Provisional translation only
April 14, 2022

EARNINGS BRIEFING FOR THE PERIOD ENDED FEBRUARY 2022
Name of issuer:
Code number:
URL:
Stock listings:

Fukuoka REIT Corporation (FRC)8968
https://www.fukuoka-reit.jp/en/
Tokyo Stock Exchange and Fukuoka Stock Exchange

Representative:

Etsuo Matsuyuki Executive Director

Asset manager:
Representative:
Contact:

Fukuoka Realty Co., Ltd.
Zenji Koike
President & CEO
Keishi Tamura
General Manager of Planning Dept.
Phone: +81-92-272-3900

Expected date for submitting securities report:
Expected commencement date of dividend payments:
Supplementary documents for earnings briefing:
Analyst meeting (for institutional investors and analysts):

May 31, 2022
May 18, 2022
Yes
Yes
(Figures rounded down to nearest mm yen)

1. Performance and situation of assets for the period ended February 2022
(September 1, 2021 to February 28, 2022)(1) Performance
Operating revenues
mm of yen

Period ended

February 2022
Period ended

August 2021

%

2,814

(0.1)

8,867

(0.4)

3,204

4.7

2,817

5.2

2,816

5.3

Return on net assets

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

3,536 yen

2.8%

1.4%

32.5%

3,538 yen

2.8%

1.4%

31.8%

Total
dividend(excl. dividendin excess ofearnings)

Dividendin excess ofearnings
per unit

Total
dividendin excess ofearnings

Dividend
per unit(incl. dividendin excess ofearnings)

Total
dividend(incl. dividendin excess ofearnings)

3,536 yen 2,814 mm yen 100.0%

2.8%

3,539 yen 2,817 mm yen— yen — mm yen

3,539 yen 2,817 mm yen 100.0%

2.8%

February 2022
Period ended

August 2021

Ratio of net assets tototal assets

Net assets per unit

101,753 mm yen

51.2%

127,831 yen

101,755 mm yen

50.9%

127,833 yen

Total assets

Net assets

198,745 mm yen
199,804 mm yen(4) Cash flows condition
Cash flows fromoperating activities

Period ended

August 2021

assets— yen — mm yen

Period ended

February 2022

Ratio of

Payout dividend
to netratio

3,536 yen 2,814 mm yen(3) Financial condition

Period ended

%

(0.0)

(excl. dividendin excess ofearnings)

August 2021

mm of yen

2,816

August 2021

Period ended

Profit%(0.6)

Period ended

February 2022

Ordinary income

mm of yen

3,185

February 2022

Period ended

%

(2.3)

Period ended

Dividend
per unit

mm of yen(% shows percentage change from previous period)

8,658

Profit per unit

(2) Dividends

Operating income

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents at
end of period

3,146 mm yen(658) mm yen(2,816) mm yen

10,588 mm yen

4,724 mm yen(1,425) mm yen(2,674) mm yen

10,917 mm yen

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

2. Forecast of performance for the period ending August 2022 (March 1, 2022 to August 31,2022) and the period ending February 2023 (September 1, 2022 to February 28, 2023)(% shows percentage change from previous period)

Operating revenues Operating income

Period ended

August 2022
Period ending

February 2023

Ordinary income

ProfitDividend
per unit

Dividendin excess ofearnings
per unit

mm of yen%

mm of yen%

mm of yen%

mm of yen(excl. dividend% in excess ofearnings)

8,807

1.7

3,167

(0.6)

2,787

(1.0)

2,786

(1.0) 3,500 yen

— yen

8,749

(0.7)

3,159

(0.3)

2,787

0.0

2,786

0.0 3,500 yen— yen(Reference) Forecast profit per unit: Period ending August 2022
Forecast profit per unit: Period ending February 2023

3,500 yen
3,500 yen

3. Others(1) Changes in accounting policies, changes in accounting estimates and restatement of accounting errors(i) Changes in accounting policies accompanying amendments to accounting standards, etc.: Yes(ii) Changes in accounting policies other than above (i):No
(iii) Changes in accounting estimates:No(iv) Restatement of accounting errors:
No(Note) For details, please refer to “Notes on Changes in Accounting Policies” on page 11.

(2) Number of investment units outstanding(i) Number of investment units outstanding at end of period (including treasury investment units):
As of February 2022
796,000 units
As of August 2021
796,000 units(ii) Treasury investment units at end of period:
As of February 2022
0 unitAs of August 2021
0 unitNote: Regarding the number of investment units, a basis for calculating profit per unit, please refer to “Per unit information” on page13.

* Statement on Implementation Status of Audit Procedure
This Earnings Briefing (“Kessan Tanshin” in Japanese) report is not subject to audit procedures by public
accountants or audit corporations.
* On the adequate use of performance forecasts and other items warranting special mention
Forecast figures are calculated based on information available on the date of release of the forecast and contain
uncertain factors to a large extent. Actual operating revenues, operating income, ordinary income, profit, anddividend per unit may differ due to changes in the business environment. The forecast should not be construed
as a guarantee of actual dividend. Concerning details of the preconditions for the above forecast figures pleaserefer to “1. Management Situation, (2) Forecast for the next fiscal period – Preconditions for the performance
forecast for the period ending August 2022 (March 1, 2022 to August 31, 2022) and the period ending February
2023 (September 1, 2022 to February 28, 2023)” on page 3.

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

1. Management Situation(1) Summary of the current fiscal period(a) Brief history of the investment corporation
Fukuoka REIT Corporation (hereinafter “FRC”) was established on July 2, 2004 based on the “Act on Investment
Trusts and Investment Corporations” (Act No. 198 in 1951 including later revisions) and listed on the Tokyo Stock
Exchange, Inc. and the Fukuoka Stock Exchange on June 21, 2005 as the nation’s first real estate investment
trust specializing in regional properties (code number: 8968). FRC invests in real estate throughout all of Kyushu(including Okinawa Prefecture) with a central focus on Fukuoka City and Yamaguchi Prefecture (hereinafter the“Fukuoka/Kyushu area”) by turning regional characteristics in the real estate industry into strengths.
FRC started asset management activities on November 9, 2004 after acquisition of four properties comprisingretail properties and an office building, and manages a total of 32 properties comprising 11 Retail, 10 Officebuildings (including land with leasehold interest for an office building) and 11 Others as of the end of the 35th
fiscal period (February 28, 2022).
(b) Investment environment and portfolio performance
During the fiscal period under review (the 35th fiscal period), the Japanese economy continued to show a pickup
trend, although weakness was seen in some areas amid a severe situation still persisting under the impact of thenovel coronavirus (COVID-19) infection. As for the outlook, with social and economic activities maintained, theeconomy is expected to pick up due in part to the effects of various political measures and improvements inoverseas economies. Attention should be paid, however, to the impact of restrictions on the supply side, downwardrisks due to the trends of raw material prices and changes in the financial and capital markets, etc., as well as tothe impact of the spread of the infection.
In the Fukuoka and Kyushu area, the core investment target area for FRC, the economy was in a severe situation
due to the impact of COVID-19, and supply-and-demand conditions for labor and compensation of employees
were both on a weak note. As a whole, however, the economy is on a pick-up trend centering on exports andproduction. As we foresee, we must be wary of the restrictions under the influence of COVID-19, and the impactof rising raw material prices, etc. on the economic conditions.
As for land price trends, the national average price in combined average for residential and commercial land took
an upward turn for the first time in two years, according to the 2022 Land Market Value Publication. In Fukuoka
City, the central area of FRC’s investment targets, land prices also remained solid, rising at a higher pace. Byland type, commercial land price rose for the first time in two years on national average and climbed by 9.4%
year-on-year in Fukuoka City, showing a larger rate of increase to become the prefectural government city withthe highest rate of increase in Japan for two consecutive years. As for residential land price, it turned to anincrease for the first time in two years on national average, bolstered by such factors as improvement in businesssentiment, ongoing low-interest environment and political measures to support housing purchase, while rising
6.1% year-on-year in Fukuoka City to show a higher rate of increase.
Under such circumstances, FRC’s portfolio achieved solid performance in the asset types of office buildings,
logistic facilities, residential properties and retail properties rooted in the spheres of people’s daily lives. On theother hand, the impact of COVID-19 continued to linger at Canal City Hakata, a city-center retail property, whilehotels remained unable to recover as tourism demand, etc. did not return strongly. As for Hakata Chikushi-Dori
Center Building, for which FRC concluded a purchase agreement in the previous fiscal period, the acquisition
completed on March 1, 2022, the beginning of the 36th fiscal period.
When analyzing FRC’s portfolio (on an acquisition price basis) as of the end of the 35th fiscal period by investment
target area, the investment ratio in the Fukuoka urban area accounted for 76.6%; when analyzing by property
type, Retail, Office buildings, and Others accounted for 54.2%, 31.5% and 14.3%, respectively.
On top of these efforts, Fukuoka Realty Co., Ltd. to which FRC entrusts its asset management (the AssetManager) has established the Sustainability Policy and Regulations Concerning Sustainability Management topromote sustainability through environmental, social and governance (ESG) considerations. By setting up the
Sustainability Promotion Committee, which comprises President/CEO, full-time directors and general managers
of Real Estate Management Department, Investment Department, Finance Department, Planning Department
and Compliance Department, the Asset Manager investigates specific targets and measures and supervises the
progress in implementation of the measures with regard to the internal system, cooperation with related parties
outside the company and information disclosure policy, etc. On the implementation side, the sustainability officer(general manager of the Planning Department), who is the person responsible for the practical aspects concerning
the targets set at the Sustainability Promotion Committee, concurrently serves as general manager of
Sustainability Promotion Office, which is engaged in continuous operations related to the GRESB Real Estate
Assessment (with Green Star rating), the Principles for Responsible Investment (PRI) and the Principles for
Financial Action for the 21st Century (PFA21) and other initiatives.

1

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022(c) Summary of fundraising
The balance of FRC's interest-bearing debt outstanding (including investment corporation bonds) at the end of
the 35th fiscal period totaled 82,400 mm yen, with the loan-to-value ratio (ratio of interest-bearing debt (including
investment corporation bonds) to total assets) at 41.5% and the ratio of fixed-interest rate debt (ratio of interestbearing debt with fixed interest rates (including investment corporation bonds) to total interest-bearing debt) at
94.1% as of the same date. In addition, with regard to the commitment line agreement (credit limit: 7,000 mmyen) with The Nishi-Nippon City Bank, Ltd. serving as the agent, FRC extended the commitment period by a year,
lengthening the remaining term of commitment to three years.
Going forward, FRC will continue its endeavors to reduce refinancing risks by dispersing debt repayment dates
and extending debt duration. At the same time, FRC will work to mitigate risks of rising interest rates by shifting
to fixed-interest rate borrowings and through other measures.
Moreover, the credit ratings assigned to FRC as of the end of the 35th fiscal period are as follows.
Credit Rating Agency
Rating and Investment Information, Inc. (R&I)
Japan Credit Rating Agency, Ltd. (JCR)

Rating Type
Issuer Rating
Long-term Issuer Rating

RatingA+
AA−

Rating Outlook
StableStable(d) Summary of performance and dividend
As a result of these management efforts, operating revenues totaled 8,658 mm yen and operating income after
excluding operating expenses such as expenses related to leasing business and asset management fees totaled
3,185 mm yen. Ordinary income was 2,816 mm yen and profit amounted to 2,814 mm yen. Management decided
to make a dividend of 3,536 yen per unit to meet the requirements of special tax measures for an investment
corporation (as stipulated in Article 67-15 of the Act on Special Measures Concerning Taxation of Japan [Act No.
26 in 1957 including later revisions]). Under this act, an investment corporation is allowed to deduct the maximum
amount of dividends paid to investors from its taxable income.
(2) Forecast for the next fiscal period(a) Portfolio management policy
FRC will further reinforce management and leasing capabilities by cooperating with property managementcompanies including sponsor companies, and secure and maintain the stable operation of the properties bymaking the most use of their advantages.
FRC will make investments based on the basic policy stipulated in its Articles of Incorporation and its basic
philosophy: focusing on “specialized areas in which FRC can demonstrate its competitive edge” that are in “highgrowth potential markets.” By geographic location, of Fukuoka and Kyushu areas, FRC will invest 60% to 90%
of its assets in the Fukuoka urban area since the Fukuoka urban area is expected to have a high population
growth rate in the future. In addition to the Fukuoka urban area, management has decided to actively acquire
properties in major cities if there are regions or properties where FRC can generate investment merits from
community-oriented viewpoints. FRC will acquire high-quality properties with adequate use of its advantages,
such as information gathering ability in the areas, good knowledge of regional properties and close relations withthe local business community including its sponsors and governments, so that investors can continue to invest
in FRC with assurance. Meanwhile, FRC will build stronger relationships with financial institutions to realize stable
fundraising and try to maintain a solid financial structure.
(b)

Significant events that have occurred after the end of the current fiscal period:
No relevant items.

(c)Performance forecast for the next fiscal period
FRC aims to achieve the following performance goals for the period ending August 2022 (March 1, 2022 toAugust 31, 2022) and the period ending February 2023 (September 1, 2022 to February 28, 2023). Concerning
preconditions for the relevant performance forecast, please refer to “Preconditions for the performance forecast
for the period ending August 2022 (March 1, 2022 to August 31, 2022) and the period ending February 2023
(September 1, 2022 to February 28, 2023)” on page 3.
Period ending August 2022
Period ending February 2023
Operating revenues
8,807 mm yen
8,749 mm yen
Operating income
3,167 mm yen
3,159 mm yen
Ordinary income
2,787 mm yen
2,787 mm yen
Profit2,786 mm yen
2,786 mm yen
Dividend per unit
3,500 yen
3,500 yen
Dividend in excess of earnings per
— yen
— yen
unit
Note:

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

2

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

Preconditions for the performance forecast for the period ending August 2022 (March 1, 2022 to August 31, 2022) andthe period ending February 2023 (September 1, 2022 to February 28, 2023)
Item
Preconditions
36th fiscal period: March 1, 2022 to August 31, 2022 (184 days)
Calculation period
37th fiscal period: September 1, 2022 to February 28, 2023 (181 days)• It is assumed that there will be 33 properties comprising the 32 properties FRC owns as of February
Assets under28, 2022, plus Hakata Chikushi-Dori Center Building, which FRC acquired on March 1, 2022.
management• In practice, the number may fluctuate due to changes in assets under management.
Total number ofinvestment units• It is assumed that there will be no issuance of new investment units until February 28, 2023.
outstanding• The balance of interest-bearing debt outstanding at the end of the 36th fiscal period (August 31,2022) is expected to total 83,900 mm yen. The loan-to-value ratio (interest-bearing debt / total assets
× 100) is expected to stand at around 42.2% (as of February 28, 2022, the loan-to-value ratio stands
Interest-bearing debt
at 41.5%).
and refinancing• The balance of interest-bearing debt outstanding at the end of the 37th fiscal period (February 28,2023) is expected to total 83,900 mm yen. The loan-to-value ratio (interest-bearing debt / total assets
× 100) is expected to stand at around 42.2%.
• Of leasing revenues – real estate, revenues from properties FRC has already acquired are calculated
based on tenancy agreements that are valid as of April 14, 2022, by taking into account thecompetitiveness of the properties and the market environment, etc.
Of leasing revenues – real estate, revenues from lease contracts with variable rent such as
percentage-of-sales rent and percentage-of-GOP rent are calculated based on past results by taking
into account such fluctuation factors as sales and GOP of the relevant tenants.
• For leasing revenues – real estate, tenant vacancies are taken into account to a certain extent. It is
Operating revenues
assumed that there will be no rent arrears or non-payments by tenants.
• With the impact of the spread of COVID-19 in Japan and abroad prolonging, the situation requires
FRC to anticipate that a certain degree of impact will continue in the 36th and 37th fiscal periods on
its retail properties and hotels for which percentage-of-sales rents, etc. are established. In estimating
the sales, etc. of such properties, FRC assumes that, while domestic tourism will recover gradually,
inbound tourism will not recover until the 37th fiscal period. However, actual sales may fluctuate
depending on when the COVID-19 pandemic is contained.
• When acquiring properties, the property taxes and city planning taxes for the assets will be
proportionally calculated according to the holding period and adjusted with the former owner.
However, the adjusted amount of the property taxes and city planning taxes to be borne by FRC for
the initial year will not be written off since they will be included in the acquisition cost.
• FRC writes off estimated repair costs expected to be required for buildings for the calculation periods(the 36th and 37th fiscal periods). Actual repair costs may differ significantly from the estimatedamounts since there is the possibility that repair costs are incurred urgently due to damages tobuildings caused by unforeseeable factors, repair costs generally differ largely from period to period,
Operating expenses
and repair costs are not regularly incurred.
• Concerning outsourcing expenses, FRC anticipates 1,747 mm yen for the 36th fiscal period and1,752 mm yen for the 37th fiscal period.
• Concerning taxes and other public charges, FRC anticipates 723 mm yen for the 36th fiscal period
and 723 mm yen for the 37th fiscal period.
• Concerning depreciation and amortization expenses, FRC anticipates 1,519 mm yen for the 36th
fiscal period and 1,512 mm yen for the 37th fiscal period.
• Concerning interest expenses (including interest expenses on investment corporation bonds) andNon-operating
expenses related to financing, FRC anticipates 378 mm yen for the 36th fiscal period and 370 mm
expenses
yen for the 37th fiscal period.
• Dividend (dividend per unit) is calculated based on the dividend policy stipulated in FRC’s Articles ofIncorporation.
• Dividend per unit may fluctuate due to fluctuations in leasing revenues caused by changes in assets
Dividend per unit
under management and tenants or various factors including unexpected occurrences of repair.
• Dividend per unit may fluctuate depending on when the spread of COVID-19 will actually becontained.
Dividend in excess• Dividend in excess of earnings (dividend in excess of earnings per unit) is not planned at the moment.
of earnings per unit
• It is assumed that there will be no significant revisions to laws and regulations, the tax system, andaccounting standards that may influence the forecast figures.
Others• It is also assumed that there will be no significant unexpected changes in general economic
conditions and the real estate market.

3

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

2. Financial Statements(1) Balance sheet

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
OthersTotal current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Structures
Accumulated depreciation
Tools and fixtures
Accumulated depreciation
Lands
Buildings in trust
Accumulated depreciation
Structures in trust
Accumulated depreciation
Machinery and equipment in trust
Accumulated depreciation
Vehicles and transport equipment in trust

Accumulated depreciation
Tools and fixtures in trust
Accumulated depreciation
Lands in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold right in trust
Other intangible assets in trust
Total intangible assets
Investment and other assets(thousands of yen)

34th fiscal period

35th fiscal period(as of August 31, 2021)(as of February 28, 2022)

6,948,985
4,015,688
593,014272,674—
2,891
11,833,253

1,167,104(24,360)
20,698
(322)
1,571
(195)
101,200,889(35,296,331)
1,933,215(856,694)
1,459,851(668,138)
626(594)
1,428,616(1,201,413)

1,142,744
20,376
1,375
989,124
65,904,558
1,076,521
791,71331
227,203110,373,363
480,002
181,007,013
5,545,883
15,584
5,561,467

Deferred tax assets

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

1,171,821(39,043)
20,698
(516)
1,571
(312)
101,745,620(36,671,427)
1,939,630(884,785)
1,461,684(707,143)
626(594)
1,443,100(1,222,570)

1,132,777
20,182
1,258
989,124
65,074,192
1,054,845
754,54131
220,530
110,373,363
500,610
180,121,458
5,545,883
11,234
5,557,117

13

52

Lease and guarantee deposits

10,00010,000

Lease and guarantee deposits in trust

327,135

327,135

Long-term prepaid expenses

1,036,131

964,988

Total investment and other assets

1,373,280

1,302,176

187,941,761

186,980,752

29,93827,83629,93827,836

199,804,953

198,745,156

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

4

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022
(thousands of yen)

34th fiscal period

35th fiscal period(as of August 31, 2021)(as of February 28, 2022)

Liabilities
Current liabilities
Operating accounts payable

452,735

495,8116,000,000

6,000,000

Accounts payable-other

17,146

22,767

Accrued expenses

420,218

414,713

944

1,659

705,556—

Advances received

1,057,228

1,007,044

Deposits received

912,833

697,145

9,566,664

8,639,141

Investment corporation bonds

5,000,000

5,000,000

Long-term debt

71,400,000

71,400,000

450,811450,958

11,631,661

11,501,470

88,482,473

88,352,428

98,049,137

96,991,569

98,938,764

98,938,764

Unappropriated surplus

2,817,051

2,814,821

Total surplus

2,817,051

2,814,821

101,755,815

101,753,586

101,755,815

101,753,586

199,804,953

198,745,156

Current maturities of long-term debt

Income taxes payable
Accrued consumption taxes

Total current liabilities
Non-current liabilities

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

Total unitholders’ equity
Total net assets
Total liabilities and net assets

5

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

(2) Statement of income(thousands of yen)

34th fiscal period

35th fiscal period(March 1, 2021 toAugust 31, 2021)(September 1, 2021 to
February 28, 2022)

Operating revenues
Leasing revenues – real estate*18,157,755

Other leasing revenues – real estate*1605,165

Gain on sales of real estate*2

104,254*1*18,867,174

8,040,738
618,096—

8,658,835

Operating expenses
Expenses related to leasing business
Asset management fees

*1, *3

4,978,758*1, *34,810,362

531,986

526,058

Asset custody fees

7,544

7,431

Administrative service fees

58,81057,769Director’s compensations

9,600

9,600

Other operating expenses

75,780Operating income

5,662,481

61,771

3,204,693

5,472,993
3,185,841

Non-operating revenues
Interest received

54

Others

504

55
559

567

623

Non-operating expenses
Interest expenses
Interest expenses on investment
corporation bonds
Amortization of investment
corporation bond issuance expenses
Financing related expenses

257,612242,524

29,20029,200

2,102

2,102

98,49296,157

Others39387,44737

370,022

Ordinary income

2,817,806

2,816,442

Profit before income taxes

2,817,806

2,816,442

Income taxes-current

952

Income taxes-deferred

50

Profit

1,667
1,003

(39)

1,628

2,816,802

2,814,814

Surplus brought forward

248

7

Unappropriated surplus

2,817,051

2,814,821

6

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

(3) Statement of changes in net assets
34th fiscal period (March 1, 2021 to August 31, 2021)
Unitholders’ Equity
Surplus
Unitholders’ capital
Balance as ofMarch 1, 2021
Changes in thecurrent fiscal period

Unappropriated surplus

Totalunitholders’ equity

Total
net assets

2,675,604

101,614,369

101,614,369

Dividend of surplus(2,675,356)(2,675,356)(2,675,356)

Profit2,816,802

2,816,802

2,816,802—

141,446

141,446

141,446

98,938,764

2,817,051

101,755,815

101,755,815

Total of changes in thecurrent fiscal period
Balance as ofAugust 31, 2021

98,938,764(thousands of yen)

35th fiscal period (September 1, 2021 to February 28, 2022)
Unitholders’ Equity
Surplus
Unitholders’ capital
Balance as of
September 1, 2021
Changes in thecurrent fiscal period

Unappropriated surplus

Totalunitholders’ equity

Total
net assets

2,817,051

101,755,815

101,755,815

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

Profit2,814,814

2,814,814

2,814,814—(2,229)(2,229)(2,229)98,938,764

2,814,821

101,753,586

101,753,586

Total of changes in thecurrent fiscal period
Balance as ofFebruary 28, 2022

98,938,764(thousands of yen)

7

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

(4) Dividend statement
Item

34th fiscal period(March 1, 2021 toAugust 31, 2021)

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

I.

Unappropriated surplus

2,817,051 thousand yen

2,814,821 thousand yen

II.

Total dividend

2,817,044 thousand yen

2,814,656 thousand yen[Dividend per investment
unit][3,539 yen]

[3,536 yen]

III. Surplus brought forward

7 thousand yen

165 thousand yen

Method for calculating dividends

The amount of dividends shall be decided in The amount of dividends shall be decided inaccordance with the dividend policy accordance with the dividend policy
stipulated in Article 38-1-2 of FRC’s Articles stipulated in Article 38-1-2 of FRC’s Articles
of Incorporation and must exceed 90% of of Incorporation and must exceed 90% of
FRC’s distributable profits as stipulated in FRC’s distributable profits as stipulated in
Article 67-15-1 of the Special Taxation Article 67-15-1 of the Special Taxation
Measures Act. Following the above policy, Measures Act. Following the above policy,
FRC shall decide to distribute 2,817,044 FRC shall decide to distribute 2,814,656
thousand yen, which is almost the entire thousand yen, which is almost the entire
amount of unappropriated surplus, as amount of unappropriated surplus, asearnings dividends. Moreover, dividend in earnings dividends. Moreover, dividend inexcess of earnings as stipulated in Article excess of earnings as stipulated in Article38-2 of FRC’s Articles of Incorporation will 38-2 of FRC’s Articles of Incorporation will
not be provided.
not be provided.

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

8

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

(5) Cash flows statement(thousands of yen)

34th fiscal period(March 1, 2021 toAugust 31, 2021)

Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation and amortization expenses
Amortization of investment corporation bond issuance
expenses
Interest received
Interest expenses
Gain on sales of real estate
Decrease (increase) in operating accounts receivables
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits expenses
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
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
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) investment activities
Net cash provided by (used in) financial activities
Proceeds from long-term debt
Repayments of long-term debt
Dividends paid
Net cash provided by (used in) financial activities
Net increase (decrease) in cash and cash equivalents
Balance of cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at end of period

935th fiscal period(September 1, 2021 to
February 28, 2022)

2,817,806
1,552,759

2,816,442
1,486,407

2,102

2,102

(54)
286,812(104,254)(64,306)—
388,975
19,627(6,134)
3,749(31,695)
118,880
14,511
6,812
6,897
5,012,488
54(285,996)(1,844)
4,724,702(55)
271,724—(19,216)(217,676)(705,556)(29,962)5,577(3,258)(50,183)(215,687)
18,381
71,142(9,271)3,420,911
55(273,972)(952)
3,146,040(400)
7,608,310(8,771,773)
80(60)
460,486(721,189)
3,283(4,575)(1,425,837)(5,092)—(522,327)
176(30)
109,679(239,871)
4,978(6,343)(658,830)

6,300,000(6,300,000)(2,674,475)(2,674,475)
624,389
10,293,317
10,917,706——(2,816,432)(2,816,432)(329,222)
10,917,706
10,588,484

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

(6) Notes on the going concern assumption
No relevant items.
(7) Significant accounting policies
1． Depreciation method for noncurrent assets(1) Property, plant and equipment
Depreciation is calculated using the straight-line method.
The useful lives of major categories of property, plant and equipment including
trust assets are as follows:
Buildings:
10 – 65 years
Structures:
15 – 60 years
15 – 30 years
Machinery and equipment:
Vehicles and transport equipment:
7 years
Tools and fixtures:
5 – 20 years(2) Intangible assets
Intangible assets are amortized utilizing the straight-line method.
(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.

2．Accounting for deferred assets

Investment corporation bond issuance expenses
Investment corporation bond issuance expenses are amortized utilizing thestraight-line method over the period through redemption.
(1) Standards for revenue recognition
The details of main performance obligations concerning revenues generated
from contracts between FRC and its customers and the ordinary time to fulfil
said performance obligations (ordinary time to recognize revenues) are as
follows.
1) Sales of real estate property
FRC recognizes revenues from sales of real estate property when thepurchaser who is a customer obtains control of the relevant real estate
property as a result of FRC fulfilling its delivery obligations stipulated in thetransaction agreement of the real estate property.
2) Utilities income
FRC recognizes utilities income in accordance with the supply of electricity
and water, etc. to the lessee who is a customer based on the leaseagreement of real estate, etc. and details of agreements incidental to it. Of
the utilities income, in the case that FRC deems itself to be an agent, the net
amount obtained by deducting the amount it pays to other parties from theamount it receives as charges for electricity and gas, etc. supplied by thesaid other parties is recognized as revenue.
(2) Accounting treatment of property taxes, etc.
In connection with property taxes, city planning taxes and depreciated asset
taxes, FRC uses the method of charging the corresponding amounts ofassessed taxes to the current fiscal period as expenses related to leasing
business.
The amount equivalent to property taxes, etc. for the initial fiscal year paid tothe seller as settlement money upon acquisition of real estate or trust
beneficiary interests in real estate as entrusted property are not expensed but
capitalized as part of the acquisition cost of the relevant property. The amountequivalent to property taxes, etc. capitalized in the acquisition cost of realestate, etc. was 20,322 thousand yen for the 34th fiscal period. No amountequivalent to property taxes, etc. was capitalized in the acquisition cost of realestate, etc. for the 35th fiscal period.
(1) Method of hedge accounting
Deferred hedge accounting is applied for interest rate swap transactions.
However, special accounting is applied for interest rate swap transactions thatsatisfy the requirements for special accounting.
(2) Hedging instruments and hedged items
Hedging instruments: interest rate swap transactions
Hedged items: interest rates of borrowings(3) Hedging policy
FRC conducts derivative transactions to hedge interest rate fluctuation risks
for floating-rate borrowings based on FRC’s Articles of Incorporation.
(4) Method for assessing the effectiveness of hedging
Assessment of the effectiveness of hedging is omitted as requirements are
satisfied for special accounting for interest rate swap transactions.

3．Standards for recognition ofrevenues and expenses

4．Method of hedge accounting

10

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

5．Scope of funds (cash and cash
equivalents) in cash flow
statement
6．Other items fundamental topreparing the financial
statements

The funds (cash and cash equivalents) in the cash flow statement consist of cashon hand and cash in trust; deposits that can be withdrawn at any time and deposits
in trust; and short-term investments with a maturity of 3 months or less from thedate of acquisition, which are readily convertible to cash and bear only an
insignificant risk of value fluctuation.
(1) Accounting methods for trust beneficiary interests in real estate as entrusted
property
Regarding trust beneficiary interests in owned real estate as entrusted
property, all asset and liability accounts of the entrusted properties as well as
all revenue and expense accounts generated by the entrusted properties arerecorded in relevant accounts on the balance sheet and statement of income.
Furthermore, the following material accounts are separately stated on thebalance sheet for entrusted properties recorded in relevant accounts.
1) Cash and deposits in trust2) Buildings in trust, structures in trust, machinery and equipment in trust,vehicles and transport equipment in trust, tools and fixtures in trust, lands
in trust and construction in progress in trust3) Leasehold right in trust4) Other intangible assets in trust5) Lease and guarantee deposits in trust
6) Tenant leasehold and security deposits received in trust(2) Accounting for consumption taxes
National and local consumption taxes are accounted with the consumption
taxes excluded.

(8) Notes on Changes in Accounting Policies(Application of Accounting Standard for Revenue Recognition, etc.)
FRC has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, issued on March 31,2020), etc. from the beginning of the 35th fiscal period, and decided to recognize revenues at the amount expected tobe received in exchange for the promised goods or services when control of the goods or services is transferred tothe customer. The impact of this change on the financial statements is immaterial.
Furthermore, in accordance with the transitional treatment stipulated in Paragraph 89-3 of the Accounting Standard
for Revenue Recognition, the note related to Revenue Recognition for the previous fiscal period is not indicated.
(Application of Accounting Standard for Fair Value Measurement, etc.)
FRC has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, issued on July 4,2019), etc. from the beginning of the 35th fiscal period, and decided to adopt the new accounting policies set forth bysaid Accounting Standard, etc. going forward in accordance with the transitional treatment as stipulated in Paragraph
19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, issued on July 4, 2019). The impact of this change on the financial
statements is immaterial.

11

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

(9) Notes to financial statements
FRC omits the disclosure of notes to balance sheet, statement of changes in net assets, and cash flows statement,
as well as notes on lease transactions, financial instruments, securities, derivative transactions, related-party
transactions, tax-effect accounting, retirement benefits, asset retirement obligations, rental properties, segment
information and equity method income, etc. since it does not find substantial need for disclosure in the earnings briefing.
(Notes to statement of income)*1. Breakdown of revenues and expenses related to real estate leasing business(thousands of yen)

34th fiscal period(March 1, 2021 toAugust 31, 2021)

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

A. Real estate leasing business revenues
Leasing revenues – real estate
Rents

6,755,878

6,677,000

Common charges

1,007,813

944,582

Parking revenues

394,063

8,157,755

419,155

8,040,738

Other leasing revenues – real estate
Incidental income

581,258

Other miscellaneous income

23,906

Total real estate leasing business revenues

571,819605,165

46,277

8,762,920

618,096
8,658,835

B. Expenses related to real estate leasing business
Expenses related to leasing businessOutsourcing fees

1,775,633

1,711,225

Repair and maintenance expenses

153,469

121,025

Taxes and other public charges

723,140

711,798

Insurance premiums and trust compensation

44,99841,708

Utilities expenses

477,384

476,400

1,552,759

1,486,407

Depreciation and amortization expenses
Other expenses related to real estate leasing
business
Total expenses related to real estateleasing business
C. Revenues and expenses related to real estateleasing business (A - B)

251,371

4,978,758

261,797

4,810,362

4,978,758

4,810,362

3,784,162

3,848,472*2. Breakdown of gain on sales of real estate

34th fiscal period (March 1, 2021 to August 31, 2021)
Canal City Hakata· B Grand Building (88.28% co-ownership interest in Grand Building)
Proceeds from sales of real estate
Costs of sale of real estate
Other selling expenses
Gain on sales of real estate(thousands of yen)

7,700,000
7,504,056
91,689104,254

35th fiscal period (September 1, 2021 to February 28, 2022)
Not applicable.
*3. Transactions with affiliated companies(thousands of yen)

34th fiscal period(March 1, 2021 toAugust 31, 2021)

Expenses related to real estate leasing business

853,13912

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

775,891

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

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

Revenues from contracts
with customers (Note)
Proceeds from sales of real estate

Sales to external customers——

Utilities income

427,510427,510

Others98,9348,231,324

526,4458,658,835

Total
Note:

Leasing business revenues subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13)
and transfer of real estate property subject to the “Practical Guidelines on Accounting by Transferors for
Securitization of Real Estate Using Special Purpose Companies” (Accounting System Committee Report No.15 of
the Japanese Institute of Certified Public Accountants) are excluded from “Revenues from contracts with customers”
as such revenues are not covered by the Accounting Standard for Revenue Recognition. Revenues generated fromcontracts with customers mainly represent Proceeds from sales of real estate and utilities income.

(Per unit information)
34th fiscal period

35th fiscal period(March 1, 2021 to August 31, 2021)

Net assets per investment unit:
Profit per investment unit:(September 1, 2021 to February 28, 2022)

127,833 yen
3,538 yen

Net assets per investment unit:
Profit per investment unit:

127,831 yen
3,536 yen

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

35th fiscal period

34th fiscal period(March 1, 2021 toAugust 31, 2021)

Profit (thousands of yen)Amount not attributable to common unitholders(thousands of yen)
Profit attributable to common investment units(thousands of yen)
Average number of investment units during the fiscal
period (units)(Significant subsequent events)
No relevant items.
(10) Change in the number of investment units outstanding
No relevant items.

13(September 1, 2021 to
February 28, 2022)

2,816,802

2,814,814——

2,816,802

2,814,814

796,000

796,000

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

3. Reference Information(1) Information on the prices, etc. of investment assets
1) Investment situation
Type ofasset

Office buildings

Real estate

OthersTotal value of
properties owned

Location

Use

Retail(as of February 28, 2022)(Note 1)(mm of yen) (Note 2)

Office buildings

Real estatein trust

Others(%) (Note 3)

Fukuoka urban area——

Other Kyushu areas——

Fukuoka urban area——

Other Kyushu areas——

Fukuoka urban area——

Other Kyushu areas

2,143

1.1

2,143

1.1

Fukuoka urban area

66,351

33.4

Other Kyushu areas

36,598

18.4

Fukuoka urban area

55,054

27.7

Other Kyushu areas——

Fukuoka urban area

19,7599.9

Other Kyushu areas

5,269

2.7

183,034

92.1

13,567

6.8

198,745

100.0[185,678][93.4]

Subtotal
RetailPercentage of
total assets

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

Note 1: “Fukuoka urban area” refers to cities, towns and villages where 10% or more of the population commute to Fukuoka City
for school and work, according to the 2020 census, which states “the number of workers and students aged 15 years orolder (students including those aged 14 years or younger: particular reference) including commuting between their homes
and places of work or school” conducted by Fukuoka City and the Statistics Bureau of the Ministry of Internal Affairs andCommunications. “Other Kyushu areas” refers to all other parts of Kyushu (excluding the Fukuoka urban area).
Note 2: “Total value of properties owned” is based on the value on the balance sheet (the value of real estate and real estate intrust is the book value after depreciation).
Note 3: Concerning the “Percentage of total assets,” the figures are rounded off to one decimal place. The total of individual
percentages in the above table may not equal 100%.
Note 4: Figures in parentheses for “Total amount of assets” refer to the value and percentage of real estate owned in effect tothe total amount of assets.
(as of February 28, 2022)

Value on balance sheet(mm of yen)

Percentage of total amount of assets(%)

Total liabilities

96,991

48.8

Total net assets

101,753

51.2

14

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

2) Investment assets(A) Values and investment ratios at end of period are as follows.
Real estate property nameAcquisitionvalue(mm of yen)
(Note 1)

Value onbalance sheet(mm of yen)

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

Canal City Hakata

32,00029,32430,600Canal City Hakata･B

21,06020,84921,400Park Place Oita

19,61019,95520,600SunLive City Kokura

6,633

5,591

8,510

Konoha Mall Hashimoto

10,0009,848

10,500

Square Mall Kagoshima Usuki

5,300

4,252

4,970

Kumamoto Intercommunity SC

2,400

1,931

2,740

Hanahata SC

1,130

956

1,200

Kurume Higashi Kushiwara SC

2,500

1,982

2,740

K’s Denki Kagoshima

3,550

2,885

3,660

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

5,250

5,373

5,890

109,433

102,950

112,810

14,60012,777

17,400Gofukumachi Business Center

11,2008,711

15,500Sanix Hakata Building

4,400

3,719

6,720

Taihaku Street Business Center

7,000

5,555

9,540

Higashi Hie Business Center

5,900

4,328

8,270

Tenjin Nishi-Dori Center Building

2,600

2,645

3,270

Tenjin North Front Building

2,800

2,382

4,640

Higashi Hie Business Center II

4,230

3,942

4,700

Higashi Hie Business Center III

3,290

3,237

3,380

Tenjin Nishi-Dori Business Center(Land with leasehold interest)
Office buildings subtotal:

7,700

7,754

8,020

63,72055,05481,440Amex Akasakamon Tower

2,060

1,617

1,920

City House Keyaki Dori

1,111

873

1,070

Aqualia Chihaya

1,280

1,135

2,040

D-Wing Tower

2,800

2,622

3,740

Granfore Yakuin Minami

1,100

1,071

1,360

Hotel FORZA Oita

1,530

1,339

1,890

Tissage Hotel Naha

2,835

2,786

2,880

Tosu Logistics Center

1,250

1,144

1,390

LOGICITY Minato Kashii

8,150

7,715

9,440

LOGICITY Hisayama

5,050

4,724

5,560

LOGICITY Wakamiya

1,700

2,143

2,450

Others subtotal:
Total

28,866
202,019

27,173
185,177

33,740227,990

Note 1:
Note 2:(as of February 28, 2022)

Investment
ratio
(%)
(Note 3)

Real estateappraiser

Tanizawa Sogo
15.8 Appraisal Co., Ltd.
Tanizawa Sogo
10.4 Appraisal Co., Ltd.
Japan Real Estate
9.7 InstituteJapan Real Estate
3.3 InstituteTanizawa Sogo
5.0 Appraisal Co., Ltd.
Japan Real Estate
2.6 InstituteJapan Real Estate
1.2 InstituteTanizawa Sogo
0.6 Appraisal Co., Ltd.
Tanizawa Sogo
1.2 Appraisal Co., Ltd.
Tanizawa Sogo
1.8 Appraisal Co., Ltd.
Tanizawa Sogo
2.6 Appraisal Co., Ltd.

54.2

Tanizawa Sogo
7.2 Appraisal Co., Ltd.
Tanizawa Sogo
5.5 Appraisal Co., Ltd.
Japan Real Estate
2.2 InstituteJapan Real Estate
3.5 InstituteTanizawa Sogo
2.9 Appraisal Co., Ltd.
Japan Real Estate
1.3 InstituteJapan Real Estate
1.4 InstituteTanizawa Sogo
2.1 Appraisal Co., Ltd.
Tanizawa Sogo
1.6 Appraisal Co., Ltd.
Japan Real Estate
3.8 Institute

31.5

Daiwa Real Estate
1.0 Appraisal Co., Ltd.
Daiwa Real Estate
0.5 Appraisal Co., Ltd.
Japan Real Estate
0.6 InstituteTanizawa Sogo
1.4 Appraisal Co., Ltd.
Tanizawa Sogo
0.5 Appraisal Co., Ltd.
Japan Real Estate
0.8 InstituteTanizawa Sogo
1.4 Appraisal Co., Ltd.
Japan Real Estate
0.6 InstituteTanizawa Sogo
4.0 Appraisal Co., Ltd.
Tanizawa Sogo
2.5 Appraisal Co., Ltd.
Tanizawa Sogo
0.8 Appraisal Co., Ltd.

14.3
100.0

“Acquisition value” refers to the amount (purchasing prices shown on the purchasing contracts) not including expenses forthe acquisition of relevant properties (agency fees and taxes and other public charges).
“Period-end appraisal value” refers to the evaluation value based on appraisals by a real estate appraiser in conformity with15

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022

Note 3:the method and standards for asset evaluation stipulated in FRC’s Articles of Incorporation and rules stipulated by theInvestment Trusts Association, Japan.
“Investment ratio” is obtained by dividing each property’s acquisition value by the total acquisition value. The total ofindividual percentages in the above table may not equal 100%, since the figures are rounded off to one decimal place.

(B) Summary of the real estate leasing business(as of February 28, 2022)

Total
leasingrevenues(mm of yen)
(Note 4)990

Percentage
of totalleasingrevenues(%) (Note 5)
11.4

30,478.72

940

10.9

120,639.37

1,194

13.8

Number oftenants(Note 1)

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

Total
leased floor
space
(m2)

1 [44]

97.8

46,585.57

45,573.70

Canal City Hakata･B

1 [45]

97.9

31,141.44

Park Place Oita

1 [102]

99.5

121,212.26

Real estate property name
Canal City Hakata

SunLive City Kokura

1

100.0

61,450.22

61,450.22

262

3.0

1 [123]97.0

22,191.17

21,526.54

818

9.4

Square Mall Kagoshima Usuki

13

100.0

14,602.88

14,602.88

251

2.9

Kumamoto Intercommunity SC

2

100.0

6,968.66

6,968.66

89

1.0

Hanahata SC

2

100.0

2,801.15

2,801.15

40

0.5

Kurume Higashi Kushiwara SC

1

100.0

6,467.80

6,467.80

90

1.0

K’s Denki Kagoshima
Marinoa City Fukuoka (Marina
Side Building)

1

100.0

7,296.17

7,296.17

111

1.3

1

100.0

33,069.82

33,069.82

177

2.0

25 [335](Note 2)99.2

353,787.14

350,875.03

4,967

57.4

1 [62]

100.0

23,030.30

23,030.30

650

7.5

36

100.0

19,905.34

19,905.34

572

6.6

Konoha Mall Hashimoto

Retail subtotal:
Canal City Business Center
Building
Gofukumachi Business Center
Sanix Hakata Building

16

100.0

6,293.75

6,293.75

208

2.4

Taihaku Street Business Center1 [70]

99.2

14,677.35

14,554.76

323

3.7

Higashi Hie Business Center1 [27]

100.0

13,614.59

13,614.59

353

4.1

Tenjin Nishi-Dori Center Building

1

100.0

3,339.32

3,339.32

86

1.0

Tenjin North Front Building

11

100.0

5,252.41

5,252.41

145

1.7

Higashi Hie Business Center II

2

100.0

6,214.77

6,214.77

164

1.9

Higashi Hie Business Center III
Tenjin Nishi-Dori Business Center(Land with leasehold interest)(Note 6)

6

100.0

2,981.14

2,981.14

98

1.1

1

100.0

1,343.51

1,343.51

159

1.8

99.9

96,652.48

96,529.89

2,762

31.9

98.8

4,821.25

4,765.43

67

0.8

Office buildings subtotal:
Amex Akasakamon Tower

76 [232](Note 2)
1 [66]

City House Keyaki Dori1 [42]

100.0

2,710.86

2,710.86

41

0.5

Aqualia Chihaya

1 [104]98.9

5,619.69

5,559.96

60

0.7

D-Wing Tower

1 [135]

98.9

7,187.59

7,106.79

110

1.3

Granfore Yakuin Minami

1 [95]

95.9

2,496.06

2,393.12

38

0.4

Hotel FORZA Oita

1

100.0

5,785.44

5,785.44

63

0.7

Tissage Hotel Naha

1

100.0

3,758.76

3,758.76

Tosu Logistics Center

1

100.0

4,173.29

4,173.29

LOGICITY Minato Kashii

2

100.0

43,233.72

43,233.72

LOGICITY Hisayama

1

100.0

24,505.65

24,505.65

LOGICITY Wakamiya

1

100.0

17,556.32

17,556.32

37
Undisclosed(Note 7)
Undisclosed(Note 7)
Undisclosed(Note 7)
Undisclosed(Note 7)

0.4
Undisclosed(Note 7)
Undisclosed(Note 7)
Undisclosed(Note 7)
Undisclosed(Note 7)99.8

121,848.63

121,549.34

929

10.7

99.4

572,288.25

568,954.26

8,658

100.0

Others subtotal:
Total
Note 1:

12 [449](Note 2)
113 [1,016](Note 2)

“Number of tenants” is based on the total number of sections stipulated in the tenancy agreements for retail and officebuildings among relevant properties. For the number of tenants in pass-through master leasing properties, the number ofsections stipulated in the tenancy agreements with end tenants is shown in parentheses. The Taihaku Street BusinessCenter is an office building with a residential tower. Its number of end tenants comprises 13 offices and 57 residences.

16

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended February 2022
Note 2:
Note 3:Note 4:Note 5:Note 6:Note 7:The subtotal and total of all the tenants in other than pass-through master leasing properties and the number of sections
stipulated in the tenancy agreements with end tenants for pass-through master leasing properties is shown in parentheses
in the totals column for “Number of tenants.”“Occupancy rate” refers to the percentage of total leased floor space to total leasable floor space and the figures are rounded
off to one decimal place.
“Total leasing revenues” is the total of real estate leasing revenues and other revenues from real estate rent in the current
fiscal period.
“Percentage of total leasing revenues” is obtained by dividing each property’s total leasing revenues by the total amount of
total leasing revenues. The total of individual percentages in the above table may not equal 100%, since the figures arerounded off to one decimal place.
The number of tenants indicates the number of the lessee of the land with leasehold interest. The total leasable floor spaceindicates the land area recorded in the real estate registry.
The figures are not disclosed as no consent to disclosure has been obtained from the tenants.

(2) Status of capital expenditures
1) Capital expenditures after the end of the 35th fiscal period and planned capital expenditures
The following table provides amounts of major items of capital expenditures associated with renovations, etc.
conducted after the end of the 35th fiscal period and of capital expenditures associated with renovations, etc.
planned as of April 14, 2022 for real estate properties owned by FRC. The planned construction costs indicatedbelow may be partly classified as expenses. In addition, FRC will implement renewal construction work in order tomaintain and improve the competitiveness of properties in the market as well as tenant satisfaction, on top of theconstruction, facilities and replacement work for which expenditures will be made regularly.

Real estate
property nameLocation

PurposePlanned construction cost
(mm of yen)Amountpaid in the Total amountTotal
35th fiscal already paid
periodSchedule

Canal City
HakataHakata Ward,
Fukuoka City

Replacement of
pipingFrom August 2021 toApril 2022

609

—

—

Park Place Oita

Oita City, Oita

Renovation ofcommon spaces

From September
2021 to April 2022

650

27

54

Konoha Mall
Hashimoto

Nishi Ward,
Fukuoka City

Improvement of foodcourt environment

From February 2022
to April 2022

62

—

—

Konoha Mall
Hashimoto

Nishi Ward,
Fukuoka City

Switching to LED
lighting throughout
the building

From June 2022 toAugust 2022

149

—

—

Gofukumachi
Business Center

Hakata Ward,
Fukuoka City

Replacement of airconditioning units

From December 2021
to March 2022

38

—

—

Aqualia Chihaya

Higashi Ward,
Fukuoka City

Replacement ofdisaster prevention
facilities andequipment

From June 2022 toAugust 2022

30

—

—

2) Capital expenditures during the 35th fiscal period
Capital expenditures for the real estate properties owned by FRC totaled 600 mm yen in the 35th fiscal period.
Furthermore, FRC incurred construction costs of 729 mm yen in total in the period, including 121 mm yen in repair
and maintenance expenses classified as expenses on the statement of income and 7 mm yen in expenses forrestoration to former state. The following table provides the overview of major construction work that was completed
in the 35th fiscal period.
Real estate
property nameLocation

Canal City Hakata

Hakata Ward,
Fukuoka City

Water supply piping for
guestrooms

From June 2021 toOctober 2021

22

Park Place Oita

Oita City, Oita

Renovation of external walls

From January 2022 toFebruary 2022

21

Renovation of common
spacesFrom June 2021 toSeptember 2021

189

Formation of tenant sections

From May 2021 toSeptember 2021

77

Renovation of external walls

From November 2021 to
February 2022

32

Konoha Mall
Hashimoto

Kokura Minami
Ward,
Kitakyushu City
Nishi Ward,
Fukuoka City

Square Mall
Kagoshima Usuki

Kagoshima City,
Kagoshima

SunLive City Kokura

Purpose17

PeriodConstruction cost
(mm of yen)