Fukuoka Reit Corporation · TSE:8968
Fukuoka Reit — 12th Fiscal Period Earnings Presentation
54 slides from Fukuoka Reit's earnings presentation, October 2010
Slide 1: Overview of the 12th Fiscal Period Performance
Fukuoka REIT Corporation Overview of the 12th Fiscal Period Performance [8968] March 1°, 2010~ August 31°, 2010
Slide 2: Slide 2
Slide 3: Profile
Profile Profile Investment Unit Price Name Fukuoka REIT Corporation Unit Price 537,000 yen (as of August 31, 2010) Asset Manager Fukuoka Realty Co.,Ltd Outstanding Unit 107,050 units Licensed by Fukuoka Local Finance Branch Bureau (financial instruments)No.10 Market Capitalization 57.4 billion yen (
Slide 4: Contents
Contents Financial Statements ….….…… 5 Appendix ……....……..……….. 37 Regarding rounding of amounts, percentage, and ratios : unless otherwise noted, in these materials, Business Forecasts …….….…… 12 monetary amounts are rounded down to the nearest whole unit, and percentages and ratios are rounded off
Slide 5: Financial highlights
Financial Statements Financial highlights The figures are rounded down to the million yen (unit : mm yen) 8th fiscal 9th fiscal 10th fiscal 11th fiscal (A) 12th fiscal (B) 13th fiscal 14th fiscal Category period period period period period Variation period period （B－A） ～ Feb 28, 2011 ～ Aug 31, 2011
Slide 6: Balance sheets
Financial Statements Balance sheets (comparison with previous fiscal period) (unit : mm yen) The figures are rounded down to the million yen 11th (A) 12th (B) Variation 11th (A) 12th (B) Variation Category Feb 28, 2010 Aug 31, 2010 （B－A） Category Feb 28, 2010 Aug 31, 2010 （B－A） Current assets 7,414
Slide 7: Income statements (comparison with previous fiscal period)
Financial Statements Income statements (comparison with previous fiscal period) The figures are rounded down to the million yen (unit : mm yen) Sign indicates impact on net income (unit : mm yen) 11th (A) 12th (B) Variation Category ～ Feb 28, 2010 ～ Aug 31, 2010 （B－A） Operation revenues 5,640 5,663
Slide 8: Income statements (comparison with forecast)
Financial Statements Income statements (comparison with forecast) The figures are rounded down to the million yen (unit : mm yen) Sign indicates impact on net income (unit : mm yen) Category Budget (A) 12th (B) Variation ～ Aug 31, 2010 （B－A） Operating revenues 5,619 5,663 ① 43 Rental revenues 5,282
Slide 9: Cashflow statements
Financial Statements Cashflow statements (comparison with previous fiscal period) The figures are rounded down to the million yen (unit : mm yen) Category 11th (A) 12th (B) Variation ～ Feb 28, 2010 ～ Aug 31, 2010 （B－A） Net cash provided by (used in) operating activities 3,150 2,394 (756) Income befo
Slide 10: Historical occupancy rates
Financial Statements Historical occupancy rates Maintained high occupancy rates in average compared with overall of J-REITs’. Calculated by weighted average Overall of J-REITs’ occupancy rates are calculated by weighted average based on historical figures of The Investment Trusts Association, Japan,
Slide 11: Appraisal Value
Financial Statements Appraisal Value Unrealized gain figure in 12th fiscal period-end is 9,394 million yen The figures are rounded down to the million yen (unit : mm yen) Latest appraisal Value by the Amount 11th fiscal period-end 12th fiscal period-end Difference factor DCF method（2） Acquisition re
Slide 12: Business forecast (13th fiscal period)
Business Forecasts Business forecast (13th fiscal period) Forecast in 13th fiscal period The figures are funded down to the million yen (unit : million yen) Sign indicates impact on net income (unit : mm yen) 11th 13th 13th 12th 11th 12th 13th fiscal period fiscal period fiscal period Category fisca
Slide 13: Business forecast (14th fiscal period)
Business Forecasts Business forecast (14th fiscal period) Forecast in 14th fiscal period The figures are funded down to the million yen (unit : million yen) Sign indicates impact on net income (unit : mm yen) 13th 11th 12th fiscal 14th period fiscal 12th 13th fiscal period fiscal period Forecast per
Slide 14: History of dividends
Business Forecasts History of dividends Keep to maintain stable dividends (unit : mm yen) (fiscal period) 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th Dividend results 19,014 18,438 18,632 17,341 18,360 18,499 18,373 18,049 17,377 17,397 16,783 Dividend forecast (latest fiscal 18,116 16,
Slide 15: Capital expenditures, maintenance & repair expenses, depreciation, and taxes & fees
Business Forecasts Capital expenditures, maintenance & repair expenses, depreciation, and taxes & fees Major renovations of Canal City Hakata and Park Place Oita planned in 13th and 14th fiscal periods (1) Capital expenditures related to enlargement of Park Place Oita's floor area. (2) Capital expen
Slide 16: Canal City Hakata renewal plan
Business Forecasts Canal City Hakata renewal plan Enhancing the property's entertainment attractions 16
Slide 17: Key financing events in 12th fiscal period
Key financing events in 12th fiscal period Financial Strategy Continued progress toward building for external growth in future 17
Slide 18: Breakdown of borrowings
Breakdown of borrowings Financial Strategy Maintaining stable financing arrangements and sound financial condition Proportions of long- and short-term debt Proportions of fixed- and floating-rate debt 18
Slide 19: List of borrowings
List of borrowings Financial Strategy Full committed credit line at the end of September (As of August 31, 2010) Repayment Type Lender Amount (JPY) Borrowing Date Payment Method Annual Interest Description Maturity The Bank of Fukuoka 1,500,000,000 June 30, 2008 December 30, 2010 0.84000％(*1) (*6) L
Slide 20: Active Retail
Overview of Retail Operation Active Retail Sales of Canal City Hakata acheived 101.4% compared from previous year. 20
Slide 21: Passive Retail
Overview of Retail Operation Passive Retail Achieved stable operating income 21
Slide 22: Breakdown of rents from retail properties
Overview of Retail Operation Breakdown of rents from retail properties 22
Slide 23: Top tenants by leased floor area
Overview of Retail Operation Top 10 tenants by leased floor area 23
Slide 24: Historical and projected office building occupancy rates
Overview of Office Operation Historical and projected office building occupancy rates Projected to keep stable occupancy rates オフィス稼働率実績 全国主要都市平均空室率推移 24
Slide 25: Fukuoka Office vacancy rates and rents
Overview of Office Operation Fukuoka Office vacancy rates and rents 25
Slide 26: Vacancy rates in Fukuoka
Overview of Office Operation Vacancy rates in Fukuoka Vacancies of new office building tend to be decreased 26
Slide 27: New office space supply
27 Overview of Office Operation New office space supply
Slide 28: Completed office building completions by city
Overview of Office Operation Completed office building completions by city Fukuoka’s office building construction boom ended in 2009 28
Slide 29: Trend in demand and supply
Overview of Office Operation Trend in demand and supply Demand and supply balance for office space in Fukuoka City 29
Slide 30: Fukuoka REIT's major investment
Overview of Office Operation Fukuoka REIT’s major investment 30
Slide 31: Overview of Canal City Hakata
Overview of Canal City Hakata Growth Strategy Acquisition of additional anonymous partnership equity interest 31
Slide 32: Future growth strategy ①
Future growth strategy ① Growth Strategy Focusing on both income yield and growth Pursuing medium-term to long-term portfolio expansion while flexibly adapting to changes in the environment and balancing the dual priorities of growth and income yield (As of August 31, 201)0 Asset type Use Location A
Slide 33: Future growth strategy ②
Future growth strategy ② Growth Strategy 33
Slide 34: CSR reporting ①
CSR reporting ① Initiatives to promote Fukuoka's growth（1） Others 34
Slide 35: CSR reporting ②
CSR reporting ② Initiatives to promote Fukuoka's growth（2） Others 35
Slide 36: Compliance Assessment Committee
Compliance Assessment Committee Others 36
Slide 37: Appendix
[4 Appendix
Slide 38: A real estate investment trust specializing in regional properties
A real estate investment trust specializing in regional properties Appendix (1) Concluded MOU with Fukuoka Realty Corporation concerning pipeline support. (2) Concluded with FRC concerning provision of property information on owned real-estate assets. 38
Slide 39: Portfolio table
Portfolio table Appendix (As of August 31, 2010) Acquisition Total leasable Occupancy Number of Age Price Investment Source apace at end of Property Name Acquisition Timing rate at end tenants at Primary tenants at end of period (*1) (mm yen) ratio (3) period of period end of period (*2) （㎡） Washing
Slide 40: Portfolio (1/5)
Portfolio（1/5） Appendix As of August 31, 2010 40
Slide 41: Portfolio (2/5)
Portfolio (2/5) Active retail Active retail Active retail @Canal City Hakata @Park Place Oita @SunLive City Kokura = Address: 1-chome,Sumiyoshi, Hakata-ku m= Address: 2-chome,Koen Dori Nishi,Oita City = Address: 2-chome, Kami Kuzuhara,Kokura-ku, = Built: April 15,1996 = Built: March 26,2002/April 17
Slide 42: Portfolio (3/5)
Portfolio (3/5) ee @® Square Mall Kagoshima Usuki | | (Kumamoto Intercommunity SC | | @)Hara SATY @Hanahata SC = Address: 2-chome,Usuki, Kagoshima City = Address: 1-chome,Kozono Kumamoto City = Address: 6-chome, Hara Sawara-ku, Fukuoka City = Address: 4-chome,hanahata,Minami-ku, = Built: September 1
Slide 43: Portfolio (4/5)
Portfolio (4/5) (Kurume Higashi Kushiwara SC = Address: Higashi kushiwara-cho, Kurumecity = Built: December 3,2007 = Property manager : Fukuoka Jisho i (®K’s Denki Kagoshima = Address: Tokai-cho,Kagoshima City w Built: November 17,2007 = Property manager : Commercial RE Co. = K's Denki Kagoshima Vu
Slide 44: Portfolio (5/5)
Portfolio (5/5) @Sanix Hakata Building = Address: 2-chome, Hakataekihigashi, Hakata-ku, Fukuoka City = Built: March 31, 2001 = Property manager: Fukuoka Jisho Office @Taihaku Street Business Center m Address: Gokushomachi, Hakata-ku Fukuoka City w Built: March 7, 2002 = Property manager: Fukuoka Jis
Slide 45: Income and expenditure by properties (Active, Passive)
Income and expenditure by properties（Active, Passive) Appendix (unit : mm yen) 8-"38&0 8-838&0 $&6.&8.32 36*(&78 $&6.&8.32 &8*,36= &2&0.8=&/&8& &6/0&(*.8& !92.:*.8=3/96& 12th fiscal period (March 1, 2010 ～ August 31, 2010) *2,8- )&=7 )&=7 )&=7 )&=7 )&=7 )&=7 ?"38&00*&7.2,'97.2*77 *286*:*29*6*&0*78&8
Slide 46: Income and expenditure by properties (Office and Others)
Income and expenditure by properties（Office and Others) Appendix (unit : mm yen) Canal City Gofukumachi Sanix Hakata Taihaku Street Higashi Hie 12th Total 11th Total Variation Forecast Variation Category Business Center Business Center Building Business Center Business Center (A) (B) （A-B） (C) （A-C）
Slide 47: Asset management company's organization
Asset management company’s organization Appendix 47
Slide 48: Unitholder data
Unitholder data Appendix (As of August 31, 2010) 48
Slide 49: Unit price chart
Unit price chart Charge in investment unit —— Investment unit price Turnover (yen) 1,500,000 13,978Units 2005.6.21 Initial public 1,200,000 offering price 880,000 yen 900,000 @ Market capitalization(as of August 31, 2010):57.4billion yen Historical high(closing price):1,300, O00yen(February 26, 2007
Slide 50: Fukuoka's infrastructural growth potential
Fukuoka’s infrastructural growth potential or the to poperty numbers on map, see page 40. 50
Slide 51: The construction of the additional new runway in Fukuoka Airport (planned)
The construction of the additional new runway in Fukuoka Airport (planned) Source:Made by Fukuoka Realty ,based on Fukuoka Airport project and Facility Planmaterials 51
Slide 52: Foreign visitors to Fukuoka
Foreign visitors to Fukuoka Appendix Fukuoka expected to remain a popular destination for foreign tourists arriving via cruise ships and discount airlines Visitors from Korea and China have grown by virtue of Koreans’ exemption from tourist visa requirements and relaxation of tourist visa requiremen
Slide 53: Foreign visitors to Fukuoka (international conventions)
Foreign visitors to Fukuoka (international conventions) Appendix The number of international conventions held in Fukuoka has been growing yearly *excluding Tokyo (unit : event) (" #$ " $ $ $ $( !(!'"# (!$! # !( !! %%! %"!& $# $( !(!'"# (!$! !( !! %%! # %"!& $# $( !(!'"# (!$! %%! # !( !! %"!& $# $( !
Slide 54: Disclaimer
Disclaimer faU—NRBAA fal] U— hE A IG#&-IR Those materials may contain future performance, plans, management targets and strategies. These forward-looking descriptions are based on present assumptions on future events and trends in the business environment, but such assumptions may not necessarily be
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