Fukuoka REIT : Integrated Report 2022～Data Section～

External Environmental Data

Fukuoka as a Compact City

As a compact city, the air, sea, and land transportation access	About 60% of commuting times are less than 30 minutes, which
points of Hakata Station, the Port of Hakata/Chuo Wharf, and	is about half that of Tokyo. The Nanakuma Subway Line extension
Fukuoka Airport are located within a three-kilometer radius of	project connecting Tenjin and Hakata Station will be completed in
Tenjin, Fukuoka City's central business district. Traveling by the	March 2023, which is expected to further enhance convenience.
Fukuoka City Subway from Fukuoka Airport to the city center, it
takes about five minutes to Hakata and about 10 minutes to Tenjin.

Fukuoka Office and Logistics Facility Market Conditions

The office building market in Fukuoka remains solid, and demand for logistics facilities is robust.

• Fukuoka Business District/Vacancy Rates and Supply and Demand of Office Buildings

Completed floor space (total floor space)	Net absorption (absorption demand)	Vacancy rate	Vacancy rate (Office buildings owned by FRC)		Who
（Tsubo）				（%）	We
			Are
50,000				20
			As of October 2022

Fukuoka City

Island City

Legend

JR

Shinkansen

Nishi-Nippon Railroad

Fukuoka Municipal Subway

Fukuoka Urban Expressway

Nishi Kyushu ExpresswayPort of Hakata/

Chuo Wharf

Tenjin Station

Hakata Station Fukuoka Airport

Nanakuma Subway Line Extension Project

Kushida Shrine Station, an intermediate station on the Nanakuma Line extension project that will connect Tenjin and Hakata Station, will be adjacent to Canal City Hakata, FRC's flagship property.

Yakuin

Nakasu Kawabata Station

Gion Station

）

Hakata

Taihaku-

-

River

Center

）

）

dori

river

Kushida Shrine Station

Nakagawa（river

Shinkawa

(City

（

Tenjin Station

Canal City Hakata

SubwayLines

-doro

Hakata-

Kokutai

ekimae-dori

Hakata Station

doriSumiyoshi-

Nanakuma Line

Extension section

Tenjin-minami Station

Legend

Tenjin-minami ~

Hakata station

Operating sections

Airport Line

Source: Created by Fukuoka Realty Co., Ltd., based on data from Fukuoka City Transportation Bureau's Nanakuma Subway Line Extension Project Leaflet (April 2019).

					Central Tokyo (5 wards)	6.44%
					Nagoya	5.59%
40,000	15.38	14.72			Osaka	5.12%				16
				Fukuoka	4.69%
		13.23			Existing buildings	3.97%
					Hakata East
			11.98		New buildings	32.46%
30,000						Terrace			12
			10.86	Sendai	4.72%
				Sapporo	2.14%
	10.99
20,000					7.70					8	Growth
					6.30
										Strategy
					4.26			4.53	4.69
						3.79
10,000									4
3.78				3.07
						2.04	2.09
0						0.00				0

Population Continues to Grow in Fukuoka City

The total population of Fukuoka City has increased consistently since 1985, and as of May 1, 2020, the estimated population exceeded 1.60 million. This total population makes the city the fifth most populous among government-designated cities, following

• Probabilistic Earthquake Prediction Map

Probability of an earthquake with an intensity of six or greater over the next 30 years

(Average case / Previous earthquakes) (Reference date: January 1, 2020)

												Building Overview*
												Office/Hotel building（25 aboveground floors）
-10,000																				Fukuoka Daimyo
												Offices 5th to 16th floors
												Rentable area: Approx. 30,000 m2
												Community building (11 aboveground floors)									Sustainability
												Event hall (One aboveground floor)
-20,000
2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019			2020	2021	2022
																					(Planned)

Completed floor area (total floor area) includes the floor area for common spaces, etc., and therefore differs from the leasable floor area.

Yokohama, Osaka, Nagoya, and Sapporo. According to estimates from the National Institute of Population and Social Security Research, the population of Fukuoka City is expected to continue growing until 2035.

• Total Population and Population Growth Ratio of Fukuoka City

Probability

26% or more

High 6%～26％

3%～6％

Moderately high 0.1%～3％

Less than 0.1%

Sapporo 2.2％

Eurasian Plate

North American Plate

Sendai 7.6％

Notes: 1. Vacancy rates from 2008 to 2021 are based on figures as of December 31. The vacancy rate in 2022 is based on the figure as of October 31.

1. Office building-related data for each city are the data for areas and buildings included in surveys conducted by Miki Shoji Co., Ltd.
2. Net absorption (absorption demand) shows the change in the occupied floor space during a specific period. It is calculated by subtracting the occupied floor space on December 31 of the previous year from the occupied floor space on December 31 of the applicable year. Completed floor space (total floor space) figures for 2022 have not been finalized, and the floor space and expected completion dates are subject to change.

Source: Prepared by Fukuoka Realty Co., Ltd., based on data from Miki Shoji Co., Ltd., Office Market Data. * Prepared by Fukuoka Realty Co., Ltd., based on press releases from Fukuoka City and the operating entity.

Total population of Fukuoka City Population growth ratio

（Thousands）								（%）
1,650										1,631	1.4
										1,613 1,619
1,600				1.12						1,595	1.2
				1.02				1,582
				0.99	0.99	1,556	1,570	1.11
							0.84
1,550	0.89	0.89	0.82		0.89					1.0
	1,541
		0.78		1,497	1,512 1,526	0.95	0.90	0.77
1,500										0.8
		1,454 1,466	1,482
1,450									0.6
1,430	1,441
1,400										0.41	0.4
1,350											0.2

Fukuoka 6.2％

Nagoya 45.8％

Osaka

30.1％

Philippine Sea Plate

Tokyo 47.2％

Pacic Plate

• Fukuoka Business District/Average Asking Rents (2005 = 100)

The average asking rent of the Fukuoka business district rose 7.0%from January 2020 to October 2022

Fukuoka Central Tokyo (5 wards)

（%）				As of October 2022
130				Fukuoka	11,403 yen
					Central Tokyo	22,104 yen
120
					(5 wards)

(Yen/Tsubo)

110

100

90

• Northern Kyushu Logistics Facility Supply/Demand and Vacancy Rates

New supply	New demand	Vacancy rate		（％）	Data
（Tsubo）				Section
120,000				12
		Forecast
				10
100,000
80,000				8
60,000				6
40,000				4
20,000				2

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

0

Note: Total population figures from 2007 to 2021 are based on figures as of December 1 each year. The total population figure for 2022 is based on the figure as of October 1, 2022.

Source: Prepared by Fukuoka Realty Co., Ltd., based on data from Fukuoka City Estimated Population and Fukuoka City Registered Population, published by Fukuoka City.

40

Note: The mesh for zero probability based on the model calculation conditions is shown in white.

Source: Prepared by Fukuoka Realty Co., Ltd., based on data from the Office of the Headquarters for Earthquake Research Promotion (Earthquake and Disaster-Reduction Research Division, Research and Development Bureau, Ministry of Education, Culture, Sports, Science and Technology); Japan Seismic Hazard Information Station (J-SHIS), National Research Institute for Earth Science and Disaster Resilience; and the website of the Japan Meteorological Agency, Ministry of Land, Infrastructure, Transport and Tourism.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Note: The figures from 2005 to 2021 are based on the figures as of December.

Source: Prepared by Fukuoka Realty Co., Ltd., based on data from Miki Shoji Co., Ltd., Office Market Data.

0

2016

2017

2018

2019

2020

2021

2022

2023

0

Note: The figures are covered total floor spaces (more than 5000 m2) that are owned by the real estate investment company and real estate development company in Fukuoka and Saga.

Source: Prepared by Fukuoka Realty Co., Ltd., based on data of CBRE K.K.

Fukuoka REIT Corporation 2022

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Overview of Properties Owned

FRC carefully selects and invests in properties with the potential to generate stable cash flow over the long term. It owns properties with widely divergent uses, mainly retail and office buildings, to diversify risks within the region.

Asset Ratio (As of August 31, 2022)

■ Investment Type (based on acquisition price)			■ Investment Areas (based on acquisition price)
Retail	Office buildings	Others		Fukuoka metropolitan area	Other
	Kyushu areas
53.0%	33.0%	14.0%		77.1%
	22.9%

Number of
properties owned:	Total acquisition price:
33	206,339million yen	down to the nearest million yen.
		Note: Acquisition price data is rounded
	Property name / acquisition date / acquisition price (millions of yen)

• Retail: 11

1		2		3		4		5		6

Canal City Hakata		Canal City Hakata・B		Park Place Oita		SunLive City Kokura		Konoha Mall Hashimoto	Square Mall Kagoshima Usuki
November 9, 2004/32,000		March 2, 2011/21,060		November 9, 2004/19,610		July 1, 2005/6,633		March 1, 2018/10,000	September 28, 2006/5,300
7		8		9		10		11

Kumamoto Intercommunity SC		Hanahata SC		Kurume Higashi Kushiwara SC		Kʼs Denki Kagoshima		Marinoa City Fukuoka (Marina Side Building)
November 30, 2006/2,400		September 3, 2007/1,130		February 1, 2008/2,500		March 27, 2008/3,550		May 1, 2015/5,250

• Office Buildings: 11

12		13		14		15		16		17

Canal City Business Center Building

Gofukumachi Business Center

Sanix Hakata Building

Taihaku Street Business Center

Higashi Hie Business Center

Tenjin Nishi-Dori Center Building

November 9, 2004/14,600

November 9, 2004/11,200

September 30, 2005/4,400

March 16, 2006/7,000

March 13, 2009/5,900

February 1, 2013/2,600

18

19

20

21

22

NEW

Tenjin North Front Building		Higashi Hie Business Center II		Higashi Hie Business Center III		Tenjin Nishi-Dori Business Center (land		Hakata Chikushi-Dori Center Building
March 28, 2013/2,800		March 1, 2018/4,230		May 29, 2020/3,290		with leasehold interest) June 1, 2021/7,700		March 1, 2022/4,320

• Other Properties (Logistics, Residence, Others): 11

23		24		25		26		27		28

Tosu Logistics Center（Logistics）

LOGICITY Minato Kashii (Logistics)

LOGICITY Hisayama（Logistics）

LOGICITY Wakamiya（Logistics）

Amex Akasakamon Tower (Residence)

City House Keyaki Dori (Residence)

March 28, 2014/1,250

March 27, 2015/8,150

June 1, 2017/5,050

June 30, 2020/1,700

September 1, 2006/2,060

December 20, 2017/1,111

29

30

31

32

33

A

Scheduled to be

acquired

Aqualia Chihaya (Residence)		D-Wing Tower (Residence)		Granfore Yakuin Minami（Residence）		Hotel FORZA Oita (Hotel)		Tissage Hotel Naha (Hotel)		Island City Minato Bay related site（land with
March 1, 2012/1,280		March 1, 2013/2,800		November 4, 2014/1,100		March 1, 2013/1,530		December 7, 2018/2,835		leasehold interest）（tentative）March 31, 2029/8,082

26
23	32					Nata Sta.	Wajiro
				Gannosu Sta.		Sta.
						Tonoharu Sta.
				A	24				25
								29	Sta.
								Sta.
33	Across Kyushu
							Sta.
Nokonoshima
	FUKUOKA		27 30	Sta.		Sta.			Sta.
	PayPay DOME	Sta.
		Sta.	Sta. 21			22		BEST DENKI
	Sta.		28		Sta.	Sta.	Stadium
					Sta.
				Sta.
			Sta.	31
		Sta.	Sta.
	Sta.
									Fukuoka City

Who We Are

Growth Strategy

Sustainability

Data Section

42	Fukuoka REIT Corporation 2022

43

Financial/Non-FinancialHighlights（11-Year/22-Period Summary）

		15th	16th	17th	18th	19th	20th	21st	22nd	23rd	24th	25th	26th	27th	28th	29th	30th	31st	32nd	33rd	34th	35th	36th
		Feb. 2012	Aug. 2012	Feb. 2013	Aug. 2013	Feb. 2014	Aug. 2014	Feb. 2015	Aug. 2015	Feb. 2016	Aug. 2016	Feb. 2017	Aug. 2017	Feb. 2018	Aug. 2018	Feb. 2019	Aug. 2019	Feb. 2020	Aug. 2020	Feb. 2021	Aug. 2021	Feb. 2022	Aug. 2022
Financial Information
Earnings (Millions of yen)
Operating revenue	6,931	7,094	7,200	7,565	7,574	7,779	7,789	8,423	8,343	8,234	9,730	8,122	8,194	9,178	9,242	9,231	9,162	8,518	8,904	8,867	8,658	8,830
Operating income	2,637	2,595	2,622	2,848	2,801	2,824	2,860	3,167	3,141	3,069	4,585	2,920	2,965	3,238	3,306	3,318	3,273	2,966	3,061	3,204	3,185	3,181
Ordinary income	2,046	2,005	2,005	2,272	2,239	2,263	2,370	2,663	2,670	2,616	4,199	2,562	2,624	2,861	2,935	2,939	2,900	2,587	2,677	2,817	2,816	2,805
Profit		2,045	1,992	2,004	2,271	2,238	2,262	2,369	2,661	2,669	938	4,198	2,556	2,623	2,860	2,934	2,939	2,899	2,586	2,675	2,816	2,814	2,804
NOI		4,351	4,372	4,444	4,751	4,732	4,800	4,829	5,229	5,237	5,164	5,010	4,998	5,079	5,493	5,591	5,633	5,596	5,307	5,347	5,336	5,334	5,370
Financial conditions (Millions of yen)
Total assets	155,792	159,601	160,574	167,857	167,492	167,824	167,369	181,597	181,445	179,513	175,063	178,063	177,283	193,112	195,433	195,106	194,795	199,004	199,559	199,804	198,745	201,223
Net assets	71,222	71,170	71,182	81,712	81,679	81,703	81,811	93,804	93,812	92,081	93,681	93,699	93,766	101,799	101,874	101,878	101,837	101,525	101,614	101,755	101,753	101,743
Interest-bearing debt	69,425	73,350	74,675	71,100	71,025	71,150	70,775	72,400	72,325	71,950	66,675	69,900	68,900	75,500	77,500	77,500	72,500	82,400	82,400	82,400	82,400	83,900
Interest-bearing debt ratio（%）	44.6	46.0	46.5	42.4	42.4	42.4	42.3	39.9	39.9	40.1	38.1	39.3	38.9	39.1	39.7	39.7	39.8	41.4	41.3	41.2	41.5	41.7
Depreciation and amortization expenses	1,177	1,242	1,268	1,343	1,354	1,387	1,390	1,458	1,471	1,470	1,455	1,474	1,500	1,602	1,622	1,651	1,660	1,686	1,623	1,552	1,486	1,514
Capital expenditures	1,031	1,285	431	612	848	740	328	445	630	665	1,789	741	600	657	947	476	465	790	687	445	600	1,946
Cash flow (Millions of yen)
Cash flow provided by (used in) operating activities	3,677	3,617	3,120	3,609	3,699	3,890	3,735	4,167	4,174	4,336	3,685	3,590	4,292	4,149	4,832	4,863	3,985	3,450	5,374	4,724	3,146	4,712
Cash flow provided by (used in) investing activities	(566)	(6,016)	(3,067)	(7,897)	(916)	(2,312)	(1,452)	(14,488)	(606)	(772)	4,220	(6,029)	(478)	(15,326)	(3,604)	(1,043)	(220)	(7,136)	(842)	(1,425)	(658)	(5,498)
Cash flow provided by (used in) financing activities	(2,153)	1,881	(666)	4,651	(2,359)	(2,115)	(2,635)	10,934	(2,747)	(3,043)	(7,872)	667	(3,555)	11,734	(859)	(2,933)	(2,938)	2,000	(2,586)	(2,674)	(2,816)	(1,314)
Cash and cash equivalents at year-end	8,154	7,637	7,024	7,387	7,810	7,273	6,920	7,533	8,353	8,873	8,905	7,134	7,392	7,950	8,319	9,205	10,032	8,348	10,293	10,917	10,588	8,488
Per-unit indicators (Yen)
Dividend per unit	3,324	3,238	3,257	3,291	3,243	3,278	3,435	3,563	3,574	3,479	3,398	3,422	3,512	3,593	3,687	3,693	3,642	3,250	3,361	3,539	3,536	3,523
EPS	per unit	3,324	3,238	3,257	3,291	3,243	3,278	3,434	3,563	3,573	1,256	5,621	3,422	3,512	3,593	3,687	3,692	3,642	3,249	3,361	3,538	3,536	3,523
BPS	per unit	115,762	115,676	115,696	118,423	118,376	118,410	118,567	125,574	125,585	123,267	125,410	125,434	125,524	127,888	127,982	127,987	127,936	127,544	127,656	127,833	127,831	127,818
NAV per unit	121,447	122,299	123,041	127,080	128,375	131,215	136,051	144,472	148,558	152,259	150,328	152,639	156,204	161,315	164,250	167,118	170,680	171,592	171,943	171,502	178,079	178,348
FFO	per unit	5,237	5,258	5,319	5,238	5,207	5,288	5,450	5,515	5,543	5,448	5,351	5,395	5,520	5,606	5,725	5,767	5,728	5,368	5,401	5,358	5,403	5,425
Investment unit information
Investment unit price (Yen)	107,200	109,600	153,600	145,000	171,400	199,000	227,000	188,700	194,200	186,100	177,100	164,300	173,100	170,400	169,300	178,300	167,900	136,500	168,500	175,500	156,800	170,300
Total number of investment units issued	615,250	615,250	615,250	690,000	690,000	690,000	690,000	747,000	747,000	747,000	747,000	747,000	747,000	796,000	796,000	796,000	796,000	796,000	796,000	796,000	796,000	796,000
Non-Financial Information
Number of full-time officers and employees(Note1)	38	35	36	40	40	34	35	38	41	39	40	38	38	39	41	41	42	41	41	40	44	41
Average number of	5.2	5.8	5.7	6.1	6.2	7.1	7.5	6.0	6.2	6.5	6.9	6.11	7.7	7.10	7.11	8.6	8.10	8.10	9.1	9.6	9.6	9.4
	(Note1)
years of employment（Years/Months）
Number of IR meetings (Japan and overseas）	ー	ー	ー	ー	ー	ー	122	154	147	106	126	116	169	129	148	149	133	54	114	90	105	101
	(Note 2)

Who We Are

Growth Strategy

Sustainability

Data Section

• Gains and losses on the sale of the Aeon Hara Shopping Center and Aqualia Kego, which were transferred in the 25th fiscal period, were handled in the following manner due to differing tax and accounting standards.
  1）An amount equivalent to impairment losses on the Aeon Hara Shopping Center booked in the profit and loss statement in the 24th fiscal period was booked as an allowance for a temporary difference adjustment on the statement concerning the allotment of funds for the 25th fiscal period.
  2）Gains on the sale of Aqualia Kego were recorded on the profit and loss statement for the 25th fiscal period.
  3）The return of allowances for a temporary difference adjustment was booked on the statement concerning the allotment of funds for the 25th fiscal period.
• Dividend per unit is calculated as follows.
  24th fiscal period: [Net profit] + [Reserve for temporary difference adjustment] - [Earnings carried forward to the next period]
  25th fiscal period: [Net profit] - [Return of reserve for temporary difference adjustment] - [Earnings carried forward to the next period]
• The investment corporation undertook a five-for-one split effective March 1, 2014. Dividend and NAV per unit up to the 19th fiscal period have been retroactively adjusted to reflect this split.
• The number of IR meetings in Japan and abroad shows the total number of IR meetings, based on the dates on which they were held, with institutional investors and analysts through interviews and telephone conferences generally

regarding the results for the previous period.

Note 1: Data are for the asset management company.

Note 2: The number of IR meetings convened in Japan and abroad from the 15th to 20th fiscal periods is not recorded, as records do not exist for these periods.

44

Glossary BPS

An abbreviation of Book Value per Share. This shows net assets per unit and is viewed as an indicator for stability.

[Calculation method] BPS: Net assets / Total number of units issued

EPS

An abbreviation of Earnings per Share. This shows net profit per unit and is viewed as an indicator of a company's ability to generate earnings. [Calculation method] EPS: Net profit / Total number of units issued

FFO

An abbreviation of Funds from Operations. This shows how much cash flow is generated from rental income. The larger the FFO per unit, the greater the company's profitability.

[Calculation method] FFO: Net profit + Depreciation and amortization expenses + Impairment loss - Gains/losses from the sale of real estate

FFO per unit: FFO / Total number of units issued

Fukuoka REIT Corporation 2022

45