Fukuoka Reit Corporation · TSE:8968
Fukuoka Reit — FY2006 4th Fiscal Period Earnings Presentation
61 slides from Fukuoka Reit's earnings presentation, October 2006
Slide 1: Presentation of Accounts for Fourth Fiscal Period
Fukuoka REIT Corporation (8968） http://www.fukuoka-reit.jp Presentation of Accounts for Fourth Fiscal Period (March 1, 2006 ~ August 31, 2006) Fukuoka Realty
Slide 2: Table of Contents
Table of Contents 1. Presentation of Accounts for Fourth Fiscal Period …………… 4 2. Property Management Conditions ……………………………………… 11 3. Investment Strategy …………………………………………………………… 21 4. Financial Strategy ……………………………………………………………… 30 5. Compliance ………………………………………………………………………… 35 6. Appendix …………………………
Slide 3: REIT Overview
REIT Overview Profile Current Pricing ●Name Fukuoka REIT Corporation ●Unit Price JPY 864,000 yen ●Asset Manager Fukuoka Realty Corporation Limited ●Outstanding Units 107,050 ●Sponsors Fukuoka Jisho, Kyushu Electric Power, ●52 Week High JPY 910,000 (June 21, 2005) Royal Holdings, The Bank of Fukuoka,
Slide 4: Presentation of Accounts for Fourth Fiscal Period
Presentation of Accounts for Fourth Fiscal Period Fukuoka REIT continues to deliver industry leading dividends ◆ Fourth Fiscal Period JPY18,632 per unit ◆ Fifth Fiscal Period JPY17,000 per unit (forecast) ◆ Sixth Fiscal Period JPY17,600 per unit (forecast)
Slide 5: FRC Posts Gains in Income and Profits for 2nd Consecutive Fiscal Period
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix FRC Posts Gains in Income and Profits for
Slide 6: Profit and Loss Statement for the 4th Fiscal Period
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Profit and Loss Statement for the 4th Fisc
Slide 7: Balance Sheet for the 4th Fiscal Period
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Balance Sheet for the 4th Fiscal Period (u
Slide 8: Cash Flow Statement for the 4th Fiscal Period
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Cash Flow Statement for the 4th Fiscal Per
Slide 9: Forecasts for the 5th and 6th Fiscal Periods
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Forecasts for the 5th and 6th Fiscal Perio
Slide 10: Financial Accounts
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Financial Accounts Fourth Third Item Perio
Slide 11: Property Management Conditions
Property Management Conditions Sales buoyant at Canal City Hakata, Park Place Oita and SunLiveCity Kokura
Slide 12: Portfolio Map
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Portfolio Map (as of October 18, 2006) 12
Slide 13: Portfolio Table
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Portfolio Table (as of August 31, 2006) (N
Slide 14: Leasing Business Income and Expenditure in 4th Fiscal Period
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Leasing Business Income and Expenditure in
Slide 15: Leasing Business Income and Expenditure
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Leasing Business Income and Expenditure (m
Slide 16: Sales-linked Rents
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Sales-linked Rents Breakdown of Lease Type
Slide 17: Sales History of Canal City Hakata
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Sales History of Canal City Hakata (as of
Slide 18: Sales History of Park Place Oita
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Sales History of Park Place Oita (as of Au
Slide 19: Sales History of SunLiveCity Kokura
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Sales History of SunLiveCity Kokura (as of
Slide 20: History of Occupancy Rate by Property
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix History of Occupancy Rate by Property (as
Slide 21: Investment Strategy
Investment Strategy Posting steady growth through appropriate pricing and good quality properties
Slide 22: Hara SATY
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Scheduled for Acquisition in Sixt
Slide 23: Hara SATY
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Scheduled for Acquisition in Sixt
Slide 24: External Growth Supported by Sponsors
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix External Growth Supported by Sponsors Util
Slide 25: A Selection of Fukuoka Jisho Group's Developments
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix A Selection of Fukuoka Jisho Group’s Devel
Slide 26: External Growth Roadmap
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix External Growth Roadmap (Note 1) This is t
Slide 27: Investment Categories
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Investment Categories (Note) This is calcu
Slide 28: Evolution of the Shopping Center Format
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Evolution of the Shopping Center Format Sh
Slide 29: Primary Shopping Centers of Kyushu
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Primary Shopping Centers of Kyushu Kitakyu
Slide 30: Financial Strategy
Financial Strategy Creation of spare LTV through capital increase and realization of greater ratio of fixed interest debt
Slide 31: Overview of August – September 2006 Offering
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Overview of August – September 2006 Offeri
Slide 32: Use of Spare LTV Ratio
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Use of Spare LTV Ratio Planned Acquisition
Slide 33: Fukuoka REIT Increases Ratio of Fixed Debt
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Fukuoka REIT Increases Ratio of Fixed Debt
Slide 34: Itemization of Borrowings
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Itemization of Borrowings (as of September
Slide 35: Compliance
Compliance Fukuoka REIT has established a strong compliance system that matches the risk perception of the capital markets.
Slide 36: The Property Selection and Decision-Making Process
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix The Property Selection and Decision-Making
Slide 37: Corporate Governance System
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Corporate Governance System Periodical int
Slide 38: Measures against Natural Disaster Risks
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Measures against Natural Disaster Risks [R
Slide 39: Appendix
Appendix 1. Concept 2. Investment Policy 3. Portfolio Summary 4. Construction Confirmation Inspection Body 5. Property Overview 6. Prefectural Land Price Report for 2005 and 2006 7. Major Office Buildings in Central Fukuoka 8. Market Trends for Office Rents 9. Population Growth 10. Consumption Trend
Slide 40: Concept
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Concept 1. Regional REIT Fukuoka REIT aims
Slide 41: Investment Policy
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Investment Policy (Note) These figures are
Slide 42: Portfolio Summary
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Portfolio Summary 10年以上 (as of August 31,
Slide 43: Construction Confirmation Inspection Agencies
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Construction Confirmation Inspection Agenc
Slide 44: Property Overview
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Overview Urban SC Canal City Haka
Slide 45: Property Overview
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Overview Regional SC Park Place O
Slide 46: Property Overview
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Overview Regional SC Hara SATY (t
Slide 47: Property Overview
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Overview Community SC Square Mall
Slide 48: Property Overview
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Overview A Class Building Canal C
Slide 49: Property Overview
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Overview A Class Building Sanix H
Slide 50: Property Overview
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Property Overview Residential City House T
Slide 51: Land Price Survey by Prefecture (2005-2006)
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Land Price Survey by Prefecture (2005-2006
Slide 52: Main Office Buildings in Central Fukuoka City
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Main Office Buildings in Central Fukuoka C
Slide 53: Office Lease Market Trends
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Office Lease Market Trends Vacancy Rate of
Slide 54: Population Growth
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Population Growth Population including Stu
Slide 55: Consumption Trends
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Consumption Trends Fluctuations in Monthly
Slide 56: Performance on Pricing
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Performance on Pricing As of October 13, 2
Slide 57: 10 High Rollers
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix Las Vegas Beyong the Strip (U.S.) Long the
Slide 58: Fukuoka Growth: Points 1, 2 and 3
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix POINT 1 • Capital investment in the manufa
Slide 59: Automobiles and Semiconductors Support Expansion in Capital Investment
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix POINT 1 POINT 1 Large Manufacturers Reinfo
Slide 60: Toyota Motor Kyushu Leads Expansion of Exports
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix POINT 2 POINT 2 Port of Hakata Expands Han
Slide 61: Tourists from Asia are Increasing
Presentation Presentation of of Fourth Fourth Period Period Accounts Accounts Property Property Management Management Conditions Conditions Investment Investment Strategy Strategy Financial Financial Strategy Strategy Compliance Compliance Appendix Appendix POINT 3 POINT 3 Increasing Number of Forei
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