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Message from Executive Director

Etsuo Matsuyuki
Fukuoka REIT Corporation
Executive DirectorYukitaka Ohara
We would like to express our sincere appreciation to all unitholders for your continued support of Fukuoka REIT Corporation (FRC).

I am Yukitaka Ohara, appointed as Executive Director of FRC at the 11th General Meeting of Unitholders.

We will pursue our mission of maximizing investor interests based on FRC’s management philosophy of “Act Local, Think Global.”

FRC started as Japan's first REIT specializing in regional properties. It aims to raise capital from Japanese and overseas prime investors by incorporating high-quality properties mainly in the Fukuoka and Kyushu areas into its portfolio, and thus contribute to the vitalization and enhancement of the attractiveness of the urban landscape of these areas. Since our listing in June 2005, we have exhibited consistent growth and achieved stable performance through the support of our unitholders, sponsor companies and others.

As a diversified REIT entering its twentieth year since listing, FRC owns and operates 35 properties including retail properties as well as office buildings, logistics facilities, residential properties, and hotels, and all of them maintain high occupancy rates. The asset size, which was 73.5 billion yen at the time of listing in 2005, has reached 220.9 billion yen (acquisition price basis), increasing by more than threefold.

With regard to external growth, as a result of an endeavor to further expand the asset size while diversifying risks in terms of the portfolio structure, FRC acquired an office building, Hakata FD Business Center (acquisition price: 14.1 billion yen), on September 1, 2023.

As for internal growth, retail properties recorded higher sales. Meanwhile, upward rent revisions have been achieved upon tenant replacement and contract renewal, mainly for residential properties. For hotels, an increase in sales-based rent due to the rise in room rate is expected. For logistics facilities, we plan to realize upward rent revisions upon future contract renewal.

In terms of “initiatives on sustainability,” one of the key measures of FRC, we have endeavored to “maintain and enhance building performance and environmental performance,” which covers the E (environment) area. This has resulted in the ratio of properties certified as green buildings to the entire portfolio standing at 84.6%, against the 2030 goal of 85% or more. As an external evaluation, we have obtained “4 Stars” and “Green Star” in the GRESB Real Estate Assessment. For S (social), we are improving the office environment, stabilizing businesses through health management, etc., enhancing engagement, proactively participating in the activities of Hakata Town Planning Promotion Council, etc., and making donations to disaster areas based on the themes of “realization of attractive workplaces” and “contribution to local communities.” For G (governance), we are carrying out the development of the whistleblowing system as well as the development and management of internal systems including initiatives on internal audits in order to ensure thorough compliance and realize appropriate risk management. We will continue to proactively engage in activities taking into consideration sustainability.

As a REIT specializing in regional properties, FRC continuously strives to conduct steady asset management and quickly respond to market changes while receiving support and cooperation from powerful sponsors leading the Kyushu business world. We are resolved to make the utmost efforts to secure stable earnings over the medium to long term and continuously maintain and enhance dividend per unit in a stable manner into the future based on our management philosophy of “Act Local, Think Global.”
We greatly appreciate your continued support and cooperation.

May 29, 2024

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