(Translation of Japanese Original)
January 24, 2024

For Immediate Release
REIT Issuer
Hankyu Hanshin 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:
Kiyotaka Okano
General Manager, Financial and IR Department
Email: IR_PR@hhram.co.jp

Notice Concerning Acquisition of Domestic Real Estate
Hankyu Hanshin REIT, Inc. (hereafter “HHR”) hereby notifies that Hankyu Hanshin REIT Asset Management,
Inc., the asset management company that HHR has selected to manage its assets (hereafter the “AssetManagement Company”), today decided to make the following acquisition.

Details
1. Overview of Acquisition
Home Center Kohnan Sakai Takasu Store (site)1) Specified asset type:
Right of ownership, Leased-land right2) Property name:

Home Center Kohnan Sakai Takasu Store (site)

3) Planned acquisition price:

6,500,000,000 yen(excluding acquisition-related expenses, property tax, city planningtax and consumption tax, among others)4) Appraisal value:

6,660,000,000 yen (Date of appraisal: December 1, 2023)

5) Planned acquisition date:

March 27, 2024

6) Seller:

SUMITOMO CORPORATION

7) Intermediary:None8) Acquisition fund:Borrowings and cash on hand (Scheduled)

2. Reason for Acquisition
Based on the target and policy of asset management stipulated in the Articles of Incorporation, theacquisition of the site of Home Center Kohnan Sakai Takasu Store (hereafter the “Property”), a retail facility in
the Kansai Region which is HHR’s priority investment target, is intended to secure steady growth of HHR. At
the same time, we will strive to further improve distributions by acquiring the Property using our debt funding
capacity and cash on hand which we maintain through stable financial foundation.
The Property is a site of a community-based retail facility that attracted attention since its stable cash flows
during the COVID-19 pandemic were reconfirmed. We had an opportunity to acquire the Property through the
proprietary network of the Asset Management Company, and the acquisition was determined as the Property’s

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price was within the range considered reasonable by HHR. Going forward, HHR will work to realize further
growth by effectively utilizing the networks of the Asset Management Company and the sponsor group.
HHR evaluated the following points when deciding on the acquisition of the Property.
The Property is the site of a community-based retail facility located within walking distance of three railway
stations: “Takasujinsha Station” of Hankai Line of Hankai Tramway, “Asakayama Station” of Koya Line ofNankai Electric Railway, and “Shichido Station” of Main Line of Nankai Electric Railway. It also enjoys excellent
access by car to a nearby arterial road. The location of the Property, Sakai-ku, Sakai City, is in the northwesternpart of Sakai City, and adjacent to Osaka City across the Yamato River. Thus, it is a popular area as a commuter
town with good traffic access to the main towns of Osaka such as Namba and Umeda, and the number ofhouseholds is increasing.
The Property has a sufficient market potential with a trade area population of approximately 31,000 within a
one-kilometer radius. The entire Property is leased to KOHNAN SHOJI Co., Ltd., and is composed of the main
home center “Kohnan,” and other tenants handling daily necessaries such as “Mandai” supermarket,“Nishimatsuya” baby and child goods specialty store, and “Akanoren” clothing store. Consequently, HHR
decided that the Property has a certain level of competitive edge in the surrounding market.
[Status of Portfolio]
Asset to be acquired
End of 37th fiscal period
Home Center Kohnan(ended November 2023)
Sakai Takasu
Store (site)
Number of properties

34 properties

1 property

Date of acquisition(planned)

March 27, 2024

Acquisition (planned)
price

6,500
million yen

Asset size
(Average) NOI yield(Note 1)

(Average) yield after
depreciation (Note 1)
Unrealized gain/loss(Note 2)

173,521
million yen

After the acquisitionof asset to be acquired(Note 3)35 properties

180,021
million yen

4.6%

3.2%

4.5%

3.5%

3.2%

3.4%

35,315
million yen

75
million yen

35,391
million yen(Note 1) (Average) NOI yield is calculated by dividing the sum total of (a) the difference between the real estate lease
operation income and real estate lease operation expenses of each property and (b) depreciation, by totalacquisition (planned) price. (Average) yield after depreciation is calculated by dividing the sum total of difference
between the real estate lease operation income and real estate lease operation expenses of each property, by
total acquisition (planned) price. (Average) NOI yield and (Average) yield after depreciation are calculated
based on the following figures.
・End of 37th fiscal period:
Actual figures for the 37th fiscal period・Asset to be acquired:
The first fiscal year’s operating revenues and operating costs using the
DCF method as indicated in the appraisal report are used.
・After the acquisition of asset to be acquired:Figures after adding the figures of the Asset to be Acquired to the actual
figures for the 37th fiscal period.

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(Note 2) Unrealized gain/loss indicates the difference between the appraisal value and the book value and is calculated
based on the following figures.
・Asset to be acquired:Figures calculated based on the book value (expected value) which are
the total of the acquisition planned price and acquisition expenses thatare to be recorded as assets pursuant to the accounting policy of HHR.
・After the acquisition of asset to be acquired:Figures obtained by adding unrealized gain/loss of the asset to beacquired to/from unrealized gain/loss at the end of the 37th fiscal period.
(Note 3) The figures after the acquisition of asset to be acquired are figures considering only the acquisition of the asset
to be acquired after the end of the 37th fiscal period and may differ from actual figures.

3. Details of the Asset Planned to be Acquired
Property nameSpecified asset type
Planned acquisition priceAppraisal value
Location Address
Building coverage
Floor area ratio
Zone use
Land
Site area

Form of ownership
Property Manager
Collateral

Other matters to noteHome Center Kohnan Sakai Takasu Store (site)
Right of ownership, Leased-land right
6,500,000,000 yen
6,660,000,000 yen (Date of appraisal: December 1, 2023)(Appraisal organization: The Tanizawa Sogo Appraisal Co., Ltd.)
1-1-38 Takasu-cho, Sakai-ku, Sakai City, Osaka
Month/
60%―
Year built
Structure/
200%
―
Floor
Industrial area
Use―
Building
21,235.72 m2(including
Total floor―
area
1,936.68 m2 of leased
land)
Right of ownership
Form of―
Leased-land rightownership
Hankyu Hanshin Building Management Co., Ltd. (Scheduled)None HHR is scheduled to own only the land.
 The transaction agreement for the acquisition corresponds to a forward
commitment, etc. (referring to transaction agreements dating forward
in which settlement and handing over of property is conducted morethan one month after the conclusion of the agreement, and otherrelated agreements) stipulated in the Comprehensive Guidelines forSupervision of Financial Instruments Business Operators, etc. Also, if
HHR acts in serious violation to the items of the transaction agreement,
the seller shall demand fulfillment of obligation or correction of thesituation within a certain period. If fulfillment of obligation or correctionof the situation is not performed within the designation period, the seller
may cancel the agreement. It has been agreed that if the agreement iscancelled in such a situation HHR shall pay the seller an amountequivalent to 20% of the sale price as a penalty.

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4. Overview of Leasing
Total number of tenants
Principal tenants
Annual rent
Leasable area
Leased area
Occupancy rate
Security deposits

1
KOHNAN SHOJI CO., LTD.
Undisclosed (Note 1)
21,235.72m2 (Note 2)
21,235.72m2 (Note 2)
100.0% (Note 3)
Undisclosed (Note 1)(Note 1) Note undisclosed as tenants’ consent has not been obtained.
(Note 2) The site area of the land (as stated in the registry) is shown since the whole site will be leased (the leased
part of land will be subleased).
(Note 3) The ratio of the rental area to the leasable area.

5. Overview of Seller
Name
SUMITOMO CORPORATION
Location
2-3-2 Otemachi, Chiyoda-ku, Tokyo
Title and name of
Masayuki Hyodo,
representative
Representative Director, President and Chief Executive Officer
Main business activities Wholesaling, etc.
Capital220,046 million yen (as of March 31, 2023)
Date of establishment
December 24, 1919
Net assets and total
Net Assets:
1,419,359 million yen
assets in the immediately Total Assets: 4,801,000 million yen
preceding fiscal year
(as of March 31, 2023)
Major shareholders and The Master Trust Bank of Japan, Ltd. (trust account). 16.45%, etc.
their shareholding ratio(as of March 31, 2023)
CapitalThere are no capital relationships to be noted between HHR or
relationship the Asset Management Company and the seller (as of today).
There are no personnel relationships to be noted between HHR
Personnel
or the Asset Management Company and the seller (as ofrelationship
Relationship between
today).
HHR or the Asset
There are no business relationships to be noted between HHRManagement Company
Businessor the Asset Management Company and the seller (as ofand the seller
relationshiptoday).
Applicability
to related
Not a related party
parties
6. Status of Property Acquirers, etc.
Details are omitted as the acquisition of the Property is not an acquisition from parties with special
interests of HHR or the Asset Management Company.
7. Transaction with Interested Parties, etc.
Not applicable.
8. Overview of Intermediaries
Not applicable.
9. Settlement Method, etc.
Collective payment on the planned acquisition date4

10. Schedule of Acquisition

January 24, 2024
January 26, 2024
March 27, 2024

Resolution of acquisition of the property at the Asset Management
Company’s Board of Directors Meeting.
Conclusion of properties agreement (planned).
Conclusion of payment for and acquisition (planned).

11. Future Outlook
As to the forecast of management performance for the fiscal period ending May 2024 (38th fiscal period:
December 1, 2023 to May 31, 2024) and the fiscal period ending November 2024 (39th fiscal period: June
1, 2024 to November 30, 2024) following the acquisition of the Property, please refer to the financial reportfor the period ended November 30, 2023 which has been disclosed today.

*HHR website: https://www.hankyuhanshinreit.co.jp/eng/<Attached Materials>
・Reference Material 1 Overview of Appraisal Report
・Reference Material 2 Table of Real Estate Portfolio After the acquisition of the property
・Reference Material 3 Property Photograph or Image View and Map of Surrounding Area

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Reference Material 1<Overview of Appraisal Report>
Property nameAppraisal value
Appraisal organization
Date of appraisal

Home Center Kohnan Sakai Takasu (site)

6,660,000,000 yen
The Tanizawa Sogo Appraisal Co., Ltd.
December 1, 2023
Item

Value indicated by the income approach
Value using the discounted cash flow (DCF) method

Value

Basis for valuation

6,660,000,000 yen
6,660,000,000 yen

Discount rate per period

3.9%

Assessment comprehensively taking into consideration of
the content of the lease agreement, land rent levels, lease
period, business risks and other factors, based on themethod to compare with the yields of land with leasehold
right transaction cases, etc., as well as the accumulation
method.

Discount rate per period(upon returning to vacant land)

4.1%

Assessment based on the discount rate and adding thepossibility to sell the property as vacant land and leasedland right, etc.

Special items toconsider at the time ofmaking adjustments toprovisional calculations
and deciding theappraisal value

In the assessment the appraisal value of the target real estate was determined to be 6,660,000,000 yen with thevalue indicated by the income approach using the discounted cash flow (DCF) method, in light of the typology of
the target real estate of being a “site (land with fixed-term leased-land right for business purposes (including leasedland right))” and considering to the process by which the price was formulated, placing emphasis on profitability ofthe market participants (demanders) of the targeted real estate, the objectives of the appraisal request, etc.

The appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards, etc.
There are cases where another appraisal of the same real estate may result in a different appraisal value, depending on the real estateappraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither a guarantee
nor an obligation, now or into the future, of a sale or purchase at that appraisal value.

6Reference Material 2<Table of Real Estate Portfolio After the acquisition of the property>
Property Name

Facility(Type of Use)

RegionAcquisition

Acquisition(Planned)

Investment(Planned) Date

Price(millions of yen)

Ratio

HEP Five(14% of the quasi co-ownership of
the trust beneficiary interests)

RetailKansaiFebruary 1, 2005

6,468

3.6%

Kitano Hankyu Building

RetailKansaiFebruary 1, 2005

7,740

4.3%

Dew Hankyu Yamada

RetailKansaiFebruary 1, 2005

6,930

3.8%

Takatsuki-Josai Shopping Center

RetailKansaiNovember 15, 2005

8,600

Nitori Ibaraki-Kita Store (site)

Retail

4.8%

June 4, 2020

55

KansaiMarch 29, 2006

1,318

0.7%

RetailKansai

April 16, 2013

18,30010.2%

AEON MALL SAKAIKITAHANADA(site)

RetailKansaiJune 27, 2013

8,100

4.5%

MANDAI Toyonaka Honan Store(site)

RetailKansaiJune 27, 2013

1,870

1.0%

Kita-Aoyama San cho-me Building

RetailOther

November 12, 2013

1,680

0.9%

kotocross Hankyu Kawaramachi

RetailKansaiJune 4, 2014

2,770

1.5%

RetailKansaiJune 4, 2014

3,100

1.7%

LIFE Shimoyamate Store (site)

RetailKansaiJune 4, 2014

1,421

0.8%

MANDAI Gojo Nishikoji Store (site)

RetailKansaiJune 24, 2014

4,182

2.3%

KOHYO Onohara Store

RetailKansaiJuly 1, 2016

1,631

0.9%

OASIS Town Itami Konoike (site)

RetailKansaiNovember 25, 2016

7,100

3.9%

METS OZONERetailOther

February 15, 2018

5,400

3.0%

MANDAI Nigawa Store (site)

RetailKansaiMarch 27, 2018

2,280

1.3%

LAMU Higashiosaka Branch (site)

RetailKansaiMarch 27, 2018

1,850

1.0%

HANKYU NISHINOMIYA GARDENS(28% of the quasi co-ownership of
the trust beneficiary interests)

DAILY QANAT Izumiya Horikawa
Marutamachi Store (site)

Vessel Inn Hakata Nakasu

RetailOther

March 29, 2018

2,760

1.5%

FUNDES JIMBOCHO

RetailOther

March 29, 2019

2,830

1.6%

Valor Takatsuki Store (site)

RetailKansaiMarch 29, 2019

2,258

1.3%

nanohana Ebisubashi (site)

RetailKansaiMarch 31, 2020

4,230

2.3%

MANDAI Shimoshinjo Store

RetailKansaiMarch 31, 2020

674

0.4%

H-CUBE MINAMIAOYAMA

RetailOther

December 14, 2021

6,650

3.7%

H-CUBE MINAMIAOYAMA II

RetailOther

December 1, 2022

3,468

1.9%

Home Center Kohnan
Sakai Takasu Store (site)

RetailKansaiMarch 27, 2024

6,500

3.6%

120,165

66.8%

Subtotal
Shiodome East Side Building

OfficeOther

February 29, 2008

19,025

10.6%

Hankyu Corporation Head Office
Building

OfficeKansai

April 10, 2013

10,200

5.7%

SHIBAURA RENASITE TOWER(equivalent of 10% co-ownership)

OfficeOther

May 28, 2020

3,475

1.9%

32,700

18.2%

Ueroku F Building

ComplexKansaiNovember 1, 2005

2,980

1.7%

LAXA Osaka

ComplexKansaiJanuary 22, 2009

5,122

2.8%

ComplexKansai

December 5, 2018

9,212

5.1%

ComplexKansai

December 5, 2018

6,566

3.6%

Complex

Other

December 1, 2022

1,410
25,290

0.8%
14.0%

Other

Kansai

December 27, 2021

1,864

1.0%

1,864

1.0%

180,021100.0%

Subtotal

GRAND FRONT OSAKA(Umekita Plaza and South Building)(equivalent of 4.9% co-ownership)
GRAND FRONT OSAKA(North Building)(equivalent of 4.9% co-ownership)
H-CUBE KITAAOYAMA
Subtotal
Coop Kobe Delivery Center
Nishinomiya (site)
Subtotal
Total

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Reference Material 3< Home Center Kohnan Sakai Takasu Store (site)

Property photograph>< Home Center Kohnan Sakai Takasu Store (site)

Map of Surrounding Area>

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