Table of Contents
１． TOPICS・・・・・・・・・・・・・・・・・・・・

2

２． Trend of Development in Kansai region・・・・・

7

３． Present Condition and Basic Policy・・・・・・・・12
４． External Growth Strategies ・・・・・・・・・・・ 17
５． Internal Growth Strategies ・・・・・・・・・・・

24

６． Financial Strategies ・・・・・・・・・・・・・

32

７． Overview of Financial Results ・ ・・・・・・・

35

８． APPENDIX・・・・・・・・・・・・・・・・・・

43

This material includes forward-looking statements based on present assumptions and future outlook. Actual results
may differ from the includes forward-looking statements values due to various factors.
This material is not intended as a solicitation to acquire investment securities of Hankyu REIT nor is it intended as asolicitation to sign contracts relating to transactions of other financial instruments. When undertaking any
investment, please do so based on your own judgment and responsibility as an investor.
Before purchasing investment securities of Hankyu REIT, please consult with a securities company that conducts a“first financial instruments business.”
This material is an English translation of the original, which was issued in the Japanese language.
There are sections that display property names in abbreviated form.

11. TOPICS2

1-1. Summary of 12th Fiscal Period Results
External growth
Community-based
地域密着型商業施設
retail facilitiesに重点を置き優良物件を探索
Searched
for excellent properties withparticular emphasis on such facilities

Internal growth
・HEP Actively conducted tenant change
・NU Revitalized and improved
occupancy rate by working incooperation with the Group・LaLaport KOSHIEN
Rent increase through rent revision

Results for 12th Fiscal Period

JPY 12,694

Distribution per unit

(up 5.8% from the initial forecast)
Portfolio NOI Capitalization Rate（※）

4.8％（※） (lease operation income + depreciation) × 2 ÷ acquisition priceInvestment unit priceat end of 12th fiscal period (closing price): JPY 428,000
Net assets per unit:
JPY 660,759
Net assets per unit reflecting unrealized income/loss:
JPY 574,569

Occupancy rate for total portfolio
98.7%  99.0%
Up by 0.3 points from the end of
previous fiscal period(occupancy by end-tenants)

Financial strategies

Forecast for 13th Fiscal Period
Distribution per unit forecast

JPY 12,300

Conducted conversion of loans with aview todiversifying method of fundprocurement31-2. Impact of Great East Japan Earthquake ①
We would like to express our heartfelt sympathy to all those affected by theGreat East Japan Earthquake that occurred on March 11, 2011.
We sincerely hope for the earliest recovery.
-Nobody-Nobody injured
injured andand nono damagedamage significantly
significantly affecting
affecting ourour portfolio
portfolio properties
properties -《Damages to our portfolio properties》•Sphere Tower Tennoz〈Damage〉 water leakage due to burst of sprinkler branch pipes, etc.
〈Repair costs〉approximately 12 million yen (equating to only around 0.01%
of the total acquisition price of 121.3 billion yen for all 15 portfolio
properties)(Before repairs)(After repairs)•Shiodome East Side Building / Hotel Gracery Tamachi
Light damage that can be repaired during regular maintenance.

41-2. Impact of Great East Japan Earthquake ②
Consumers
Consumers held
held off
off fromfrom purchases
purchases forfor about
about two
two weeks
weeks after
after thethe Great
Great East
East
Japan
Japan Earthquake
Earthquake but
but spending
spending has
has mostly
mostly recovered.
recovered.
Sales at major fashion buildings (year on year change)（％）
15● Kyoto, Osaka and Kobe regions
HEP Five
Hankyu-sanbangai
E-ma

5

（％）
15

-15

-15

-25
5

6

LUMINE ESTSHIBUYA 109
LUMINE YOKOHAMA

Ikebukuro PARCO
atre Ebisu

5

-5

4

LUMINE SHINJUKU
Shibuya PARCOLUMINE OMIYAESTDIAMOR Osaka

-5

10/3

● Tokyo metropolitan area

7

8

9

10

11

12

11/1

2

3

4

5

-25
10/3

4

5

6

7

8

9

10

11

12

11/1

2

3

4

5

Source: Senken Shimbun (Daily News of The Fashion Business)“Sales at Major Fashion Buildings”

Trends of month-on-month net migration of three major
metropolitan areas

Sales at Department Stores in Japan (year on year change)（thousand people）
6

March, 2011

4
2
0
-2
-4

April, 2011

May, 2011Japan―14.7pt―1.5pt―2.4ptTokyo―21.5pt―5.5pt―4.3ptOsaka―3.2pt

4.7pt

0.6pt

-6

Source: Japan Department Stores Association“Summary of Sales at Department Stores in Japan”-8-10Tokyo region
Osaka region-12

Nagoya region

-14
10/01

10/03

10/05

10/07

10/09

10/11

11/01

11/03

11/05

Osaka region ：Osaka, Kyoto, Hyogo, Nara
Nagoya region：Aichi, Gifu, Mie
Tokyo region ：Tokyo, Kanagawa, Saitama, Chiba
Source: Statistics Bureau, Ministry of Internal Affairs and Communications“Report on Internal Migration in Japan Derived from the Basic Resident Registers - Statistical Tables”

51-3. Impact of New Retail-use Facilities Opened in Central Osaka
Chayamachi
District

March 16: SOUTH GATE BUILDING opened(Daimaru floor area expansion)
April 26: Abeno Q’s MALL opened
May 4: NORTH GATE BUILDING opened(JR Osaka Mitsukoshi Isetan, LUCUA)● There are some competitions but the individual character of eachfacility should make the whole Umeda area more appealing andenhance its ability to attract customers.
● A new concourse linking the North and South sides of JR Osaka
Station has boosted navigability for the whole Umeda area.
Number of passengers using JR Osaka Station
114% year on year (May 4-18, 2011)*JR West forecasts Osaka Station passengers will increase by 50,000 per day due tothe opening of the new facilities.

April 29: NU chayamachi Plus opened● The Chayamachi district, where NU chayamachi is located, has
become more lively as a stylish artistic and cultural center following the
opening of NU chayamachi Plus and a large-scale bookshop (Japan’slargest) in December 2010.
Number of people using the NU chayamachi corridor
132% year on year (May 2011)

NU chayamachi corridor

6

2. Trend of Development in Kansai region72-1. Main Development Projects in “Umeda Area”(1) Rebuilding of Umeda Hankyu Building
PhaseⅠof the department store opened in September 2009.
Office wing on the upper floors opened in May 2010.
Phase II scheduled for completion between October andDecember 2012
Hankyu Corporation(Department store, offices, etc.)(2) NU chayamachi Plus
(Opened in April, 2011)
Hankyu Corporation (chief lease-right holder)(Retail stores, residences, schools, etc.)(3) GRAND FRONT OSAKA
Began construction in March 2010.
Scheduled for completion in March 2013.
A block: Office, retail (About 1.1ha)
B block: Office, Knowledge capital, retail,hotel (Inter Continental) and serviced apartments,
convention (About 2.2ha)
C block: Condominium develpoment (About 0.5ha)
Corporate Group : Mitsubishi Estate Co., Ltd.,ORIX Real Estate Corporation, Sekisui House, Ltd.,
Hankyu Corporation, etc.
(4) OSAKA STATION CITY
ＳＯＵＴＨ GATE BUILDING (Opened in March, 2011)
NORTH GATE BUILDING (Opened in May, 2011)
Station area, Open –space areas
West Japan Railway Company, Osaka Terminal Bldg.
(Department, Retail stores, offices, etc.)(5) Collaborative urban development for Osaka Ekimae
Japan Post Holdings Co., Ltd., West Japan Railway Company(Offices, theater, retail stores, etc.)(6) Rebuilding of Osaka Fukoku-Seimei Building(Opened in December, 2010)※・・・・ (dotted line) Property under development(solid line) Project in operation for less than 1 year
(green line) Owned property

Fukoku Mutual Life Insurance Company(Offices, Retail stores, etc.)(7) Addition of a branch line to JR Tokaido line and construction ofa new station8

2-2. Development of Umekita (Osaka Station North Area)

JR Osaka Sta.

NORTH GATE BUILDING

Advanced development area
（GRAND FRONT OSAKA）(Photo taken from Chayamachi Applause on May 25, 2011)9

2-3. Trend of Large-scale Retail-use Facilities Development in Central Osaka
From Kyoto direction

Floor
Floor area
area ofof new
new development:
development:
100,000
100,000 m²
m²

New 60,000 m²
m²
Main directionof customer flow

Umeda

Existing
490,000 m²(Estimated by Hankyu REIT
Asset Management)(Retail(Retail floor
floor area
area inin new
new facilities
facilities between
between
July
July 2011
2011 andand 2014)
2014)

Equivalent
Equivalent toto 9.3%
9.3% ofof existing
existing
facilityfloor
area
facility floor area
(Total(Total floor
floor area
area ofof large-scalelarge-scale retail-use
retail-use
facilities
facilities inin 33 main
main areas:
areas: 1,030,000
1,030,000 m²)
m²)

From Kobe direction

In
In Umeda
Umeda area,
area, development
development isismostlynew
openingofGrandmostly new opening of Grand Front
Front
Osaka.
Osaka.

Shinsaibashi and Namba
Existing
320,000 m²
From Kobe direction

In
In Umeda
Umeda area,
area, fresh
fresh demand
demand isisexpected
expected due
due toto new
new supply
supply ofof officeofficebuildings,
hotelsandresidentialbuildings, hotels and residentialbuildings
buildings inin thethe area,
area, andand also,
also,
boostedboosted attractivenessattractiveness andand “pull”“pull”
areare expected
expected toto draw
draw customers
customers
from
a
wider
area.
from a wider area.

From Nara direction

New 30,000 m²
m²
Existing
210,000 m²

TennojiIn
In orderorder toto taptap into
into thethe increase
increase inincustomers
customers inin thethe Umeda
Umeda area,
area,
HankyuHankyu REIT
REIT plans
plans toto collaborate
collaborate
withtheHankyuGroup
towith the Hankyu Group to boost
boost thetheattractivenessof
its
retailfacilities
attractiveness of its retail facilities
more
more effectively
effectively on
on an
an ongoingongoingbasis.
basis.
Createdby
byHankyu
HankyuREITREITAsset
AssetManagement
Management**Created
frompublicly
publiclyreleased
releasedmaterialmaterialby
byCB
CBRichard
Richardfrom
EllisK.K.
K.K.andandotherothersources.
sources.
Ellis

10

2-4. Trend of Office Supply in Central Osaka
New 240,000
240,000 m²
m²

Umeda

Main directionof tenant flow

Existing
3,630,000 m²(Estimated by Hankyu REIT
Asset Management)

Floor
Floor area
area ofof new
new supply:
supply:510,000
510,000 m²
m²(Total(Total floor
floor area
area scheduledscheduled forfor completion
completion
between
July
2011
and
2014)
between July 2011 and 2014)

Equivalent
Equivalent toto 4.1%
4.1% ofof existing
existingbuilding
floor
area
building floor area
(Floor(Floor area
area inin mainmain areas:12,390,000
areas:12,390,000 m²)
m²)

New 210,000
210,000 m²
m²

Nakanoshima

Yodoyabashi and Hommachi
Existing
3,420,000 m²

SupplySupply ofof high-spechigh-spec buildings
buildings(S(S class)class) toto strongstrong areas
areas inin Osaka,
Osaka,
which
is
a
rare
occurrenceinwhich is a rare occurrence in recent
recentyears
years
Promotion
Promotion ofof rejuvenation
rejuvenation in
in Osaka
Osaka
officemarketandconcentration
office market and concentration ofofcity
functions.
city functions.
Keyword
Keyword isis “polarization”.
“polarization”.
(Companies(Companies moving
moving toto Umeda
Umeda
includemanufacturers,
include manufacturers, trading
tradingcompanies,
and
audit
firms)
companies, and audit firms)
Umeda,
Umeda, together
together with
with thethe Midosuji
Midosuji
vicinity(Yodoyabashi
andvicinity (Yodoyabashi and
Hommachi),
Hommachi), isis expected
expected to
to winwin outout
asabusinessarea.
as a business area.

New 60,000 m²
m²

Tennoji* Created by Hankyu REIT Asset Managementfrom publicly released material.

113. Present Condition and Basic Policy

123-1. Features of Hankyu REIT
Two-thirds
Two-thirds ofof investment
investment locatedlocated inin Umeda
Umeda oror
along
along Hankyu/Hanshin
Hankyu/Hanshin Lines
Lines

Primary
Primary emphasis
emphasis on
on highly
highly competitivecompetitive
retailretail facilities
facilities

Retail-use
zone
50%
or more“Kansai region”:6 prefectures consisting of Osaka,
Kyoto, Hyogo, Nara, Shiga, andWakayama

Retail-use
facilities

Office-use
facilities

Retailusezone

OfficeUse
zone

Zones forother uses

Zones forother uses

Office
25.4％

Umeda
43.7％

In Osaka City
(excl. Umeda)

2.5％
Along Hankyu/Hanshin Lines

23.5％
The ratios are calculated based on the acquisition price.

Kansairegion69.6％

Officeuse zone
Retailuse zone
Zones forother uses

Others0.4％

Other areas
3.5％
Tokyo
26.9％

Complexfacilities

Hotel
10.8％

Urban retailfacilities
41.6％

Community-based retail facilities
21.7％
The ratios are calculated based on the acquisition price.

Retail74.2％(For multiple-use zone properties, the amount is proportionate to the rent
income and common service fees for each zone.)13

3-2. Trends of distribution per unit
（JPY）
20,000 18,962
18,00016,00014,00012,00010,000Distribution per unit forecast

Distribution per unit

17,365
JPY12,694
14,99015,342
14,955
16,50013,572
11,61114,310
13,57913,723
12,415 12,694
15,00014,30012,500 12,800

12,80014,10014,10013,00012,100 12,000 12,300

8,000
6,000
4,000
2,000
0
1st
2nd
period period
05/11 06/05

3rd
period
06/11

4th
5th
period period
07/05 07/11

6th
period
08/05

7th
8th
9th
period period period
08/11 09/05 09/11

10th
period10/05

11th
period
10/11

12th
13th
period period
11/05 11/11

Irregular period (303 days)(Compared with 12th fiscal period forecast)
Increase in lease operating income

JPY 52 mn(Profit increased as results of JPY 48 mn reduction in lease operating costs such as repair expenses.)

Decrease in interest due

JPY 3 mn14

3-3. Changes in Asset scale and LTV (Loan to Value)
Total acquisition priceTotal appraisal value at the end of period
LTV at the end of periodinterest-bearing debt ratio at the end of period(JPY bn)
180
160
140
120
100
80
60
40
20
0

Capital increaseby public offering

46.1
31.0 30.0 30.7

57.9
55.2

45.6 46.0
28.8

39.1

40.8 40.3（％）
55.6 56.1 55.9

60
50

49.4 46.9 46.2
45.4 45.5

40
30
20

21.3

18.0 18.2 18.9

70

10

1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
period period period period period period period period period period period period
05/11 06/05 06/11 07/05 07/11 08/05 08/11 09/05 09/11 10/05 10/11 11/05
Number of
Properties

5

6

7

8

9

11

11

16

15

15

15

15

LTV moved slightly lower due to lower rate of decline in appraisal values, etc.
15

3-4. Growth Strategies for Next 3 years
Return to growth path
Restoration of finances
Preparation of environment for carrying out public offering Securing properties that utilize sponsor group’s warehousing
capabilities (Mainly community-based retail facilities located in the
Kyoto, Osaka and Kobe regions) Improve retention of properties’earning power through internal
growth efforts
 Suppress rise in funding costs (utilizing security deposits, issuanceof corporate bonds)

Expansion of growthMultiple property acquisitions and carrying out public offering While achieving retention and improvement of Distribution per unit
as well as gradual reduction of LTV.
16

4. External Growth Strategies

10
2
17

4-1. Property information

81% of acquisitions

Network of the Hankyu Hanshin Holdings Group(11 properties)
acquired throughthe sponsor pipeline

Priority negotiation rights
We hold priority negotiation rights with Hankyu Corporation,
Hankyu Realty Co., Ltd. and Hankyu Investment Partners, Inc.

+
Hankyu REIT Asset Management’s own network
We obtain highly accurate information by directly approaching
general companies and distributors.

Hankyu REIT, Inc.
We aim to achieve sustained growth by utilizing theinformation and network of the Hankyu Hanshin HoldingsGroup with connections deeply rooted in the region.

Trend of information leads（leads）
1000
900
800

Information leads checked
Information leads considered

700
600
500
400
300
200
100
0
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th
period period period period period period period period period period period period184-2. Property Acquisition Policy for Future
Area
Use

OfficeCentral city

Urban vicinity

TennozUrban retailfacilities

Ueroku F Bldg.

GMS (General-merchandise stores)
SM (Supermarkets)
Specialty shops
buildings(Central city SC)

Hankyu Yamada

HEP

Takatsuki-Josai

Department stores

RetailCommunity-based
retail facilities

Shiodome
Namba

Large specialty
shops

NU
Kitano Hankyu

NSC (Neighborhood shopping centers)

Kitahanada *LaLaport KOSHIEN

Tamachi

Specialty shops
Outlet centers

Street-level shops

Hotel

Kohnan Hiroshima

RSC (Regional shopping centers)

Nitori Ibraki

LAXA Osaka

Suburban

City hotels

Hamamatsu

High-grade hotels forbusiness travelers

Budget hotels for business travelers

Primary investment target zone

Resort hotels

Hankyu REIT focal investment zone in retail-use facilities* Kitahanada is an investment interest in anonymous association

Focus on community-based retail facilities located in the Kyoto, Osaka and Kobe regions.
19

4-3. Anonymous Association Investment AEONMALL SakaiKitahanada Prou (site) 1（Overview of Acquisition）
Asset acquired:

Investment interest in anonymous association with real estate trust beneficiaryinterests as portfolio properties※１
Property name:
Bay Leaf Funding GK※2 Investment interest in anonymous association
Real estate under trust: AEON MALL SakaiKitahanada prou (site)
Investment amount:
372 million yen（Investment interest in anonymous association: 10.0%）
Acquisition date:June 30, 2011
Acquisition funds:
Corporate funds*1 Along with this acquisition of the investment interest, Hankyu REIT is granted priority negotiation rights related to theacquisition of the real estate trust beneficiary interests, etc. that are portfolio properties of the anonymous association.
* 2: Hankyu Corporation will make part of the anonymous association investment（ Overview of Property）
Location:
Location: 4-1-32,
4-1-32, Higashiasakayama-Cho,
Higashiasakayama-Cho, Kita-ku,
Kita-ku, Sakai
Sakai andand otherother
Lot
64,232.77㎡
Lot area:
area:
64,232.77㎡
Total－
Total floor
floor area:
area:－
Numberoffloors:Number of floors:
Month/YearMonth/Year Built:
Built:－－－－

Property
PropertyCharacteristics
Characteristics●● Opened
OpenedininOctober
October2004.
2004.With
Withlarge
largesupermarkets
supermarketsand
andthetheHankyu
HankyuDepartment
DepartmentStoreStoreat
at
its
core,
the
shopping
mall
has
about
160
specialty
retailstores
in
areas
such
as
fashion,its core, the shopping mall has about 160 specialty retail stores in areas such as fashion,
householdhouseholdgoods,
goods,andandeatingeatingandanddrinking
drinkingestablishments.
establishments.
Parking
garagespaceaccommodates
Parking garage space accommodatesabout
about2,800
2,800vehicles.
vehicles.
●● Abundant
Abundantpopulation
populationvolume
volumeinin5km
5kmmarket
marketarea
areaofofabout
about860,000
860,000people.
people.In
Interms
termsofof
populationpersquaremeterofretail
floor
area,
the
population
in
the
3km
area
is
1.16
population per square meter of retail floor area, the population in the 3km area is 1.16people,
people,while
whilethethepopulation
populationininthe
the5km5kmareaareaisis1.15
1.15people,
people,comfortably
comfortablyexceedingexceedingthe
thewhole
wholecountry’s
averagefigureof
0.85
peoplepersquaremeter.
country’s average figure of 0.85 people per square meter.
●● Adjacent
Adjacentto
to“Kitahanada“KitahanadaStation,”
Station,”Midosuji
MidosujiLine,
Line,Osaka
OsakaMunicipal
MunicipalSubway.
Subway.Highly
Highlyconvenientfortransportation,accessiblebymultiple
means
such
as
car,
convenient for transportation, accessible by multiple means such as car,rail
railororbus.
bus.
●● TheThenumbernumberof
ofpassengers
passengersusing
using“Kitahanada“KitahanadaStation”
Station”increased
increased1.5
1.5times
timesover
over1010years.
years.

20

4-3. Anonymous Association Investment AEONMALL SakaiKitahanada Prou (site) 2
Osaka City
University

SubwayMidosuji Line

Osaka city
Yamato River

Nagai Park

Shinasakayama
elementary school

Sakai city
Asakayama Municipal
Residential Buildings

Asakayama UR
Rental Apartment
Buildings

Route 28
(prefectural road)Route 187
(prefectural road)

AEON Mall Sakai
Kitahanada prou(site)

Subway Midosuji Line
Kitahanada Sta.
（underground）(North facing aerial photograph taken from south side)21

4-3. Anonymous Association Investment AEONMALL SakaiKitahanada Prou (site) 322

4-4. Merits of Investments in Anonymous Association
Merits(1) Secure excellent properties by obtaining priority negotiation rights
Enabling us to secure investment opportunities in excellent properties withprospects for future growth while suppressing rise in LTV.
(2) Enabling us to flexibly conduct public offering + property acquisition
Securing investment opportunities in excellent properties will allow tocarefully examine the best timing for public offering while presenting growthstrategies.
(3) Stronger ties with the sponsor group
Creating the warehousing function by utilizing the powerful support andexpertise of the Hankyu Hanshin Holdings Group.
(4) Investments in anonymous association will generate dividends on
profits that contribute to distributions to unitholders

Hankyu REIT plans to aggressively utilize its investments inanonymous association to drive further sustainable growth23

5. Internal Growth Strategies

10
2
24
14

5-1. Operational Management
Achieving a WIN-WIN-WIN-WIN relationship in operations
Consumers

Investors
Boosting stakeholder satisfaction
Maintaining
Maintaining andand improving
improving rent
rent income
incomeImproving
Improving attractivenessattractiveness toto consumers
consumers
andand sojournsojourn time
time

Invitation
Invitation ofof competitivecompetitive “in“in vogue”
vogue” tenants
tenants

Tenants

Hankyu REIT<<Results for the 12th fiscal period>>● HEP Five: Actively conducted tenant change.
● Kitano Hankyu Building: Working to attract a large tenant that can become the focus of the property’s
revitalization.
● LaLaport KOSHIEN: Achieved rent increase through rent revision despite slump in private consumption.
● NU chayamachi, Namba-Hanshin Building, Kitano Hankyu Building: Boosting occupancy rates
through aggressive leasing activities.
● Reducing expenses by calling bids aimed at optimizing nonlife insurance premiums (contributing fromthe 13th fiscal period).

25

5-2. Income ratio by rent category and Mechanism of the Sales-Based Overage Rent System
Income ratio by rent category
and variation factors

Overagerent
tenants

Fixedrent
tenants<Variable-rent portion>
Rent income varies
depending on overall sales ofchiefly HEP Five and NU
chayamachi

33.9％<Fixed-rent portion>
Rent income varies
depending on occupancy
rates and rental standard ofchiefly HEP Five and NU
chayamachi

3.6％

3.6％

33.0％

32.2％

96.1%

JPY 4.41bn
8th fiscal
第8期
periodConcept diagram of the generalsales-based overage rent system

(※)

64.2％

JPY 4.12bn
10th fiscal
第10期
periodJPY 4.05bn
12th fiscal
第12期
period(※)Transfers of Hankyu Corporation
Head Office Building and HEP
Five (Partial)HEP
HEP Five
Five
Variablerent
portion
8.4%
Overagerent
tenants
99.4%

Tenant sales
Point where sales-based
variable rent is generated

96.4%＜Sales-based overage rent ratios for two properties (12th fiscal period) ＞

Rent income
Variablerent
portionFixedrent
portionActualfixed-rent
portion

96.4%
63.4％

62.2％

Rent income varies
depending on occupancy
rates and rental standard ofremaining properties

Rent income total

3.9％

NU
NU chayamachi
chayamachi
Variablerent
portion
8.8%

Fixed-rent
tenants
0.6%

Fixed-rent
tenants
3.6%

Overagerent
tenants
96.4%
Fixed-rent
portion
91.0%

Fixed-rent
portion87.6%

26

5-3. Changes in Occupancy Rate for Individual Properties (Occupancy by end-tenants)
Occupancy
9.0％（
Occupancy rate
rate forfor Total
Total Portfolio
Portfolio 9
99.0％
（ as
as of
of thethe endend ofof thethe 12th
12th fiscal
fiscal period
period ））(％)

The graph showing leased properties to single tenants (occupancy rate : 100%) has been omitted.
(The seven properties leased to single tenants are: Takatsuki-Josai, Nitori Ibaraki, Kohnan Hiroshima, Tamachi,
LaLaport KOSHIEN, LAXA Osaka and Hamamatsu.)

100

Total Portfolio
HEP

95

Kitano Hankyu

90

Hankyu Yamada
Ueroku F Bldg.

85

NU

－

80

Tennoz75

Shiodome
Namba-Hanshin

70
10/11

(Note)

10/12

11/01

11/02

11/03

11/04

11/05

(Note) Figures express the value at the end of each month.

Continuation
Continuation ofof stable
stable occupancy
occupancy rates
rates since
since 1st
1st fiscal
fiscal period
period

（％）

100

99.5

95

100.0

99.3

98.5

99.3

98.8

98.1

98.5

98.7

98.4

98.7

99.0

4th
period07/05

5th
period07/11

6th
period08/05

7th
period08/11

8th
period09/05

9th
period09/11

10th
period10/05

11th
period10/11

12th
period
11/05

90
85

Total Portfolio

80(Note)

1st
period05/11

2ndperiod06/05

3rd
period
06/11(Note) Figures express the value at the end of each fiscal period.

27

5-4. Specialty Shop Buildings (Central City SC) (1)＜HEP Five＞

Changes in overall sales and rent
（ JPY mn）

In-building relocation and attraction of
new tenants
Conducted tenant replacing and brand change toboost number of cash-resister-sale customers
and unit price and attract new customers.
Maintaining and improving “freshness” as retailfacilities, working to stabilize rent income over a
medium- to long-term.

Examples of in-building relocation andopening of stores by new tenants
earth music & ecology
Super Premium Store

1st Basement

Relocated from 4F to B1F
Aiming to use this store's
position as the brand's largest
flagship store in Japan to set
trends in Asia.

BEAMS STREET

1st Floor

Concentration of B1F and 1F
stores at one location on 1F
Retail concept changed to a
store specializing in men’s andwomen's casual clothing andaccessories in tune with target
customer expectations.

（ JPY bn）

1,400
14.21
1,200
1,000
92.1
800
600
400
766.1
200
0
Rent income JPY 858.3 mn
total (Note) 8th fiscal period

13.13

12.28

74.6

69.8

762.3

765.5

JPY 837.0 mn

JPY 835.4 mn

10th fiscal period

12th fiscal period

Variable-rent

Overall sales

Fixed rent

16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

(Note) In the 9th fiscal period, as 10% of the quasi co-ownership (equity ratio 50%) of
the trust beneficiary interests was transferred, the comparison is based on an equity
ratio of 45%. For comparison purposes, rent income displayed for the 8th fiscal period
has been calculated at an equity ratio of 45%.

Green Parks sara

3rd Floor

New tenant
A multi-brand shop likely toachieve synergies withsurrounding stores, targeting adiverse clientele.

Ank Rouge

6th Floor

New tenant: the first store in
Kansai area
A trend-setting brand with astore in the Shibuya 109.
Expecting improved appeal andmore upbeat atmosphere forthe whole floor.
28

5-5. HEP Five and “Umeda Area”
North-west facing aerial photograph taken from south-east side
Hotel New Hankyu Osaka
HERBISOSAKANU chayamachi
Chayamachi Applause

Hankyu Grand Bldg.

HERBIS ENT

Kitano Hankyu Bldg.
Kita-Hankyu
Bldg.

HEP Five
Hanshin Department
Store

Hankyu Terminal Bldg.

JR Osaka Sta.

Umeda Hankyu Bldg.
(Hankyu Department
Store)
Shin-Hankyu Bldg.

Hankyu Corporation
Head Office Bldg.

(Currently undergoingreconstruction work)

Umekita (Osaka Station
North Area)- Hankyu Umeda Sta.
- Hankyu-sanbangai

HEP Navio
OS Bldg.

Higashi-Hankyu Bldg.

Umeda Center Bldg.

■ Hankyu REIT, Inc.’s properties ・■ The Hankyu Hanshin Holdings Group’s main developments and properties29

5-6. Specialty Shop Buildings (Central City SC) (2)＜NU chayamachi＞
hayamachi
Sales recovered across the whole building,occupancy rates rose
Opening of NU chayamachi Plus and a large-scale
bookstore nearby improved navigability in the area,and supported an increase in the number of visitors
and a recovery in overall sales.
Occupancy rate rose to 98.6% at the end of the 12th
fiscal period (compared with 94.5% at the end of the
11th fiscal period).

Integrated managementwith NU chayamachi Plus
Together with NU chayamachi Plus, the retail facility
now has around 100 stores, boosting its scale andability to attract customers.
Integrated management (sales promotion activities,
maintenance, signs and floor guides etc.) has reduced
some costs through boosted business efficiency.

Changes in overall sales and rent
（ JPY mn）

（ JPY bn）

1,000
800
600

5.0

3.97

3.91

3.92

35.7

41.3

552.0

526.1

476.4

JPY 567.5 mn

JPY 522.4 mn

10th fiscal period

12th fiscal period

Variable-rent

Overall sales

4.0
3.0

46.0

400
200

2.0

0
Rent income JPY 587.8 mn
total
8th fiscal period
Fixed rent

1.0
0.0

Improved
Improved navigability
navigability throughthrough Chayamachi
Chayamachi district
district

TheatreBroadcastingstationflow of people（image）

large-scale retail-use
facilities

Large-scale
bookstore

Revitalization of the Chayamachi district
An area where one can enjoy both city strolling andshopping at once, features cityscape that offers astreet-level experience.
Growing recognition as the artistic and cultural centerof the Umeda area.

30

5-7. Redevelopment to Spark Up Chayamachi District
CHASKA CHAYAMACHI

Complex retail facility comprised of a hotel,
residences and large-scale bookstore.

Umeda Arts Theater andMainichi Broadcasting System, Inc.

NU chayamachi Plus opened in April, 2011

NU chayamachi
Urban Area Redevelopment Project at
Chayamachi East-block (tower building)
186-unit residential tower wascompleted in June 2011.
With NU chayamachi Plusreaching to the third floor, it isexpected to create new mutual
customer flow in the area.

Urban Area Redevelopment Project at
Chayamachi East-block (school building)
A new beauty college specializing in“total beauty” opened in April 2011.
Expected to spark up the area31

6. Financial Strategies

22
120
33
32
14

6-1. Financial basic policy and Measures Implemented in 12th Fiscal Period
Measures Implemented in 12th Fiscal Period
and future policy● Continuing to suppress rise in funding costs by
utilizing security deposits (Utilized amount JPY 6.04
bn)
● Consider issuance of corporation bonds, while
monitoring the market environment, to diversify
method of fund procurement and extend remaining
years on long-term loans.

As of end of
12th period
Ave. funding cost（interest-bearing debt＋utilized
amount of security deposits）
Ave. debt financing cost
Ave. remaining years
on long-term loans payable
Long-term & fixed debt ratio
LTVInterest-bearing debt ratio

1.38%
1.52%
1.5 years
80.0%
55.9%
45.5%

(Note) LTV = (Amount of outstanding debts + Security deposits – Matchedmoney to security deposits) / (Total amount of assets* – Matchedmoney to security deposits)* Appraised value basis

Investor rating
Ratings of issuers

Registration of issue of corporation bonds

A3（negative）

A+(Stable)Proposed value of issuance (Upper limit): JPY 100,000 mn
Proposed issuance period:
December 19, 2009 to December 18, 201133

6-2. Loans payable as of the end of 12th Fiscal Period and Diversification of repayment dates
As of May 31, 2011

Diversification of repayment dates

Outstanding debt by lender （JPY mn）
500
0.9%

6,200
10.8%

（JPY bn）
20

4,200
7.3%

18

12,200
21.2%

14
12

7,100
12.3%
7,100
12.3%

16

10

11,000
19.1%
9,200
16.0%

8
6
4
2
0

Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.

13th
period11/11

14th
period12/05

15th
period12/11

16th
period
13/05

17th
period13/11

18th
period
14/05

19th
period14/11

20th
period15/05

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Corporate Bank, Ltd.
The Sumitomo Trust and Banking Co., Ltd.
The Senshu Ikeda Bank, Ltd..

Of JPY 11.6 bn long-term loans payable that became dueduring the 12th fiscal period, JPY 6.6 bn was converted toshort-term borrowings.

The Chuo Mitsui Trust and Banking Company, Limited

Total JPY 57.5bn

34

7. Overview of Financial Results

22
120
36
35
14

7-1. Financial Highlights（Unit:JPY mn）

Item

Operation period (days)

Forecast for 12th Fiscal Per iod ( 1) Results fo r 12th Fiscal Period (2)( as of Jan. 20, 2011 )(Dec. 1, 2010 to May 31, 2 011)

182

182

Change(2) -(1)(Main factors of increase/decrease)

―

4,738

4,742

4

Operating income

1,506

1,561

54

Ordinary income

1,026

1,085

59

Operating rev enues

Net income

1,024

1,084

59

Number of outstanding units
at end of period (units)

85,40085,400―Distribution per unit (JPY)12,00012,694694

23,641

24,311669

FFO per unit (JPY)① Increase in operating revenues

①
②
③

JPY

4 mn

Increased income from lease (Mainly HEP) JPY
Decreased utilities expense income△ JPY
Restorative work cost related to tenant
JPY
departure and contract breach fine etc.

12 mn
22 mn
17 mn

② Decrease in operating expenses

JPY

50 mn

Decreased utilities expense
Decreased repair expenses
Decreased costs related to tenant
entry/departure, etc.

JPY
JPY
JPY

15 mn
14 mn
12 mn

JPY

3 mn

③ Decreased interest due

36

7-2. Income Statement / Cash Distribution Statement
Income Statement

Cash Distribution Statement(Uni t: JPY thousand)（Uni t: JPY mn）

Item

11th Fiscal Period

12th Fiscal Per iod(Duration of investment: 183days)(Duration of investment: 182days)

Jun. 1, 2010 to Nov. 30, 2010

Dec . 1, 2010 to May 31, 2011

Amount
1. Operating revenues
Lease operating revenues
2. Operating expenses
Lease operating costs
Asset management remuneration
Officer remuneration
Asset consignment remuneration
Adminstrative agenc y remuneration
Auditor remuneration
Other expenses
Operating income
3. Non-operating revenues
Interest earned
Other non-operating revenues
4. Non-operating expenses
Interest due
Loan related expens e
Other expenses
Ordinary income
Pretax net income for current period
Corporate, local and enterprise tax
Adjustment for c orporate tax, etc.
Net income for c urrent period
Retained earnings carried forwardfrom the previous period
Unappropriated income for current period

4,824
4,824
3,271
2,889
281
3
16
31
7
40
1,553
3
1
1
495
466
27
1
1,061
1,061
1
△0
1,060

Item

ChangePercentage

AmountPercentage

100.0

4,742
4,742
3,181
2,814
278
3
16
29
7
30
1,561
2
0
1
478
448
28
1
1,085
1,085
1
0
1,084

100.0

△ 82

①

67.1

△ 89

② (Distribution per unit (JPY))

67.8

32.2
0.1
10.3

22.0

22.0

0

0

1,060

1,084

11th Fiscal Period 12th Fiscal Period

Unappropriated income for current
periodDistributions

Retained earnings c arried forward

ChangeAmountAmountAmount

1,060,293

1,084,085

23,7 91

1,060,241（12,415 ）52

1,084,067（12,694 )17

23,8 26（2 79 )
△ 35

(Main factors of increase/decrease)① Decrease in operating revenues
32.9
0.1

7
△1

10.1

△ 17

22.9

23

22.9

23

Decreased income from lease(Shiodome, NU, Tennoz)
Decreased utilities expense income
Decreased air conditioning expenses③ ② Decrease in operating expenses
Increased property/facility
management fees
Decreased utilities expense
Increased advertising andpromotion expenses
Increased repair expenses
Decreased depreciation③ Decrease in non-operating expenses
Decreased interest due
Lease operating revenues and costs
Breakdown: Refer to page 41 and 42
Occupancy rate at end of fiscal period: 99.0％(Occupancy by end-tenants)

△ JPY

82 mn

△ JPY

13 mn

△ JPY
△ JPY

52 mn
17 mn

△ JPY

89 mn

JPY

11 mn

△ JPY
JPY

107 mn
18 mn

JPY
△ JPY

32 mn
38 mn

△ JPY

17 mn

△ JPY

17 mn

37

7-3. Balance Sheet（Unit: JPY mn）
Item

11th Fiscal Period

12th Fiscal Period(as of Nov. 30, 2010)(as of May 31, 2011)

AmountAmountRati o (%)

ChangeItem

Ratio (%)

AmountAs sets

11th Fiscal Period

12th Fiscal Period(as of Nov. 30, 2010)(as of May 31, 2011)

AmountAmountRati o (%)

ChangeRatio (%)

AmountLiabilities

I Current assets total

9,140

7.2

9,589

Curr ency and demand deposit

2,208

2,068

Curr ency and demand depositin tr ust

6,523

7,027

Operational income receivable

3

11

Stor es
Deposit paid

0

0

323

337

81

143

Deferred income tax assets00others0―Prepaid expense

II Fixed assets total

117,636

92.8

116,725

7.6

448

Operating no-trade accounts
payableShort-fiscal period loans payable
Long- fiscal period loans payable(retur n within 1 year)

△ 910

2,426

2,360

Structures

347

331

3

3

7,938

7,938

Buildings in trust

35,501

34,713Structures in tr ust

482

462

Machiner y and equipment in trust

251

231

Tools, furniture and fixtures in trust

77

73

Land

Land in trust
Tangible fixed assets total

69,613
116,642

115,728

957

957

Misc. intangible fixed assets

3

2

Trust and other intangible fixed
assets4

4Intangible fixed assets total

965

0.8

964

4,900

11,500

27.0

4,959

21,30010Interest-bearing
dept:

Accrued expenses

232

229

JPY 57,500 mn

Breakdown:
Refer to Page 34

Advance received

1

1

38

46

495

461

0

0

(r etur n within 1 year)

94

94

Total of security
deposits:

Security deposits in tr ust(retur n within 1 year)

301

II Funded liabilities total

41,201△ 913

24,700

1,693

1,646

Security deposits in tr ust

9,607

9,409

JPY 11,396 mn
28.3

70,371

55.5

69,885

55.3

I Overall investment

55,34443.7

55,344

43.8

II Surplus f und total

1,060

0.8

1,084

0.9

△ 5,445△ 485

JPY 6,041 mn
was applied toproperty acquisition
financing

Net ass ets

Unappr opriated income for cur rent
period0.8

35,75629,900Liabilities total

91.6

245
32.5

Security deposits

Long- fiscal period loans payable

2. Intangible fixed assets
Land leasehold

239

Security deposits

69,61392.0

34,12911

Curr ent deposit received

Buildings

23.0

393

22,700Accrued consumption tax

92.4

29,169Accrued dividend

Income taxes payable

1. Tangible fixed assets

Tools, furniture and fixtures

I Current liabilit ies total

1,060

1,084

Net ass ets total

56,40544.5

56,42844.7

23Liabilities and net as sets total

126,776

100.0

126,314

100.0

△ 461

△0

3. Investments, other asset sLong- fiscal period pr epaid
expenses

18

Guarantee money deposit

10

Investment, other assets total

As sets total

23
10

28

0.0

33

0.0

4

126,776

100.0

126,314

100.0

△ 461

38

7-4. Distribution Forecast for 13th Fiscal Period（ Unit: JPY mn）

Item

Results for 12th Fisc al Period (1)(Dec. 1, 2010 to May 31, 2011)

Forecast for 13th Fiscal Period (2)(Jun. 1, 2011 to Nov. 30, 2011)

Change(2)-(1)Results for 11th Fisc al Period (3)(Jun. 1, 2010 to Nov. 30, 2010)

Change(2)-(3)Operation per iod(days)

182

183

1

183

―

Operating revenues

4,742

4,927 ※

184

4,824

102

Operating i ncome

1,561

1,528

△ 33

1,553

△ 25

Ord inary income

1,085

1,052

△ 33

1,061

△9

Net income

1,084

1,050

△ 33

1,060

△9

Number of outstanding units
at end of period (units)

85,40085,400―85,400―Distri bution per unit (JPY)

12,694

12,300△ 394

12,415△ 115

FFO per unit (JPY)24,311

23,903△ 407

24,479△ 576※ At HEP Five and NU chayamachi, the tenant bearing sales promotion expenses that were treated as
deposits by the master lessee will be recorded as income/expense by Hankyu REIT from the 13th fiscal
period as a result of changes to the agreement with the master lessee. Accordingly, a balance of these
deposits of 51 million yen held by the master lessee at the beginning of the 13th fiscal period isrecorded as income in a lump-sum.

[Main preconditions]- There are no transfers of portfolio properties from the 15 properties held at present.
- At present, 85,400 units have been issued and no additional units will be issued until
end of the period.

39

7-5. Financial Index

Item

11th Fiscal Period

12th Fiscal Period

183 days

182 days

0.8%

0.9%

Ordinary income / {(Total assets at beginning of period+ Total assets at end of period) /2 }

1.7%

1.7%

Calculated from duration of operation

1.9%

1.9%

Net income / {(Net assets at beginning of period + Net assets at endof period) /2 }

3.7%

3.9%

Calculated from duration of operation

44.5%

44.7%

Net assets / Total assets

56.1%

55.9%

（52.8%）（52.5%）(Debts payable + Security deposits - Matched money to security deposits)/(Total assets(*) - Matched money to security deposits)*Appraisal-value basis (Ratios in brackets are based on book value)

45.4%

45.5%

Interest-bearing debt / Total assets

5.5 times

5.6 times

Net Operating Income (NOI)

JPY 2,965 mn

JPY 2,920 mn

Net lease operating income + Depreciation

Funds From Operation (FFO)

JPY 2,090 mn

JPY 2,076 mn

Net income for current fiscal period + Depreciation

Operation period

Return On Assets (ROA)(Per annum)
Return On Equity (ROE)(Per annum)
Ratio of net assets at end of period

Loan To Value ratio at end of period (LTV)
Ratio of interest-bearing debts to total assets
at end of period
Debt Service Coverage Ratio (DSCR)

Remarks
11th fiscal period: Jun. 1, 2010 to Nov. 30, 2010
12th fiscal period: Dec. 1, 2010 to May 31, 2011

Pre-interest and pre-depreciation net income for current fiscal period /Interest due

40

7-6. Income and Expenditure by Property ①（Unit： JPY mn）

HEP Fi ve

Item(45% of the quasi
co-ownership of Kitano Hankyu
Bldg.
the trust
beneficiaryinterests)

Dew Han kyu
YamadaNitori IbarakiKita Stor e(site)(No te 1)

TakatsukiJosai SC

Number of operating daysof 12th fiscal period

182

182

182

182

Lease operating revenues total

984

531

377

849

367

Utilities expense income

60

Other incomes

Income from lease

Lease operating costs total
Property/Facility management
fees
Utilities expense

182

Ko hnanHiroshima
NU
Nakanochayamachi
Higashi Sto re(site)

Spher e Tower

Tennoz(33% of the quasi
co-ownership of
the trust
beneficiary

Ueroku F
Bldg.

Shiodome
East
Side Bldg .

182

182

182

182

182

284

76

631

132

362

439

261

283

76

527

114

289

418

109

49

―

―

68

9

25

17

74

53

66

0

0

34

8

48

4

577

383

237

144

7

455

90

195

192

147

117

75

10

0

112

22

28

19

67

118

45

0

―

83

10

53

22

7

1

1

21

―

0

―

―

0

Adv ertising and promotion
expenses

72

2

2

―

―

27

0

―

0

Repair expense

18

25

4

0

―

7

8

14

1

3

2

1

1

―

2

0

0

1

Tax and public dues

66

53

28

28

7

50

14

30

23

Other expenses

28

1

4

0

―

2

1

4

2

163

60

73

81

―

168

33

64

121

Lease operating income

406

147

140

140

68

176

42

166

247

NOI
(Lease operating income +Depreciation)

570

208

213

221

60

68

344

75

230

368

27

7

―

―

―

― ②

22

9

0

Rent paid

Nonlife insurance premium

Depreciation

Capital expenditure

5①(Note 1) Rent information are not permitted to be disclosed (tenant request).

(Main factors)① Kit ano Hankyu Bldg.
Preparatory works accompanying new tenants
Renewal of air conditioners
Upgrade of electricity meters and installationof distribution boards② Ueroku F Bldg.

Upgrade of air conditioners and heat exchangers

JPY
JPY
JPY
JPY

27 mn
6 mn
9 mn
9 mn

JPY
JPY

22 mn
21 mn

41

7-6. Income and Expenditure by Property ②（Unit： JPY mn）
Item

Hotel
Gracery
Tamac hi

LAXA Osaka

LaLapor t
KOSHIEN(site)

Richmond
Hotel
Hamamatsu(No te 1)

NambaHanshin
Building

Item

Number of operating daysof 12th fiscal period

Total(15 properties)

Number of operating daysof 12th fiscal period

182

182

182

182

Lease operating revenues total

121

254

255

151

116

254

255

126

Utilities ex pense income

―

―

―

9

Other incomes

4

―

0

16

53

180

106

124

Lease operating costs total (Note 2)

2,813
567
414

Income from lease

Lease operating costs total

182

Lease operating revenues total
Income from lease

―
4,742
4,080

Utilities ex pense income

349

Other incomes

312

Property/Facility management
fees

1

2

1

23

Property/Facility management
fees

Utilities ex pense

―

―

―

13

Utilities ex pense

Rent paid

―

18

0

―

Rent paid

105
107

Adv ertising and promotion
expenses

―

―

―

―

Adv ertising and promotion
expenses

Repair expense

―

19

―

6

Repair expense

Nonlife insurance premium

0

4

0

1

Nonlife insurance premium

14

53

102

21

0

1

1

1

36

81

0

56

Lease operating income

67

74

149

26

NOI
(Lease operating income +Depreciation)

103

155

149

83

―

0

―

3

Tax and public dues
Other expenses
Depreciation

Capital ex penditure

Tax and public dues
Other expenses
Depreciation

50

21
505
50
991

Lease operating income

1,929

64

NOI
(Lease operating income +Depreciation)

2,920

―

Capital ex penditure77(Note 1) Rent information are not permitted to be disclosed (tenant request).
(Note 2) Depreciation amount of Head Office are not included.

42

8. APPENDIX

32
22
10
2
44
43
14

8-1. Portfolio List （as of end of 12th Fiscal Period）
As of May 31, 2011
Cl assi fi catio n

Code(Note 1)Name

HEP Five

Location

Completion date

Building
age(Note 2)

Leasable area(m2 )(Note 3)

Occupancy rate
(Note 3)

Kita Ward,
Osaka C ity

Nov. 1998

12.6

20,370.13( 9,510.90 )100.0%( 98.0% )1
4.6%( 135 )

Feb. 1, 2005

20,79017.1%

24,435

4.5%

Total numberof tenants(Note 3)PML
Date of acquisition(Note 4)

Acqusition price Investment Appraisal value C AP rate
(JPY mn )(JPY mn)
ratio(Note 5)Retail-use facilities(45% of the quasi co-ownership of
the trust beneficiar y interests)

R2(K)Kitano Hankyu Bldg.

Kita Ward,
Osaka C ity

Jun. 1985

26.0

28,194.15( 18,469.72 )100.0%(93.6% )1
10.1%( 20 )

Feb. 1, 2005

7,740

6.4%

6, 790

5.6%

R3(K)

Dew Hankyu Yamada

Suita City,
Osaka Prefectur e

Oc t. 2003

7.7

12,982.19

100.0%

26

4.5%

Feb. 1, 2005

6,930

5.7%

6,860

5.6%

R4(K)

Takatsuki-Josai
Shopping Center

Takatsuki City,
Osaka Prefectur e

Apr. 2003

8.2

31,451.81

100.0%

1

6.1%

Nov. 15, 2005

8,600

7.1%

7, 330

5.8%

R5(K)

Nitori Ibaraki-Kita Store(site)

Ibaraki City,
Osaka Prefectur e――

6,541.31

100.0%

1―

Mar. 29, 2006

1,318

1.1%

1,329

7.4%

R6

Kohnan Hiroshima NakanoHigashi Store (site)

Aki Ward,
Hiroshima C ity――

100.0%

1―

Oct. 2, 2006

2,170

Apr. 9, 2007

5

1.8%

1, 980

6.9%

R7(K)

NU chayamachi

Kita Ward,
Osaka C ity

Sep. 2005

5.7

15,546.75( 11,626.65 )100.0%( 98.6% )Mar. 15, 2007

19,30015.9%

14, 900

4.8%

R8

Hotel G racery Tamachi

Minato Ward,
T okyoSep. 2008

2.7

4,943.66

100.0%

1

10.2%

Dec. 25, 2008

4,160

3.4%

3,850

5.4%

R9(K)

LaLaport KOSHIEN(site)

Nishinomiya City,
Hyogo Prefecture――

126,052.16

100.0%

1

6.0%

Jan. 22, 2009

7,350

6.1%

6, 7105.0%

R10Richmond Hotel Hamamatsu

Naka Ward,
Hamamatsu City

Sep. 2002

8.8

6,995.33

100.0%

1

13.9%

Jan. 22, 2009

2,100

1.7%

1,937

6.3%

O1

Shiodome East Side Bldg.

C huo Ward,
T okyoAug.2007

3.8

9,311.32

93.1%

4

4.6%

Feb. 29, 2008

19,025

15.7%

14, 200

4.8%

M1(K)

Ueroku F Bldg.

C huo Ward,
Osaka C ity

Sep. 1993

17.8

4,611.82

89.9%

12

3.2%

Nov. 1, 2005

2,980

2.5%

2, 4306.0%

M2(33% of the quasi co-ownership of
the trust beneficiar y interests)

Shinagawa Ward,
T okyoApr. 1993(Note 6)18.2

8,807.71

98.1%

23

2.7%

Oct. 2, 2007

9,405

7.8%

8, 448

4.7%

M3(K)

LAXA Osaka

Fukushima Ward,
Osaka C ity

Feb. 1999

12.3

30,339.91

100.0%

1

3.4%

Jan. 22, 2009

5,122

4.2%

5, 000

5.9%

M4(K)

Namba-Hanshin Building

C huo Ward,
Osaka C ity

Mar. 1992

19.3

9,959.01（ 6,456.88 )100.0%（ 93.9% ）1
4.5%( 17 )

Jan. 22, 2009

4,310

3.6%

3, 1305.5%

10.6

341,637.00( 313,631.11 )99.6%( 99.0% )76
3.2%( 314 )―

121,306

100.0%

109, 329

5.1%

Officeusefacilitie

R1(K)

－

Sphere Tower Tennoz
Complexfacilities

Total(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)25,469.59
60.14

1
4.5%
( 70 )

These codes represent properties owned by Hankyu REIT classified into the following facilities and regions.
Left-side letters represent facilities: R is a retail-use facility, O is an office-use facility, and M is a complex facility.
The figures are attached to facilities in order of date of acquisition, and a K means the property is located in the Kansai region.
Portfolio total represents the weighted average building age by acquisition price.
Figures in parenthesis indicate the area leasable for end-tenants, the occupancy rate based on the said area, and the number of end-tenants, respectively.
In the case of HEP Five, 45% quasi co-ownership of the trust beneficiary interests is listed as the leasable area.
For Sphere Tower Tennoz, 33% quasi co-ownership of the trust beneficiary interests is listed as the leasable area.
For LaLaport KOSHIEN (site), the leasable area is the total of the retail facility lot portion (86,124.96 ㎡) and the parking garage space portion (39,927.2 ㎡).
PML of LaLaport KOSHIEN (site) is for parking garage space administration building portion (394.88㎡)
Cap rate by direct capitalization method using appraisal value calculation. (Nitori Ibaraki-Kita Store (site), Kohnan Hiroshima Nakano-Higashi Store (site)and LaLaport KOSHIEN (site), are allocated a discount rate using the DCF method.)
Portfolio total is the weighted average CAP rate based on appraisal value.
The year of completion for the office and store portions.

44

8-2. Portfolio Map ① （as of end of 12th Fiscal Period）

45

8-2. Portfolio Map ② （as of end of 12th Fiscal Period）

46

8-3. Rent systems and present conditions of 15 portfolio properties （as of end of 12th Fiscal Period） ①<Properties that mainly use the sales-based overage rent system>
Name

Main rent system

HEP Five
Specialty shops buildings(Central city SC)

Overage(fixed + variable)

NU chayamachi
Specialty shops buildings(Central city SC)

Overage(fixed + variable)

Present conditions
Average occupancy rate for the fiscal period was at a high level (99.0%).
Implementing joint sales promotion events with other sponsor group retail facilities in the Umeda
area in response to the opening of JR Osaka Mitsukoshi Isetan, LUCUA and other new buildings.
Planning renewal of amusement floors on eighth and ninth floor based on a fashion theme(expecting synergistic effect with retail tenants).
The opening of NU chayamachi Plus and other developments have revitalized the Chayamachi
district, helping us to secure eight new tenants; the occupancy rate was 98.6% at the end of the
12th fiscal period, 4.1pt rose from the end of the previous period (11th fiscal period).
Currently focusing on integrated sales promotion activities with NU chayamachi Plus to capture
existing customers and attract new customers.

<Properties that use the fixed rent system>
Name

Main rent system

Present conditions

Ueroku F Building
OfficeFixed

The occupancy rate was 89.9% at the end of the 12th fiscal period, no change from the end of theprevious period (11th fiscal period).
Currently focusing on leasing vacant offices by utilizing the building attributes that make itcompetitive in the area (accessibility, visibility and scale), conducting open property viewings aimed
at real estate agents and offering tenants the option to expand floor space.

Sphere Tower Tennoz
OfficeFixed

Limited impact to the building from the earthquake.
Average occupancy rate for the fiscal period was at a high level (97.9%).
Installing a separate air conditioning system for the store portions to boost property value.

Shiodome East Side
Building
OfficeFixedNamba-Hanshin Building
OfficeFixed

Limited impact to the building from the earthquake.
Half of the sixth floor, which is currently vacant, will be occupied from July (resulting in an
occupancy rate of 100%).
The occupancy rate was 93.9% at the end of the 12th fiscal period, rose 8.8pt from the end of the
11th fiscal period, as leasing of a new travel agent was successfully secured for the vacanteleventh floor.
The area is attractive to businesses with in-person visits from clients and we are currently focusing
on leasing vacant offices by continuing to conduct open property viewings aimed at real estateagents and offering tenants the option to expand floor space.
Planning to upgrade security system and renewal the first floor entrance hall to boost property
value.

47

8-3. Rent systems and present conditions of 15 portfolio properties （as of end of 12th Fiscal Period） ②<Properties that mainly use the long-term, fixed rent systems>
Name

Main rent system

Present conditions

Kitano Hankyu Building
Specialty shops buildings(Central city SC)

Long-term, fixed(partly overage)

In the B1 restaurant floor, 2 stores newly opened as a result of aggressive leasing activities.
Currently working to attract large tenants for the third floor that can become the focus of theproperty’s revitalization.

Dew Hankyu Yamada
NSC (Neighborhood
shopping centers)

Long-term, fixed(partly overage)

Average occupancy rate for the fiscal period stable at 100%.
Because the market area population is large and the building has strong attractiveness to customers,
both overall sales and rent income are stable.
We will continue to focus on sales promotion activities such as the “Summer Fair” and “8thAnniversary Fair” utilizing the showpiece atrium area to create sparking atmosphere and boost
sales.

Takatsuki-Josai Shopping
Center
NSC (Neighborhood
shopping centers)

Long-term, fixed

Stable rent income based on the fixed-type master lease method* with Kohnan Shoji Co., Ltd.
Tenant composition of home improvement center, grocery store, home electronics retailer, sporting
goods store, etc. fulfills the needs of residents in the surrounding area.

Stable rent income based on a contract for the establishment of fixed-term leased-land rights forbusiness use with Nitori Holdings Co., Ltd.
Long-term, fixed
The market area population is increasing due to extension of the monorail line and local residential
property development.
Stable rent income based on a contract for the establishment of fixed-term leased-land rights for
Kohnan Hiroshima Nakanobusiness use with Kohnan Shoji Co., Ltd.
Higashi Store (site)Long-term, fixed
Retail facility, with a home improvement center and a grocery store, offering high transportation
NSC (Neighborhood
convenience.
shopping centers)
Stable rent income based on long-term lease with Fujita Kanko Inc.
Hotel Gracery Tamachi
Long-term, fixed
Hotel occupancy rate was at a consistently high level prior to the earthquake, but occupancy has
High-grade hotels for
declined since the earthquake due to a drop in tourism demand (particularly of foreign visitors).
business travelers
Stable rent income based on a contract for the establishment of fixed-term leased-land rights for
LaLaport KOSHIEN (site)business use with Mitsui Fudosan Co., Ltd.
Long-term, fixed
RSC (Regional shopping
Realized rent increase as of March 2011.
centers)
In spring 2011, a major renewal was carried out, bringing in H&M, ZARA, Uniqlo and other fastfashion chains new stores and LaLa Kid’s Park added.
Stable rent income based on the fixed-type master lease method* with Hanshin Electric Railway
LAXA Osaka
Co., Ltd.
Long-term, fixed
City hotels
The earthquake had a more limited impact on Hotel Hanshin than hotels in the Tokyo metropolitan
area.
Stable rent income based on the fixed-type master lease method* with RNT HOTELS Co., Ltd.
Richmond Hotel(consolidated subsidiary of ROYAL HOLDINGS Co., Ltd.).
Hamamatsu
Long-term, fixed
There was no major downward impact from the earthquake and the hotel continues to maintain a top
High-grade hotels forclass occupancy rate in the Hamamatsu City area.
business travelers*Fixed-type master lease method: Hankyu REIT receives rent income from the master lessee (sublessor). The amount received is fixed48
irrespective of the rent received by sublessor from end-tenants.
Nitori Ibaraki-Kita Store(site)
Specialty shops

8-4. Changes in Appraisal Value
Appraisal value down 1.0%

CAP rate steady(JPY mn)
30,0006.0%

25,0005.0%(Note 1)

20,0004.0%

15,0003.0%

10,000

2.0%

5,000

1.0%

0

0.0%
1st

(Note 2)period

05/11

2nd
period06/05

3rd
period06/11

4th
period07/05

5th
period07/11

6th
period08/05

7th
period08/11

8th
period09/05

9th
period09/11

10th
period10/05

11th
period10/11

12th
period
11/05

HEP
Takatsuki-Josai

NU
Kitano Hankyu

Shiodome
Hankyu Yamada

TennozLaLaport KOSHIENLAXA Osaka
Kohnan Hiroshima

TamachiHamamatsu

Namba-Hanshin
Nitori Ibaraki

Ueroku F Bldg.
Weighted average CAP rate

(Note 1) In the 9th fiscal period (November 27, 2009), as 10% of the quasi co-ownership (equity ratio 50%) of the trust
beneficiary interests was transferred, the comparison is based on an equity ratio of 45%. For comparison purposes, appraisal
values displayed for the ends of the 1st to the 8th fiscal periods have been calculated at an equity ratio of 45%.
(Note 2) Figures express the value at the end of each fiscal period.

49

8-5. Changes in Appraisal Value（Unit：JPY mn）

Acquisition price① End of previous
period(11th fiscal period-end)

CAP
rate

② End of current
period(12th fiscal period-end)

CAP
rate

Change(②-①)

Change(②-①)/①③Value recorded on
the balance sheet at
end of current period

Unrealized
income/loss②-③

Value to book ratio②/③

HEP Five (45% of the quasi
co-ownership of the trust
beneficiary interests)

20,79024,5704.5%

24,435

4.5%

△ 135

-0.5%

19,4704,964

125.5%

Kitano Hankyu Building

7,740

6,790

5.6%

6,790

5.6%

―

0.0%

7,749

△ 959

87.6%

Dew Hankyu Yamada

6,930

6,860

5.6%

6,860

5.6%

―

0.0%

6,217

642

110.3%

Takatsuki-Josai
Shopping Center

8,600

7,305

5.8%

7,330

5.8%

25

0.3%

7,970

△ 640

92.0%

Ueroku F Building

2,980

2,430

6.0%

2,430

6.0%

―

0.0%

2,904

△ 474

83.7%

Nitori Ibaraki-Kita Store(Site)

1,318

1,322

7.4%

1,329

7.4%

7

0.5%

1,340

△ 11

99.1%

Kohnan Hiroshima NakanoHigashi Store (Site)

2,175

2,000

6.9%

1,980

6.9%

△ 20

-1.0%

2,280

△ 300

86.8%

NU chayamachi

19,30015,1004.8%

14,900

4.8%

△ 200

-1.3%

18,153△ 3,253

82.1%

Sphere Tower Tennoz (33%of the quasi co-ownership of
the trust beneficiary

9,405

8,712

4.7%

8,448

4.7%

△ 264

-3.0%

8,943

△ 495

94.5%

Shiodome East Side Bldg.

19,025

14,7004.8%

14,200

4.8%

△ 500

-3.4%

18,660△ 4,460

76.1%

Hotel Gracery Tamachi

4,160

3,840

5.4%

3,850

5.4%

10

0.3%

4,104

△ 254

93.8%

LAXA Osaka

5,122

4,970

5.9%

5,000

5.9%

30

0.6%

5,017

△ 17

99.7%

LaLaport KOSHIEN(site)

7,350

6,600

5.0%

6,710

5.0%

110

1.7%

7,749

△ 1,039

86.6%

Namba-Hanshin Building

4,310

3,280

5.5%

3,130

5.5%

△ 150

-4.6%

4,190

△ 1,060

74.7%

Richmond Hotel Hamamatsu

2,100

1,927

6.3%

1,937

6.3%

10

0.5%

1,937

△0

100.0%

Total

121,306

110,406

5.1%

109,329

5.1%△ 1,077-1.0%

116,689△ 7,360

93.7%

Cap rate by direct capitalization method process using appraisal value calculation. (Nitori Ibaraki-Kita Store (site), Kohnan
Hiroshima Nakano-Higashi Store (site) and LaLaport KOSHIEN (site) are allocated a discount rate using the DCF method.)
Portfolio total is the weighted average CAP rate based on appraisal amount.

50

8-6. Changes in Investment Unit Price
Unit Price (closing price basis)
（円）
(JPY)
1,500,000
1,400,000
1,300,000
1,200,000
1,100,000
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0（口）

13th (Units)
period

1st
period2nd
period3rd
period4th
period5th
period6th
period7th
period8th
period9th
period10th
period11th
period18,00012th
period14,000Per unit trading trends(Oct. 26, 2005 - Jul. 6, 2011)

12,000Highest price (traded value)

16,00010,0008,000

Lowest price (traded value)

6,000

1,410,000 JPY(Apr. 25, 2007)
318,000 JPY(Mar. 15, 2011)

4,000
2,000

05/11/30
05/10/26

06/5/3106/11/30

Source: QUICK

07/5/31 07/11/30

08/5/30 08/11/28

出来高
Volume

09/5/29

09/11/30

10/5/31

10/11/30

0

11/5/31
11/7/6Highest price (traded value)

投資口価格
Unit price

Lowest price (traded value)

Relative Price (closing price basis)（％）1stDuring 12th fiscal period(Dec. 1, 2010 - May. 31, 2011)
470,000 JPY(May. 2, 2011)
318,000 JPY(Mar. 15, 2011)13th
periodperiod

240
2nd
3rd
4th
6th
5th
9th
11th
10th
12th
8th
7th
periodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiod
220
200
180
160
140
120
100
80
60
40 05/11/30 06/5/31 06/11/30 07/5/31 07/11/30 08/5/30 08/11/28 09/5/29 09/11/30 10/5/31 10/11/30 11/5/31

Price as of Jul. 6, 2011 (closing price basis)408,000 JPY

11/7/605/10/26

Nikkei Stock
Average
TSE REIT Index
Hankyu
REＩT
阪急ﾘｰﾄ投資口価格
東証REIT指数
日経平均株価Source: QUICK,Tokyo Stock Exchange

51

8-7. Analysis of unitholder attributes at end of 12th Fiscal Period
Unitholder Composition
O wnership by category

Number ofunitholders (persons)Ratio to number of units by unitholders

Rati o to ownership

Number of units
invested (units)

Ratio to numberof units

Finance institutions( excludi ng Trust Bank)

76

0.99%

22,16325.95%

Trust Banks

10

0.13%

25,37929.72%

7,370

95.63%

20,03623.46%O ther organization s

167

2.17%

10,131

11.86%

Foreign organizations, etc.

84

1.09%

7,691

9.01%

47.27%

43.48%

44.25%

36.46%

33.83%

37.17%

35.81%

38.22%

39.22%

34.34%

31.72%

25.95%

29.72%

Individuals, etc.

7,707

Total

100%

85,40013.39%

33.60%

9.29%

13.38%

11.16%

7.80%

7.37%

7.78%

8.11%

8.82%

As of end of
1st period

As of end of
2nd period

As of end of
3rd period

9.63%

Ownership

14,85317.39%

5,548

6.50%

The Senshu Ikeda Bank, Ltd.

4,150

4.86%

Hanky u Corporation

3,500

4.10%

Nomura Bank (Luxembourg) S.A.

3,189

3.73%

Trust & Custody Serv ices Bank, Ltd.
(Securities investment trust account)

2,650

3.10%

North Pacific Bank, Ltd.

2,071

2.43%

Fuji Fire And Marine Insurance Co., Ltd.

1,995

2.34%

The Master Trust Bank of Japan, Ltd.
(Trust account)

1,913

2.24%

Shikoku Railway Company

1,768

2.07%

Total

41,63748.76%

Number of outstanding units

85,400100%

Japan Trustee Servic es Bank , Ltd.
(Trust account)
The Nomura Trust and Banking Co., Ltd.
(Investment accounts)

32.53%

32.70%

29.02%

7.33%

13.46%

13.44%

17.05%

18.44%

8.62%

9.12%

9.78%

8.23%

12.98%

10.14%

8.62%

As of end of
4th period

As of end of
5th period

As of end of
6th period

Foreign organizations, etc.

Number of units
held (units)

Unitholder name33.96%

23.71%

27.56%

28.39%

22.27%

100%

Top 10 unitholders

27.24%

26.31%

Other organizations

21.38%

23.20%

24.78%

11.22%

11.31%

11.33%

5.32%

4.55%

4.47%

4.83%

4.61%

As of end of
7th period

As of end of
8th period

As of end of
9th period

As of end of
10th period

As of end of
11th period

Individuals, etc.

Trust Banks

23.46%

11.86%
9.01%
As of end of
12th period

Finance institutions(excluding Trust Banks)52

8-8. “Umeda,” Hankyu REIT’s main area
South facing photograph taken from north side（Photo taken from Chayamachi Applause）
Hankyu Grand Bldg.
Completed in 1977

Umeda Hankyu Bldg.
(Currently undergoingreconstruction work)

Hanshin
Department Store
Opened in 1933

Hotel New Hankyu
Osaka
Opened in 1964

HERBIS ENT
Opened in 2004
HERBIS
OSAKA
Opened in 1997

HEP Five
Opened in 1998

Hankyu Terminal
Bldg.
Completed in 1973

Hankyu Umeda Sta./ Hankyu-sanbangai
Completed in 1973
10-car train, 200m length, 10 platforms

Kitano Hankyu Bldg.
Opened in 1985

NU chayamachi
Opened in 2005
■Hankyu REIT, Inc.’s properties ・ ■The Hankyu Hanshin Holdings Group’s main developments and properties53

8-9. Namba-Hanshin Building and Namba Area
North facing aerial photograph taken from south side
Midosuji Line Namba Sta.
（underground）
underground）
Sennichimae Line Namba Sta.
（underground）
underground）

Hanshin Namba Line
Osaka Namba Sta（underground）
underground）

Swisshotel Nankai Osaka

Midosuji

NAMBA MARUITAKASHIMAYA Osaka

Yotsubashi Line Namba Sta（underground）
underground）
JR Namba Sta.
（underground）
underground）

Nankai Namba Sta.

Namba Parks

Namba-Hanshin
Building

Close to Hanshin Namba Line Osaka Namba Station via Namba walk.

54

8-10. Dew Hankyu Yamada and facilities in vicinity
Osaka University
Osaka Monorail
Chugoku Expressway
Osaka Central
Circular Route

Osaka University HospitalBampaku-kinenkoen

Osaka Monorail
Yamada Sta.
Hankyu Yamada
Sta.

Hankyu Senri
Line

Tsukumodai
housing estate

Dew Hankyu
YamadaNorth facing aerial photograph taken from south side
* Includes variable-rent portion (classification is not disclosed)55

8-11. LaLaport KOSHIEN (site) and facilities in vicinity
Hanshin Koshien
Stadium

Daiei Koshien

甲子園球場

Hanshin Koshien Sta.

Hanshin Expressway
No.3 Kobe Line
阪神高速3号神戸線

Route 43
(national road)

Kidzania Koshien(opened in March 2009)

Prefectural Highway 340

Mukogawa
Women’s
University(Department ofPharmacy)

North facing aerial photograph taken from south side56

8-12. Takatsuki-Josai Shopping Center and facilities in vicinity

Takatsuki City Hall

Hankyu Kyoto
Line

JR Kyoto LineJR Takatsuki-shi Sta.
HankyuTakatsuki-shi Sta.

Route 171
(national road)Route 16
(prefectural road)

Takatsuki-Josai
Shopping CenterNorth facing aerial photograph taken from south side57

8-13. Hankyu/Hanshin Lines and Properties Held
Properties held
outside Kansai
regionHankyu Yamada（Tokyo）
Tennoz
Shiodome
TamachiNitori Ibaraki（Other areas）
Kohnan Hiroshima
Hamamatsu
Takatsuki-Josai

HEP
NU
Kitano Hankyu
LAXA Osaka

LaLaport KOSHIEN
Ueroku F Building
Namba-Hanshin

58

8-14. Population Dynamics of Kansai Region ①
Concentration of population in central city and urban vicinity<Populations as of March 31, 2010 of municipal regions with populations of 100,000 or more>
Population
Population ofof Kansai
Kansai is
is 20.65
20.65
million.
million.
Osaka
Osaka Prefecture:
Prefecture: 8.70
8.70 million
millionOf
which,
62%
residein
Of which, 62% reside in thethe toptop
77 municipal
municipal regions
regions(population(population ofof 300,000
300,000 oror more)more)
includingincluding Osaka
Osaka City
City
Hyogo
Hyogo Prefecture:
Prefecture: 5.60
5.60 million
millionOf
which,
67%
residein
Of which, 67% reside in thethe toptop
77 municipal
municipal regions
regions(population(population ofof 200,000
200,000 oror more)more)
includingincluding Kobe
Kobe CityCity
Due
Due toto resurgence
resurgence inin central
central city
city
andand urban
urban vicinity,
vicinity, population
population
densitydensity has
has risen.
risen.
RetailRetail facilities
facilities ofof Hankyu
Hankyu REIT
REIT
arelocatedinmostpopulous
are located in most populous
municipal
municipal regions.
regions.
Source: Japan Geographic Data Center“Population Summary of the Basic Resident Registers” (2010)59

8-14. Population Dynamics of Kansai Region ②
Population is clearly resurging in central city and urban vicinity<10-year population rise/fall in municipal regions with populations of 100,000 or more>KansaiKansai population
population rose
rose slightly
slightly+0.4%+0.4% (10-year(10-year period)
period) ..
Resurgence
Resurgence inin central
central city
city andandurban
urban vicinity
vicinity(Outflow(Outflow toto suburban
suburban vicinity
vicinity
slowed)slowed)Polarization
Polarization into
into areas
areas thatthat areareeitherstrongornoteither strong or not
ReasonReason forfor differentiation:differentiation:
High
High transportationtransportation convenience
convenienceandhighconcentrationand high concentration ofof citycityfunctionsfunctions
Populations
Populations ofof Umeda
Umeda and
andmunicipal
municipal regions
regions along
along
Hankyu/Hanshin
Hankyu/Hanshin Lines
Lines areare rising.
rising.
A
A plusplus toto thethe profitability
profitability andandstability
stability ofof Hankyu
Hankyu REIT
REIT retail
retailfacilities
facilities
Source: Japan Geographic Data Center“Population Summary of the Basic Resident Registers” (2000, 2010)60

8-15. Economic Scale of Kansai Region
A scale of one-sixth of all Japan
Kansai region

Kanto region

Chubu-Tokai region

OthersPopulation

20.65 million
people16%（ at the end of March 2010）

33%

12%

39%

Source: Japan Geographic Data Center“Population Summary of the Basic Resident Registers” (2010)

Annual product sales

21 trillion yen（Fiscal 2006）

16%

34%

12%

38%

Source: Ministry of Economy, Trade and Industry“Results of the Census of Commerce in 2007”

GDP

79 trillion yen（Fiscal 2008）

Exceed South Korea(World-rank of 15th)

16%

37%

13%

34%

Source: The Economic and Social Research Institute, Cabinet Office“Fiscal Year 2008 Prefectural Accounts: Gross Prefectural Domestic Product
Classified by Economic Activities (actual) (Fiscal Year 2008)”

61

8-16. Organization of Hankyu REIT Asset Management, Inc.
Corporate Data

General meeting ofshareholders
Trade nameHankyu REIT Asset Management, Inc.

Headquarters

19-19, Chayamachi, Kita-ku, Osaka
530-0013, JapanFoundation

March 15, 2004

Auditors
Board of Directors

CapitalPresident &Representative Director

Internal Audit Department

Shareholder

Hankyu Corporation (100%)

Number of
employees

19 (As of May 31, 2011)

Compliance Committee

Investment Management
Committee

JPY 0.3 bn

Executive
officers

Compliance Department

President &Representative Director

Shuichiro Takahashi

Managing Director

Yoshiaki Shiraki

Director

Masayuki Takao

Director

Koji Yoshida

Corporate Auditor (parttime)
Corporate Auditor (parttime)

Toru Ono
Toshinori Shoji

Financial instruments trading(investment management business)
Investment
Management
Department 1

Investment
Management
Department 2

Corporate
Planning
Department

Corporate
Administrationand Supervision
Department

Principal
businesses Financial product trader:
Director-General of the Kinki Finance
Bureau Ministry of Finance (Kinsho) No. 44
 Real Estate Transaction License:
The Governor of Osaka Prefecture (2) No. 50641
 Approval of discretionary dealing trustee etc.:
No.23 by Minister of land, infrastructure andtransportation

62

8-17. Compliance and Internal Audit Systems of Hankyu REIT Asset Management, Inc.
Systematically ensure multiple check functions.
Focus on promoting a compliance-conscious corporate
culture.
Constituent member

Board
Board ofof Directors
Directors

President
President && Representative
Representative Director
Director

・ Achieve comprehensive compliance by establishinga Compliance Department and a Compliance
Officer.

Decision criteria

・ The Compliance Committee, including outside
experts, deliberates on Conflicts of Interests
Transaction with interested parties.

A majority of directors in attendance, andapproval of a majority of the attending directors
are required.

・ The Compliance Officer attends the Investmentcommittee and checks for compliance issues.

Directors, Corporate Auditors

Implementation
Implementation

Compliance System

Constituent member
Chairman: Compliance officer
Committee members: President & Representative
Director, full-time Directors and outside experts
Observers: Corporate Auditors (do not participate
in resolutions)・ Appointed a person to be in charge of efforts toprevent improper requests and exclude anti-social
forcesInternal Audit System

Decision criteria

Compliance
Compliance Committee
Committee

Approval of all of the attending committee
members is required under the condition where
3/4 or more of them have attended including
Compliance officer and two outside experts.

Constituent member
Investment
Investment Management
Management Committee
Committee

Chairman: President & Representative Director
Committee members:full-time director (excluding
Compliance officer), respective department
managers (other than full-time director orCompliance officer)

Proposals
Proposals by
by Departments
Departments

Decision criteria
Approval of all of the attending committee
members is required under the condition where
3/4 or more of them including the chairman andvice chairman have attended together with thecompliance officer.

・ Put PDCA cycle into operation by systematically
implementing the internal audit system every fiscal
year based on the annual internal audit plan.
・ Utilize external consulting entity to secure
independence of internal audit and obtain an
extremely effective internal audit.
・Introduced semi-full-time Corporate Auditor systemand strengthen auditor functions.
(Independent system of the Hankyu Corporation andthe group companies. Recognized as part-time
Corporate Auditor under the Companies Act.)・Construct the internal control system andstrengthen the check and balance function as aconsolidated subsidiary of Hankyu Hanshin Holdings,
Inc.

63

8-18. Company Structure of Hankyu REIT
( As of May 31, 2011)(Note) In preparation for the event that the number of Executive Directors and Supervisory Directors are less than that stipulated in laws
and regulations, Yoshiaki Shiraki, Director (appointed as Managing Director as of April 1, 2011) of asset management company
Hankyu REIT Asset Management, Inc, and Motofumi Suzuki, were elected as alternate Executive Director and alternate
Supervisory Director, respectively, at the General Unitholders’ Meeting held on August 27, 2010.

64