Fukuoka Reit Corporation · TSE:8968
Fukuoka Reit — 5th Fiscal Period Earnings Presentation
65 slides from Fukuoka Reit's earnings presentation, April 2007
Slide 1: Overview of Fifth Fiscal Period Performance
Fukuoka REIT Corporation (8968） Overview of Fifth Fiscal Period Performance (September 1, 2006 – February 28, 2007) http://www.fukuoka-reit.jp Fukuoka Realty Co., Ltd.
Slide 2: REIT Overview
REIT Overview Profile Profile Current Current Pricing Pricing 【Name】 Fukuoka REIT Corporation 【Unit Price】 1,130,000 yen (as of April 10, 2007) 【Asset Manager】 Fukuoka Realty 【Outstanding Units】107,050 【Sponsors】 Fukuoka Jisho, Kyushu Electric Power, 【Market Cap 】 120.9 billion yen The Bank of Fukuo
Slide 3: Table of Contents
Table Table of of Contents Contents 1. Presentation of Accounts for Fifth Fiscal Period ……………… 4 2. Portfolio ………………………………………………………………………………12 3. Acquisition Strategy ……………………………………………………………17 4. Management ………………………………………………………………………21 5. Finance ………………………………………………………………………………26 6. Compliance ……………
Slide 4: Presentation of Accounts for Fifth Fiscal Period
Presentation of Accounts for Fifth Fiscal Period
Slide 5: Settlement Highlights of the 5th Fiscal Period (ended February 2007)
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Settlement Highlights of the 5th Fiscal Period (ended February 2007) 5th Fiscal Period 4th Fiscal Period Primary Factors for Period-on-P
Slide 6: Profit and Loss Statement for the 5th Fiscal Period
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Profit and Loss Statement for the 5th Fiscal Period (unit: thousand yen) 5th Fiscal Period 4th Fiscal Period September 1, 2006 – Februar
Slide 7: Balance Sheet for the 5th Fiscal Period
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Balance Sheet for the 5th Fiscal Period (unit: thousand yen) (unit: thousand yen) 5th Fiscal 4th Fiscal 5th Fiscal 4th Fiscal Period Per
Slide 8: Cash Flow Statement for the 5th Fiscal Period
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Cash Flow Statement for the 5th Fiscal Period (thousand yen) 5th period (181 days) 4th period (184 days) September 1, 2006 – February 28
Slide 9: Leasing Business Income and Expenditure
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Leasing Business Income and Expenditure (million yen) Kumamoto Canal City Gofukumachi Taihaku Kominedai Square Mall Sanix Amex Canal Cit
Slide 10: Forecasts for 6th and 7th Fiscal Periods
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Forecasts for 6th and 7th Fiscal Periods 7th Fiscal Period 6th Fiscal Period 5th Fiscal Period 4th Fiscal Period 3rd Fiscal Period (fore
Slide 11: Financial Indicators + Top 10 REIT Comparisons
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Financial Indicators + Top 10 REIT Comparisons Fifth Period Weighted Weighted Category Average for Average for Remarks (Definitions of I
Slide 12: Portfolio
| Portfolio |
Slide 13: J-REIT Specialized in Fukuoka/Kyushu Area
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix J-REIT Specialized in Fukuoka/Kyushu Area Supported Supported by by Kyushu Kyushu Business Business World World Investment Investment Po
Slide 14: Portfolio Map
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Portfolio Map 14
Slide 15: Portfolio Table
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Portfolio Table (Note) These figures are based on Note 1) All values in the Acquisition (Planned) Price column exclude fees, public char
Slide 16: List of Property Prices
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix List of Property Prices Note 1) All values in the Acquisition (Planned) Price columns exclude fees, public charges and expenses. Note 2)
Slide 17: Acquisition Strategy
| Acquisition Strategy |
Slide 18: External Growth Roadmap
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix External Growth Roadmap (Note 1) This is a preferred silent partnership interest in CCH Bridge YK, the SPC that is the operator that man
Slide 19: Map of Sponsor Development Trends
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Map of Sponsor Development Trends (Properties are not owned by Fukuoka REIT) Hakata Riverain Eastside West Japan Building New Japan Buil
Slide 20: History of Acquisition Cap Rates and Implied Cap Rates
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix History of Acquisition Cap Rates and Implied Cap Rates History History of of Acquisition Acquisition Cap Cap Rates Rates Comparison Comp
Slide 21: Management
| Management |
Slide 22: History of Occupancy Rate by Property
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix History of Occupancy Rate by Property Occupancy of Overall Portfolio at End of Fifth Fiscal Period: 99.4% 22
Slide 23: History of Retail Property Sales
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix History of Retail Property Sales One of the 10th Merry Pumpkin (84 tsubos), a Established as anniversary new family buffet community’s t
Slide 24: Rental Portfolio (including common expenses)
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Rental Portfolio (including common expenses) Note 1) Figures in the circle graphs do not include the rents (including common expenses) o
Slide 25: Breakdown of Tenant Rent Types for Retail Properties
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Breakdown of Tenant Rent Types (including common expenses) for Retail Properties Note 1) Figures in the circle graphs do not include the
Slide 26: Finance
| Finance |
Slide 27: Status of Interest-bearing Debt
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Status of Interest-bearing Debt Total Total interest-bearing interest-bearing debt debt as as of of the the end end of of the the 55th t
Slide 28: Itemization of Borrowings
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Itemization of Borrowings (as of February 28, 2007) Borrowing Repayment Payment Type Lender Amount (JPY) Annual Interest Interest Descri
Slide 29: LTV Control
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix LTV Control Fukuoka REIT has Capacity to Borrow an Additional 15 to 20 Billion Yen 29
Slide 30: Compliance
| Compliance |
Slide 31: Organizational Structure of Asset Manager
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Organizational Structure of Asset Manager Organizational Chart of Fukuoka Realty Full-time directors and employees: 39 (as of April 10,
Slide 32: Decision-Making Process of Fukuoka REIT
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Decision-Making Process of Fukuoka REIT Fukuoka REIT has a Strict Compliance System that Matches the Risk Perception of Capital Markets
Slide 33: Environmental Analysis and Management Policy
Environmental Analysis and Management Policy
Slide 34: Office Lease Market Trends in Fukuoka
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Office Lease Market Trends in Fukuoka Vacancy Vacancy Rate Rate of of Office Office Buildings Buildings Average Average Rent Rent of of
Slide 35: Shift in Supply-Demand Balance (Comparison of Fukuoka and Tokyo)
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Shift in Supply-Demand Balance (Comparison of Fukuoka and Tokyo) Shift Shift in in Supply-Demand Supply-Demand Balance Balance for for F
Slide 36: Map of New Development Trends in Fukuoka Office Market
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Map of New Development Trends in Fukuoka Office Market (The asterisk indicates a tentative name and all completion dates are scheduled d
Slide 37: Kyushu Shinkansen to Fully Open in 2011
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Kyushu Shinkansen to Fully Open in 2011 Source: Fukuoka City’s “Report on Impact of Kyushu Shinkansen’s Opening on Fukuoka City” Sole Co
Slide 38: Opening of the New Hakata Station Building
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Opening of the New Hakata Station Building • Hakata Station is the largest terminal station in Opens Kyushu with about 340,000 users a d
Slide 39: New Town Planning Measures
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix New Town Planning Measures The Hakata Station District Town Gofukumachi Business Center Planning Promotion Working Group • The Hakata St
Slide 40: Management Policy
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Management Policy 40
Slide 41: Appendix
| Appendix |
Slide 42: Retail Property Description: Canal City Hakata and Preferred Silent Partnership Interest
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Retail Property Description: Canal City Hakata and Preferred Silent Partnership Interest Urban SC Canal City Hakata Nov 9, 2004 32bn yen
Slide 43: Retail Property Description: Park Place Oita and SunLiveCity Kokura
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Retail Property Description: Park Place Oita and SunLiveCity Kokura Regional SC Park Place Oita Nov 9, 2004 15.7bn yen 6.5％ Characterist
Slide 44: Retail Property Description: Square Mall Kagoshima Usuki and Kumamoto Intercommunity SC
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Retail Property Description: Square Mall Kagoshima Usuki and Kumamoto Intercommunity SC Community SC Square Mall Kagoshima Usuki Sep 28,
Slide 45: Retail Property Description: Hara SATY
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Retail Property Description: Hara SATY Regional SC Hara SATY Mar 1, 2007 5.41bn yen 6.8％ Characteristics • Excellent location for retail
Slide 46: Office Property Description: Canal City Business Center Building and Gofukumachi Business Center
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Office Property Description: Canal City Business Center Building and Gofukumachi Business Center Class A Building Canal City Business Ce
Slide 47: Office Property Description: Sanix Hakata Building and Taihaku Street Business Center
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Office Property Description: Sanix Hakata Building and Taihaku Street Business Center Class A Building Sanix Hakata Building Sep 30, 200
Slide 48: Residential Property Description: City House Tenjin Keyaki Dori and Amex Akasakamon Tower
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Residential Property Description: City House Tenjin Keyaki Dori (tentative) and Amex Akasakamon Tower Residential City House Tenjin Keya
Slide 49: Construction Confirmation Inspection Agencies
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Construction Confirmation Inspection Agencies Construction Construction Construction Property Name Completion Date Design Companies Cont
Slide 50: Analysis of Investor Attributes and Volume Ownership Reports
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Analysis of Investor Attributes and Volume Ownership Reports Distribution Distribution by by Investor Investor Category Category (Breakd
Slide 51: History of Investment Unit Price
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix History of Investment Unit Price History History of of Investment Investment Unit Unit Price Price 51
Slide 52: Appendix II
| Appendix I | = )
Slide 53: Where is Fukuoka/Kyushu
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Where is Fukuoka/Kyushu Tokyo Osaka Kyushu Region Fukuoka Pref. ■ 7 prefectures ■ 1.5h flight from Tokyo, Seoul, ■ “#16” GDP in the worl
Slide 54: Size of the Fukuoka Metropolitan Area
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Size of the Fukuoka Metropolitan Area Populations Populations of of Major Major Japanese Japanese Metropolitan Metropolitan Areas Areas
Slide 55: Kyushu's GDP is Near Australia's in Size
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Kyushu’s GDP is Near Australia’s in Size Country Country Comparison Comparison of of Kyushu’s Kyushu’s GDP GDP Source： Global Statistics
Slide 56: Growth in Automobile and Semiconductor Industries
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Growth in Automobile and Semiconductor Industries Distribution Distribution of of Primary Primary Automobile Automobile andand Long-term
Slide 57: TOYOTA MOTOR KYUSHU Leads Expansion of Exports
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix TOYOTA MOTOR KYUSHU Leads Expansion of Exports Toyota Toyota Establishing Establishing Second Second Largest Largest Production Producti
Slide 58: Estimated Future Population Changes
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Estimated Future Population Changes Population Population Change Change in in Principal Principal Metropolitan Metropolitan Areas Areas
Slide 59: Population Growth
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Population Growth Comparison Comparison Comparison of of Students Students per per 1,000 1,000 People People Comparison of of Population
Slide 60: Percentage of Change in Fukuoka City Land Prices (2006 → 2007)
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Percentage of Change in Fukuoka City Land Prices (2006 → 2007) Percentage Percentage of of Change Change in in Fukuoka Fukuoka City City
Slide 61: Consumption Trends
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Consumption Trends Fluctuations Fluctuations in in Monthly Monthly (YOY) (YOY) Comparisons Comparisons of of Large Large Retail Retail S
Slide 62: Primary Shopping Centers of Kyushu
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Primary Shopping Centers of Kyushu Kitakyushu metropolitan area Fukuoka metropolitan area Sasebo metropolitan area Saga Kurume metropoli
Slide 63: 10 High Rollers
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Las Vegas Beyong the Strip (U.S.) Long the fastest-growing metropolis in America, sin city is building more than casinos. 10 HIGH ROLLER
Slide 64: Point 1, Point 2, Point 3
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix POINT 1 • Capital investment in the manufacturing industry in Kyushu has grown as fast as 52% in recent years • Fukuoka residents refer
Slide 65: Increasing Number of Foreign Tourists; Fukuoka Has Strong Asian Features
Presentation of Accounts for Fifth Fiscal Period Portfolio Acquisition Strategy Management Finance Compliance Environmental Analysis and Management Policy Appendix Increasing Number of Foreign Tourists Fukuoka Has Strong Asian Features Fluctuation in the Number of Foreigners Regional Breakdown of Fo
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