Fukuoka Reit Corporation · TSE:8968
Fukuoka Reit — 17th fiscal period Earnings Presentation
57 slides from Fukuoka Reit's earnings presentation, April 2013
Slide 1: Overview of the 17th fiscal period performance
eat SEuuoia REIT Eanoration » Overview of the 17th fiscal period performance [8968] September 15! 2012~February 28,2013
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Slide 3: Fukuoka REIT Corporation: Overview of the 17th fiscal period performance
REIT Fukuoka REIT Corporation Overview of the 17th fiscal period performance [8968] September 1, 2012~February 28,2013 Overview of public offering and new acquisition properties --- Financial statements Business forecasts -.-- Financial strategy Overview of retail operation Overview of office proper
Slide 4: Overview of third public offering
Overview of third public offering Raised 10,623 mm yen in public offering Overview of public offering and new acquisition properties ■Overview of public offering 1
Slide 5: Recent investments
Recent investments Four properties acquired for a total of 9.73 bn yen in 2013 Overview of public offering and new acquisition properties 2
Slide 6: Property acquired in 17th fiscal period
Property acquired in 17th fiscal period First property in Tenjin area, acquired with support of secondary sponsor Overview of public offering and new acquisition properties ■Tenjin Nishi-Dori Center Building 3
Slide 7: Properties acquired in 18th fiscal period
Properties acquired in 18th fiscal period Acquisition of diverse properties with stable cash flows Overview of public offering and new acquisition properties ■D-Wing Tower ■Hotel FORZA Oita 4
Slide 8: Properties acquired in 18th fiscal period
Properties acquired in 18th fiscal period Recently constructed office property acquired in Tenjin area Overview of public offering and new acquisition properties ■Tenjin North Front Building ■Historical occupancy rate ■Location 5
Slide 9: Assets at present
Assets at present Assets have doubled to 163,404 mm yen since IPO Overview of public offering and new acquisition properties 6
Slide 10: Interest-bearing debt and LTV
Interest-bearing debt and LTV LTV lowered as a result of equity offering Overview of public offering and new acquisition properties ■Total assets, interest-bearing debt and LTV 7
Slide 11: Fukuoka REIT's portfolio
Fukuoka REIT's portfolio Acquiring diverse properties as a general REIT Overview of public offering and new acquisition properties 8
Slide 12: Financial highlights
Financial highlights Dividend per unit : ＋89 yen（compared with the forecast）,＋96 yen（compared with previous period） - unit : mm yen (Figures round down to nearest mm yen) 13th 14th 15th 16th 17th 18th 19th Category 〜 Feb 29, 2011 〜 Aug 31, 2011 〜 Feb 29, 2012 〜 Aug 31, 2012 〜 Feb 28, 2013 Variation
Slide 13: Balance sheets
Balance sheets （compared with the previous fiscal period） Acquired Tenjin Nishi-Dori Center Building - unit : mm yen （Figures round down to nearest mm yen） 16th 17th 16th 17th Category 〜Aug 31, 2012 〜Feb 28, 2013 Variation Category 〜Aug 31, 2012 〜Feb 28, 2013 Variation A B B－A A B B－A Current assets
Slide 14: Income statements (compared with previous fiscal period)
Income statements (compared with previous fiscal period) - unit : mm yen （Figures round down to nearest mm yen） Sign indicates impact on net income (unit : mm yen) 16th 17th Category 〜 Aug 31, 2012 〜 Feb 28, 2013 Variation A B B－A Operating revenues 7,094 7,200 ① 106 Rental revenues-real estate 6,59
Slide 15: Income statements (compared with forecast)
Income statements (compared with forecast) - unit : mm yen （Figures round down to nearest mm yen） Sign indicates impact on net income (unit : mm yen) Previous 17th Category Forecast 〜 Feb 28, 2013 Variation A B B－A Operating revenues 7,208 7,200 ① (7) Rental revenues-real estate 6,784 Operating prof
Slide 16: Portfolio properties' occupancy rate
Portfolio properties' occupancy rate Occupancy rate back above 99% following completion of Canal City Hakata South Building renovation ■Historical occupancy rates (the weighted average during the period) Financial statements ＊Calculated by weighted average during the period. ＊Overall of J-REITs’ occ
Slide 17: Appraisal value
Appraisal value Unrealized gains（＊1） totaled 6,522 mm yen at 17th fiscal period-end - unit : mm yen （Figures round down to nearest mm yen） Appraisal values Variation Direct capitalization values Amount From amount Acquisition From Acquisition recognized recognized in 17th fiscal 16th fiscal Appraisa
Slide 18: Business forecast (18th fiscal period)
Business forecast (18th fiscal period) Keeping 16,200 yen as a dividend after public offering ■Forecast in 18th fiscal period - unit : mm yen （Figures round down to nearest mm yen） Sign indicates impact on net income (unit : mm yen) 18th 18th 17th 18th Category 17th Forecast Forecast results forecas
Slide 19: Business forecast (19th fiscal period)
Business forecast (19th fiscal period) Forecasting a stable dividend again in 19th fiscal period ■Forecast in 19th fiscal period - unit : mm yen （Figures round down to nearest mm yen） Sign indicates impact on net income (unit : mm yen) 18th 19th 18th Category Forecast Forecast forecast at this perio
Slide 20: Dividend's track record
Dividend’s track record Keeping a stable dividend ■Dividend results / forecasts (unit : yen) Fiscal period 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th Results 17,377 17,397 16,783 16,465 16,922 16,621 16,193 16,289 Business forecasts Forecasts 16,700 16,600 16,700 16,100 16,600 16,300 16,000 1
Slide 21: Key financing events in 17th and 18th fiscal periods
Key financing events in 17th and 18th fiscal periods Committed credit line's undrawn balance : 12 bn yen Financial strategy 18
Slide 22: Borrowings profile
Borrowings profile Maintaining the stable financial conditions ■Duration -average time to maturity (years) ■Diversification of debt maturities Financial strategy ■Average interest rate paid during fiscal periods ■Proportions of fixed and floating rate 19
Slide 23: List of borrowings
List of borrowings Stable financing (As of February 28, 2013) Type Lender Amount（JPY） Borrowing Date Repayment Maturity Payment Method Annual Interest Description Short-term debt ｰ - - - - - - Mitsubishi UFJ Trust and Banking Corporation 600,000,000 Mar 31, 2010 Mar 29, 2013 0.90917％（＊1）（＊7） Long-te
Slide 24: Active retail
Active retail Canal City Hakata's sales rebounded by reopening of South Building's renovation Overview of retail operation 21
Slide 25: Breakdown of active retail rents
■アクティブ商業賃料構成比 Breakdown of active retail rents The rents have rebounded since renovations were completed in Canal City Hakata ■Breakdown of rents by property ■Breakdown of total rents Overview of retail operation 22
Slide 26: Historical and projected office properties occupancy rates
Historical and projected office properties occupancy rates Keeping high occupancy rate, ＋0.5% from previous period Overview of office properties operation ＊Note: Calculated as a weighted average. ＊Total leasable floor space is figured as of the end of period. （＊1）Residential floor spaces are removed
Slide 27: Fukuoka office market
Fukuoka office market Fukuoka’s supply of office will remain limited ■Average vacancy rates in major Japanese cities Overview of office properties operation ■New supply in major cities 24
Slide 28: Supply of office space
Supply of office space Only one new office building scheduled to be completed in fall, 2013 Overview of office properties operation 25
Slide 29: Appendix
i Appendix
Slide 30: Profile
Profile Profile Investment unit price ■Name Fukuoka REIT Corporation ■Unit price 768,000 yen (as of February 28, 2013) ■Asset manager Fukuoka Realty Co.,Ltd ■Number of investment units outstanding 123,050 units (as of February 28, 2013) Licensed by Fukuoka Local Finance Branch Bureau (financial inst
Slide 31: A real estate investment trust specializing in regional properties
A real estate investment trust specializing in regional properties ■Sponsors ■Investment policy ◎Investment area 5% The Bank of 5% The Nishi-Nippon 5% Development 5% 60-90% Fukuoka metropolitan area 10-30% Saibu Gas Appendix Fukuoka City Bank Bank of Japan Other Kyushu areas （Including Okinawa and Y
Slide 32: Portfolio table
Portfolio table (as of February 28, 2013) Acquisition Total Number of leasable Occupancy tenants at Age Investment Acquisition Source rate at end of Primary tenants Real estate property name price(mm yen) floor space end of period (＊1) ratio timing (＊3) period at end of period (＊2) （㎡） (＊4) Washingt
Slide 33: Portfolio (1/9)
Portfolio (1/9) ee Kyushu Shinkansen Line ; nal Hak: === JR(conventional rail lines) @ Canal City ata —— Expressway @ Canal City Hakata:B Island-city © Canal City Business Center Building @ Gofukumachi Business Center @ Taihaku Street Business Center @ Sanix Hakata Building @ Higashi Hie Business Ce
Slide 34: Portfolio (2/9)
Portfolio (2/9) @Canal City Hakata @ Address: 1-chome,Sumiyoshi, Hakata-ku, Fukuoka City Il Total leasable space : 46,486.61 @ Built: April 15,1996 @ Property manager: Fukuoka Jisho Nakasu jon Stn %y, “% Canal City Hakata Fe. " um Shrine Fukuoka re
Slide 35: Portfolio (3/9)
Portfolio (3/9) Active retail @Canal City Hakata*B l@ Address 1-chome,Sumiyoshi, Hakata-ku, Fukuoka City i Total leasable space: 68,814.45m Built: April 15,1996 ll Property manager: Fukuoka Jisho Nakasu Canal City “6 Hakata-B + ~~ Hakata ekimae-dori Ave. : The Nishi-Nippon Sumiyoshi chy Ben’ tiem Sh
Slide 36: Portfolio (4/9)
Portfolio (4/9) SS UCU @2Park Place Oita Wl Address: 2-chome,Koen Dori Nishi, Oita City I Total leasable space: 104,917.10mi Built: March 26,2002/April 17,2002 April 28,2004/April 9,2007 March 31,2008/Jun 29,2012 li Property manager: Park Place Oita oc? et ° ‘ ~ Ss. ‘e JR Nippou Line} By Oita'stn ys
Slide 37: Portfolio (5/9)
Portfolio（5/9） Appendix ＊［ ］＝opening year 34
Slide 38: Portfolio (6/9)
Portfolio (6/9) > retail | Passive retail | Passi | Passive (@Hanahata SC QDAEON Hara Shopping Center Square Mall Kagoshima Usuki (Kurume Higashi Kushiwara SC @ Address :4-chome, Hanahata,Minami-ku, Fukuoka City I Total leasable space :2,801.15mi Mi Built: July 10,2007 ll Property manager: Fukuoka J
Slide 39: Portfolio (7/9)
Portfolio (7/9) Office properties (3)Canal City Business Center Building Office properties @Gofukumachi Business Center Office properties ©®Taihaku Street Business Center Office properties @®Sanix Hakata Building 1 Address: 1-chome, Sumiyoshi,Hakata-ku, Fukuoka City @ Total leasable space: 23,022.21
Slide 40: Portfolio (8/9)
Portfolio (8/9) @bHigashi Hie Business Center @Tenjin Nishi-Dori Center Building @®)Tenjin North Front Building Il Address:3-chome, Higashi-hie, Hakata-ku, Fukuoka City I Total leasable space: 13,695.51m Wi Built:February 6, 2009 ll Property manager:Fukuoka Jisho 1 Address:2-chome, Tenjin, Chuo-ku,
Slide 41: Portfolio (9/9)
Portfolio (9/9) (Amex Akasakamon Tower @City House Keyaki Dori (®)Aqualia Kego @Aqualia Chihaya i Address : 2-chome,Maizuru,Chuo-ku,Fukuoka City @ Total leasable space :4,821.25mi Built: July 26, 2005 Property manager: DMC (the Daio Group) 1 Address :2-chome,Kego,Chuo-ku,Fukuoka City @ Total leasabl
Slide 42: Top tenants by leased floor area
Top tenants by leased floor area Appendix 39
Slide 43: Passive retail
Passive retail Keeping stable revenues Appendix 40
Slide 44: Income and expenditure by properties (Active retail)
Income and expenditure by properties（Active retail） - unit : mm yen （Figures round down to nearest mm yen） 17th Total 16th Total Variation Forecast Variation Category Canal City Hakata Canal City Hakata・B Park Place Oita SunLive City Kokura A B A－B C A－C 17th fiscal period（September 1, 2012 〜 Februa
Slide 45: Income and expenditure by properties (Passive retail)
Income and expenditure by properties（Passive retail） - unit : mm yen （Figures round down to nearest mm yen） Square Mall Kumamoto Inter AEON Hara Kurume Higashi K’s Denki 17th Total Kagoshima Hanahata SC 16th Total Variation Forecast Variation Category Community SC Shopping Center Kushiwara SC Kagosh
Slide 46: Income and expenditure by properties (Office properties)
Income and expenditure by properties（Office properties） - unit : mm yen （Figures round down to nearest mm yen） Canal City Category Business Gofukumachi Sanix Hakata Taihaku Street Higashi Hie Tenjin Nishi-Dori 17th Total 16th Total Variation Forecast Variation Center Business Center Building Busines
Slide 47: Income and expenditure by properties (Others and Total)
Income and expenditure by properties（Others and Total） - unit : mm yen （Figures round down to nearest mm yen） Amex Aqualia Aqualia 1６th Category Akasakamon City House Kego Chihaya 1７th Total Total Variation Forecast Variation 17th Total 16th Total Variation Forecast Variation Tower Keyaki Dori A A－B
Slide 48: Cash flow statements (compared with previous fiscal period)
Cash flow statements (compared with previous fiscal period) - unit : mm yen （Figures round down to nearest mm yen） 16th 17th Variation Category 〜Aug 31, 2012 〜Feb 28, 2013 B－A A B Net cash provided by （used in） operating activities 3,617 3,120 （497） Net income before income taxes 2,005 2,005 0 Depre
Slide 49: Repair and maintenance expenses, etc.
Repair and maintenance expenses, etc. ■Repair and maintenance expenses, capital expenditures, depreciation, and taxes and fees Appendix - unit : mm yen （Figures round down to nearest mm yen） Fiscal period for renovation work Property Purpose Construction cost South Building renovation works 164 Cana
Slide 50: CSR initiatives
CSR initiatives Supporting sustained development of the local community ■Fukuoka Urban Growth Strategy Project ■CSR initiative at Park Place Oita Appendix ■CSR workshops 47
Slide 51: IR initiatives
IR initiatives ©Fukuoka REIT's homepage ONikko Investor Relations Award Fukuoka Ranking of all publicly traded companies’ websites Overall ranking 20th place Excellent site Sector ranking 1st place Excellent site ©Daiwa Investor Relations Award 2012 Internet IR Award “ Excellence Award = —h Bane ama
Slide 52: Asset management company's organization
Asset management company’s organization Appendix 49
Slide 53: Unitholders' data
Unitholders’ data ■Distribution by investor category (breakdown of investment units) ■Major investors (end of the 17th fiscal period) Appendix 50
Slide 54: Unit price chart
Unit price chart Market capitalization(as of February 28, 2013):94.5 bn yen BHistorical high(closing price):1, 300, 000 yen(February 26, 2007) Historical low(closing price):297,000 yen(November 20, 2008) —— Investment unit price Turnover (yen) (units) 1,500,000 17th 14,000 19,978Units 2 June 21, 200
Slide 55: Housing market in Fukuoka City's Chuo Ward
Housing market in Fukuoka City's Chuo Ward Fukuoka's Chuo Ward is an area with a high percentage of renters and continued net in-migration Appendix 52
Slide 56: Fukuoka City's strengths①
Fukuoka City's strengths① Growing influx of foreign visitors by virtue of expansion of overseas networks Appendix 53
Slide 57: Fukuoka City's strengths②
Fukuoka City's strengths② Low-cost carriers （LCC） and Kyushu bullet train service are driving growth in domestic travel Appendix 54
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