1.Financial Policy
Fukuoka REIT dedicates itself to efficiently managing assets including the debt of capital from qualified institutional investors or issuing of investment corporation bonds for the objective of obtaining capital to acquire assets, conduct construction work on for-rent real estate and repay debt. However, the combined total of borrowings and investment corporation bonds shall not surpass a ceiling of 1 trillion yen.As a financial policy, Fukuoka REIT shall strive to minimize cost increases brought on by hikes in interest rates by obtaining capital primarily through long-term fixed interest loans and by conservatively managing the portfolio with a conservative LTV or low borrowing rate. Additionally, Fukuoka REIT will strive to maximize increases in earnings through the strong economy by increasing rent revenue using sales-linked rents and through external growth at appropriate prices by effectively utilizing the sponsor pipeline. These measures will be used to hedge against the risk of rising interest rates.
2.Financial Strategy
Fukuoka REIT is committed to stabilizing the procurement of capital in the medium to long term by taking out long-term fixed interest loans, entering into loans with a long-term maturity with no collateral and diversifying lenders.- Maintaining a ceiling on the ratio of interest-bearing debt
The ratio of interest-bearing debt (the ratio of the sum total of borrowings and investment corporation bonds to total assets), or LV, is managed as a rule with a ceiling of 60%. Fukuoka REIT is committed to stable finances through management of the LTV within a sound range. - Converting interest-bearing debt into long-term and fixed debt
Fukuoka REIT is committed to stabilizing the cost of raising capital through loans and other means by lengthening the procurement period and pursuing fixed interest rates on raised capital. - Spreading out maturities of interest-bearing debt
Fukuoka REIT will continue to spread out the maturities of interest-bearing debt to reduce the refinancing risk upon maturity of the different debt instruments. - Raising capital with no collateral
Fukuoka REIT as a rule will not procure funds that are secured by capital (only financing with no collateral). - Expanding methods and sources for raising capital
Fukuoka REIT intends to expand the financial institutions it deals with when raising capital. Presently capital is borrowed from the Development Bank of Japan, mega banks, and regional banks primarily in Kyushu, but effort will be devoted to initiating transactions with other financial institutions. Currently capital is borrowed only from the financial institutions, but Fukuoka REIT's expansion of capital-raising methods and sources includes the possibility of floating investment corporation bonds.
3.Debt
| Type | Lender | Amount (mm yen) |
Borrowing Date |
Repayment Date |
Repayment Method |
Annual Interest |
Interest | Description |
| Short-term debt |
- | - | - | - | - | - | - | - |
| Subtotal | 0 | |||||||
| Long-term debt scheduled to be re-paid within one year |
The Bank of Fukuoka |
1,500 | June 30, 2008 |
December 30, 2010 |
Lump sum upon maturity |
0.84000% （※2） |
Floating | No collateral No guarantee |
| The Bank of Fukuoka |
2,000 | August 25, 2006 |
July 29, 2011 |
Lump sum upon maturity |
2.05174% | Fixed | ||
| Nishi-Nippon City Bank |
2,000 | August 25, 2006 |
July 29, 2011 |
Lump sum upon maturity |
2.05174% | Fixed | ||
| The Dai-ichi Mutual Life Insurance Company |
1,000 | August 25, 2006 |
July 29, 2011 |
Lump sum upon maturity |
2.05174% | Fixed | ||
| Shinsei Bank |
1,000 | August 25, 2006 |
July 29, 2011 |
Lump sum upon maturity |
2.00174% | Fixed | ||
| The Sumitomo Trust and Banking Co. |
1,000 | September 29, 2006 |
July 29, 2011 |
Lump sum upon maturity |
1.80296% | Fixed | ||
| Subtotal | 8,500 | |||||||
| Long-term debt |
||||||||
| Nishi-Nippon City Bank |
2,500 | February 27, 2008 |
February 28, 2013 |
Lump sum upon maturity |
1.69226% | Fixed | No collateral No guarantee |
|
| The Sumitomo Trust and Banking Co. |
2,000 | February 27, 2008 |
February 28, 2013 |
Lump sum upon maturity |
1.69226% | Fixed | ||
| Mizuho Corporate Bank |
2,000 | February 29, 2008 |
February 28, 2013 |
Lump sum upon maturity |
1.69226% | Fixed | ||
| Mitsubishi UFJ Trust and Banking |
2,000 | February 29, 2008 |
February 28, 2013 |
Lump sum upon maturity |
1.59226% | Fixed | ||
| Aozora Bank | 1,000 | February 29, 2008 |
February 28, 2013 |
Lump sum upon maturity |
1.54226% | Fixed | ||
| The Bank of Fukuoka |
6,000 | June 23, 2008 |
June 29, 2012 |
Lump sum upon maturity |
0.89000% （※2） |
Floating | ||
| Nishi-Nippon City Bank |
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| Oita Bank | ||||||||
| The Miyazaki Bank | ||||||||
| Shinwa Bank | ||||||||
| The Iyo Bank |
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| The Bank of Saga |
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| The Eighteenth Bank |
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| Yamaguchi Bank |
||||||||
| Aozora Bank | 1,000 | June 30, 2008 |
June 28, 2013 |
Lump sum upon maturity |
0.89000% （※2） |
Floating | ||
| The Bank of Fukuoka |
1,500 | June 30, 2008 |
December 30, 2011 |
Lump sum upon maturity |
0.89000% （※2） |
Floating | ||
| Resona Bank | 2,000 | October 7, 2008 |
September 28, 2012 |
Lump sum upon maturity |
1.71212% | Fixed | ||
| Development Bank of Japan |
2,850 | June 30, 2009 |
June 30, 2017 |
75 mm yen of principal at every 6 months (the end of December and June), (5%/year) 1,875 mm yen on the last payment date |
2.20000% | Fixed | ||
| Development Bank of Japan |
4,000 | August 31, 2009 |
August 29, 2014 |
Lump sum upon maturity |
1.71000% | Fixed | ||
| Development Bank of Japan |
4,000 | August 31, 2009 |
August 31, 2015 |
Lump sum upon maturity |
1.95000% | Fixed | ||
| Development Bank of Japan |
4,000 | August 31, 2009 |
August 31, 2016 |
Lump sum upon maturity |
2.17000% | Fixed | ||
| The Sumitomo Trust and Banking Co. |
600 | September 30, 2009 |
September 28, 2012 |
Lump sum upon maturity |
1.54457% | Fixed | ||
| Mitsubishi UFJ Trust and Banking |
600 | March 31, 2010 |
March 29, 2013 |
Lump sum upon maturity |
0.99000% (※2) |
Floating | ||
| Sumitomo Mitsui Banking Corporation |
2,000 | June 30, 2010 |
December 30, 2013 |
Lump sum upon maturity |
1.19000% (※2) |
Floating | ||
| Sumitomo Mitsui Banking Corporation |
2,000 | June 30, 2010 |
June 30, 2015 |
Lump sum upon maturity |
1.29000% (※2) |
Floating | ||
| Mizuho Corporate Bank |
10,300 | July 30, 2010 |
July 31, 2014 |
Lump sum upon maturity |
1.41000% | Convert to fixed (*1) |
||
| The Norinchukin Bank |
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| The Hiroshima Bank |
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| Yamaguchi Bank |
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| The Iyo Bank |
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| The Bank of Saga |
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| Higo Bank | ||||||||
| Shinwa Bank | ||||||||
| Subtotal | 50,350 | |||||||
| Commitment line agreement |
The Bank of Fukuoka, Resona Bank, Kumamoto Family Bank and Shinwa Bank（※4） |
100 | August 31, 2010 |
September 30, 2010 |
Lump sum upon maturity |
0.55154% (※3) |
Fixed | No collateral No guarantee |
| Nishi-Nippon City Bank(※5) |
200 | August 31, 2010 |
September 30, 2010 |
Lump sum upon maturity |
0.55154% (※3) |
Fixed | No collateral No guarantee |
|
| Subtotal | 300 | |||||||
| Total | 59,150 | |||||||
Description of Commitment Line Status
| Type | Lender | Credit Limit (mm yen) |
Commitment Period | Description | |
| Start | End | ||||
| Commitment line agreement1 |
The Bank of Fukuoka, Resona Bank, Kumamoto Family Bank and Shinwa Bank |
5,000 | August 1, 2010 | July 31, 2011 |
No collateral No guarantee |
| Commitment line agreement2 |
Nishi-Nippon City Bank | 5,000 | March 1, 2010 | February 28, 2011 | No collateral No guarantee |
| Total | 10,000 | ||||
- (※1)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
- (※2)From June 30,2010 to September 30, 2010 (not including the concerned date)
- (※3)From August 31,2010 to September 30, 2010(not including the concerned date)
- (※4)The debt under commitment line agreement1
- (※5)The debt under commitment line agreement2