<For translation purposes only>
May 30, 2007
For Immediate Release
REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Mineo Yamakawa, Executive Director
Asset Management Company
Hankyu REIT Asset Management, Inc.
Mineo Yamakawa, President & Representative Director
Contact:
Hideo Natsuaki,
General Manager, Investor Relations Dept.
Email: ir@hankyu-rt.jp

Notice Concerning Forecasts of Financial Results for the Fiscal Period Ending November 30,2007

Hankyu REIT, Inc. (hereafter “Hankyu REIT”) announces its forecasts for the fiscal period from June 1, 2007, toNovember 30, 2007. The forecasts are summarized as follows.

1.

Forecasts for the Period From June 1, 2007, to November 30, 2007
(in millions of yen, except as noted)

OperatingRevenues

Ordinary Income

Net Income

Distribution perUnit
Distribution in(not including
Excess of Earnings
distributions inper Unit (yen)excess of earnings)(yen)Period ending
November 30,

3,486

1,081

1,080

¥12,500¥02007(Reference) Expected number of investment units outstanding as of November 30, 2007: 86,400 units(Note) The above figures are stated in units of millions of yen. Fractional unit amounts are discarded.

2.

Reason for Announcement
Hankyu REIT has decided today by resolution of the Board of Directors’ Meeting to issue investment units and sell
investment units in order to procure funds to pay off borrowed funds. Consequently, we announce the forecasts forthe fiscal period ending November 30, 2007.

3.

(Reference) Forecasts of Financial Results for the fiscal period from December 1, 2006, to May 31, 2007
The forecasts of the financial results for the fiscal period from December 1, 2006, to May 31, 2007, as announced inour financial results for the period from June 1, 2006, to November 30, 2006, on January 26, 2007, is as follows.

Disclaimer:This document is expressly a press release regarding forecasts of the financial results for the periods ending in May 2007 andNovember 2007 and is generally a public document of Hankyu REIT. Statements and disclosures here are not for the purpose ofsolicitiation of funds. Investments have risks, and it is the responsibility of investors to obtain and review all investment prospectus(including any and all corrected or revised items within those documents) related to the issuance or sale of investment units.
Investments are made at the discretion and responsibility of the individual investor.

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(in millions of yen, except as noted)

Operating
Revenues

Period ending
May 31, 2007

Ordinary Income

3,235

994

Net Income

Distribution perUnit
Distribution in(not including
Excess of Earnings
distributions inper Unit (yen)excess of earnings)
(yen)

992

¥14,300¥0(Reference) Number of investment units outstanding as of May 31, 2007 : 69,400 units(Note) The above figures are stated in units of millions of yen. Fractional unit amounts are discarded.

Note: The above forecasts are calculations based on current conditions with a given set of specific assumptions. Futureacquisitions or sale of real estate, fluctuations in the real estate market, and other changes in conditions
surrounding Hankyu REIT have the potential to change our financial results. Furthermore, this forecast is in no way
a guarantee of any distribution amount.
In the event we foresee a significant departure from the above forecasts, Hankyu REIT will revise its forecasts
accordingly.

•The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club), Osaka
Securities Exchange, Ministry of Land, Infrastructure and Transport, and to the press club of the construction trade newspaperof the Ministry of Land, Infrastructure and Transport.

•Hankyu REIT website: http://www.hankyu-reit.jp/Disclaimer:This document is expressly a press release regarding forecasts of the financial results for the periods ending in May 2007 andNovember 2007 and is generally a public document of Hankyu REIT. Statements and disclosures here are not for the purpose ofsolicitiation of funds. Investments have risks, and it is the responsibility of investors to obtain and review all investment prospectus(including any and all corrected or revised items within those documents) related to the issuance or sale of investment units.
Investments are made at the discretion and responsibility of the individual investor.

2

Assumptions for Financial Forecasts for the Period From June 1, 2007, to November 30, 2007
Item
Accouting period
Managed assets

Assumption・Fifth Fiscal Period: June 1, 2007, to November 30, 2007

・

Number of days assets managed: 183

・No changes in existing 8 real estate assets under management (e.g new propertyacquisitions, the sale of existing portfolio properties, etc.)

・Potential for changes in the forecasts exists if there are changes in the assets undermanagement

Operating revenues

・

Calculated based on rental contracts currently in effect and taking into consideration
portfolio property competitiveness, market conditions and other factors. Also, with regard
to other factors such as items that might change revenue or contract cancellation notices,
we have made calculations taking into account a reasonable margin for fluctuation in thereported figures based on past financial results and the conditions of individual tenants.

・Operating expenses

・Assumes there are no rental fees in arrears or defaulting tenants
The calcluation of real estate rental business expenses, main part of operating
expesnses, reflect factors that might affect expenses based on past finanical results(excluding depreciation costs).

・

Property tax, as well as city planning tax are estimated to be 190 million yen.
Furthermore, generally these taxes are settled upon transfer of the building from theprevious owner to the buyer pro rata according to the owning time of period at the time ofacquisition, and we include these taxes in our acquisition cost.

・

Building repair expenses at the predicted necessary costs are included. Furthermore, thepotential exists for unexpended costs arising from damage to buildings from unforeseen
factors, and the potential for significant changes in these repairs expenses exists because
these expenses may not occur at fixed intervals and the amount in any given fiscal year
may vary.

・Depreciation costs are calculated by the straight-line method and its calculation basis
includes incidental expenses at acquisition and capital expenditures we forecasted for thefifth fiscal period (292 million yen). We assume 592 million yen in depcreciation.

・

Operating expenses unassociated with rental business expenses such as asset
management remuneration, asset consignment remuneration and clerical consignment
remuneration and office fees are 235 million yen.

Non-operating・

Temporary expenses related to the issuance of new invesment units in the public offering
decided by resolution of the board meeting today. The amount is estimated to be 45

expensesmillion yen.

Investment units

・Borrowing related costs, such as interest expenses, are estimated to be 89 million yen.

・Adding to the 69,400 outstanding investment units as of today, we assume an additonal
16,000 units in a public offering as decided by the Board of Directors’ Meeting held today
and another 1,000 units as an over-allotment sale for private placement. Furthermore, theadditional invesment units issued for private placement limited to 1,000 and all 1,000 will
be issued.

Disclaimer:This document is expressly a press release regarding forecasts of the financial results for the periods ending in May 2007 andNovember 2007 and is generally a public document of Hankyu REIT. Statements and disclosures here are not for the purpose ofsolicitiation of funds. Investments have risks, and it is the responsibility of investors to obtain and review all investment prospectus(including any and all corrected or revised items within those documents) related to the issuance or sale of investment units.
Investments are made at the discretion and responsibility of the individual investor.

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Loans payable

・Currently has 31 billion yen in borrowed funds, but plans to reduce this amount with 21.2
billion yen in proceeds from procured funds with the issuance of new investment units.
Consequently, we predict the balance of loans payable at the end of the fifth fiscal period
will be 9.8 billion yen. The final value of the repayment, however, may change dependingon the issuance price of the new investment units.

Distribution per unit

・To follow corporate policy and distribute as set out in Hankyu REIT’s articles ofincorporation.

・Depending on factors such as changes in rental income resulting from a change in assets
under management, or a change in tenants—including various factors such as unexpcted
repairs—may result in changes to distribution per unit.

Distribution in excess ofearnings per unit (yen)・No current plans.

Other

・

There will be no revisions in the laws and ordinances, taxation system, accountingstandards, exchange listing rules, or The Investment Trusts Assocation’s regulations thatwill influence the above financial forecasts.

・No significant unforeseen or unexpected changes in general economic trends or the realestate market.

Disclaimer:This document is expressly a press release regarding forecasts of the financial results for the periods ending in May 2007 andNovember 2007 and is generally a public document of Hankyu REIT. Statements and disclosures here are not for the purpose ofsolicitiation of funds. Investments have risks, and it is the responsibility of investors to obtain and review all investment prospectus(including any and all corrected or revised items within those documents) related to the issuance or sale of investment units.
Investments are made at the discretion and responsibility of the individual investor.

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