership interest）

Office building

Retail（Land with leasehold interest）

June 1, 2021

Acquisition / Transfer date

7,700 mm yen

7,700 mm yen

Appraisal value

7,790 mm yen

7,640 mm yen

NOI yield

3.5％（＊）The figure is calculated based on the NOI of the appraisal value.

Asset to be acquired
1 Tenjin Nishi-Dori Business■Center （Land with leasehold interest）

Poperties owned
by Fukuoka RIET Corporation

Acquisition /Disposition price

（＊）

West

5.9％

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■
7 Tenjin MMT Building■（during dismantling）

8 Fukuoka Kogin Building■

Other development projects
11 New Fukuoka Building■（provisional name）

12 Former Daimyo■

Elementary School Site
（provisional name）

9 Tenjin Riverfront Business■Center

10 Tenjinkirameki-dori■building

Appendix60