<Translation of Japanese Original>
June 1, 2020

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 additional acquisition of part of the site ofTakatsuki-Josai Shopping Center (hereafter the “additional acquisition” ) .

Details1.

Overview of the Additional Acquisition
1) Specified asset type:

Right of ownership

2) Property name:

Part of the site of Takatsuki-Josai Shopping Center (Note 1)

3) Planned acquisition price:

55,000,000 yen (excluding acquisition-related expenses, property tax,
city planning tax and consumption tax, among others)4) Appraisal value:

54,400,000 yen (Date of appraisal: March 31, 2020)

5) Planned acquisition date:June 4, 2020

6) Seller:Individual (Please refer to “4. Overview of Seller” below) (Note 2)7) Acquisition fund:Own funds(Note 1) HHR owns “Takatsuki-Josai Shopping Center” (land ownership, leasehold and building ownership), andthe additional acquisition is to acquire the land ownership part (522.30 m2) of the leased part (8,409.40m2) among the leased portion of the site (site area: 31,007.58 m2) of the building with leasehold.
(Note 2) Not disclosed as consent has not been obtained from the seller.

2.

Reason for the Additional Acquisition
HHR acquired the building and a part of land of Takatsuki-Josai Shopping Center (hereinafterreferred to as “the Property”) on November 15, 2005, and is leasing a part (8,409.40 m2) of the site of
the Property (site area: 31,007.58 m2) from multiple owners. This time, HHR received from the ownerof a part of the leased land (site area: 522.30 m2) a notice of intention to transfer based on the leaseagreement for the land, and thus the additional acquisition was decided. The additional acquisition is1

expected to improve the asset value of the property and liquidity in the buying and selling market byacquiring ownership of part of the site of the property, which was a building with leasehold rights, so
HHR determined that the additional acquisition would contribute to the improvement of unitholder
value.
From the perspective of increasing unitholder value, HHR will continue to improve the profitabilityand quality of its portfolio, aiming for steady growth of assets under management and stable earnings
over the medium to long term.
3.

Detail of the Assets Planned to be Acquired

Property name

Part of the site of Takatsuki-Josai Shopping Center

Specified asset type

Right of ownership

Planned acquisition price

55,000,000 yen
54,400,000 yen (Date of appraisal: March 31, 2020)(Appraisal organization: Rich Appraisal Institute co., Ltd.)

Appraisal value
Displayed Address

6-28 Josai-cho, Takatsuki City, Osaka

Lot Number

616-5 Josai-cho, Takatsuki City, Osaka

Building coverage

60%

Floor area ratio

200%

Location

Land4.

BuildingMonth/Year built－

Structure/Floors－

Zone use

Semi-industrial area

Use－Site area

522.30 m2

Total floor area－

Form of ownership

Right of ownership

Form of ownership－

Overview of Seller
The name, etc. is not disclosed as consent has not been obtained from the seller, which is anindividual. Please note that there are no capital, personnel or business relationships to be speciallynoted between HHR or the Asset Management Company and the seller. In addition, the seller does
not fall under the definition of “related party.”

5． 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.

6． Transactions with Interested Parties, etc.
Not applicable
7． Overview of Intermediary
Not applicable
8． Settlement Method, etc.
HHR plans to make full payment to the seller for the acquisition, etc. on the planned acquisition
date.

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9． Acquisition Schedule
June 1, 2020

Resolution of acquisition of the Property at the Asset Management Company’s
Board of Directors Meeting

June 2, 2020

Contract conclusion (planned)

June 4, 2020

Payment and acquisition (planned)

10．Future Outlook
There is no revision to the operation status forecast of the fiscal period ending May 2020 (30thfiscal period December 1, 2019 to May 31, 2020) and the fiscal period ending November 2020
(31st fiscal period: June 1, 2020 to November 30, 2020) announced in “Notice Concerning
Revision to the Forecasts of Financial Results and Distribution for the Fiscal Periods Ending May
31, 2020 and November 30, 2020” dated March 18, 2020 due to the additional acquisition.

* 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 Additional Acquisition

Reference Material 3

Property Photograph and Map of Surrounding Area3

Reference Material 1<Overview of Appraisal Report>
Property name

Takatsuki-Josai Shopping Center (site)

Appraisal value
Appraisal organization
Date of appraisal

54,400,000 yen
Rich Appraisal Institute co., Ltd.
March 31, 2020

Item
Value indicated by the income approach
Value using the DCF method (The income and expenditure
items for the first fiscal year)(1) Operating revenues (a + b − c)a. Rent Incomeb. Other income
c. Loss from non-occupancy, etc.
(2) Operating costs (a+b+c+d+e+f+g)
a.

Value
54,400,000 yen
54,400,000 yen

Undisclosed (Note)

Maintenance/Administrative fees, etc.

b. Utilities
c. Repairs
d. Property management fee
e. Public charges and taxesf.
Casualty insurance premiums
g. Other expenses(3) Net operating income (NOI＝(1)－(2))(4) Operating profit on deposit and security(5) Capital expenditures(6) Net cash flow (NCF＝(3)＋(4)－(5))(7) Discount rate (Holding period and return price)

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

Basis for valuation

Undisclosed (Note)

Undisclosed (Note)
Undisclosed (Note)－1,793,300 yen
4.7%

Assessed based on a consideration of
the individuality of the real estate, etc.,with reference to the discount rate
related to similar transaction cases,etc.

The appraisal value is determined by the income approach based on the DCF method.

The appraisal value of real estate is no more than an indication of the opinion on the value of the appraised realestate at the time of the appraisal conducted by the real estate appraiser in accordance with the Act on Real EstateAppraisal, 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 estate appraiser conducting the appraisal and themethod 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.
Note: The Asset Management Company decided not to disclose these items as no consent has been obtained from theseller for the disclosure of rents, etc. For the reason that the assessment is based on actual results for reference,
there is a possibility that disclosure of these items will affect its competitiveness and damage the interests ofunitholders.

4Reference Material 2< Table of Real Estate Portfolio After the Additional Acquisition>
Property NameFacility(Type of Use)

RegionAcquisition

Acquisition(Planned)

Investment(Planned) DatePrice(millions of yen)

Ratio

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

RetailKansai

February 1, 2005

6,468

3.8%

Kitano Hankyu Building

RetailKansai

February 1, 2005

7,740

4.6%

Dew Hankyu Yamada

RetailKansai

February 1, 2005

6,930

4.1%

November 15, 2005

8,600

Takatsuki-Josai Shopping Center

RetailKansai

Nitori Ibaraki-Kita Store (site)

RetailHotel Gracery Tamachi

RetailHANKYU NISHINOMIYA GARDENS(28% of the quasi co-ownership of thetrust beneficiary interests)

5.1%

June 4, 2020

55

KansaiMarch 29, 2006

1,318

0.8%

Other

December 25, 2008

416

0.2%

RetailKansai

April 16, 2013

18,30010.8%

AEON MALL SAKAIKITAHANADA (site)

RetailKansai

June 27, 2013

8,100

4.8%

MANDAI Toyonaka Honan Store (site)

RetailKansai

June 27, 2013

1,870

1.1%

Kita-Aoyama San cho-me Building

RetailOther

November 12, 2013

1,680

1.0%

RetailKansai

June 4, 2014

3,100

1.8%

kotocross Hankyu Kawaramachi

RetailKansai

June 4, 2014

2,770

1.6%

LIFE Shimoyamate Store (site)

RetailKansai

June 4, 2014

1,421

0.8%

MANDAI Gojo Nishikoji Store (site)

RetailKansaiJune 24, 2014

4,182

2.5%

KOHYO Onohara Store

RetailKansai

July 1, 2016

1,631

1.0%

OASIS Town Itami Konoike (site)

RetailKansai

November 25, 2016

7,100

4.2%

METS OZONERetailOtherFebruary 15, 2018

5,400

3.2%

MANDAI Nigawa Store (site)

RetailKansai

March 27, 2018

2,280

1.3%

LAMU Higashiosaka Branch (site)

RetailKansai

March 27, 2018

1,850

1.1%

Vessel Inn Hakata Nakasu

RetailOther

March 29, 2018

2,760

1.6%

Valor Takatsuki Store (site)

RetailKansai

March 29, 2019

2,258

1.3%

FUNDES JIMBOCHO

RetailOtherMarch 29, 2019

2,830

1.7%

nanohana Ebisubashi (site)

RetailKansai

March 31, 2020

4,230

2.5%

MANDAI Shimoshinjo Store

RetailKansai

March 31, 2020

DAILY QANAT Izumiya Horikawa
Marutamachi Store (site)

Subtotal

674

0.4%

103,963

61.2%

Shiodome East Side Building

OfficeOther

February 29, 2008

19,025

11.2%

Hankyu Corporation Head Office
Building

OfficeKansai

April 10, 2013

10,200

6.0%

SHIBAURA RENASITE TOWER

OfficeOther

May 28, 2020

3,475

2.0%

32,700

19.2%

Ueroku F Building

ComplexKansaiNovember 1, 2005

2,980

1.8%

Sphere Tower Tennozu(33% of the quasi co-ownership of thetrust beneficiary interests)

Complex

Other

October 2, 2007

9,405

5.5%

LAXA Osaka

ComplexKansaiJanuary 22, 2009

5,122

3.0%

ComplexKansai

December 5, 2018

9,212

5.4%

ComplexKansai

December 5, 2018

6,566

3.9%

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)
Subtotal

33,285

19.6%

Total

169,950

100.0%

Note: Regarding “Hotel Gracery Tamachi,” it is planned that a quasi-co-ownership equivalent of 10% be transferred on
August 28, 2020. Please refer to “Notice Concerning Acquisition of Domestic Real Estate, and Transfer of Domestic Real
Estate Trust Beneficiary Interest and Domestic Real Estate” dated March 18, 2020 for details of the assets.

5

Reference Material 3<Property Photograph><Map of Surrounding Area>

6