EARNINGS BRIEFING FOR THE PERIOD ENDED AUGUST 2021 Name of issuer: Code number: URL: Stock listings: Representative: Asset manager: Representative: Contact: Fukuoka REIT Corporation (FRC) 8968 https://www.fukuoka-reit.jp/en/ Tokyo Stock Exchange, and Fukuoka Stock Exchange Etsuo Matsuyuki   Executive Director 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: November 29, 2021 Expected commencement date of dividend payments: November 18, 2021 Supplementary documents for earnings briefing Yes Analyst meeting (for institutional investors and analysts)  Yes (Figures rounded down to nearest mm yen) Performance and situation of assets for the period ended August 2021 1. (March 1, 2021 to August 31, 2021)

(2) Dividends

2. Forecast of performance for the period ending February 2022 (September 1, 2021 to February 28, 2022) and the period ending August 2022 (March 1, 2022 to August 31, 2022)
Period ending August 2022 Forecast profit per unit: 3,500 yen
3. Other
(1) Changes in accounting policies, changes in accounting estimates and restatement of accounting errors Changes in accounting policies accompanying amendments to accounting standards, etc.:  No (i) (ii)  Changes in accounting policies other than above (i): No (iii) Changes in accounting estimates: No (iv) Restatement of accounting errors: No (2) Number of investment units outstanding (i) Number of investment units outstanding at end of period (including treasury investment units): As of August 2021 796,000 units As of February 2021 796,000 units (ii) Treasury investment units at end of period: As of August 2021 0 unit As of February 2021 0 unit Note:   Regarding the number of investment units, a basis for calculating profit per unit, please refer to "Per unit information," on page 11. * 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, and dividend per unit may differ due to changes in the business environment. The forecast should not be construed as a guarantee of actual dividend. Concerning details of the preconditions for the above forecast figures please refer to "1. Management Situation, (2) Forecast for the next fiscal period – Preconditions for the performance forecast for the period ending February 2022 (September 1, 2021 to February 28, 2022) and the period ending August 2022 (March 1, 2022 to August 31, 2022)" on page 3.
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 comprising retail properties and an office building, and manages a total of 32 properties comprising 11 Retail, 10 Office buildings (including land with leasehold interest for an office building) and 11 Others as of the end of the 34th fiscal period (August 31, 2021). Investment environment and portfolio performance (b) During the fiscal period under review (the 34th fiscal period), the Japanese economy continued to show a pickup trend amid a severe situation still persisting under the impact of the novel coronavirus (COVID-19) infection. As for the outlook, with measures taken to prevent the spread of infection and vaccination promoted, the economy is expected to keep picking up due in part to the effects of various political measures and improvements in overseas economies. Attention should be paid, however, to the impact the infection trend will pose on the economy both in and outside Japan and the influence of changes in the financial and capital markets, etc. In the Fukuoka and Kyushu area, the core investment target area for FRC, the economy is picking up, centering around exports and production, although staying in a severe situation. While public spending remains at a high level, the pickup trend in consumer spending has come to a temporary pause, and supply-and-demand conditions for labor and compensation of employees are both on a weak note. As we foresee, we must be wary of the impact of the trend of COVID-19 on corporate and household sentiments, among other factors. As for land price trends, the national average price in combined average for residential and commercial land dropped for the second consecutive year, although at a decelerating rate of decrease, according to the 2021 Land Price Survey. By land type, residential land price dropped at a lower pace and commercial land price showed a higher rate of decrease. Meanwhile, in Fukuoka City, the central area of FRC's investment targets, land prices continued rising for 9 consecutive years, up 7.7% year-on-year for commercial land and up 4.4% year-on-year for residential land. Under such circumstances, FRC's portfolio achieved solid performance in the asset types of office buildings, logistic facilities, and residential properties. On the other hand, the impact of the spread of COVID-19 was not contained at Canal City Hakata and other major retail properties, while hotels failed to recover as tourism demand, etc. did not return strongly. In the 34th fiscal period, FRC disposed Canal City Hakata・B Grand Building (88.28% co-ownership interest in Grand Building) and acquired Tenjin Nishi-Dori Business Center (Land with leasehold interest) on June 1, 2021, and concluded on August 30, 2021 an agreement regarding acquisition of Hakata Chikushi-Dori Center Building (scheduled for acquisition on March 1, 2022). When analyzing FRC's portfolio (on an acquisition price basis) as of the end of the 34th 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 Asset Manager) has established the Sustainability Policy and Regulations Concerning Sustainability Management to promote 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. (c) Summary of fundraising In the 34th fiscal period, FRC conducted long-term borrowings totaling 6,300 mm yen to fund the repayment of existing debt that matured in the period. As a result, the balance of FRC's interest-bearing debt outstanding (including investment corporation bonds) at the end of the 34th 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 41.2% and the ratio of fixed-interest rate debt (ratio of interest-bearing 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: 6,000 mm yen) with The Bank of Fukuoka, Ltd. serving as the agent, 1 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.
(d) Summary of performance and dividend As a result of these management efforts, operating revenues totaled 8,867 mm yen and operating income after excluding operating expenses such as expenses related to leasing business and asset management fees totaled 3,204 mm yen. Ordinary income was 2,817 mm yen and profit amounted to 2,816 mm yen. Management decided to make a dividend of 3,539 ven 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 management companies including sponsor companies, and secure and maintain the stable operation of the properties by making the most use of their advantages. FRC will make investments based on the basic policy stipulated in its Articles of Incorporation and its basic philosophy: focusing on "specialized areas in which FRC can demonstrate its competitive edge" that are in "high growth potential markets." By geographic location, of Fukuoka and Kyushu areas, FRC will invest 60% to 90% of its assets in the Fukuoka urban area since the Fukuoka urban area is expected to have a 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 with the 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 February 2022 (September 1, 2021 to February 28, 2022) and the period ending August 2022 (March 1, 2022 to August 31, 2022). Concerning preconditions for the forecast, please refer to "Preconditions for the performance forecast for the period ending February 2022 (September 1, 2021 to February 28, 2022) and the period ending August 2022 (March 1, 2022 to August 31, 2022)" on page 3.
Note: The above forecast figures are calculated based on certain preconditions. The forecast should not be construed as a guarantee of actual performance since actual operating revenues, operating income, ordinary income, profit, dividend per unit and dividend in excess of earnings per unit may differ due to changes in the business environment.

2. Financial Statements

Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2021

(3)  Statement of changes in net assets

34th fiscal period (March 1, 2021 to August 31, 2021)

(4) Dividend statement

(6) Notes on the going concern assumption No relevant items. (7) Significant accounting policies The disclosure is omitted, since there are no significant changes from contents disclosed by the latest securities report (submitted on May 31, 2021). (8) 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)

33rd fiscal period (September 1, 2020 to February 28, 2021) Not applicable. 34th fiscal period (March 1, 2021 to August 31, 2021) Canal City Hakata・B Grand Building (88.28% co-ownership interest in Grand Building)

*3. Transactions with affiliated companies

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.
(Significant subsequent events) No relevant items. (9)  Change in the number of investment units outstanding No relevant items.
3. Reference Information
(1) Information on the prices, etc. of investment assets
older (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 and Communications. "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 in trust is the book value after depreciation). Note 3:  Concerning the "Percentage of total assets," the figures are rounded off to one decimal place. The total of individual percentages in the above table may not equal 100%. Figures in parentheses for "Total amount of assets" refer to the value and percentage of real estate owned in effect to Note 4: the total amount of assets.
2) Investment assets
Fukuoka REIT Corporation (8968); Earnings Briefing for the Period ended August 2021 the method and standards for asset evaluation stipulated in FRC's Articles of Incorporation and rules stipulated by the Investment Trusts Association, Japan. Note 3: "Investment ratio" is obtained by dividing each property's acquisition value by the total acquisition value. The total of individual percentages in the above table may not equal 100%, since the figures are rounded off to one decimal place. The amounts after the disposition of Canal City Hakata B Grand Building (88.28% co-ownership interest in Grand Building) Note 4: are indicated. As for the acquisition value, the appraisal value at the time of disposition is subtracted from the initial acquisition value.
Note 2: Note 3: Note 4: Note 5: Note 6: Note 7: Note 8:
(2) Status of capital expenditures
buildings among relevant properties. For the number of tenants in pass-through master leasing properties, the number of sections stipulated in the tenancy agreements with end tenants is shown in parentheses. The Tainaku Street Business Center is an office building with a residential tower. Its number of end tenants comprises 12 offices and 57 residences. The subtotal and total of all the tenants in other than pass-through master leasing properties and the number of sections stipulated in the tenancy agreements with end tenants for pass-through master leasing properties is shown in parentheses in the totals column for "Number of tenants." "Occupancy rate" refers to the percentage of total leased floor space to total leasable floor space and the figures are rounded off to one decimal place. "Total leasing revenues" is the total of real estate leasing revenues and other revenues from real estate rent in the current fiscal period. "Percentage of total leasing revenues" is obtained by dividing each property's total leasing revenues by the total amount of total leasing revenues. The total of individual percentages in the above table may not equal 100%, since the figures are rounded off to one decimal place. FRC disposed Canal City Hakata-B Grand Building (88.28% co-ownership interest in Grand Building) on June 1, 2021. The number of tenants indicates the number of the lessee of the land with leasehold interest. The total leasable floor space indicates 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. 1) Capital expenditures after the end of the 34th 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 34th fiscal period and of capital expenditures associated with renovations, etc. planned as of October 15, 2021 for real estate properties owned by FRC. The planned construction costs indicated below may be partly classified as expenses. In addition, FRC will implement renewal construction work in order to maintain and improve the competitiveness of properties in the market as well as tenant satisfaction, on top of the construction, facilities and replacement work for which expenditures will be made regularly.
2) Capital expenditures during the 34th fiscal period Capital expenditures for the real estate properties owned by FRC totaled 445 mm yen in the 34th period. Furthermore, FRC incurred construction costs of 611 mm yen in total in the period, including 153 mm yen in repair and maintenance expenses classified as expenses on the statement of income and 12 mm yen in expenses for restoration to former state. The following table provides the overview of major construction work that was completed in the 34th fiscal period.