Fukuoka Reit Corporation · TSE:8968
Fukuoka Reit — FY2016 H2 Earnings Presentation
52 slides from Fukuoka Reit's earnings presentation, April 2016
Slide 1: 2)
2)
Slide 2: Contents and disclaimer
Financial statements .. Business forecasts - Overview of retail operation -.---- Overview of office buildings operation - Financial strategy ~- Asset’s growth Current situation of Fukuoka City -- Fukuoka REIT zoe ‘+Rogarcing rounding of amounts, percentage, and ratios uniess otherwise noted, in thes
Slide 3: Financial statements
Results and forecasts in dividends Financial statements 1
Slide 4: Financial highlights
Financial highlights Dividend per unit was 3,574 yen - unit : mm yen （Figures rounded down to nearest mm yen） 19th 20th 21st 22nd 23rd Difference 24th 25th Category 〜 Feb. 28, 2014 〜 Aug. 31, 2014 〜 Feb. 28, 2015 〜 Aug. 31, 2015 〜 Feb. 29, 2016 B－A 〜 Aug. 31, 2016 〜 Feb. 28, 2017 A B （forecast） （for
Slide 5: Dividend's track record
Dividend’s track record Keeping a stable dividend (Dividend results / forecasts 17th 18th 19th 20th 21st 22nd 23rd 24th 25th Category Feb. 28, 2013 Aug. 31, 2013 Feb. 28, 2014 Aug. 31, 2014 Feb. 28, 2015 Aug. 31, 2015 Feb. 29, 2016 Aug. 31, 2016 Feb. 28, 2017 3forecast4 3forecast4 Dividend per unit3
Slide 6: Balance sheets
Balance sheets （compared with the previous fiscal period） - unit : mm yen （Figures rounded down to nearest mm yen） Account 22nd 23rd Difference Account 22nd 23rd Difference 〜Aug. 31, 2015 〜Feb. 29, 2016 B－A 〜Aug. 31, 2015 〜Feb. 29, 2016 B－A A B A B Total current assets 8,553 9,082 529 Total current
Slide 7: Statements of Income (compared with previous fiscal period)
Statements of Income （compared with previous fiscal period） An increase in profit attributable to lower debt-related expenses, despite decrease in operating income - unit : mm yen （Figures rounded down to nearest mm yen） Sign indicates impact on profit （unit : mm yen） 22nd 23rd Difference Account 〜A
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 profit （unit : mm yen） Previous 23rd Account Forecast 〜 Feb. 29, 2016 Difference B－A A B Operating re
Slide 9: Portfolio properties' occupancy rates
Portfolio properties' occupancy rates Maintained high occupancy rates (Historical occupancy rates 3the weighted average during the period4 Financial statements (Occupancy rates 3the weighted average during the period4 Investment Category 19th 20th 21st 22nd 23rd Percentage Feb. 28, 2014 Aug. 31, 201
Slide 10: Appraisal value
Appraisal value Unrealized gains totaled 19,830 mm yen at the end of 23rd fiscal period （increase of 3,052 mm yen compared with previous fiscal period） （＊1） - unit : mm yen （Figures rounded down to nearest mm yen） Appraisal value Difference Direct capitalization values Book value From From 23rd 22nd
Slide 11: Business forecast (the 24th fiscal period)
Business forecast 3the 24th fiscal period4 Dividend will be 3,560yen exceeding the previous forecast despite incurred of taxes and public fees (Forecast in the 24th fiscal period - unit : mm yen 3Figures rounded down to nearest mm yen) Sign indicates impact on profit 3unit : mm yen4 23rd 24th 24th 2
Slide 12: Business forecast (the 25th fiscal period)
Business forecast 3the 25th fiscal period4 Dividend was flat due to a decrease in operating income offset by a decrease in debt-related expenses compared to the previous fiscal period (Forecast in the 25th fiscal period - unit : mm yen 3Figures rounded down to nearest mm yen) Sign indicates impact o
Slide 13: Active retail
Active retail Sales increases largely 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 (overall) ①
Current situation at Canal City Hakata （overall）① Strong sales are continued due to an inbound effect 推 Overview of retail operation 12
Slide 15: Current situation at Canal City Hakata (overall) ②
Current situation at Canal City Hakata （overall）② number of visitors in fiscal 2015 was the highest since Canal City Hakata first opened The 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 Overview of retail operation 14
Slide 17: Historical and projected office buildings' occupancy rates
Historical and projected office buildings’ occupancy rates Continuously increase in the average occupancy rate of office building in the 23rd fiscal period Overview of office buildings operation ＊Occupancy rates are calculated as a weighted average during period. ＊Total leasable floor space is figur
Slide 18: Fukuoka office market
Overview of office buildings operation 16 Fukuoka office market
Slide 19: Key financing events in the 23rd fiscal period
Key financing events in the 23rd 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 latest refinancing Financial strategy 18
Slide 21: List of borrowings
List of borrowings Stable debt financing (As of February 29, 2016) Category Lender Balance（JPY） Drawdown Date Repayment Date Repayment Method Average Interest Rate Description Short-term debt ｰ - - - - - - Shinsei Bank 1,000,000,000 Jul.29,2011 Jul.29,2016 1.20829％（＊2） Development Bank of Japan 4,00
Slide 22: Growth of asset's size and LTV
Growth of asset’s size and LTV Sound financial management and asset expansion Asset’s growth 20
Slide 23: The condition of Fukuoka City Center
The condition of Fukuoka City Center Preparation for redevelopment in the Tenjin area is progressing Current situation of Fukuoka City 21
Slide 24: 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 22
Slide 25: Appendix
ki Appendix
Slide 26: Profile
Profile Profile Investment unit price ■Name Fukuoka REIT Corporation ■Unit price 194,200 yen （as of February 29, 2016） ■Asset manager Fukuoka Realty Co.,Ltd Licensed by Fukuoka Local Finance Branch Bureau ■Total number of investment units outstanding 747,000 units （as of February 29, 2016） （financia
Slide 27: 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% Saibu Gas 60-90% Fukuoka metropolitan area 10-30% Bank of Japan Appendix Fukuoka City Bank Other Kyushu areas 3Including Okinawa and Y
Slide 28: Population movement of Fukuoka metropolitan area
Population movement of Fukuoka metropolitan area The population of Fukuoka metropolitan area continues to increase Appendix 26
Slide 29: Portfolio table
Portfolio table （as of February 29, 2016） Acquisition Total leasable Age Price Investment Acquisition Source Occupancy Number of Real estate property name floor space Primary tenants （＊1） （mm yen） ratio timing （＊3） （㎡） rate tenants（＊4） （＊2） Canal City Hakata 19yr10m 32,000 17.8％ Nov. 9, 2004 Sponsor
Slide 30: Portfolio map
Portfolio Fukuoka City Vegetry staan Fukuoka rei @ Canal City Hakata @ Canal City Hakata-B © Park Place Oita @ SunLiveCity Kokura e Square Mall Kagoshima Usuki e Kumamoto Intercommunity SC 7) AEON Hara Shopping Center @ Hanahata SC 9} Kurume Higashi Kushiwara SC @ K's Denki Kagoshima @ Marinoa City
Slide 31: Portfolio: Active retail
Portfolio : Active retail Appendix 29
Slide 32: Portfolio: Active retail
Portfolio : Active retail Appendix 30
Slide 33: Portfolio: Passive retail
Portfolio : Passive retail Appendix 31
Slide 34: Portfolio: Office buildings
Portfolio : Office buildings Appendix 32
Slide 35: Portfolio: Others
Portfolio : Others Appendix 33
Slide 36: Top tenants by leased floor area
Top tenants by leased floor area Appendix 34
Slide 37: Passive retail
Passive retail Keeping a stable NOI Appendix （＊1） The property was acquired on May 1, 2015, resulting in an investment period of 123 days. （＊2） Fukuoka REIT has entered into a master lease agreement (fixed rent) under which Fukuoka Jisho is the master lessee, and the property is subleased from the m
Slide 38: Income and expenditure by properties (Active retail)
Income and expenditure by properties （Active retail） - unit : mm yen （Figures rounded down to nearest mm yen） 23rd 22nd Forecast Difference Difference Category Canal City Hakata Canal City Hakata・B Park Place Oita SunLive City Kokura Total Total C A－B A－C A B （＊1） 23rd fiscal period（September 1, 201
Slide 39: 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 23rd 22nd Forecast Category Kumamoto Inter- AEON Hara Kurume Higashi K’s Denki Difference Difference Kagoshima Community SC Shopping Center Hanahata SC Kush
Slide 40: 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 2３rd 22nd Forecast Category Business Center Gofukumachi Sanix Hakata Taihaku Street Higashi Hie Nishi-Dori Front Total Total Difference C Difference Buildin
Slide 41: 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 LOGICITY 23rd 22nd Forecast City House Aqualia Aqualia D-Wing Difference Difference Category Akasakamon Yakuin FORZA Logistics Minato Total Total C Keyaki Dori Kego Chihaya
Slide 42: Income and expenditure by properties (Total)
Income and expenditure by properties（Total） - unit : mm yen （Figures rounded down to nearest mm yen） Forecast Category 23rd Total 22nd Total Difference Difference C A B A－B A－C （＊1） （Length） 182 184 （2） （days） ①Total leasing business revenues 8,343 8,423 （79） 8,261 82 Leasing revenue-real estate 7,8
Slide 43: 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） 22nd 23rd Category 〜Aug. 31, 2015 〜Feb. 29, 2016 Difference B－A A B Net cash provided by （used in） operating activities 4,167 4,174 7 Net income before income taxes 2,663 2,670 7 Depr
Slide 44: 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 23rd fiscal period ◎Planned capital expenditures of the 24th and 25th - unit : mm yen （Figures round
Slide 45: IR initiatives
IR initiatives MIR activities OIR activities for institutional investors +Results briefing roadshows in Japan «One-on-one meetings -Property tours OIR activities for overseas investors + Participation in global conferences in Japan + Overseas IR activities a «Individual meetings in Japan ‘Aresuits b
Slide 46: Asset management company's organization
Asset management company’s organization Appendix 44
Slide 47: Corporate governance
Corporate governance Appendix 45
Slide 48: Unitholders' data
Unitholders’ data Appendix 46
Slide 49: Unit price chart
Unit price chart = 69,890 units — Investment unit price (+1 Turnover (+2) | MiMarket capitalization (as of February 29,2016) :145,067 mm yen (yen) 300,000 April 27, 2015 Price per unit cof the 4th issue 250,000 25,000 June 21, 2005 Initial public offering price 200,000 March 4, 2048 20,000 of the 3r
Slide 50: Analysis of earthquake risk in Fukuoka
Analysis of earthquake risk in Fukuoka All properties owned by Fukuoka REIT are covered by earthquake insurance Appendix 48
Slide 51: Strengths of Fukuoka and Kyushu ①
Strengths of Fukuoka and Kyushu①（Current condition of inbound visitors ） Record high numbers of foreign visitors to Fukuoka Prefecture and Kyushu in 2015 Appendix 49
Slide 52: Strengths of Fukuoka and Kyushu ②
Strengths of Fukuoka and Kyushu② Appendix 50