<Provisional translation>
May 16, 2018

For Immediate Release
REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Yoshiaki Shiraki, Executive Director
Asset Management Company
Hankyu Hanshin REIT Asset Management, Inc.
Yoshiaki Shiraki, President & Representative Director
Contact:
Hiroshi Yoshida
General Manager, IR and Public Relations Department
Email: IR_PR@hhram.co.jp

Notice Concerning Debt Financing and Early Repayment of Existing Borrowing

Hankyu REIT, Inc. (hereafter “Hankyu REIT”) announces its decision made today to undertake debt financing(hereafter “Debt Financing”) and early repayment of existing borrowing as described below.
1. Reason for debt financing
These funds will be allocated for the repayments of 3,200 million yen in borrowings executed on May 31, 2017 and 1,500
million yen in borrowing executed on October 31, 2017, and for the early repayment of 2,500 million yen in borrowing
executed on July 24, 2017.

2. Details of Debt Financing (Scheduled)Category

LenderSumitomo Mitsui
Banking Corporation

Long-termborrowings

Development Bank ofJapan Inc.

Amount ofdebt
financing(millions of yen)

Lending
andrepayment
methods

Maturity
date

500
500

Mizuho Bank, Ltd.

500

Mizuho Trust & Banking
Co., Ltd.

500

The Senshu Ikeda
Bank, Ltd.

200

MUFG Bank, Ltd.
1,500

Total

Drawdown
date

May 24,
2018

2,500

1,000
Short-termborrowings

Interest rate(Note)

Not determined
Fixed interest rate

May 28,2018

May 31,
2028
Unsecured/
non-guaranteed
Lump-sum
repayment

Base interest
rate (JBA 1-month
Japanese Yen
TIBOR) + 0.15%
Variable interest
rate

7,200

1May 28,2018
May 28,2019
May 31,
2018

(Note)• As for the long-term borrowings, the interest payment dates are the last day of every May and November with the firstpayment date being November 30, 2018 (or the previous business day if the applicable date is a non-business day of thebank). The interest rates are scheduled to be determined on the following dates, respectively. They will be announced
once they are determined.
• The borrowing drawn down on May 24, 2018: May 22, 2018
• The borrowings drawn down on May 28, 2018: May 24, 2018
• As for the short-term borrowings, the interest payment dates are the 28th of every month, with the first payment date being
June 28, 2018 (or the next business day if the said date is a non-business day of the bank. Should such next business day
be on the next month, the payment will be made on the previous business day of the 28th). Base interest rate applied on theinterest to be paid on interest payment date will be JBA 1-month Japanese Yen TIBOR as of two days prior to the mostrecent interest payment date (in case of first payment, this will be the drawdown date) of each interest payment date. (TheJBA 1-month Japanese Yen TIBOR as of May 15, 2018 is 0.05364%).
• The JBA 1-month Japanese Yen TIBOR can be referenced on the website of the JBA TIBOR Administration:
http://www.jbatibor.or.jp/english/rate/• In the future, Hankyu REIT will not provide notifications regarding the determination of variable interest rate. As for changes
to the applicable base interest rate, please refer to the website of JBA TIBOR Administration.

3. Use for funds
Capital for repayment of borrowings below

Category

LenderAmount of debt
financing(millions of yen)

Sumitomo Mitsui Trust
Bank, Limited

500

Mizuho Bank, Ltd.

500

Mizuho Trust & BankingCo., Ltd.
Sumitomo Mitsui Banking
Corporation

Drawdown
date

Short-termborrowings

Maturitydate

May 28, 2018

May 28,2018500
May 31,
2017

500

MUFG Bank, Ltd.
(Formerly Mitsubishi UFJ
Trust and BankingCorporation)

Repayment date(including earlyrepayment)(scheduled)500

MUFG Bank, Ltd.
(Formerly The Bank ofTokyo-Mitsubishi UFJ, Ltd.)

Lending
andrepayment
methods

Unsecured/non-guaranteed
Lump-sumrepayment

500

The Senshu Ikeda Bank,
Ltd.

200

Sumitomo Mitsui Banking
Corporation

2,500

July 24,2017

May 24, 2018

July 24,
2018

1,500

October 31,
2017

May 31, 2018

May 31,2018

MUFG Bank, Ltd.
(Formerly The Bank ofTokyo-Mitsubishi UFJ, Ltd.)

Total

7,2002

4. Balance of Interest-bearing Liabilities After Execution of Debt Financing and Early Repayment
Before execution of
the debt financing andearly repayment(millions of yen)

After execution of
the debt financing andearly repayment(millions of yen)

Change(millions of yen)

Short-term borrowings

10,2005,500-4,700Long-term borrowings (Note)

53,70058,400+4,700Total debt financing

63,90063,900±0

Investment corporation bonds

4,000

4,000±067,900

67,900±0

Total interest-bearing liabilities(Note) Long-term borrowings are loans with a repayment term (from the drawdown date until the maturity date) exceeding
one year.

5. Others
The risks associated with the Debt Financing and the early repayment of existing borrowing, such as risks ofrepayment, have not changed in any material way from the “risks associated with the fund procurement
through additional issuance of new investment units, debt financing and issuance of investment corporation
bonds” in the “Investment Risks” stated in the Securities Report for the 25th fiscal period (submitted onFebruary 27, 2018).

•

Hankyu REIT website: http://www.hankyu-reit.jp/eng/

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