Profile Profile. Investment Unit Price. Financial Highlight. Portfolio Summary. Dividend Information

(1)

(2)

2

■

Name

491,000 yen (as of February 28, 2010)

107,050 units

580,352 yen (as of February 28, 2010)

646,598 yen (as of February 28, 2010)

362,235.82

㎡

99.1

％

Profile

■

Asset Manager

■

Dividend Information

■

The 11th Fiscal Period End

February 28, 2010

_{(semi-annual periods ending every February and August)}

■

Dividend (actual)

17,397 yen per unit

■

Asset Management Period

181 days

■

Dividend Yield

7.1

｛(Dividend / Days in fiscal period ％ ×365) / Unit Price｝

Investment Unit Price

■

Unit Price

■

Outstanding Unit

■

Market Capitalization

■

Historical High

■

Historical Low

■

Net Asset Value Per Share

■

Market Net Asset Value Per Share

52.5billion

yen

(unit price ×outstanding units as of February 28, 2010)

1,300,000 yen (February 26, 2007)

297,000 yen (November 20, 2008)

Market Net Asset Value Per Share = {(Total Appraisal Value at the end of period based on appraisal reports-Total Book Value at the end of period based on Balance Sheet) +Net Asset at the end of period}/ Outstanding Units as of the end of period

Portfolio Summary

■

Asset Type

（

based on acquisition price

）

■

Asset Location

（

based on acquisition price

）

Retail

61.7

％

35.7

％

Office

Others 2.6

％ Fukuoka Metropolitan Area

70.2

％

29.8

％

Other Kyushu Area

■

Total Leasable Space at End of Period

■

Occupancy Rate at End of period

Figures have been calculated based on owned properties (except senior anonymous partnership (TK:Tokumei Kumiai in Japanese) equity interest) as of February 28, 2010. Figures of Rentable Area and Occupancy Rate are calculated as of February 28, 2010

Fukuoka Jisho,Kyushu Electric Power,

Royal Holdings,The Bank of Fukuoka,

The Nishi-Nippon City Bank,

Nishi-Nippon Railroad, Saibu Gas,

Kyudenko, Kyushu Railway,

Development Bank of Japan Inc.

Profile

Fukuoka Realty Co., Ltd

Licensed by

(3)

3

Regarding rounding of amounts, percentages, and ratios : unless otherwise noted, in these materials, monetary amounts are rounded down to the nearest whole unit, and percentages and ratios are rounded off to two decimal places.

7th fiscal

period

Sep 1, 2007∼ Feb 29, 2008

99.4

％

350,382.95

㎡

381

15

184

days

62,231

125,954

107,050

18,373

yen

1,966

1,968

2,441

847

3,596

5,483

8th fiscal

period

Mar 1, 2008∼ Aug 31, 2008

99.2

％

348,496.42

㎡

404

15

181

days

62,196

125,222

107,050

18,049

yen

1,932

1,933

2,405

864

3,597

5,466

9th fiscal

period

Sep 1, 2008∼ Feb 28, 2009

98.8

％

362,206.45

㎡

439

16

184

days

62,124

130,836

107,050

17,377

yen

1,860

1,861

2,371

950

3,656

5,621

10th fiscal

period

Mar 1, 2009∼ Aug 31, 2009

17,397

yen

Dividend per unit

（1）

107,050

Investment units outstanding

(at period-end) (units)

954

Depreciation

445

16

181

days

130,705

1,862

1,863

2,408

3,698

5,640

11th fiscal

period

Sep 1, 2009∼ Feb 28, 2010

Total assets(at period-end)

(unit: mm yen)

Net Assets(at period-end)

(unit: mm yen)

Operating income

Ordinary income

Net income

Occupancy rate

(at period-end) (*4)

Total leasable space

(at period-end)

Property’s NOI

(

*

1)

Number of properties owned

Number of tenants

Days in fiscal period

Operating revenues

Category

（①）（②）

Achieved growth in revenues and income compared with the previous fiscal period.

Financial highlights

Financial Statements

(*1) “Property NOI” =”Rent revenue-real estate” – “Leasing business expenditure” + “Depreciation”

(*2) The number of properties owned does not include the senior anonymous partnership equity interest. (*3) The number of tenants shown is based on the total for

properties FRC owns. As for the number of tenants in pass-through master leasing properties, the total number of sections stipulated in the tenancy agreements with end tenants is shown.

(*4) “Occupancy rate” = “Total leased space at period-end”÷ ”Total leasable space at period-end”

（unit: mm yen）

(7)

7

-100 100

Lease and guarantee deposits in trust

Investments and other assets

-3,421 3,421 Investments securities -10 10 Lease and guarantee deposits

(39) 273

312 Long-term prepaid expenses

(39) 3,804

3,844

Total investments and other assets

(130) 130,705 130,836 Total assets (853) 123,290 124,144 Total noncurrent assets

(19) 411

430

Tools, furniture and fixtures in trust, net

-68,810 68,810 Land in trust (813) 117,720 118,534

Total property, plant and equipment

Intangible assets

-1,765

1,765 Leasehold rights in trust

-1,765

1,765 Total intangible assets

1,002 2,910

1,908 Cash and deposits

(14) 3,966

3,980 Cash and deposits in trust

(50) 367

418 Operating accounts receivable

(62) 138 200 Prepaid expenses (151) -151 Consumption taxes receivable

0 0

0 Deferred tax assets

0 31 31 Other 723 7,414 6,691 Total current assets

Noncurrent assets

(6) 250

256

Machinery and equipment in trust, net

(26) 650

677 Structures in trust, net

(761) 47,598

48,359 Building in trust, net

Property, plant and equipment

Current assets Assets Variation

11th

10th

11th

Variation Liabilities Current liabilities

Operating account payable 270 431 160

Tenant leasehold and security

deposits in trust 9,075 8,941 (133) Net assets Shareholder’s equity Shareholder’s capital 60,264 60,264 -Surplus Unappropriated surplus (undisposed loss) 1,860 1,862 2 Total surplus 1,860 1,862 2 Total shareholder’s equity 62,124 62,126 2 Total net assets 62,124 62,126 2 Total liabilities and net assets 130,836 130,705 (130) Total noncurrent liabilities 52,756 51,647 (1,108) Total liabilities 68,711 68,578 (132)

Short-term debt 3,800 3,200 (600)

Current maturities of long-term

debt 10,150 11,650 1,500

Account payable-other 19 22 3

Accrued expenses 266 267 1

Income taxes payable 0 0 0

Accrued consumption taxes - 168 168

Advances received 672 653 (18)

Deposits received 775 535 (239)

Noncurrent liabilities

Long-term debt payable 43,350 42,375 (975)

Tenant leasehold and security

deposits 331 331 0

Total current liabilities 15,955 16,931 976

③ ⑧ ⑦ ⑥ ⑤ ④ ② ①

Balance sheets

(

comparison with previous fiscal period

)

Financial Statements

（unit: mm yen）

(8)

8

35

549

514

Total non-operating expenses

0

4

3

Total non-operating income

(17)

3,232

3,249

Total operating expenses

19

5,640

5,621

Total operating revenues

0

1

Total Income taxes

-136

136

Anonymous partnership distribution

0

185

Other rental revenue-real estate

32

472

439

Interest payment

2

1,863

1,861

Net income before tax

2

(0)

2

(0)

0

2

10

(8)

1

(1)

36

(3)

-3

0

1

(18)

18

Variation

（B−A）

(0)

Income taxes-deferred

1,862

1,860

Unappropriated retained earnings

0

Retained earnings brought forward

1,862

1,860

Net income

1

Income taxes-current

1,863

1,861

Ordinary income

76

65

Financing related expenses

-8

Amortization of investment unit issuance expenses

Non-operating expenses

2

0

Other

1

2

Interest received

Non-operating revenues

2,408

2,371

Operating income

66

69

Other operating expenses

9

Director’s compensations

38

34

Administrative service fees

11

Asset custody fee

345

344

Asset management fee

2,761

2,780

Expenses related to rent business

Operating expenses

5,318

5,300

Rental revenue-real estate

Operating revenues

11th

（B） Sep 1, 2009∼ Feb 28, 2010

10th

（A） Mar 1, 2009∼ Aug 31, 2009

Full-period contribution from Higashi Hie Business Center acquired in the 10th fiscal period.

①

②

③ ④

Income statements

（

）

（unit: mm yen）

(9)

9

Operating revenues

5,318

Rental revenues

185

Other rental revenues

136

Anonymous partnership distribution

48

5,640

5,592

Total operating revenues

Operating expenses

2,761

Expenses related to rent business

345

Asset management fee

11

Asset custody fee

38

Administrative service fees

9

Director’s compensations

66

Other operating expenses

(24)

3,232

3,256

Total operating expenses

72

2,408

2,335

Operating income

Non-operating income

1

Interest income

2

Other

(1)

4

5

Total non-operating income

Non-operating expenses

472

Interest expenses

76

Financing related expenses

(13)

549

562

Total non-operating expense

84

1,863

1,778

Ordinary income

84

1,863

1,778

(0)

1

Total Income taxes

85

Variation

（B−A）

1,862

1,777

Net income

11th

(B) Sep 1, 2009∼ Feb 28, 2010

Budget

(A)

revenues growth driven by strong cinema box office receipts.

③ ② ①

Income statements

（

comparison with forecast

）

（unit: mm yen）

(10)

10

100

-(100)

Payments of lease and guarantee deposits in trust

0

-0 Repayments of tenant leasehold and security deposits

(311) 0

331 Proceeds from tenant leasehold and security deposits

1,765

-(1,765) Purchase of intangible assets in trust

6,877 5,889 988 (1,928) (1,853) (75) 600 (19,800) 19,200 (233) (211) 77 (100) 3,150 27 (28) (472) 1 3,622 0 39 62 (240) (18) 1 (3) 120 168 151 50 472 (1) -954 1,863

11th

(181days) (B) Sep 1, 2009∼ Feb 28, 2010 988 (160) 1,148 (5,396) 78 11,925 (14,400) 8,200 (11,200) 5,732 41 (25) 4,182 811 (1) 0 26 (1) 787 (1) 256 140 (522) (88) 0 (5) 209 279 303 184 32 1 (8) 3 2

Variation

(B-A)

5,889 6,049 (160) 3,467 (1,932) (12,000) 15,000 (28,000) 30,400 (5,966) (253) 103 (4,283) 2,338 28 (28) (499) 2 2,835 2 (217) (78) 282 69 2 2 (89) (110) (151) (133) 439 (2) 8 950 1,861

10th

(184days) (A) Mar 1, 2009∼ Aug 31, 2009

Cash and cash deposits at end of period Cash and cash deposits at beginning of period Net increase (decrease) in cash and cash deposits

Net cash provided by (used in) financing cash flow

Dividends paid

Repayment of long-term debt payable Proceed from long-term debt payable Decrease in short-term debt payable Increase in short-term debt payable

Net cash provided by (used in) financing activities

Net cash provided by (used in) investment activities

Repayments of tenant leasehold and security deposits in trust Proceeds from tenant leasehold and security deposits in trust Purchase of property, plant and equipment in trust

Net cash provided by (used in) investment activities

Net cash provided by (used in) operating activities

Income taxes refund Income taxes paid Interest payment Interest received

Subtotal Other, Net

Decrease (increase) in long-term prepaid expense Decrease (increase) in prepaid expenses Increase (decrease) in deposits expenses Increase (decrease) in advances received Increase (decrease) in accrued expenses Increase (decrease) in account payable-other Increase (decrease) in operating accounts payable Increase (decrease) in accrued consumption taxes Decrease (increase) in consumption taxes refund receivable Decrease (increase) in operating accounts receivable Interest payment

Interest received

Amortization of investment unit issuance expenses Depreciation expenses

Net cash provided by (used in) operating activities

Category

①

④

③

②

Cashflow statements

（

）

（unit: mm yen）

(11)

11

100.0

％

2.6

％

35.7

％

16.8

％

44.9

％

Investment share

(based on acquisition price)

99.0

％

91.0

％

95.2

％

100.0

％

100.0

％

11th fiscal period

Sep 1, 2009∼ Feb 28,2010

99.0

％

99.1

％

99.3

％

99.2

％

Total

90.0

％

94.0

％

84.8

％

81.2

％

Others

96.6

％

97.3

％

98.3

％

98.0

％

Office

100.0

％

100.0

％

100.0

％

100.0

％

Passive Retail

100.0

％

99.6

％

99.9

％

99.8

％

Active Retail

10th fiscal period

Mar 1, 2009∼ Aug 31, 2009

9th fiscal period

Sep 1, 2008∼ Feb 28, 2009

8th fiscal period

Mar 1, 2008∼ Aug 31, 2008

7th fiscal period

Sep 1, 2007∼ Feb 29, 2008

Category

■

Occupancy rates

Historical chart of occupancy rates

＊calculated by weighted average

Active Retail = properties with variable rents such as Canal City Hakata, Park Place Oita, and SunLiveCity Kokura.

(12)

12

-6.1％ 6.2％ -5.7％ 5.8％ -6.4％ 6.1％ 5.6％ 5.6％ 5.6％ -6.3％ 6.4％ 6.4％ 7.5％ 6.9％ 7.1％ 6.4％ 6.4％ 5.4％ 6.1％ 5.7％ 5.2％ 5.4％ 5.3％ -5.7％ 6.1％ 6.1％ 6.0％ 6.4％ 6.6％ 5.9％ 5.9％ 5.2％ Periodical Cap Rate Discount rate Appraisal value 127,014 2,684 994 1,690 45,640 5,950 6,680 4,910 12,800 15,300 78,690 3,370 2,480 1,140 5,180 2,390 4,950 7,380 17,700 34,100

Latest appraisal value by the DCF method (*2) -0 (510) -131,240

-Japan Real Estate Institute

0 0 5.9％ 6,770 5.9％ 6,770 6,730 6,821 7,000

Taihaku Street Business Center

Office 131,750 CR factor （*4） CF factor （*3） -5.9％ 6.0％ -6.1％ 5.4％ 5.3％ 5.3％ -6.0％ 6.1％ 6.1％ 7.2％ 6.6％ 6.9％ 6.6％ 6.3％ 5.1％ Cap Rate Direct capitalization values Cap Rate Direct capitalization values 2,800 1,010 1,790 47,250 5,800 4,980 13,300 16,400 81,700 3,400 2,570 1,180 5,220 2,450 4,970 7,410 18,200 36,300 10th fiscal period-end -5.9％ 6.0％ -6.1％ 5.4％ 5.3％ 5.3％ -6.0％ 6.1％ 6.1％ 7.2％ 6.6％ 6.9％ 6.6％ 6.3％ 5.1％ 2,750 1,010 1,740 47,050 5,800 4,980 13,200 16,300 81,440 3,400 2,570 1,180 5,220 2,450 4,980 7,440 18,000 36,200 11th fiscal period-end (50) 0 (50) (200) 0 0 (100) (100) (260) 0 0 0 0 0 10 30 (200) (100) Difference factor

Tanizawa Sogo Appraisal

0 12,900

10,489 11,200

Gofukumachi Business Center

128,440 119,486 120,894 Total properties -0 2,710 3,133 3,171 Total of others

Daiwa Real Estate Appraisal

0 1,000

1,119 1,111

City House Keyaki Dori

Daiwa Real Estate Appraisal

0 1,710

2,014 2,060

Amex Akasakamon Tower

Others -0 46,090 41,695 43,100

Total of office buildings

0 5,910

5,793 5,900

Higashi Hie Business Center

Japan Real Estate Institute

0 4,950

4,392 4,400

Sanix Hakata Building

0 15,600

14,198 14,600

Canal City Business Center Building

-0

79,640 74,657

74,623

Total of retail properties

0 3,380

3,531 3,550

K’s Denki Kagoshima

0 2,510

2,449 2,500

Kurume Higashi Kushiwara SC

0 1,150

1,113 1,130

Hanahata SC

0 5,200

5,524 5,410

Hara SATY

0 2,420

2,302 2,400

Kumamoto Intercommunity SC

0 4,970

5,042 5,300

Square Mall Kagoshima Usuki

0 7,410

6,349 6,633

SunLiveCity Kokura

0 17,900

16,833 15,700

Park Place Oita

0 34,700

31,510 32,000

Canal City Hakata

Ret a il Appraisal company Latest appraisal Value Amount recognized in balance sheet at end of period Acquisition Price （*1） Property name

Appraisal Value

（unit: mm yen）

*The figures are rounded down to the million yen.

（*1） “Acquisition price” do not include fees, public charges and expenses.

（*2） Latest appraisal values by the DCF method are based on the DCF method recorded in appraisal reports for each owned property as of February 28, 2010.

（*3） The figures are obtained by dividing net income used for calculation of direct capitalization values at the end of 11th fiscal period by the direct capitalization yield at the end of 10th fiscal period, and deducting the quotient from the direct capitalization value at the end of 10th fiscal period.

（*4） The figures are obtained by deducting the figure calculated in the above from the difference in the direct capitalization values between at the end of 11 fiscal period and at the end of 10th fiscal period.

(13)

(14)

14

■第

12

期、第

13

期予想

11th fiscal period

Results

（

2

）

10th

Variation

(3-1)

11th

Variation

(3-2)

11th

Variation

(4-2)

12th

Forecast

(4-3)

(20)

(24)

(19)

(4)

-5

(10)

32

(52)

(2)

19

(74)

5,640

5,619

5,595

3,232

3,264

3,245

2,350

2

574

1,777

1,776

2,408

2,355

4

2

549

568

1,863

1,788

1,862

1,787

13th fiscal period

Forecast

（

4

）

Operating revenues

Operating expenses

Operating income

Non-Operating income

Non-operating expenses

Ordinary income

Net income

12th fiscal period

Forecast

（

3

）

(1)

(44)

14

12

3,249

(16)

(57)

2,371

(1)

(2)

3

54

25

(72)

(85)

(72)

(85)

1,860

1,861

514

5,621

10th fiscal period

Results

（

1

）

Business Forecast

Business forecast

(15)

15

2nd fiscal

period

3rd fiscal

period

4th fiscal

period

5th fiscal

period

6th fiscal

period

7th fiscal

period

8th fiscal

period

9th fiscal

period

10th fiscal

period

11th fiscal

period

12th fiscal

period

13th fiscal

period

Dividend results

19,014

18,438

18,632

17,341

18,360

18,499

18,373

18,049

17,377

17,397

Dividend forecast

(latest fiscal period)

18,116

16,700

18,200

17,000

17,600

17,700

17,800

16,700

16,600

16,700

Dividend forecast

(2 fiscal years prior

）

−

17,600

17,000

17,200

17,400

17,000

16,500

16,700

16,600

History of dividends

Dividend payout exceeded latest forecast again in 11th fiscal period

(unit: yen)

(16)

(17)

17

Key financing events in 11th fiscal period

Continued progress toward building a stable financial structure

(18)

18

Breakdown of borrowings

Financial stability attained through business relationships with diverse range of financial institutions

(19)

19

1.54457％(*2)

Lump sum upon maturity

September 28, 2012 September 30,2009

600,000,000

The Sumitomo Trust and Banking

No collateral No guarantee

0.91273％(*1)（*6）

December 30, 2010 June 30,2008

1,500,000,000

The Bank of Fukuoka Long-term debt payable due with in year Long-term Debt No collateral No guarantee No collateral No guarantee Description

Lump sum upon maturity Lump sum upon maturity Lump sum upon maturity

Committed credit line

3,200,000,000 Subtotal

0.60545％(*8) Lump sum upon maturity

March 31,2010 February26 ,2010

1,600,000,000

The Nishi-Nippon City Bank (*5)

March 31,2010 February26 ,2010

1,600,000,000

The Bank of Fukuoka, Resona Bank, Kumamoto Family Bank and Shinwa Bank(*4)

57,225,000,000 Total 42,525,000,000 Subtotal 2.17000％(*2) August 31, 2016 August 31, 2009 4,000,000,000

1.95000％(*2)

August 31, 2015 August 31, 2009

4,000,000,000

1.71000％(*2)

August 29, 2014 August 31, 2009

4,000,000,000

2.20000％(*2) Repayment instalment(*7）

June 30, 2017 June 30, 2009

2,925,000,000

September 28, 2012 October 7, 2008

2,000,000,000

Resona Bank

0.96273％(*1)（*6）

December 30, 2011 June 30, 2008

1,500,000,000

The Bank of Fukuoka

0.96273％(*1)（*6）

June 28, 2013 June 30, 2008

1,000,000,000

Aozora Bank

0.96273％(*1)（*6）

June 29, 2012 June 23, 2008

6,000,000,000

The Bank of Fukuoka, The Nishi-Nippon City Bank, Oita Bank, The Miyazaki Bank, Shinwa Bank, The Iyo Bank, The Bank of Saga, The Eighteenth Bank, Yamaguchi Bank

February 28, 2013 February 29, 2008

1,000,000,000

Aozora Bank

2,000,000,000

Mitsubishi UFJ Trust and Banking

2,000,000,000

Mizuho Corporate Bank

2,000,000,000

2,500,000,000

The Nishi-Nippon City Bank

July 29, 2011 September 29, 2006

1,000,000,000

July 29, 2011 August 25, 2006

1,000,000,000

Shinsei Bank

July 29, 2011 August 25, 2006

1,000,000,000

The Dai-ichi Mutual Life Insurance

July 29, 2011 August 25, 2006

2,000,000,000

The Nishi-Nippon City Bank

July 29, 2011 August 25, 2006

2,000,000,000

The Bank of Fukuoka

11,500,000,000

Subtotal

July 30, 2010 August 25, 2006

10,000,000,000

Mizuho Corporate Bank, The Norinchukin Bank, Shinkin Central Bank, The Hiroshima Bank, The Iyo Bank, The Bank of Saga, Yamaguchi Bank, Higo Bank, Shinwa Bank

Annual Interest Payment Method Repayment Maturity Borrowing Date Amount (JPY) Lender Type Commitment Period

Type Lender Credit Limit (JPY) Description

Committed credit line 1

February 28, 2010 March 1, 2010 February 28, 2011

No collateral No guarantee Committed credit line 2

Start End

July 31, 2010 The Bank of Fukuoka, Resona Bank, Kumamoto Family Bank and

Shinwa Bank 5,000,000,000 August 1, 2009 March 1, 2009 The Nishi-Nippon City Bank 5,000,000,000

Total 10,000,000,000

(*1)It is floating interest. (*2)It is fixed interest.

(*3) A swap agreement has been concluded to fix the interest rate on variable interest debt and the indicated interest rate is the rate when the swap agreement is incorporated.

(*4) The debt under committed credit line agreement1. (*5) The debt under committed credit line agreement2.

(*6) Interest Period is from December 30, 2009 to March 31, 2010.(not including the concerned date) (*7) 75 million yen at end-December and end-June (5% of initial principal annually); remaining balance of

1,875 million yen to be repaid on final principal repayment date.

(*8) Interest Period is from February 26, 2010 to March 31, 2010.(not including the concerned date)

List of borrowings

Maintain relationship with prime financial institutions

(As of February 28, 2010)

■Status of Forming of Committed credit line

(20)

(21)

21

Active Retail

(

NOI, Sales

)

Sales growth driven largely by hit movies

(22)

22

Passive Retail

(

NOI

)

Actualized stable operating revenues by well-managed properties with long-term leases

(23)

23

Strategy of Retail

(24)

24

上位テナントの業績を今後も注視

Strategy of Retail

(25)

(26)

26

Historical and projected office building occupancy rates

Strategy of Office

(27)

27

Office vacancy rates and rents

(28)

28

Analysis of vacancy rates in city of Fukuoka

(

past 3 years

)

Strategy of Office

(29)

29

Domestic office building completions by city

Fukuoka’s office building construction boom ended in 2009

(30)

30

Variation in demand and supply

(31)

31

Strategy of Office

New office space supply trends

(1)

Hakata, Gion, and Gofukumachi areas

New office supply in Fukuoka

(32)

32

New office space supply trends

(2)

Tenjin and Yakuin areas

(33)

(34)

34

Growth Strategy

Investment strategy adapted to real estate market conditions

(35)

35

CCH Bridge Limited Company

(

YK: Yugen Kaisha in Japanese

)

deal

Additional acquisition 3,000 million yen of senior anonymous partnership equity interest

(36)

36

Overview of Canal City Hakata

(

including the office building

)

(37)

37

Investment stance

(38)

(39)

39

60-90

%

10-30

%

0-10

%

0-20

%

20-40

%

60-80

%

50

%

10

%

5

%

5

%

5

%

5

%

5

%

5

%

5

%

5

%

Office buildings

A real estate investment trust specializing in regional properties

Appendix

■

Fukuoka

Jisho

（*1）

Fukuoka Realty

(Asset Manager)

Kyushu

Electric Power

（*２）

Royal

Holdings

Nishi-Nippon

Railroad

Kyudenko

Kyushu Railway

(JR Kyushu)

(*1)Concluded MOU with FRC concerning pipeline support.

(*2)Concluded with FRC concerning provision of property information on owned real-estate assets.

■

Investment Policy

◎Investment Area

Fukuoka Metropolitan Area

Other Kyushu areas

(including Okinawa and Yamaguchi Prefectures)

Others

◎Investment Type

Others

Hotel, residence, logistics, public and other facilities

Office buildings class A

Retail properties

Urban, regional and community shopping centers Outside

(40)

40

Portfolio map

(41)

41

8.0% Dividend of Anonymous partnership

Others

Total of others

− 3,171 2.6% 2,710 − − − − − − − − − − − − − − 46,090 35.7％ 43,100 −

Total of office buildings

− − − − − − − 796,640 61.7 74,623 −

Total of retail properties

BON REPAS and Matsumotokiyoshi 2 100.0％ 2,801.15 Sponsor Sep 3,2007 6.1％ 1,150 0.9％ 1,130 2yr 7m

Hanahata SC

− 65 98.8％ 4,755.14 External Sep 1,2006 6.0％ 1,710 1.7％ 2,060 4yr 7m

− 42 100.0％ 2,710.86 External Dec 20,2007 5.9％ 1,000 0.9％ 1,111 2yr 3m

TOTO and Bell System24 53 93.4％ 23,040.18 Sponsor Nov 9,2004 5.3％ 15,600 12.1％ 14,600 13yr10m

Canal City Business Center Building

Office buildings

Sanyo Shinpan Finance and NTT West Japan-Kyushu 20 93.9％ 19,906.22 Sponsor Nov 9,2004 5.3％ 12,900 9.3％ 11,200 6yr 4m

SANIX ane Idemitsu Kosan 14 100.0％ 6,293.76 External Sep 30,2005 5.4％ 4,950 3.6％ 4,400 8yr10m

Sanix Hakata Building

NTT COMWARE and Tokyo Marine & Nichido Jimu Outsourcing

67 98.3％ 14,653.95 Sponsor Mar 16,2006 5.9％ 6,730 5.8％ 7,000 7yr11m

Taihaku Street Business Center

Fujitsu and Forest Holdings 15 100.0％ 13,695.51 External + Sponsor Mar 13,2009 6.1％ 5,910 4.9％ 5,900 1yr 0m

February 27, 2006 Acquisition Timing 100.0％ 2.9％ 2.1％ 4.5％ 2.0％ 4.4％ 5.5％ 13.0％ 26.5％ Investment ratio 99.1％ 100.0％ 100.0％ 100.0％ 100.0％ 100.0％ 100.0％ 100.0％ 99.5％ Occupancy rate at end of period 362,235.82 7,296.17 6,467.80 27,580.75 6,968.66 14,661.72 61,450.22 103,963.39 45,990.34 Total leasable space at end of period（㎡） 128,440 3,380 2,510 5,200 2,420 4,970 7,410 17,900 34,700 Latest Appraisal Value (mm yen) 5.7％ 6.0％ 6.1％ 7.2％ 6.6％ 6.9％ 6.6％ 6.3％ 5.1％ Appraisal cap Rate (NCF basis) （*３） 3,400 Senior anonymous partnership interest of CCH Bridge

LLC K’s Denki 1 External Mar 27,2008 3,550 2yr 3m

K’s Denki Kagoshima

− 445 − − 120,894 10yr0m

Total or weighted average of all properties (*5)

Acquisition cost

(mm yen)

Issue

124,294

Total of portfolio (mm yen)

Sports Depo/Golf5 1 Sponsor Feb 1,2008 2,500 2yr 2m

SATY 1 Sponsor Mar 1,2007 5,410 33yr4m

Hara SATY

Sports Depo/Golf5 and Star bucks Coffee 2 Sponsor Nov 30,2006 2,400 3yr 3m

Sports Depo/Golf5 and Best Denki 11 Sponsor Sep 28,2006 5,300 3yr 5m

Square Mall Kagoshima Usuki

Sunlive 1 External July 1,2005 6,633 4yr11m

SunLiveCity Kokura

JUSCO and K’s Denki 101

Sponsor

Nov 9,2004 15,700

7yr11m

Park Place Oita

Washington Hotel and United Cinema Canal City13 49

Sponsor

Nov 9,2004 32,000

13yr10m

Canal City Hakata

Retail Properti

es

Primary tenants at end of period Number of tenants at end of period Source （*4） Acquisition Timing Acquisition Price (mm yen) （*2） Age （*1） Property Name

Portfolio table

Appendix

"Age" as of the end of the fiscal period.

Acquisition costs do not include fees, public charges and expenses.

"Appraisal CAP rate (NCF basis)" are calculated under the direct capitalization method in the appraisal at the end of period as of the end of period.

Properties acquire through arrangement by a sponsor company are indicate with "sponsor" in the column of seller.

“occupancy rate” is obtain by divided the total lease area by the total leases as of the end of the fiscal periods. (*1) (*2) (*3) (*4) (*5) (As of February 28, 2010)

(42)

42

(4)

54

49

-26

23

Utilities expense

44

(4)

0day

181days

(3days)

11th

(Sep 1, 2009 to Feb 28, 2010)

40

Variation

（Ａ−Ｃ）

2

402

405

45

168

190

④

Depreciation

(11)

1,275

1,263

195

341

726

⑤

Leasing business profit

（＝③−④）

67

6.2%

1,677

33

16

196

-28

621

949

46

2,581

2,627

184days

10th Total

(

Ｂ

)

3

(0.1%)

(9)

8

(0)

-17

(20)

0

8

(17)

(8)

Variation

（Ａ−Ｂ）

1,624

954

2,578

Budget

(

Ｃ

)

71

6.1%

1,668

42

15

196

-45

600

950

54

2,564

2,618

181days

11th Total

(

Ａ

)

-7.3%

241

0

2

36

-2

8

51

-292

292

181days

Sunlive City

Kokura

37

6.5%

509

24

6

86

-32

292

468

28

949

978

181days

Park Place

Oita

33

5.7%

917

17

7

73

-10

298

430

25

1,322

1,348

181days

Canal City

Hakata

Expenses for restoration to former state

⑥

NOI yield

⑦

Capital expenditures

③

NOI

（＝①−②）

Other expenses

(Length)

Insurance premiums and trust

compensation

Tax and public charges

Maintenance expenses

Outsourcing fees

②

Total leasing business expenses

Other rent revenue-real estate

Rent revenue-real estate

①

Total leasing business

Category

Leasing business income and expenditure by properties

(

Active

)

Appendix

(unit: mm yen)

(43)

43

(3)

29

26

-26

Utilities expense

7

0day

181days

(3days)

18

6.3%

488

152

641

7

4

57

-7

52

156

27

770

797

181days

11th Total

(A)

-5.6%

69

30

99

0

8

-1

11

-111

111

181days

K’s Denki

Kagoshima

SC

-6.2%

55

22

78

0

5

-2

10

-88

88

181days

Kurume

Higashi

kushiwara SC

11th

(Sep 1, 2009 to Feb 28, 2010)

(8)

(1)

Variation

（

A

−

C

）

0

151

7

26

18

47

④

Depreciation

(3)

492

27

160

59

115

⑤

（＝③−④）

1

6.6%

644

7

4

57

-0

58

157

32

770

802

184days

10th Total

(B)

16

(0.3%)

(3)

0

(0)

-7

(5)

(1)

(4)

(0)

(4)

Variation

（

A

−

B

）

633

164

798

Budget

(C)

-6.2%

34

0

3

-0

1

5

-40

40

181days

Hanahata SC

11

6.9%

187

0

14

-2

6

24

0

212

181days

Hara SATY

-6.5%

78

1

0

6

-0

2

11

0

89

181days

Kumamoto Inter CommunitySC

6

6.1%

162

2

1

18

-4

37

91

27

227

254

181days

Square Mall

Kagoshima

Usuki

Expenses for restoration

to former state

⑥

NOI yield

⑦

Capital expenditure

③

NOI

（＝①−②）

Other expenses

(Length)

Insurance premiums and

trust compensation

Outsourcing fees

②

expenses

Other rent revenue-real

estate

①

Total Leasing business

Category

(

Passive

)

Appendix

(unit: mm yen)

(44)

44

0

96

97

27

-14

48

6

Utilities expense

8

0.3%

46

0

47

(1)

(0)

1

8

(26)

(7)

36

29

(3days)

Variation

（

A-B

）

38

5.8%

902

361

1,264

53

14

129

-31

366

690

102

1,853

1,955

184days

10th Total

(B)

46

6.1%

949

362

1,311

52

13

129

1

39

339

673

94

1,889

1,984

181days

11th Total

(A)

Variation

（

A-C

）

11th

(Sep 1, 2009 to Feb 28, 2010)

14

(4)

10

0day

78

65

36

94

86

④

Depreciation

147

135

103

240

322

⑤

（＝③−④）

0

7.7%

226

39

2

-0

41

112

26

312

338

181days

Higashi Hie

Business

Center

1,297

677

1,974

181days

Budget

(C)

12

5.8%

201

3

1

26

0

4

59

96

0

297

181days

Taihaku

Street

Business

Center

3

6.3%

139

2

1

17

-1

19

56

12

183

195

181days

Sanix

Hakata

Building

14

6.0%

335

1

3

38

-24

71

188

50

472

523

181days

Gofukumachi Business Center

15

5.6%

408

4

5

46

1

7

147

219

4

624

628

181days

Canal City

Business

Center

Building

to former state

⑥

NOI yield

⑦

Capital expenditure

③

NOI

（＝①−②）

Other expenses

(Length)

Insurance premiums and

trust compensation

Outsourcing fees

②

Total leasing business expenses

Other rent revenue-real estate

①

Total Leasing business

Category

Appendix

(

Office

)

(45)

45

Category

Amex

Akasakamon

Tower

City House

Keyaki Dori

11th Total

(A)

10th Total

(B)

Variation

（

A-B

）

Budget

(C)

Variation

（

A-C

）

11th

(Sep 1, 2009 to Feb 28, 2010)

181days

0day

Utilities expense

0

1

(0)

104

95

8

26

7

1

2

6

0

7

77

34

42

4.9%

4

(1)

(3)

2

184days

100

95

4

30

7

3

6

0

6

69

④

Depreciation

22

12

34

0

⑤

（＝③−④）

22

19

34

7

181days

38

4.3%

0

38

105

3

(0)

4

(3)

(0)

(2)

(1)

(0)

0

7

6

0.6%

30

2

0

-2

0

1

74

3

32

5.8%

-181days

65

56

8

20

5

0

2

3

0

6

45

4.4%

4

(Length)

①

Total leasing business

Other rent revenue-real

estate

②

expenses

Outsourcing fees

other expenses

③

NOI

（＝①−②）

⑥

NOI yield

⑦

Capital expenditures

Insurance premiums and

trust compensation

109

141

2,743

954

3,698

175

35

389

3

93

1,000

1,806

185

5,318

5,504

181days

11th Total

(1)

8

100

31

109

38

2,705

3

950

42

3,656

(7)

182

(0)

35

(0)

389

0

3

29

63

(53)

1,053

(22)

1,829

0

185

18

5,300

19

5,485

(3days)

184days

variation

（

1-2

）

10th total

(2)

68

3,630

(20)

1,826

48

5,456

0day

181days

Variation

（

1-3

）

Budget

(3)

(

Others

) (

Total

)

■

Leasing business income and

expenditure (Others)

■

expenditure (Total)

Leasing business income and

Appendix

(unit: mm yen) (unit: mm yen)

(46)

46

（単位：百万円（未満切捨））

Fiscal period

Property

Purpose

Construction cost

Canal City Hakata

Fire safety upgrade

13

Canal City Hakata

Exterior wall repair

20

Environmental beautification

23

11

・

12th (planned)

Hara SATY

Roof waterproofing

15

Park Place Oita

Environmental beautification

24

Hara SATY

Roof waterproofing

10

11th

Gofukumachi Business Center

Common area renovation

14

Exterior wall painting and recaulking

31

Security system replacement

23

Park Place Oita

Repair and maintenance expenses, capital expenditures, depreciation, and tax and fees

*Table lists construction projects with a budget of 10 million yen or more.

Appendix

（unit: mm yen）

(47)

47

4.0

Fukuoka City

Takenaka Corporation

Institute of New Architecture Inc.

Oct 16,2003

New construction

7.3

Kagoshima City

Daiwa House Industry Co.,Ltd

Futaba Sekkei LLC

Nov 17,2007

New construction

K’s Denki Kagoshima

9.9

Kurume City

Toyo Construction Co., Ltd

Azusa Sekkei Co., Ltd

Dec 3,2007

New construction

6.0

Japan ERI Co., Ltd

Nishimatsu Construction Co., Ltd

July 10,2007

New construction

Hanahata SC

13.2

Fukuoka City

Obayashi Corporation

Pal Corporation

Oct 26,1976

New construction

Hara SATY

16.3

Japan ERI Co., Ltd

Kajima Corporation

Nov 15,2006

New construction

9.6

Kagoshima City

Fujita Corporation

Yamashita Sekkei, Inc.

Sep 19,2006

New construction

Square Mall Kagoshima Usuki

1.3

Japan ERI Co., Ltd

Feb 6,2009

New construction

C) 11.3

4.9

Portfolio

（*1）

A) 14.5

B) 7.6

C) 5.3

D) 11.1

Japan ERI Co., Ltd

Fukuoka City

Japan ERI Co., Ltd

Oita City

Japan ERI Co., Ltd

Fukuoka City

Construction Confirmation Agency

Nov 17,2007

July 26,2005

Mar 7,2002

Mar 31,2001

Apr 15,1996

Mar 17,2005

Mar 26,2002

Apr 17,2002

Apr 28,2004

Apr 9,2007

Apr 15,1996

Completion

Date

1.9

Japan ERI Co., Ltd

Daiho Corporation Kyushu Branch

Planning Office LECS Co., Ltd.

New construction

11.6

Japan ERI Co., Ltd

Tada Corporation Kyushu Branch

Masaki Architect & Associates

New construction

7.5

Fukuoka City

Yamashita Sekkei, Inc.

New construction

Taihaku Street Business Center

4.3

Fukuoka City

Maeda Corporation Kyushu

Branch

Maeda Corporation First Class Architect’s Office

New construction

Sanix Hakata Building

6.9

Fukuoka City

Canal City Hakata New

Construction Zone 2 Construction

Joint Venture, Zenitaka

Corporation

Fukuoka Jisho First Class Architect’s Office, FJ

Urban Development First Class Architect’s Office

New construction

and renovation work

Canal City Business Center

Building

6.7

Japan ERI Co., Ltd

Penta-Ocean Construction Co.,

Ltd.

Matsui and Kono Joint Design Venture

New construction

SunLiveCity Kokura

B) 11.2

Oita City

Japan ERI Co., Ltd

Asanuma Corporation, Fujita

Corporation, Hashimoto

Construction Co., Ltd

Asanuma Corporation Kyushu Branch, First Class

Architect’s Office

Fujita Corporation Kyushu Branch First Class

Architect’s Office

New construction and renovation work

Park Place Oita

A) 8.0

Fukuoka City

Canal City Hakata New

Construction Zone 1 Construction

Joint Venture and Takenaka

Corporation

Fukuoka Jisho First Class Architect’s Office, FJ

Urban Development, Takenaka Corporation and

Zenitaka Corporation Design Consortium

(* 2)

New construction and renovation work

Canal City Hakata

ＰＭＬ

（*3） Construction Confirmation Agency

Contractor

Design Companies

Construction

Name

Property Name

Construction confirmation inspection agencies/PML

Appendix

(*1) Of multiple assumed earthquake scenarios, the portfolio PML values of Fukuoka REIT have been calculated by assuming the central part of Fukuoka City as the earthquake epicenter.

(*2) This consortium is the joint design venture by the designers of each zone.

(*3) Zones A through D of Canal City Hakata are classified by building status surveys. A indicates the Washington Hotel building, and B the amusement building, C the mega store building and D the common areas. Parkplace Oita A and B are classified by building status surveys. B indicates Seven Eleven, A indicates the area other than B.

(48)

48

News about retail properties with variable rents

Hit movies, Park Place Oita wins Japan SC Silver Award

(49)

49

Overview of Canal City Hakata

(50)

50

Fukuoka REIT major investment area

Appendix

(51)

51

Fukuoka's industrial strengths

(

call centers

)

The numbers of call centers are concentrated into Kyushu and Okinawa

(52)

52

Higashi Hie Business Center's appeal

Winner of Fukuoka Prefecture architectural award

(53)

53

Fukuoka - the closet city to East Asia

(54)

54

Fukuoka's infrastructural growth potential

(1)

(55)

55

Fukuoka's infrastructural growth potential

(2)

(56)

56

Proactive approach to IR

IR activities

(57)

57

Asset management company’s organization

(58)

58

Unitholder data

(59)

59

Unit price chart

(60)

60

Property overview

(1/10)

(61)

61

Appendix

(62)

62

Appendix

(63)

63

Appendix

(64)

64

Appendix

(65)

65

Appendix

(66)

66

Appendix

(67)

67

Appendix

(68)

68

Appendix

(69)

69

Appendix

(70)

70

Disclaimer

Profile Profile. Investment Unit Price. Financial Highlight. Portfolio Summary. Dividend Information

491,000 yen (as of February 28, 2010)

Dividend Information

Market Net Asset Value Per Share

based on acquisition price

Royal Holdings,The Bank of Fukuoka,

Contents

7th fiscal

Net income

Financial Statements

Investments and other assets

Noncurrent assets

Noncurrent liabilities

Balance sheets

0

0

0

Interest payment

0

0

0

0

0

Other

Operating revenues

Total operating revenues

Non-operating expenses

comparison with forecast

Category

Occupancy rates

Appraisal Value

期、第

Forecast

Dividend results

Financial stability attained through business relationships with diverse range of financial institutions

3,200,000,000 Subtotal

Subtotal

Type Lender Credit Limit (JPY) Description

List of borrowings

Strategy of Retail

Analysis of vacancy rates in city of Fukuoka

New office supply in Fukuoka

Overview of Canal City Hakata

Fukuoka

Investment Policy

Portfolio map

Canal City Business Center Building

Taihaku Street Business Center

K’s Denki Kagoshima

Acquisition cost

Issue

Square Mall Kagoshima Usuki

Portfolio table

Utilities expense

0

0

Capital expenditures

Category

0

0

0

0

0

0

0

0

Hanahata SC

0

0

0

0

0

Outsourcing fees

0

0

11th Total

0

0

0

to former state