Fukuoka Reit Corporation · TSE:8968
Fukuoka Reit — 22nd fiscal period Earnings Presentation
55 slides from Fukuoka Reit's earnings presentation, October 2015
Slide 1: Overview of the 22nd fiscal period performance
Faye Fukuoka REIT Corporation >” Overview of the 22nd fiscal period performance [8968] March1st, 2015~August 31$t, 2015
Slide 2: Overview of the 22nd fiscal period performance
Fukuoka REIT Corporation Overview of the 22nd fiscal period performance h 18,201 June 21, 2015 marked the tenth anniversary of the listing of Fukuoka REIT Corporation’ s shares. Financial statements -- Business forecasts -- Overview of retail operation Overview of office buildings operation Financia
Slide 3: Financial statements
Growth and stability in dividends Financial statements 1
Slide 4: Financial highlights
Financial highlights Dividend per investment unit was : 3,563 yen - unit : mm yen （Figures rounded down to nearest mm yen) 18th 19th 20th 21st 22nd Variation 23rd 24th Category 〜 Aug. 31, 2013 〜 Feb. 28, 2014 〜 Aug. 31, 2014 〜 Feb. 28, 2015 〜 Aug. 31, 2015 B－A 〜 Feb. 29, 2016 〜 Aug. 31, 2016 A B （fo
Slide 5: Dividend's track record
Dividend’s track record Keeping a stable dividend PDividend results / forecasts 16th 17th 18th 19th 20th 21st 22nd 23rd 24th Category Aug. 31, 2012 Feb. 28, 2013 Aug. 31, 2013 Feb. 28, 2014 Aug. 31, 2014 Feb. 28, 2015 Aug. 31, 2015 Feb. 29, 2016 Aug. 31, 2016 [forecast\ [forecast\ Dividend per unit[
Slide 6: Balance sheets
Balance sheets （compared with the previous fiscal period） Expanded the asset’s size by acquiring properties, and stabilized the financial capacity by public offering - unit : mm yen （Figures rounded down to nearest mm yen) Account 21st 22nd Variation Account 21st 22nd Variation 〜Feb. 28, 2015 〜Aug.
Slide 7: Statements of Income (compared with previous fiscal period)
Statements of Income （compared with previous fiscal period） Increases in revenues and income attributable to new acquisitions and increasing inbound foreign visitors - unit : mm yen （Figures rounded down to nearest mm yen) Sign indicates impact on net income （unit : mm yen） 21st 22nd Variation Accou
Slide 8: Statements of Income (compared with forecast)
Statements of Income （compared with forecast） Performance exceeding resulting from strong sales at Canal City Hakata - unit : mm yen （Figures rounded down to nearest mm yen) Sign indicates impact on net income （unit : mm yen） Previous 22nd Account Forecast 〜 Aug. 31, 2015 Variation B－A A B Operating
Slide 9: Portfolio properties' occupancy rates
Portfolio properties' occupancy rates Maintained high occupancy rates PHistorical occupancy rates [the weighted average during the period\ Financial statements POccupancy rates [the weighted average during the period\ Investment Category 18th 19th 20th 21st 22nd Percentage Aug. 31, 2013 Feb. 28, 201
Slide 10: Appraisal value
Appraisal value Unrealized gains totaled 16,777 mm yen at the end of 22nd fiscal period （increase of 2,343 mm yen compared with previous fiscal period） （＊1） - unit : mm yen （Figures rounded down to nearest mm yen) Appraisal value Variation Direct capitalization values From From 22nd 21st Acquisition
Slide 11: Business forecast (the 23rd fiscal period)
Business forecast [the 23rd fiscal period\ Keeping the dividend level of 3,500 yen PForecast in the 23rd fiscal period - unit : mm yen [Figures rounded down to nearest mm yen) Sign indicates impact on net income [unit : mm yen\ 22nd 23rd 23rd 22nd 23rd Results Forecast Forecast results forecast Acco
Slide 12: Business forecast (the 24th fiscal period)
Business forecast [the 24th fiscal period\ Keeping the dividend level of 3,500 yen absorbed in taxes and public fees PForecast in the 24th fiscal period - unit : mm yen [Figures rounded down to nearest mm yen) Sign indicates impact on net income [unit : mm yen\ 23rd 24th 23rd Forecast Forecast forec
Slide 13: Active retail
Active retail Sales increases as a result of attracting inbound foreign visitors at Canal City Hakata Overview of retail operation 11
Slide 14: Current situation at Canal City Hakata
Current situation at Canal City Hakata （overall） 276 cruise ship port calls expected in 2015, more than double the number in 2014 推 Overview of retail operation 12
Slide 15: Current situation at Park Place Oita
Current situation at Park Place Oita Enhanced convenience from the opening of the Higashi-Kyushu Expressway （between Oita and Miyazaki） 推 Overview of retail operation 13
Slide 16: Breakdown of active retail rents
■アクティブ商業賃料構成比 Breakdown of active retail rents Substantial increase in percentage rent at Canal City Hakata due an inbound effect Overview of retail operation 14
Slide 17: Historical and projected office buildings' occupancy rates
Historical and projected office buildings’ occupancy rates Increase in the average occupancy rate of office buildings to 99% in the 22nd fiscal period Overview of office buildings operation ＊Occupancy rates are calculated as a weighted average during period. ＊Total leasable floor space is figured as
Slide 18: Fukuoka office market
Fukuoka office market Vacancy rate of Fukuoka is lowered below 7.0% PAverage vacancy rates in major Japanese cities Overview of office buildings operation PNew supply in major cities 16
Slide 19: Key financing events in the 22nd fiscal period
Key financing events in the 22nd fiscal period A stable network of sponsor banks and other lenders Financial strategy 17
Slide 20: Financing condition
Financing condition A decrease in the average interest rate paid during the fiscal period and an increase in duration achieved through refinancing Financial strategy 18
Slide 21: List of borrowings
List of borrowings Stable debt financing (As of August 31, 2015) Type Lender Balance（JPY） Drawdown Date Repayment Date Repayment Method Average Interest Rate Description Short-term debt ｰ - - - - - - The Bank of Fukuoka 2,000,000,000 Mar.1,2011 Feb.29,2016 0.62091％ (＊1） (＊5） The Nishi-Nippon City Ba
Slide 22: New acquisition in the 22nd fiscal period
New acquisition in the 22nd fiscal period Acquired the blue chip properties although the acquisition environment has been tightened Asset’s growth 20
Slide 23: Growth of asset's size and LTV
Growth of asset’s size and LTV Sound financial management and asset expansion Asset’s growth 21
Slide 24: The condition of Fukuoka City Center
The condition of Fukuoka City Center Preparation for redevelopment in the Tenjin area and the area fronting Hakata Station is progressing. Current situation of Fukuoka City 22
Slide 25: The condition of suburb area in Fukuoka
The condition of suburb area in Fukuoka Fukuoka city, the compact city, has well-organized infrastructure of transportation Current situation of Fukuoka City 23
Slide 26: Appendix
ki Appendix
Slide 27: Profile
Profile Profile Investment unit price ■Name Fukuoka REIT Corporation ■Unit price 188,700 yen （as of August 31, 2015） ■Asset manager Fukuoka Realty Co.,Ltd Licensed by Fukuoka Local Finance Branch Bureau ■Total number of investment units outstanding 747,000 units （as of August 31, 2015） （financial in
Slide 28: A real estate investment trust specializing in regional properties
A real estate investment trust specializing in regional properties PSponsors PInvestment policy QInvestment area 5% The Bank of 5% The Nishi-Nippon 5% Development 5% Saibu Gas 60-90% Fukuoka metropolitan area 10-30% Bank of Japan Appendix Fukuoka City Bank Other Kyushu areas [Including Okinawa and Y
Slide 29: Population movement of Fukuoka metropolitan area
Population movement of Fukuoka metropolitan area The population of Fukuoka metropolitan area continues to increase Appendix 27
Slide 30: Portfolio table
Portfolio table （as of August 31, 2015） Acquisition Number of Total leasable occupancy Age Price Investment Acquisition Source tenants at end Primary tenants Real estate property name floor space rate at end of （＊1） （mm yen） ratio timing （＊3） of period at end of period （㎡） period （＊2） （＊4） Canal Cit
Slide 31: Portfolio
Portfolio Fukuoka City Fauci ‘Yatuok! DOME onan Pan stn @ ‘Jouiiowchs Stn AKaaaKa Bin Aa foakameni sin. / fi U Saozaki Sen nanos wr Hakata Bay i) }_Swwatanabe Deri Sin Yaausin IN be cael Getanp A Len Fukuoka rei @ Canal City Hakata @ Canal City Hakata-B 3) Park Place Oita (ied ‘pring space" inte 22a
Slide 32: Portfolio: Active retail
Portfolio : Active retail Appendix 30
Slide 33: Portfolio: Active retail
Portfolio : Active retail Appendix 31
Slide 34: Portfolio: Passive retail
Portfolio : Passive retail Appendix 32
Slide 35: Portfolio: Office buildings
Portfolio : Office buildings Appendix 33
Slide 36: Portfolio: Others
Portfolio : Others Appendix 34
Slide 37: Top tenants by leased floor area
Top tenants by leased floor area Appendix 35
Slide 38: Passive retail
Passive retail Keeping a stable NOI Appendix 36
Slide 39: Income and expenditure by properties (Active retail)
Income and expenditure by properties （Active retail） - unit : mm yen （Figures rounded down to nearest mm yen） 22nd 21st Forecast Variation Variation Category Canal City Hakata Canal City Hakata・B Park Place Oita SunLive City Kokura Total Total C A－B A－C A B （＊1） 22nd fiscal period（ March 1, 2015 〜 A
Slide 40: Income and expenditure by properties (Passive retail)
Income and expenditure by properties （Passive retail） - unit : mm yen （Figures rounded down to nearest mm yen） Marinoa City Square Mall Fukuoka 22nd 21st Forecast Category Kumamoto Inter- AEON Hara Kurume Higashi K’s Denki Variation Variation Kagoshima Community SC Shopping Center Hanahata SC Kushiw
Slide 41: Income and expenditure by properties (Office buildings)
Income and expenditure by properties （Office buildings） - unit : mm yen （Figures rounded down to nearest mm yen） Canal City Tenjin Tenjin North 22nd 21st Forecast Category Business Center Gofukumachi Sanix Hakata Taihaku Street Higashi Hie Nishi-Dori Front Total Total Variation C Variation Building
Slide 42: Income and expenditure by properties (Others)
Income and expenditure by properties (Others） - unit : mm yen （Figures rounded down to nearest mm yen） Amex Granfore Hotel Tosu LOGIPORT 22nd 21st Forecast City House Aqualia Aqualia D-Wing Variation Variation Category Akasakamon Yakuin FORZA Logistics Island-City Total Total C Keyaki Dori Kego Chih
Slide 43: Income and expenditure by properties (Total)
Income and expenditure by properties（Total） - unit : mm yen （Figures rounded down to nearest mm yen） Forecast Category 22nd Total 21st Total Variation Variation C A B A－B A－C （＊1） （Length） 184 181 3 （days） ①Total leasing business revenues 8,423 7,789 633 8,163 260 Leasing revenue-real estate 7,902 7
Slide 44: Cash flow statements (compared with previous fiscal period)
Cash flow statements (compared with previous fiscal period) - unit : mm yen （Figures rounded down to nearest mm yen） 21st 22nd Category 〜Feb. 28, 2015 〜Aug. 31, 2015 Variation B－A A B Net cash provided by （used in） operating activities 3,735 4,167 431 Net income before income taxes 2,370 2,663 292 D
Slide 45: Maintenance expenses, etc.
Maintenance expenses, etc. - unit : mm yen （Figures rounded down to nearest mm yen） ■Maintenance expenses, capital expenditures, depreciation, and taxes and fees Appendix ◎Capital expenditures of the 22nd fiscal period ◎Planned capital expenditures of the 23rd and 24th - unit : mm yen （Figures round
Slide 46: CSR initiatives
CSR initiatives Fukuoka Realty initiatives to support and cooperate in enhancing the appeal of Kyushu and Fukuoka Appendix 44
Slide 47: IR initiatives
IR initiatives MIR activities @©Resuts briefing roadshows in Japan and overseas ©One-on-one meetings for overseas investors ©Property tours for Japanese institutional investors ©Participation in briefings for individual investors IR briefing for individual rvestars Kanazawa Offering highlights ©Summ
Slide 48: Asset management company's organization
Asset management company’s organization Appendix 46
Slide 49: Corporate governance
Corporate governance Appendix 47
Slide 50: Unitholders' data
Unitholders’ data Appendix 48
Slide 51: Unit price chart
Unit price chart 69,890 Units = — Investment unit price ‘+1 Turnover (+2) | lMarket capitalization (as of August 31, 2015):140,958 mm yen (yen) (units) so.000 =a wg 30,000 ‘April 27, 2015 Price per unt ‘of the 4th issue 250,000 25,000 June 21, 2005 ial publ offering price ——<—— zona as 20000 of the
Slide 52: Analysis of earthquake risk in Fukuoka
Analysis of earthquake risk in Fukuoka All properties owned by Fukuoka REIT are covered by earthquake insurance Appendix 50
Slide 53: Strengths of Fukuoka and Kyushu①
Strengths of Fukuoka and Kyushu① Increase in business demand due to companies expanding into or starting up in Fukuoka Appendix 51
Slide 54: Strengths of Fukuoka and Kyushu②
Strengths of Fukuoka and Kyushu② Preparations made for functional renewal of buildings in the Tenjin district Appendix 52
Slide 55: Strengths of Fukuoka and Kyushu③
Strengths of Fukuoka and Kyushu③ Fukuoka inbound (about 60% increase in the first half of 2015) Appendix 53
Fukuoka REIT — 22nd fiscal period Earnings Presentation on 6ix