(Translation of Japanese Original)
December 24, 2021

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
Coop Kobe Delivery Center Nishinomiya (site)1) Specified asset type:
Right of ownership
2) Property name:Coop Kobe Delivery Center Nishinomiya (site)

3) Planned acquisition price:

1,864,000,000 yen(excluding acquisition-related expenses, property tax, city planningtax and consumption tax, among others)4) Appraisal value:2,070,000,000 yen (Date of appraisal: December 1, 2021)

5) Planned acquisition date:

December 27, 2021

6) Seller:

Domestic business corporation(Please refer to postscript “5. Overview of Seller”) (Note)

7) Acquisition fund:

Proceeds from funds procured from the transfer of Sphere Tower
Tennozu and cash on hand(Note) Not disclosed as consent has not been obtained from the seller.
2. Reason for Acquisition
Based on the target and policy of asset management stipulated in the Articles of Incorporation, HHR aims
to continue its steady growth by acquiring the site of Coop Kobe Delivery Center Nishinomiya.
Acquisition of the property is a realization of agile property acquisition utilizing cash on hand procured
from the transfer of Sphere Tower Tennozu as the part of the asset replacement announced on October 18,
2021(hereafter the “Replacement”). The acquisition is expected to strengthen our portfolio in the Kansai
Region, one of our priority investment areas, and improve the stability of our portfolio. Furthermore, HHR
has decided to acquire the property utilizing the network and solutions of the sponsor group, considering the1price was within the range HHR deemed appropriate. Focusing on the Kansai Region and in collaboration
with the sponsor group, HHR will continue to promote growth that improves the quality of its portfolio whileenhancing revenue stability.
As announced in the “Notice Concerning Partial Change to the Internal Rules (Management Guidelines)of Asset Management Company” dated on December 24, 2021, the Asset Management Company madepartial revisions to its management guidelines, which enabled it to invest in logistics facilities, etc.
HHR evaluated the following points when deciding on the acquisition of the property.
The property is the site of a delivery center of consumer goods including food and daily necessities,
located along a major arterial city road (Rinko-sen), approximately 1.2 kilometers from the Nishinomiya
Interchange of Hanshin Expressway No. 3 Kobe Route, and approximately 2 kilometers from theNishinomiyahama Interchange of Hanshin Expressway No. 5 Wangan Route. In the surrounding area of theproperty, there are many detached houses and apartment houses that comprise a mature residential area,
and retail facilities are concentrated along the heavily trafficked arterial road. On the back of demand fordelivery to consumers, etc. which has been increasing due to the growth of e-commerce in the midst of theCOVID-19 pandemic, we have judged that the strong rental demand for the property will continue in thefuture.
[Status of Portfolio]

Number of properties

End of 32nd
fiscal period(ended May2021)

Asset transferred
Sphere Tower
Tennozu

H-CUBEMINAMIAOYAMA

Coop Kobe
Delivery Center
Nishinomiya (site)

31 properties

1 property

1 property

1 property

December 10,
2021

December 14,2021

December 27,2021

8,600
million yen

6,650
million yen

1,864
million yen

Date of acquisition(planned)/transferAcquisition(planned)/transfer
price
Asset scale(Average) NOI yield(Note 1)

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

Asset (to be) acquired

169,534
million yen

After theReplacement(planned)(Note 3)32 properties

168,643
million yen

4.7%

3.6%

4.0%

3.6%

4.7%

3.5%

2.1%

3.9%

3.6%

3.6%

28,570
million yen−132
million yen

607
million yen

161
million yen

29,837
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, bytotal acquisition (planned) price. (Average) NOI yield and (Average) yield after depreciation are calculated
based on the following figures.
・End of 32nd fiscal period:
Actual figures for the 32nd fiscal period.
・Asset transferred:
Actual figures for the 32nd fiscal period.
・Asset (to be) acquired:
The first fiscal year’s operating revenues and operating costs using theDCF method as indicated in the appraisal report are used.
・After the Replacement (planned): Figures after subtracting the figures of the Asset Transferred and adding
the Asset (to be) Acquired to the actual figures for the 32nd fiscal period2(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 transferred:
Actual figures for the 32nd fiscal period.
・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 Replacement (planned): Figures obtained by adding/subtracting unrealized gain/loss of the Asset
Transferred and the Asset (to be) Acquired as well as expected capital
expenditures and depreciation in the 33rd fiscal periods to/fromunrealized gain/loss at the end of the 32nd fiscal period.
(Note 3) The figures after the Replacement (planned) are figures considering only the transfer of the Asset Transferred
and the acquisition of the Asset (to be) acquired (as for unrealized gain/loss, expected capital expenditures anddepreciation in the 33rd fiscal periods are also added/subtracted) after the end of the 32nd fiscal period andmay 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
LandZone use
Site area
Form of ownership

Property Manager
Collateral
Other matters to note

Coop Kobe Delivery Center Nishinomiya (site)
Right of ownership
1,864,000,000 yen
2,070,000,000 yen (Date of appraisal: December 1, 2021)(Appraisal organization: The Tanizawa Sogo Appraisal Co., Ltd.)
1-9-12 Higashimachi, Nishinomiya City, Hyogo Prefecture
Month/―
60%
Year built
Structure/
200%
―
Floor
Quasi-industrial area
Building Use―
Totalfloor
7,005.80 m2―
area
Form ofRight of ownership―ownership
Hankyu Hanshin Building Management Co., Ltd.
None
HHR is scheduled to own only the land.

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

1
Undisclosed (Note 1)
Undisclosed (Note 1)
7,005.80m2 (Note 2)
7,005.80m2 (Note 2)
100.0% (Note 3)
Undisclosed (Note 1)(Note 1) Note undisclosed as tenants’ consent has not been obtained.
(Note 2) The area specified in the lease agreement with the tenant as of today is indicated.
(Note 3) The ratio of the rental area to the leasable area.

5. Overview of Seller
Not disclosed because consent has not been obtained from the seller domestic business corporation
regarding disclosure of the name, etc. There is no capital, personnel or business relationships to note
between HHR or the Asset Management Company and the corporation. It is not a related party.

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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 date
10. Schedule of Acquisition

December 24, 2021
December 27, 2021

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

11. Future Outlook
There is no impact on the forecast of management status for the fiscal period ending November 2021
(33rd fiscal period: June 1, 2021 to November 30, 2021) due to the acquisition of the property.

In addition,

there is no adjustment to the forecast of management status for the fiscal period ending May 2022 (34thfiscal period: December 1, 2021 to May 31, 2022), for the effect is insignificant.

*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 Replacement
・Reference Material 3 Property Photograph or Image View and Map of Surrounding Area4

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

Coop Kobe Delivery Center Nishinomiya (site)

2,070,000,000 yen
The Tanizawa Sogo Appraisal Co., Ltd.
December 1, 2021
Item

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

Value

Basis for valuation

2,070,000,000 yen
2,070,000,000 yen

Discount rate per period

4.0%

Assessment comprehensively taking into consideration ofthe content of the planned lease agreement, land rentlevels, lease period, business risks and other factors,
based on the method to compare with the yields of landwith leasehold right transaction cases, etc., as well as theaccumulation method.

Discount rate per period(upon returning to vacant land)

4.2%

Assessment based on the discount rate for the planned
agreement period and adding the possibility to sell theproperty as vacant land, 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 2,070,000,000 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 lease-land right)” and considering to the process by which the price
was formulated, placing emphasis on profitability of the 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.

5Reference Material 2<Table of Real Estate Portfolio After the Replacement>

6Reference Material 3< Coop Kobe Delivery Center Nishinomiya (site)

Property photograph>< Coop Kobe Delivery Center Nishinomiya (site)

Map of Surrounding Area>

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