Talent Acquisition and Development

Fukuoka Realty positions external recruitment as the core of our talent acquisition strategy, with a particular focus on securing highly specialized personnel. Specifically, we utilize recruitment agents and direct recruiting services to promote the hiring of specialized personnel in real estate, finance, and other fields, while also partnering with multiple recruitment agents to build a diverse candidate pool with varied backgrounds. In the hiring process, through document screening and interviews, we place emphasis not only on matching expertise, experience, and skills, but also on alignment with our management philosophy and the ideal candidate profile we seek. Additionally, to enable mid-career hires to contribute effectively at an early stage, we conduct post-hire onboarding programs and follow-up meetings. We have also introduced a referral hiring program to promote recruitment activities leveraging employee networks.
Furthermore, with our sponsor, Fukuoka Jisho Group, we accept personnel with experience and expertise in real estate development, operations, and management as secondees, while also seconding our employees to the Group, thereby enhancing expertise and strengthening organizational capabilities.

In talent development, we support the autonomous growth of each employee through qualification acquisition support, external and specialized training programs, OJT, and personnel assignments and job rotations that consider individual aptitudes and career aspirations.
To enable diverse personnel, from young employees to mid-career and senior staff, and to thrive by leveraging their respective experiences and strengths, we are working to create a supportive work environment where employees can develop their skills over the long term, and to further enhance employee benefits.

Approach to Talent Development

Our company provides diverse growth opportunities so that each employee can expand their potential and proactively build their career, aimed at realizing our corporate philosophy and achieving medium- to long-term growth of FRC.

Our talent development menu consists of "Basic Menu“, which supports the acquisition of fundamental business skills, "Specialized Menu" which supports employees' self-development, "Selective Menu" which develops next-generation leaders, and company-wide "Common Menu," with the menu supporting both role-based learning and learning driven by individual motivation.

The training programs are organized according to roles and positions as follows:

●General Staff:
Provides opportunities to develop work execution capabilities with accuracy and comprehensiveness through the acquisition of fundamental business skills.

●Career-Track Staff (Staff Level):
In addition to improving business skills, provides opportunities to enhance independence, communication skills, and the ability to advise and mentor junior colleagues, and to develop capabilities to handle moderately advanced challenges.

●Career-Track Staff (Management Level - Newly Appointed Managers):
Supports smooth transition from player to manager, and provides growth opportunities to demonstrate capabilities as a manager in team management, work management, and subordinate development.

●Career-Track Staff (Management Level - Senior Managers):
Fosters leadership centered on , development, organizational management, and communication with subordinates, while providing opportunities to develop capabilities for departmental management and formulation and execution of business strategies.

Scope

These training programs are available to all employees (including permanent employees and contract employees), regardless of employment type.
Role- and position-based training is conducted with designated participants, while common menu items such as compliance training, workplace conduct training, and ESG training are available to all employees.
Additionally, specialized menu items for self-development purposes are equally available to all employees, creating an environment where each individual can continue learning on their own initiative.

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Regular Performance Appraisals and Feedback Processes

Our personnel appraisal system covers all employees (including permanent employees and contract employees), and aims to contribute to the medium- to long-term growth of FRC and enhancement of unitholder value, by developing employees who contribute to the realization of our management philosophy while promoting the growth of each individual employee. The appraisal operates through a combination of "Performance Evaluation, " which assesses work-related results and goal achievement, and "Competency Evaluation," which assesses the demonstration of behaviors and roles defined by the company, thereby achieving evaluation from multiple perspectives.

"Performance Evaluation" involves setting individual annual goals (MBO) based on departmental objectives and each employee's role and position, including evaluation of the degree of achievement of those goals.
"Competency Evaluation" assesses the demonstration of abilities against each employee’s role and position, evaluating based on the responsibilities, behaviors, and qualities defined for each position.
In goal-setting, in addition to objectives related to work performance, cross-departmental collaboration, sustainability and ESG initiatives, improvement of work quality, and perspectives on talent development and self-improvement are also incorporated, thereby enhancing teamwork across the organization and employee capability development.

As part of the process, performance reviews are conducted once every six months.

●Goal-Setting:
Goal-setting meetings are held between department heads and employees at the beginning of each period.

●Mid-term Review:
Progress on goals, issues, and future approaches are confirmed, with goals and initiatives revised as necessary.

●End-of-Period Review:
After conducting self-appraisal and department head appraisal, calibration by management is performed to ensure the validity and fairness of the appraisal, and the final appraisal is determined.

Additionally, importance is placed on using appraisal results not only to inform personnel decisions, but also to enhance employees’ expertise, develop their capabilities, and improve their performance and motivation. Therefore, department heads provide detailed feedback to employees on results, expected future roles, areas for improvement, and directions for leveraging strengths and supporting continuous growth.
Furthermore, career interviews are also conducted to enable employees to autonomously develop their careers from a medium- to long-term perspective, providing opportunities through dialogue with department heads to confirm career aspirations, areas of expertise they wish to develop, and accumulation of necessary experience and skills.

Compensation Program (Performance Linked)

FRC has introduced a compensation program applicable to all employees (including permanent employees and contract employees), that provides compensation based on performance appraisal of both "results" and "process." At the beginning of each period, annual goal setting (known as MBO) meetings are conducted with department head and other evaluators, and bonuses are paid according to the degree of achievement. Semi-annual reviews are also conducted to achieve organizational results while encouraging individuals to demonstrate their abilities.

Performance appraisals are conducted based on the following rules:

(1) Disclosure of appraisal criteria
Criteria for appraisals based on position and rank are disclosed company-wide. Additionally, by appropriate disclosure to employees of the roles and results expected, awareness and motivation is further promoted within the company.

(2) Goal-setting and performance appraisal meetings
Along with disclosure of appraisal criteria, meetings are held with each employee at the beginning and end of the period to discuss the employee’s performance and the evaluator’s appraisal of the employee, enhancing understanding of the appraisal results and contributing to employee capability development.

(3) Aligning of appraisal results
After the initial appraisal, all evaluators — including the President and CEO — discuss and align on employees’ appraisal results.

The results finalized based on the above procedure are reflected in the employee’s bonus.

About Personnel (Fukuoka Realty), as of February 28, 2026

Average number of years of continuous service of permanent employees

9 years, 2 months

Full-time personnel

53 (Male:39.6%, female:60.4%）

Number of credentialed personnel (persons)

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Employee benefits

Support for Flexible Work Styles

Fukuoka Realty is committed to creating a work environment that enables employees to work flexibly according to their diverse life events, while providing a comprehensive benefits program that supports employee engagement and fosters a supportive working environment.

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Introduction of Employee Stock Ownership Plan

Under the newly introduced Employee Stock Ownership Plan, all Fukuoka Realty employees (including permanent employees and contract employees) can acquire investment units of FRC. The introduction of this system is expected to further raise awareness among all employees (including permanent employees and contract employees) toward performance improvement, thereby contributing to further continuous growth of FRC and the enhancement of unitholder value.

Additionally, incentive payments are provided to all employees (including permanent employees and contract employees) who utilize this system, and we are also enhancing further welfare benefits for all employees (including permanent employees and contract employees).

Career development support

・Employee satisfaction survey（Once a year）
Fukuoka Realty conducts annual employee satisfaction surveys to support the health, well-being, and workplace satisfaction of its employees, with the aim of creating an engaging and rewarding work environment. The company also encourages employees to submit suggestions for operational improvements on an ongoing basis. Employee feedback is incorporated into efforts to enhance the office environment, and the outcomes of improvement initiatives are communicated internally. Employees whose proposals result in implemented improvements are recognized through an internal awards program.

・Career interview and Self-assessment system
・Secondment system（dispatching of employees to sponsor companies）
・Promotion from contract employee to permanent employee status
・System for supporting acquisition of qualifications（Real estate brokers, ARES Certified Masters, etc.）

Health management/Improvement of office environment

・Initiatives to prevent infectious diseases such as influenza (Implementation of influenza vaccination and full coverage of vaccination costs)
・Mandatory health checkups and comprehensive medical examinations
・Health counseling by public health nurses
・Application system to restrict excessive overtime work
・Assistance for use of sports clubs
・Installation of personal booths, meeting booths, plants, etc.
・Installation of personal lockers
・Installation of ceiling-mounted projectors
・Introduction of OFFICE DE YASAI
・Installation of reception panels for visitors
・Introduction of automatic telephone reception system
・Introduction of generative AI in business operations

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Tenant Initiatives

Fukuoka REIT engages in a variety of initiatives for tenants to promote their understanding on sustainability.

● Training for tenants's employees
● Emergency drills intended to improve tenant safety and security
● Distribution of sustainability guidelines
● Implementation of tenant satisfaction surveys
【Canal City Hakata】
● Holding of staff parties
● A staff member of one of the building's tenants won the Kyushu Roleplaying Contest and went on to win the grand prize in the National Convention　
● Renovation of employee break room
●Merchandise sales training aimed at improving skills (Canal City Hakata)
●Recruitment support (Canal City Hakata, Park Place Oita)

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Green Leasing

Fukuoka REIT promotes green leasing as one of its tenant initiatives. We have concluded lease agreements incorporating a green lease clause (which stipulates cooperation in reducing environmental burden) with some tenants. In addition, we promote understanding on environmental/local community awareness among tenants by communicating with them in the form of conducting tenant satisfaction surveys for some properties.

Initiatives for Local Communities

Safety Town Council

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Participation in Cleanup Days

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Participation in Community Events (Hakata Gion Yamakasa)

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Various Events Held

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At Park Place Oita, a Father’s Day milking experience was held, while at Konoha Mall Hashimoto, radio calisthenics took place.

Support for Community Development and Revitalization in Investment Areas

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Continuing to participate in hometown tax payments

Gatherings for Real Estate, Finance, and the Economy

We have held gatherings annually since 2008 with the cooperation of the Japan Real Estate Institute (not held in 2020 due to concerns over COVID-19).
Local real estate companies, financial institutions, and government agencies participate in the conference, which contributes to networking and further stimulation of the local economy.
It has been designated as a continuing education course for The Association for Real Estate Securitization (ARES) masters.

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The Kyushu Economic Research Center

Fukuoka Realty Co., Ltd., and the Kyushu Economic Research Center have concluded a memorandum of understanding in a bid to promote increased cooperation in macroeconomic analysis of the Kyushu economy. Through this initiative, both signatories to the memorandum will share information on the current state of the Fukuoka-Kyushu economy as well as issues to be faced, thereby revitalizing economic activity throughout the region. In addition, study groups on seasonal topics that are specific
to Fukuoka and Kyushu are held on a regular basis.

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Other Activities

• Kyushu IR Group
The Kyushu IR Group, which entered its 15th year in 2025, was established in cooperation with the Japan Investor Relations Association. The Group assists in learning about the latest IR trends with IR employees of companies located in Fukuoka and Kyushu and fosters the forming of networks between participating companies. Impacted by COVID-19, the study groups have been held in a hybrid style that combines online tools with face-to-face interaction.

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