Overview of the 35th fiscal period performance [8968] September 1st,2021~February 28th,2022
Overview of the 35th fiscal period performance [8968]  September1",2021～February 28th,2022 Executive summary … Financial statements and Business forecasts ……   2 Leasing policy for Higashi Hie Business Center…   7 External growth strategy and New Acquisition of property …   8 Portfolio overview  … Financial strategy Appraisal value … Sustainability ………………………………………………… 20 These materials may contain future performance, plans, management targets and strategies. These forward-looking descriptions are based on present assumptions on future event and trends in the business environment, 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 the accuracy, rationality and completene mation contained in these materials, whether they were prepared by Fukuoka REIT Corporation or Fukuoka Realty or provided by a third party. These materials have not been prepared to entice investment. When applying to purchase investment units issued by Fukuoka REIT Corporation, do so based on your own judgment and responsibility. Fukuoka REIT Corporation prohibits the reproduction, use, duplication, distribution, alteration, etc., of all or a part of the contents of this document without its prior co
■ Retail
Owned properties
properties • Although impacted by the quasi-emergency measures in January to March 2022, active retail properties brought in larger-than-assumed earnings Initiatives by each • Canal City Hakata : Promoted measures to deal with a nearby competing facilities to open in April 2022 Drew up a new concept and roadmap for the next-generation Canal City Hakata • Park Place Oita : Opened the zones renovated to attract more families (April 2022) • Konoha Mall Hashimoto/SunLive City Kokura  : Sales increased due to the effect of renovation facility ■ Office buildings •the period-end occupancy rate:100.0% Increase in monthly rent 7 upon rent revision and s • Promoted rent increase in line with tenant replacement and contract renewall tenant replacement ■ Others •Logistics   : Occupancy rate of 100% has continued •Residence : End-of-period occupancy rate for residence is 98.7%, and rent increase due to tenant replacements has continued : FRC owns only hotels specialized for accommodation which have limited risks •Hotel compared to full-service hotels (*2)Indicates the average value of the latest account settlement figures of all investment corporations as of February 2022. calculated by Fukuoka Realty based on their disclosure mater
E S G
■■ Published Integrated Report 2021 (December 2021) ■■ Set KPIs and targets for each item of materiality (April 2022) ■■ Continuously expand non-financial information, including environmental performance data based on the exchange of opinions with investors 【Dividend per unit】 35 6 Actual    3,536 yen (compared with the 36 b Forecast 3,500 yen 37 b Forecast 3,500 yen
36th Forecast (yen) 3,800 37th Forecast (yen) 3,800 3,700
Sign indicates impact on profit (unit : mm yen) ■Operating profit and loss ①Full-period contribution of Tenjin Nishi-Dori Business Center(Land with leasehold interest) Canal City Hakata Canal City Hakata・B (263)] Park Place Oita
Others Total : (104) ② Canal City Hakata・B Grand Building (88.28% co-ownership interest) (104) +64 ③Decrease in outsourcing expenses Decrease in repair & maintenance expenses +32 Decrease in taxes and other public charges   + 11 Decrease in depreciation and amortization expenses +66 (5) Increase in other expenses Total : + 168
With the recovery of rent revenue from retail properties, dividend per unit surpassed the forecast by +1.0%
¶ Forecast in the 36th fiscal period
Active retail (29)
Absorb negative impact of Higashi Hie Business Center through increase in rent at active retail and decrease in expenses
� Overview of Higashi Hie Business Center

║ Current status
In view of the strong office market of the Fukuoka metropolitan area, press ahead with leasing activities to secure succeeding tenants while minimizing the vacant period. 【Overview of the change of tenants (cancellation of leasing)】
(*1)The information is based on the press refease announced in March 30, 2022. ( *2) The information is based on the cancelation notice received after the press release announced in March 30, 2022.
| Rent unit price and occupancy rate

║ Sponsor pipelines
●Several redevelopment projects are under- way in the Tenjin and Hakata areas ● Scheduled to continue development of logis- tics facilities after the development of first logistics facility in September 2020 ●Fukuoka Jisho owns 9.18% of FRC's invest- ment units through same-boat investment (as of February 28, 2022) (*1)Because the Higashi Hie Business Center that was acquired in the 10 n FP, August 31, 2009, was acquired from both the outside party and the sponsor, the purchase price has been added to the purchase prices from outside parties and the purchase prices from ponsor after calculation on a per capita basis. Furthermore, Major income-generating properties Major development properties
║ Community-based sourcing strategy
● Acquire properties from external sources by utilizing the information ability and know-how of the Asset Manager which is well versed in individual conditions in the Fukuoka and Kyushu area ●Propose wide-ranging CRE strategies by grasping customers' needs as early as possible (ex. leaseback, base consolidation, putting land with leasehold interest off the balance sheet, etc.) ●Powerful companies leading the Kyushu business world provide backup as sponsors of the Asset Manager ●Following acquisition, community-based operation in a meticulous and stable manner is possible ACT LOCAL, THINK GLOBAL Open bid Solution proposal Internal Growth Limited opportunities for acquisition Propose solutions to win trust and “achieve transactions,” and “ enhance property value” by pursuing internal growth Recover occupancy rate by focusing on leasing activities after the decision to acquire

ll Overview of the property

(*1)The indicated figure is based on the NOI described in the appraisal report. ( *2)The assumed NOI yield was 3.9% announced at the time of the announcement of financial results for the 34th fiscal period, so the NOI yield has increased by 0.5%. ║ Occupancy rate
(*3)The decrease in the occupancy rate is due to a cancellation of a tenant who had turned in a notice of cancellation prior to the time of the contract. ●Achieved internal growth due to rent increase by 30% Redesigning of existing tenant's floor section (107 tsubo) Completion of new leasing (for 5th floor section, on April 1) ●Focus on achieving full occupancy at an early stage ● Occupancy of each floor ( standard floor rental room area: approx. 241 tsubo 8F Information system company |Medical equipment distributor
7F Food trading firm Food distributor 6F Information system company 5F New leasing section (construction consultation company) (approx. 165 tsubo) Machinery Information system company design company
4F Measuring | instrument company 3F Food trading firm 2F 1F
■ Fukuoka business district / Vacancy rates and supply and demand of office buildings * Statistics from 2008 to 2021 are based on the figures at the end of December. The vacancy rate for 2022 is based on the figures at the end of March issential. sorption (absorption demand) shows the change in the occupied floor space during a specific period. It is calculated by subtracting the occupied floor space on December 31 of the previous year from the occupied floor space on December 31 of the applicable year. Completed floor space (total floor space) figures for 2022 have not been finalized, and the floor space and expected completion dates are subject to change. ource: Prepared by Fukuoka Realty based on data from "Office Market Data" Miki Shoji Co., Ltd.
IPrepared by Fukuoka Realty based on the press releases of Fukuoka City Govern � Fukuoka business district / Average vacancy rate ©The vacancy rates of office buildings owned by FRC have remained at low levels 🎁 Trend of office building vacancy rate in Fukuoka City by size ©Vacancy rates are relatively low in large-scale and large-sized buildings
■ Change in the number of companies with headquarters functions/ in growth area established in Fukuoka City
Initiatives by a company attracted by Fukuoka City government (MCP Japan Holdings Limited) ●Entered into a strategic partnership with AMITA Holdings Co., Ltd. to establish a joint venture Announced the establishment of a joint venture (Codo Advisory) on March 25, 2022 ●Plans to provide services to support Japanese companies in enhancing the quality of ESG management Source: Prepared by Fukuoka Realty based on the news release of AMITA Holdings Co., Ltd. dated February 21, 2022 and March 25, 2022. | Fukuoka City tops list of business opening rate in Japan or three consecutive years Source: Prepared by Fukuoka Realty based on data from "The general condition of the Fukuoka City Eco City Economy, Tourism & Culture Bureau. ■ Fukuoka City Special Zone for Global Startups & Job Creation (National Strategic Special Zone)
Initiatives to support startups
●Tax Reduction for Startups (municipal tax, national tax) Municipal tax: Corporate inhabitant tax (per income basis) is fully exempted for up to five years National tax: Exemption on 20% of income for up to five years ●Startup Visa Entrepreneurial Incentives for Foreigners ●Startup Café A place for those who want to take on challenges and companies to get together and create new value. ●Fukuoka Growth Next A hub located in central Fukuoka for supporting startups through public-private partnership ●Global Startup Center Consultation/information provision concerning overseas development for startups in Fukuoka City Source: Prepared by Fukuoka Realty based on the section of Fukuoka City' s official site featuring "National Strategic Special Zone for Global Str
Canal City Business Center Building Total leasable floor space:23,030.30㎡ 2 Gofukumachi Business Center Total leasable floor space:19,905.34㎡ w Sanix Hakata Building Total leasable floor space:6,293.75㎡ 4 Taihaku Street Business Center (*1) Total leasable floor space:11,249.97㎡ 5 Higashi Hie Business Center Total leasable floor space:13,614.59㎡ 6 Tenjin Nishi-Dori Center Building Total leasable floor space:3,339.32㎡ 7 Tenjin 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 Ш Total leasable floor space:2,981.14㎡ Average occupancy rates (historical and projected) (*2) Total leasable floor space:91,881.59㎡ Move-in/move-out floor space Tenjin Nishi-Dori Business Center (Land with leasehold interest) Total leased floor space (land) : 1,343.51㎡ 34" 36㎡ ～Feb. 28, 2022 ＊Occupancy rates are calculated as a weighted average during period. ～Aug. 31, 2021 ～Aug. 31, 2022 * Total leasable floor space is floured as of the end of period. (forecast) * Percentages and ratios are rounded off to the second decimal place. (*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 Tenjn Nishi-Dori Business Center (Land with leasehold interest).

|| Overview of Office Buildings
〈Average occupancy rates(actual):  35th :99.9% 〉 ©Despite the move-outs at 3 properties, vacancies were filled without any downtime (average free rent period: 0.3 months) 〈Average occupancy rates(projected): 36th:99.9% 37th:97.3% 〉 ②Almost all tenants for the 36㎡ period have already made informal determination ①Continue with rent increase through rent revision upon contract renewal and tenant replacement ①Higashi Hie Business Center : despite there will be move-outs of some large-lot tenants, we will aim for reduction of rent gap and completion of leasing at an early stage
■ Major indicators of owned properties(* 3)

( * 4)The average building age and the positive rent gap are calculated excluding Tenjn Nishi-Dori Business Center (Land with leasehold interest). ( *5)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 Feb. 2022.
■ Trend in rent unit price index of owned properties (* 6)
(index) with the rent per unit area at the end of the 24n 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
●Sales of daily-life-oriented retail facilities increased due to the effects of renovations
Park Place Oita
●Renovation of the Shangri-La zone on the 3rd floor was implemented as a 20th anni- versary project (scheduled to open on April 22, 2022).By increasing attractiveness as a playground for children, reinforced attraction of family customers.
●Points of renovation
①Zone composition with different themes to make children want to play many times ②Playground from children's perspective in which they can play with nature and think and play ③Overwhelming presence that inspires children to take on a challenge ●Appointed DENTSU LIVE INC. and Mr. Keiichiro Sako, an architect who is active mainly in Beijing as well as around the world, as the planner, designer and supervisor; Mr. Tetsuya Sato of Sony Marketing Inc., who has worked with Walt Disney Imagineering, as the advi- sor and sound supervisor; and Mr. Tadayoshi Makino of SpinSolfa Co., Ltd., who is well-versed in a wide range of genres and is a high-profile figure in the game music indus- try, as the composer of the BGM
Konoha Mall Hashimoto
●Inviting nine new stores, expanded and reopened Hashimoto Marche, a food and goods sales zone ●Sales have been strong, including for the new stores, and tenant replacement, etc. have also been promoted for other sections recently. As such, implementa¬ tion of internal growth measures has been continued ●Taking advantage of the mall's location in being directly connected to Hashimoto Station on the Nanakuma subway line, strengthened promotional activities in line
SunLive City Kokura

� Next-Generation strategy -Drastic change of Canal City Hakata- ●Collaboration with major tenants ●Challenge new business categories
● Supply and demand of logistic facilities and vacancy rates ◎There will be large supply in 2022 and 2023
║ Trend in rent unit price
©Large supply, but rents expected to increase Source: Prepared by Fukuoka Realty based on data of CBRE. � Overview of Logistics
Operation of residential properties are steady, for hotels, FRC owns only those specialized for accommodation
■ Residential properties
©Residential properties have continued to operate at a high occupancy rate
( * 1) The figure for D-Wing Tower includes the retail portion. ©Rents continue to increase due to tenant replacements (96) 100
Rate of increase/decrease calculated based on previous rent at tenant replacement.
║ Overview of Hotel

◎Tissage Hotel Naha

• Not disclosed for Fukuoka Washington Hotel as no consent for disclosure has been obtained from the operator. (*3) Average Daily Rate = Total accommodation -category sales over a certain period of time divided by the total number of guest rooms sold over the same period. ( *4) 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)
� Commitment Line Period Maintained (3 Years) ©Extended the period of the commitment line 2 by a year ◎Secured flexible and stable financing means
║ New Borrowing ©Result of long-term borrowing in the 36th fiscal period (Aug.2022)
■ Diversification of debt maturities (As of February 28, 2022) | Fixed | Floating | Investment corporation bonds (mm yen) Fukuoka reit
║ Credit ratings (* 2)
AA- (Stable) R&I A+ (Stable) (*2)JCR: long-term issuer rating obtained from Japan Credit Rating Agency, Ltd. R &I: issuer rating obtained from Rating and Investment Information, Inc. | LTV 50 42.4% 42.4% 42.3% 40 39.9% 39.9% 40.1% 39.3% .38.9% .39.1% 39.7% 39.7% 39.8% 38.1% 35 30 r
Fukuoka reit 41.5% 41.3% 41.4% 41.2%

■ Special features of Fukuoka REIT Corporation
1
Japan’s first region-specific REIT
Asset management leveraging our in-depth knowledge of the real estate environment of Fukuoka and Kyushu region, one of our greatest strengths 2
Excellent portfolio centered on Fukuoka metropolitan area
A portfolio of carefully selected investments in the high growth area of Fukuoka City attention from around Japan and overseas 3 Solid support from a sponsor company involved in property development Asset portfolio expansion and high occupancy rates facilitated through coordination with our sponsors 4
Establishment of stable financial base
Conservative control of interest-bearing debt ratio, long-term diversification of repayment deadlines 5 Stable dividends and steady NAV growth since listing Appropriate management of real estate invested in
Overview of Fukuoka REIT Corporation

◎Investment area
Investment unit price ←

( *1) The figures are as of February 28, 2022 (excl. average interest rate) ( * 2) The figures are total of acquisition price. ( *3) Because the Higashi He Basiness Center that was acquired in the 10° fiscal period (period ended August 31, 2009) was acquired from both outside parties and sponsors, the purchase price has been added to the purchase prices from outside parties and the purchase prices from sponsors 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 sponsors. ( * 4) Market net asset value per unit= (Total net assets + Unrealized gains - Total amount of  dividends) / Total number of investment units outstanding
| Sponsors THE BANK OF FUKUOKA, LTD. 0% Development Bank of Japan Inc. 5% SAIBUGAS HOLDINGS CO., LTD. Kyudenko Corporation 5% Nishi-Nippon Kyushu Railway Railroad Co., Ltd. Company I Investment policy ©Investment area Fukuoka metropolitan area Other Kyushu areas (Including Okinawa and Yamaguchi prefectures) Others ◎Investment type Others (Hotel, Residence, Logistics, and Other facilities Office buildings Retail (*) Concluded MOU with Fukuoka REIT and Fukuoka Realty concerning pipeline support 23 Appendix
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).
■ Youth and working-age population ratios of nationwide and major cities (2020) Itoshima City, Nakagawa City, Umi Town, Sasaguri Town, Shime Town, Sue Town, Shingu Town, Hisayama Town, and Kasuya Town. "Greater Tokyo area" refers to Tokyo Metropolis, Kanagawa Prefecture, Saltama Prefecture, and Chiba Prefecture. "Nagoya urban area" refers to Alchi Prefecture, Gifu Prefecture, and Mie Prefecture. "Osaka urban area" refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, and Nara Prefecture. Source: Prepared by Fukuoka Realty Co., Ltd., based on data from the Ministry of Internal Affairs and Communications, Statistics Bureau "Population Census of Japan（2020） " and National Institute of Population and Social Security Research "Population Projection for Japan by Prefecture". ■ Change in number of overseas visitors ■ Population trends of major metropolitan areas

Probabilistic earthquake prediction map
Probability of occurrence of an earthquake with a magnitude of nearly 6 or higher 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 Source: Prepared by Fukuoka Really 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 FY1999 No storm water storage facilities FY2021 128,300 ㎡ Storm water management capacity increased from 59.1mm/h to 79.5 mm/h (city center) Between FY2000 and FY2021… Storm water drainage capacity has increased significantly Since the launch of the project in FY2000… Instances of inundation have steadily declined
* 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" pamphiet about the Fukuoka City Storm Water Emergency Control Plan. ©Instances of building inundation in Fukuoka City (Zero since 2014) 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
Reduction of environmental load
■ Enhancing energy efficiency
• Replacement of air-conditioning equipment (Sanix Hakata Building, etc.) • Promotion of replacement of lighting with LED lamps (35th period; Park Place Oita) (NEW) Changing lighting for parking to LED • 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 (Park Place Oita) • Greening of common spaces • Arrangement of water areas • Creation of shaded spaces • Installation of charging station for electric vehicles •Installation of electronic circuit breaker (Aqualia Chihaya) (NEW
■ Waste reduction / resource recycling Comparer
• 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 •Conversion of raw garbage into animal feed (Canal City Hakata, Park Place Oita) (NEW • Collection of secondhand clothing (Canal City Hakata (NEW) , Konoha Mall Hashimoto) ●Raw garbage recycling  NEW (Canal City Hakata, Park Place Oita) ●Changing lighting for parking to LED (Park Place Oita) Consignment of the collection of raw garbage from each restaurant to a recycling company, which recycles it into animal feed ■Food recycling flow chart Maintenance and enhancement of environmental and construction performance
┃ GRESB2021
Received the rating of “4 stars” and “Green Star” in the GRESB survey 2021 Environmental certification (By property ) Green Building certification obtained for 77.8% of entire portfolio ●DBJ Green Building Certification 12 properties owned by the Fukuoka REIT corporation were certified Reacquired certification for 6 properties (March 2022)  NEW (based on total floor space) Canal City Hakata / Canal City Hakata・B Properties with the best class environmental & social awareness ●BELS Evaluation Four properties owned by the Fukuoka REIT corporation were certified ●Improvement of disaster prevention-related facilities Renewal of the P.A. system (Konoha Mall Hashimoto)  NEW Park Place Oita Properties with exceptionally high environmental & social awareness
Creation of pleasant workplaces  （Fukuoka Realty
Initiatives for employees
《Fukuoka Realty: Numbers of credentialed personnel》 (As of February 28, 2022) ■ The average number of years of continuous service of permanent employees:  9 years and 6 month ■ Full-time personnel: 44 [Male:21 Female:23] ※52.3% Female • Employees seconded from sponsors : 3 • Employees seconded to a sponsor : 4 ■Number of credentialed personnel • Real estate brokers : 28 • ARES Certified Masters : 22 • Attorney : 1 • Certified Building Administrators  :  4 • First-class registered architect : 2 • MBA：2 • Administrative Scrivener : 1 • CMA : 2 • SME management consultant : 1 • Real estate appraisers : 3 • Licenced Representative of Condominium Management Company : 1
■ Initiatives for health management and prevention of infection spread
• 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; installation of anti-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. • Employee satisfaction surveys (outsourced in 2022) (NEW)株式会社場岡リアルティ株対応条件18006定はは同さが反承と機械的にはめている企業と同あたれたものでは、以降の「幹さされた手」快速会定にしてこに落名がないたが
《Support for flexible working styles》
• 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.
《Career development support》
• Employee satisfaction survey • Self-assessment system • Career interview • Secondment system (dispatching of employees to sponsor companies) • Promotion from contract employee to permanent employee status, etc.
《Training for employees》
• Regular lectures by Kyushu Economic Research Center • Compliance training • ESG training • Nursing care training • In-house recreation, etc. • Offering of training programs tailored to each management level • System for supporting acquisition of qualifications (Real Estate Securitization Master, Real Estate Transaction Agent, etc.) • Support for language learning, 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 Special leave for illness after COVID-19 vaccination • Installation of phone booths, lounge space and plants  NEW
Create an attractive workplace (tenants) Figurem
• Training for tenants' employees • Emergency drills to improve safety and security of tenants • Distribution of sustainability guidelines • Support for tenants' employees and part-time job recruitment (posted on property websites) • Improvement of employee lounge Improved the lounge environment at Konoha Mall Hashimoto with a focus on the health and comfort of tenants' employees. Similar arrangement is under study for other facilities. • Support of COVID-19 vaccination for applicants  (provision of venues for vaccination, etc.) • Implementation of tenant satisfaction surveys (outsourced in 2022 for all properties) (N=W
Contribute to increased attractiveness and vitalization of Fukuoka and Kyushu area
■ Provision of regional information  Fuxus Realy
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 of  ( Fracka Realy ) (NEW lometown Tax System (2022) Provided support to five prefectures (Kyushu) in total by utilizing the Corporate Version of Hometown Tax System ■ Linking with and provision of venues for various regional events and festivals （Frucka Realy） Fucka Real Support for Yamakasa Festival, Hakata Dontaku, Nakasu Jazz, Funa Norikomi (boat boarding; Kabuki stars unveiling their arrival) and locally based professional sports, etc. *Excluding cases where the event was cancelled due to COVID-19. Corporate Version of Hometown Tax System (Kumamoto prefecture)
Involvement in local community
●Consideration for the Elderly, People with ●Information provision on regional events through social media (ベリ硬関リート投資進人九州経済産業局が「生産、消費、雇用等の各種経済指標を藍に、九州地域の経済動向」をとりまとめている「九経マンスリー・サマリー」(2022年1月)が更新されました。⇒kyushu.meti.go.jp/keiki/chosa/mo… ●Announcement of financial results at the Fukuoka Stock Exchange • Avispa Fukuoka season seat sponsor (NEW) • Installation of supporting monuments for Oita Trinita football club
Initiatives for local
communicaties, etc.
Fifkuoka Resilv
• 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 • 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 • Social studies class with tenants and local elementary school (sale of vegetables)  (NEW)
│ Others
(Figurika RETT
Fukucka Realy
• 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 the asset 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. ●Other (crime prevention, disaster response, improved convenience)

Compliance / Risk management
■ Governance  System
Fukuoka Realty has established a Basic Policy on Compliance, as well as compliance regulations and other internal rules to prevent conflicts of interest. We conduct conflict of interest risk management pertaining to our dealings with stakeholders in an appropriate manner based on the abovementioned rules and regulations with preliminary assessment carried out by the Compliance Department general manager and deliberations conducted by the Compliance Assessment Committee (consisting of the Compliance Department general manager and three outside experts).
◎Decision-making process
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. (*) The prior consent of the investment corporation's Board of Directors is obtained in cases falling under the provisions of Article 201-2 (1) of the Act on Investment Trusts and Investment Corporations.
■ Matching unitholder interests and
sponsor interests, etc.  Fucka Realy   Fucka REII
• 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 (41.5% 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 to enhance their mindset for FRC's investment unit price and better performance as well as promote their assets formation.
| Appointment of Outside Directors   Fukucka Realty
(other than interested persons) Secure transparency and fairness of the Board of Directors Changes to the asset management fee structure Fukucka Realty ） Fukucka REIT) The Management Fees 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 General Meeting of Unitholders held on May 2020. The changes became effective on September 1, 2020 (beginning of the 33 th fiscal period)
Management Fee 3 (based on distributable profit (Distributable amount before paying Management Fee 3 for the immediately preceding fiscal period) × 3.6%  (previously 2.0%)
Information on attendance at board meetings  @paren

Information disclosure to and communication with stakeholders | Publication of integrated report (sole J-REIT with such publication) • Published third issue in December 2021 Expanded information disclosure from previous issue (Energy data coverage expansion, etc.)
| Website renewal from ren
Considered better visibility and usability nged the top page to show real-time investment unit prices, etc Website Ranking (overall and sector rankings) * For details of "Major achievements in public relations activities", please see page 32

■ Major IR activities implemented
©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 (USA, Europe, Asia) • Timely information disclosure in English (held simultaneously as the delivery of Japanese press releases)
©IR for individual investors
• Participates in online briefings and fairs -Kyushu IR Fair(November 2021) -Fukusho IR Fair Online (December 2021) • Responding to individual calls
■ Status of integration into indexes (as of February 28, 2022)
◎Global indexes, etc FTSE EPRA/NAREIT Global Real Estate Index S&P Global REIT Index TSE Developed

║ Major achievements in public relations activities
©Website recognition
FRC's website was selected as a AAA website in the Fiscal 2021 All Japanese Listed Com- panies' Website Ranking (overall and sector rankings) announced by Nikko Investor Rela- tions Co., Ltd. (Targets of the survey: All listed companies in Japan (3,888 companies)) FRC has won the award in the ranking (overall ranking) for twelve consecutive years since 2010. (10 times as a AAA site and 2 times as a AA site) In addition, FRC won first place in the "REIT/Infrastructure Investment Corporation" sector of the sector ranking comprised of 34 sectors.
║ Other Activities
◎Advertising (Fukuoka Keizai) Posted an interview article with Zenji Koike, President and CEO of Fukuoka Realty, in a local economic magazine (November 2021 issue) The Kyushu IR Workshop, which started in collaboration with the Japan Investor Relations Association, is entering its twelve year in 2022. It is utilized as a venue to study the latest 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.
| Major investors [at the end of the 35 th FP]
* Percentages and ratio are rounded off to two decimal places.
stossy
37
40
( *2) Acquisition price does not include fees, public charge and expenses. ( *3) Properties acquired through arrangement by a sporsor 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".
Total acquisition price  206.3 (As of March 1, 2022) (*) Acquired as of March 1, 2022 Appendix
1 Canal City Hakata ■Address : 1-chome, Sumiyoshi, Hakata Ward, Fukuoka City 5 Konoha Mall Hashimoto ■Address：2-chome, Hashimoto, 2 Canal City Hakata・B ■ Address : 1-chome, Sumiyoshi, 
 6  Square Mall Kagoshima Usuki ■Address ; 2-chome, Usuki, Kagoshima City 9  Kurume Higashi Kushiwara SC ■ Address : Higashi kushiwara, Kurume City 10 K's Denki Kagoshima ■ Address : Tokai-cho, Kagoshima City 3 Park Place Oita ■Address : 2-chome, Koen Dori Nishi, 4 SunLive City Kokura ■ Address : 2-chone, Kami Kuzuhara, Kokura Minani Ward, Kitakyushu City
8 Hanahata SC
■ Address：4-chome, Hanahata, 
 13 Gofukumachi Business Center ■ Address  : Kami Gofukumachi, Hakata Ward, Fukuoka City 14 Sanix Hakata Building ■ Address : 2-chome, Hakataekihigashi, Hakata Ward, Fukuoka City 15 Taihaku Street Business Center ■ Address : Gokushomachi, 16 Higashi Hie Business Center ■ Address : 3-chome, Higashi-hie, Hakata Ward, Fukuoka City 17 Tenjin Nishi-Dori Center Building ■ Address : 2-chome, Tenjin, Chuo Ward, Fukuoka City 23 Amex Akasakamon Tower ■Address : 2-chome, Maizuru, Chuo Ward, Fukuoka City 18 Tenjin North Front Building ■Address : 4-chome, Tenjin,
Chuo Chuo Ward, Fukuoka City 19 Higashi Hie Business Center II ■ Address : 1-chome, Higashi-hie, Hakata Ward, Fukuoka City 20 Higashi Hie Business Center Ш ■ Address : 4-chome, Higashi-hie, 
 21 Tenjin Nishi-Dori Business Center (Land with leasehold interest) ■Address : 2-chome, Tenjin,
Chuo Ward, Fukuoka City (NEW) (*) 22 Hakata Chikushi-Dori Center Building ■ Address : 2-chome, Hakataskiminami, Hakata Ward, Fukuoka City 24 City House Keyaki Dori ■Address : 2-chome, Kego,
Chuo Chuo Ward, Fukuoka City 25 Aqualia Chihaya ■Address : 4-chome, Chihaya, Higashi Ward, Fukuoka City 26 D-Wing Tower ■Address：2-chome, Daimyo, Chuo Ward, Fukuoka City   ■Address : 1-chome, Hirao, Chuo Ward, 28 Hotel FORZA Oita ■ Address : 1-chome, Chuo-machi, Oita City 29 Tissage Hotel Naha ■Address：2-chome, Nishi, Naha City 30 Tosu Logistics Center ■Address : Himekata-cho.
Tosu City, Saga Pref 31 LOGICITY Minato Kashii ■ Address  : 2-chome, Minatokashii, Higashi Ward, Fukuoka City 32 LOGICITY Hisayama ■Address：Hisayama-machi, Kasuya-gun,
 33 LOGICITY Wakamiya ■Address：Shimoaruki, Myawaka City ■  (*) Acquired as of March 1, 2022 7 Kumamoto Intercommunity SC ■ Address : 1-chome, Kazono, Higashi Ward, Kumamoto City 11 Marinoa City Fukuoka Maria Side Buiding ■Address：2-chome, Odo, Nishi Ward,
Fukuoka City 12 Canal City Business Center Building ■ Address : 1-chame, Sumiyoshi, Hakata Ward, Fukuoka City

║ NAV per unit « 2 »
(yen) 200,000 178,079 Appendix 44
45
Increase in unrealized gains for ten consecutive fiscal periods (unrealized gains: 42,812 million yen, ratio of unrealized gains: 23,1%…) Historical appraisal values (mm yen) ■ Book value at the end of period(*2) ■ Unrealized gains = (latest appraisal value – book value at the end of period( × 2) 250,000
■ Historical occupancy rates [the weighted average during the period]   = Fukuoka REIT Corporation(+ 1  = = J-REIT average(+ 2 ) 96.0
2008 2009 2010 2006 2011 2007 2013 2014 2012 (*1) The investment corporation's occupancy rates in the 2 nd fiscal period through the 4 th fiscal period were the occ rates at the end of each fiscal period. For the 5* The ratio of total leased floor area to leasab ( *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 through the 351 ■ Occupancy rates [the weighted average during the period]
(*3)The 6.2% includes a 0.4% office portion. (5 ordinary leases have been concluded for Canal City Business Center Building and Canal City Hakata-B, Park Place Oita.) (*4)Information is not disclosed because the permission of tenants has not been obtained.
� Change in monthly rent due to rent revisions and tenant replacements (* 1) (thousand yen) 30,000 | Change due to tenant replacements(thousand yen) Change due to rent revisions(thousand yen) —●— Cumulative amount of change (*3) Based on calculation of the average over the free rent period of new contract. ■ Floor space subject to rent increase and number of properties subject to rent increases
(*4) Rate of increase/decrease calculated based on previous rent at rent revision. 49
🎁 Breakdown of active retail rents by property | Variable rents (* ² Fixed rents(*1) (mm yen) 3,000 (mm yen) 3,000 ■ Breakdown of Tissage Hotel Naha (mm yen) 250 ║ Portfolio overall ◎The 34㎡ FP (+1) Freed rent' is indocted the arround of feating roverues real   essays' - "arroble rents".  (+2) Variable rents are the sum of the portion of rents collected thom tenant (*3) Rents of the porton to be deposed (88,28% co-ownership interest) of Canal City Hakaa - B Gand Bulding, athoch is part of Canal City Hakata - B, and is not received afte (*4) The figures are included parking fee in variable rents of Canal City Hakata / Canal City Hakata - B. Canal City Hakata／Canal City Hakata・B Park Place Oita (mm yen) 3,000 (mm yen) 3,000 2,000 2,000 1,000 262 262 262 262 262 ~35th
~Feb.28, 2022
ll Breakdown of active retail rents ◎The 35th FP

� Status of Rent Reduction and Deferment of Rent Payment due to COVID-19
║ Occupancy rates
●In the 35th fiscal period, the amount and number of rent reductions and exemptions decreased. Deferment of payment was not conducted.
●Remained stable
K's Denki Kagoshima, Marinoa City Fukuoka (Marina Side Building) are listed as other retail properties.
Sales (annual total(*1)) YoY +13.3% Mar. 2021 - Feb. 2022 (vs. 2 years ago (46.6) %) A highly entertaining urban multi-purpose retail facility. Worked to recover sales from the decline in inbound tourists by capturing neighborhood customers (through tenant replacement, sales promotion and publicity activities, etc.) daily necessities. Aimed to increase sales by implementing tenant replacement and various renovation work, etc. to attract more families. A daily-life-oriented mall anchored by a supermarket and tenants involved in daily necessities. With the tenant replacement in the Hashimoto Marche zone in autumn 2021, sales have increased through reinforced attractiveness of food-related products. A daily-life-oriented mall anchored by a s tenants involved in daily necessities. Sales have increased as a result of the renovation conducted in June to September 2021. (*1) Combined saids of Cana Cley Hakas and Construction onesi by Filemia RSIT, Sales of the portion to be disposed (BB 2015 content) of Canal Cley Hakas 8 Construction Okea (*2)Sales at the newly aoquired Home Plaza NAFCO at Park Place Olta 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

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¶ Breakdown of debt by lenders 🎁 A regional bank transaction network ©Sharing of information networks unique to regional banks to utilize for our investment strategy in the area Borrowings: (mm yen) The Bank of Fukuoka
Borrowing Committed line of credit ©Green finance
(*2)FRC was assigned the comprehensive assessment of Green 1, the highest rank, regarding the compatibility to the Green Loan Principles from Japan Credit Rating Agency, Ltd. (JCR). Append
[Attorneys] [Attorneys] Real Estate Management Department Investment Department Finance Department Planning Department
Appendix
©Main deregulation in the Tenjin Meiji-dori area (National Strategic Special Zone) ①Special permission to relax Civil Aeronautics Act-related ②Deregulation of floor space ratios (Fukuoka City original) building height regulations ■ Around Fukuoka City Hall approx.67m (15 floors) ●Tenjin Meiji-dori district (West of the center of Watanabe-dori) approx.115m(26 floors) ●Tenjin Meiji-dori district (East of the center of Watanabe-dori) approx.76m (17 floors) ～ approx.100m(22 floors) ●Tenjin 1-chome district approx. 80m (18 floors) ～ approx. 96m (21 floors) 800%→1,400% (maximum) ● Tenjin 1-chome south block ● Tenjin 2-chome south block (along Meiji-dori Ave.) 700%→1,300%(maximum) ● Tenjin 1-chome north block (14th Block) 600%→1,250% (maximum) 800%→1,400%(maximum) ● Tenjin 1-chome district north area ©Initiatives for becoming an infection-controlling city ●Urban central areas Anti-infection measures in central urban areas were added as a new item of floor area ratio assess- ment to the measures facilitate renewal of city center functions. area ratio by up to Tenjin Big Bang Area Completion deadline of buildings that take anti-infection measures is  extended to December 31, 2026
■ Initiative to expand the vitality and bustle of Hakata Station area out further to the surroundings (sprox. 500m radus from the station, covering about 80 hectares)
Hakata Connected Bonus
©Expand the system to relax the floor area ratio requirement (measure to facilitate renewal of city center functions) Increase the floor area ratio (up to 50%) for buildings contributing to expand the bustle, such as creation of open spaces that generate connections and expanse. Existing system to relax floor area ratio ●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) ONew project (decided on February 28, 2022) "District Project for Hakata-Ekimae 3-Chome District" ●Creation of bustle by securing spaces to wander and open spaces ●Creation of a place for relaxation through greening City's own mitigation of floor space ratio restriction ●North zone 800%→1,350% (maximum) ●South zone 600%→1,000% (maximum) ■ Redevelopment schedule in Hakata area (schedule)
■ Overview of Fukuoka Jisho Co., Ltd. (period ended May 31, 2021)
� Major properties owned by Fukuoka Jisho Group
* Includes properties owned by the Fukuoka Jisho Group and properties co-owned with other companies.
 ( * ) Fukuoka REIT Corporation acquired the land with leasehold intere