Fukuoka REIT Corporation

Fukuoka REIT Corporation

Last Update / Apr 01,2020

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  • HOME>Overview>CEO Message

    CEO Message

    To Our Unitholders,

    photo We would like to express our sincere appreciation to all unitholders for your continued support of Fukuoka REIT Corporation (FRC).

    We are pleased to report on the performance results and management status of FRC for the thirtieth fiscal period (March 1, 2019 to August 31, 2019).

    FRC was listed in June 2005 and started as Japan’s first REIT specializing in regional properties. Since then, we have exhibited consistent growth and achieved stable performance through the support of our unitholders and sponsor companies. The business conditions of the Fukuoka and Kyushu area are expanding moderately. Consumer spending in the Fukuoka and Kyushu area is increasing moderately, given improvements in the employment and income environments. Looking ahead, a mild expansion is expected to continue, although attention should be paid to the impact of the uncertainty about overseas economies and the impact of a labor shortage on the supply side. According to the government’s Prefectural Land Price Survey announced in September 2019, the commercial land price in Fukuoka City rose 12.8% year-on-year, as it showed a similar increase in the 2019 Land Market Value Publication announced in March 2019. Occupancy remained solid, with the period-end occupancy rate of all properties FRC owns at 99.6%. In the business districts of Fukuoka City, the vacancy rate of office buildings has remained at the 1% level since January 2019, marking 1.87% (Note) as of August 2019. As such, the figure has been at an extremely low level that is the second lowest only after Tokyo. Bolstered by the good office market, the occupancy rate of the eight office buildings owned by FRC reached 98.6% at the end of the fiscal period under review. With other assets also operating in good shape, the period-end occupancy rate of the entirety of properties FRC owns through the 30th fiscal period stood at 99.6%.

    Standing on these asset management operations, FRC posted operating revenues of 9,231 million yen, operating income of 3,318 million yen, ordinary income of 2,939 million yen and profit of 2,939 million yen. The dividend per unit came to 3,693 yen. At Canal City Hakata, “EVANGELION Angel Attack on Hakata,” the tenth offering of Canal Aqua Panorama, is being performed. Canal City Hakata, the flagship of FRC, aims to become an international shopping center offering the greatest joy in Asia, by providing collaboration with popular contents and experiential value unique to Canal City Hakata. At Canal Aqua Panorama, an original projection animation featuring “EVANGELION,” a globally popular Japanese manga/anime series, is performed as its tenth offering. On top of this, the guests who are the fans of Canal City Hakata are entertained by an abundant selection of content, including THE GUNDAM BASE FUKUOKA, the second shop in Japan to be opened on November 30, 2019, and GUNDAM Café.

    Going forward, FRC will continue to exert its strengths as a REIT specializing in regional properties and quickly respond to market changes, while receiving support and cooperation from powerful sponsors leading the Kyushu business world. We will also strive to maintain and increase the dividend per unit level through steady asset management. We at FRC will also pursue our mission of maximizing unitholder interests over the medium to long term based on our management philosophy of “Act Local, Think Global.”

    We greatly appreciate your continued support and cooperation.

    October 16, 2019
    Etsuo Matsuyuki
    CEO & Representative Director
    Fukuoka REIT Corporation

    (Note) Based on “Office Market Data" by Miki Shoji Co., Ltd.

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