Table of Contents
1. Executive Summary・・・・・・・・・・・・・・ ・・ 2
2. External Growth ・・・・・・・・・・・・・・・・・ 15
3. Portfolio at End of 14th Fiscal Period ・ ・・・・・・ 19
4. Overview of Financial Results ・・・・・・・・・・・ 30
5. APPENDIX・・・・・・・・・・・・・・・・・・・・ 37

This material includes forward-looking statements based on present assumptions and future outlook. Actual results
may differ from the forward-looking statement 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 is a “Type I
Financial Instruments Business Operator.”
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. Executive Summary2

1-1. Summary of 14th Fiscal Period Results
External Growth
Searched for excellent properties
地域密着型商業施設
withparticular emphasis oncommunity-basedに重点を置き優良物件を探索

Results for 14th Fiscal Period(up 2.7% from the initial forecast)retail properties
Internal Growth・Kitano Hankyu Building
Occupancy rate: 100%
・HEP Five
Achieved and maintained
occupancy rate of 100% throughproactive efforts to replace tenants
and change brands
Occupancy rate for total portfolio
End of14th Fiscal Period: 98.5%(occupancy by end-tenants)

Financial Strategies
Refinanced borrowings toboost stability and efficiency offund procurement

JPY 12,324

Distribution per unit

Portfolio NOI yield*

4.7%*NOI yield = (Lease operation income + Depreciation) × 2 ÷ Total acquisition priceInvestment unit priceat end of 14th fiscal period (closing price):
Net assets per unit:
Net assets per unit
after reflecting unrealized income/loss:

JPY 358,500
JPY 660,390
JPY 563,920

Forecast for 15th Fiscal Period
Distribution per unit forecast

JPY 12,00031-2. Management Strategies for Next 3 Years

Return to growth path
Restoration of financial soundness
Preparation of environment for carrying out public offering Secure properties by utilizing sponsor group’s warehousing
capabilities (community-based retail properties)
 Maintain and improve the earning power of properties throughinternal growth efforts
 Suppress rise in fund procurement costs (utilizing security
deposits/guarantees, issuance of investment corporation bonds)

Expansion of growth
Conducting multiple property acquisitions and public offering Achieve growth in scale by utilizing sponsor group’s development
capabilities and network
 Maintaining and improving distribution per unit as well as gradualreduction of LTV

4

1-3. Additional Acquisition AEON MALL SakaiKitahanada (site) ①
Additional Acquisition of Assets (silent partnership interests)(Overview of Acquisition)
Asset acquired:

Silent partnership interests with real estate trust
beneficiary interests as portfolio properties*1
Property name:
Bay Leaf Funding GK silent partnership interests
Real estate under trust: AEON MALL SakaiKitahanada (site)
Investment amount:
JPY 738 million (20.0% investment interest in the entire silent partnership)
Acquisition date:June 1, 2012
Seller:Hankyu Corporation
Acquisition funds:
Cash on hand(Overview(Overview ofof Property)
Property)
Location:
Location:

4-1-32,4-1-32, etc.,
etc., Higashiasakayama-cho,Higashiasakayama-cho, Kita-ku,
Kita-ku, Sakai
Sakai

Lot
Lot area:
area:

64,232.77㎡
64,232.77㎡

External appearance of AEON MALL SakaiKitahanada・ Stronger ties with the sponsor group
・ Investments in silent partnership will generate dividends on
profits that will contribute to distributions to unitholders51-3. Additional Acquisition AEON MALL SakaiKitahanada (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 (site)

Subway Midosuji Line
Kitahanada Sta.
(underground)(Aerial photograph taken from south side facing north)6

1-4. Operation Management
Achieving a WIN-WIN-WIN-WIN relationship in operations
Consumers

Investors
Boost stakeholder satisfaction
Maintain
Maintain andand improve
improve rent
rent income
incomeImprove
Improve attractivenessattractiveness toto consumers
consumers
andand sojournsojourn time
time
InviteInvite competitivecompetitive “in“in vogue”
vogue” tenants
tenants

Tenants

Hankyu REIT<<Results for the 14th fiscal period>>● Kitano Hankyu Building: Created shower effect from the newly opened nightclub, helping revitalize thebuilding and boost sales
Achieved occupancy rate of 100% at end of the 14th fiscal period throughaggressive leasing● HEP FIVE: Appears to have bottomed out of declining sales trend caused by new retail properties
opened in the vicinity
Maintained occupancy rate of 100% thanks to the smooth replacing of tenants and thechange of brands● NU chayamachi: Held various events to revitalize the surrounding area including NU chayamachi Plus
● Namba-Hanshin Building: Realized improved occupancy rate by attracting group companies, etc.

7

1-5. Operational Management Initiatives ①＜HEP Five＞
Focused on enhancing appeal of entire property byreplacing tenants and changing brands
 Enhanced appeal of entire property by focusing on
increasing floor space of strong-sales tenants andattracting Kansai debut store tenants
 Attracted casual brand tenants highly popular among theyoung generation (jóuetie (Kansai debut store), rienda,
PARK by oneway, RETRO GIRL slow & easy, SPINNS,
and others) Maintained 100% occupancy rate .

Overall Sales and Rent
（Rent: JPY mn）（Sales: JPY bn）

1,400
13.13
12.28
1,200
1,000
74.6
69.8
800
600
400
762.3
765.5
200
0
JPY 835.4 mn
Rent income JPY 837.0 mn
10th fiscal period 12th fiscal period
total
Fixed rent
Variable-rent

11.03
51.8
771.7

16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

JPY 823.6 mn
14th fiscal period
Overall sales*Rent and sales are equivalent to 45% and 100% ofinterest, respectively.

・Grand opening of Hankyu Umeda Flagship Store currently under reconstruction is scheduled
for the end of November 2012

・Due to improved customer flow and navigability from JR Osaka Station, the number of visitorsand sales is expected to increase＜ Kitano Hankyu Building＞
Opening of popular large-scale nightclub contributed
to revitalization and increased sales of entire building Steadily enhanced presence as a leading leisureproperty of Umeda, possessing a large-scale nightclub,a billiard and darts bar, various restaurants, etc.
 Achieved occupancy rate of 100% at the end of the
14th fiscal period and overall sales show a rising trend
Kitano Hankyu Bldg. Bar/lounge included in the nightclub

8

1-5. Operational Management Initiatives ②＜NU chayamachi＞
chayamachi
Held various events such as “UMEDA SNOWMANFESTIVAL”, “CHAYAMACHI ART PICNIC” and“CHAYAMACHI BAR” in an aim to revitalize the area
Held periodic collaborative events with the surrounding areasuch as the “UMEDA SNOWMAN FESTIVAL,” featuring
many performances by brass bands and such, the“CHAYAMACHI ART PICNIC,” in which exhibitions of originalart by popular artists were held, and the “CHAYAMACHI
BAR” for people who enjoy restaurant and pub hopping.

＜Shiodome East Side Building＞

The east side of NU chayamachi

Supported revenues by expanding existing tenant floor space,
Overall Sales and Rent (Dew Hankyu Yamada)attracting sponsor group companies, etc.

＜Richmond Hotel Hamamatsu＞
Converted portion of guest rooms into conference rooms andsatisfied various guest needs by differentiating from otherproperties .

＜Dew Hankyu Yamada＞
Maintained stable occupancy rate of 100%, holding
periodic customer-attracting events such as the“Anniversary Fair” to increase the number of visitors andimprove customer loyalty（Sales: JPY bn）（Rent: JPY mn）

350
300
250
200
150
100
50
0

4.53

4.43

4.48

5.0
4.0
3.0

255.5

258.9

257.7

2.0
1.0

10th fiscal period 12th fiscal period
Rent

14th fiscal period

0.0Overall sales*Include variable-rent portion (classification is not disclosed)

91-6. Main Development Projects in “Umeda Area”(1) Rebuilding of Umeda Hankyu Building
PhaseⅠof department store opened in September 2009
Office wing on upper floors opened in May 2010
Entire building scheduled to open in late November 2012
Hankyu Corporation (department store, offices, etc.)(2) NU chayamachi Plus (opened in April 2011)
Hankyu Corporation (chief right holder)(retail stores, residences, schools, etc.)(3) GRAND FRONT OSAKA
Began construction in March 2010
Scheduled completion in March 2013
A block: Office, retail (about 1.1ha)
B block: Office, knowledge capital, retail, hotel (Inter Continental)
and serviced apartments,
conventions (about 2.2ha)
C block: For-sale condominium (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. Co., Ltd.
(department store, 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) Addition of a branch line to JR Tokaido Line and constructionof a new station* ・・・・ (dotted line) Property under development(solid line) Project in operation for less than 1 year
(green line) Owned property

101-7. Restoration of Customer Flow to HEP Five
Full opening of Umeda concourse,, currently
currently under
under construction,
construction,scheduled for autumn 2012
⇒Improvement⇒Improvement ofof HEPHEP FIVE
FIVE navigability
navigability fromfrom JRJR Osaka
Osaka Station
StationAutumn 2012
and after

July
2012

To HEP FIVE

Under
construction
Under
construction

ClosedHankyuGrand
Building

HEP FIVE
Under
construction

JR Osaka
Under Sta.
HankyuGrand
Building

construction

Full opening
Scheduled for
November 2012

Hankyu Umeda
Flagship Store

Hankyu Umeda
Flagship Store

Completion of 16.5m wideand 9m high concourse
running north to south

Hanshin Umeda
Sta.

11

1-8. Basic Financial Policy
Basic Financial Policy

Future Policy● Maintain sound financial position● Maintain favorable trading relationship with financial institutions● Lower fund procurement costs (effective use of security
deposits/guarantees)● Reduce financing risks (diversification of debt repayment dates)● Reduce interest rate risks (focus on long-term, fixed rate loans)

Aim to boost stability and efficiency by focusing
on suppressing rises in fund procurement costs
through choice of borrowing formats andutilization of security deposits/guarantees.

Interest-bearing debt
Avg. funding cost（interest-bearing debt＋utilized
amount of security deposits
guarantees)
Avg. debt financing cost(including investment corporation
bonds)
Avg. remaining years
on long-term loans payable
Long-term debt ratio
Fixed debt ratio
LTVInterest-bearing debt ratio

As of end of
13th period

As of end of
14th period

JPY 56.9 bn

JPY 56.9 bn

1.36%

1.31%

1.51%

1.43%

2.1 years

2.1 years

93.8%
93.8%
56.0%
45.2%

88.6%
75.9%
55.9%
45.5%

(Note) LTV = (Interest-bearing debt + Security deposits/guarantees –Cash deposits of security deposits/guarantees) / (Total amount ofassets* – Cash deposits of security deposits/guarantees)* Appraised value basis

Registration for Issuance ofInvestment Corporation Bonds
Planned value of issuance(upper limited):
JPY 100,000 mn
Planned issuance period:

Dec. 19, 2011 to
Dec. 18, 2013

Investor Rating
Issuer RatingA+(Stable)*Requested Moody’s to withdraw the rating as of January 17, 2012
and the rating was withdrawn on the same day.

12

1-9. Loans Payable as of End of 14th Fiscal Period and Diversification of Repayment Dates
As of May 31, 2012

Outstanding Debt by Lender (JPY mn)

Diversification of Repayment Dates

3 ,0 0 0
5 .9 %
5 ,7 0 0
1 1.2 %

1 1 ,2 0 0
2 2 .0 %5 ,9 0 0
1 1 .6 %5 ,9 0 0
1 1 .6 %（JPY bn）
20

1 1 ,0 0 0
2 1 .6 %8 ,2 0 0
1 6 .1 %18
16
14

Investment
corporation bonds

3.5bn

12

JPY 6.0bn

108Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Corporate Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Senshu Ikeda Bank, Ltd.

Total JPY 50.9bn

6

1.0bn

2.5bn

4
2
0
15th 16th
17th 18th
19th 20th
21st 22nd 23rd 24th 25th
period period period period period period period period period period period'12/11 '13/05 '13/11 '14/05 '14/11 '15/05 '15/11 '16/05 '16/11 '17/05 '17/11
JPY 3.5bn longlong-term loans payable that will become due on July 23, 2012
are planned to be refinanced into JPY 1.0bn shortshort-term loans payable (one year)
and JPY 2.5bn longlong-term loans payable (five years).

13

1-10. Distribution Forecast for 15th Fiscal Period（ Un it: JPY mn）

Item

Results for 14th Fiscal Period ①(Dec. 1, 2011 to May 31, 2012)

Forecast for 15th Fisc al Period ②(Jun. 1, 2012 to Nov. 30, 2012)

Change②- ①

Results for 13th Fiscal Period ③(Jun. 1, 2011 to Nov. 30, 2011)

Change②-③Operation per iod(days)

183

183

―

183

―

Operating revenues

4,772

4,727

-44

4,894

-166

Operating i ncome

1,501

1,460

-40

1,549

-89

Ord inary income

1,054

1,026

-27

1,085

-58

Net income

1,052

1,024

-27

1,083

-58

Number of outstanding
investment u nits at end of
period (units)

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

12,32412,000-324

12,688-688

FFO per unit (JPY)24,01323,569-444

24,273-704[Main preconditions]- There will be no transfers of portfolio properties other than additionally acquired silent
partnership interests with trust beneficiary interests in real estate as portfolio property- There will be no additional issuance of investment units to the present 85,400 units
until the end of the period14

2. External Growth152-1. Property Information

81% of acquisitions

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

Preferential Negotiation Rights
We hold preferential negotiation rights with Hankyu Corporation,
Hankyu Realty Co., Ltd. and Hankyu Investment Partners, Inc.

+
Hankyu REIT Asset Management’s Own Network

Trend of information leads

We obtain highly accurate information by directly approaching
general companies and distributors

Hankyu REIT, Inc.
We aim to achieve sustained growth by utilizing theinformation sourcing capabilities and network of the
Hankyu Hanshin Holdings Group that has deeply rooted
connections in the community.

Information leads checked
Information leads considered（leads）
1000
900
800
700
600
500
400
300
200
100
0
1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

11th

12th

13th

14th

period period period period period period period period period period period period period period162-2. Property Acquisition Policy for Future
Use

Area
Urban vicinity

City center

Shiodome
OfficeNamba-Hanshin

Urban retailproperties

TennozCommunity-based
retail properties

Ueroku F Bldg.

GMS (general-merchandise stores)
SM (supermarkets)
Specialty shopbuildings(city center SC)

Hankyu Yamada

HEP

Takatsuki-Josai

Department stores

RetailLarge specialty
shops

NSC (neighborhood shopping centers)

NU

Kitahanada*

Kitano Hankyu

LaLaport KOSHIEN

Tamachi

Additionally acquired silent partnership interests related to AEON MALL
SakaiKitahanada (site) on June 1, 2012.

City hotels

Hamamatsu

Specialty shops
Outlet centers

Street-level shops

LAXA Osaka

Kohnan Hiroshima

RSC (regional shopping centers)

Nitori Ibaraki

Hotel

SuburbanHigh-grade hotels forbusiness travelers

Resort hotels

Budget hotels for business travelers

Primary investment target zone

Focal investment zone of retail properties

Focus on community-based retail properties17

2-3. Information Leads and Leads Considered (14th fiscal period)
Area
City center

Use

1

Urban vicinity

39

3

1 3

1 18

2

0

0

0

1

12

1

0

0

0

Office926

8Retail

1 6

12 14

1 3

Hotel

0

Others

5

3

10 21

4

227

Suburban

7

7 24

1

2

2 15

11 35

3 12

4

5

*Outer circle: Information leads
Kansai region (Osaka, Kyoto, Hyogo,
Nara, Shiga, Wakayama)

2

5

5

0

0

0

0

1

4

Inner circle: Leads actually consideredTokyo metropolitan area
(Tokyo, Kanagawa, Saitama,
Chiba)

Other areas

Leads-based retail
Leads considered
considered were
were primarily
primarily community
community-based
retail properties
properties inin thetheKansairegionandTokyo
metropolitanarea
Kansai region and Tokyo metropolitan area18

3. Portfolio at End of 14th Fiscal Period193-1. Portfolio List (end of 14th fiscal period) ①
As of May 31, 2012Cla ssifi
catio nCode
( Note 1)

Name

Mixed-use Properties

Of fice
Properties

Retail Properties

HEP Five

T otal leasable area
( m2)
( Note 3)

Occupancy rate
(Note 3)

Total numberof tenants(Note 3)

Location

Completion date

Building
age(Note 2)

Kita War d,
Osaka City

Nov. 1998

13.6

20,370.13(9,510.90)

100.0%(100%)

1
(136)

4.6%

Feb. 1, 2005

20,79017.1%

23,7604.5%

PML
Acqusition pr ice Investment Appraisal value
Date of acquisition( JPY mn )( JPY mn)r atio(Note 4)

Cap rate(Note 5)R1(K)(45% of the quasi co- owner ship of
the trust beneficiary interests)

R2(K)Kitano Hankyu Bldg.

Kita War d,
Osaka City

Jun. 1985

27.0

28,194.15(18,477.35)

100.0%(100%)

2
(24)

10.1%

Feb. 1, 2005

7, 740

6.4%

6,810

5.6%

R3(K)

Dew Hankyu Yamada

Suita City,
Osaka Prefecture

Oct. 2003

8.7

12,982.19

100.0%

28

4.5%

Feb. 1, 2005

6,930

5.7%

6,900

5.5%

R4(K)

Takatsuki-Josai
Shopping Center

T akatsuki City,
Osaka Prefecture

Apr. 2003

9.2

31,451.81

100.0%

1

6.1%

Nov. 15, 2005

8, 600

7.1%

7,371

5.8%

R5(K)

Nitori Ibaraki-Kita Store(site)

Ibaraki City,
Osaka Prefecture――

6,541.31

100.0%

1―

Mar. 29, 2006

1,318

1.1%

1,392

6.7%

R6

Kohnan Hiroshima NakanoHigashi Store (site)

Aki Ward,
Hiroshima City――

100.0%

1―

Oct . 2, 2006

2, 170

Apr. 9, 2007

5

1.8%

1,980

6.7%

R7(K)

NU chayamachi

Kita War d,
Osaka City

Sep. 2005

6.7

4.5%

Mar. 15, 2007

19, 300

15.9%

14,3004.8%

R8Hotel Gracery Tamachi

Minato W ard,
T okyoSep. 2008

R9(K)

LaLaport KOSHIEN(sit e)Nishinomiya City,
Hyogo Prefectur e

R10

Richmond Hotel Hamamats uO1

25,469.59
60.14
15,546.75

100.0%

1(11,447.64)( 85.0%)

(66)

3.7

4,943.66

100.0%

1

10.2%

Dec. 25, 2008

4,160

3.4%

3,860

5.4%

―

―

126,052.16

100.0%

1

6.0%

Jan. 22, 2009

7, 350

6.1%

6,710

5.0%

Naka War d,
Hamamatsu City

Sep. 2002

9.7

6,995.33

100.0%

1

13.9%

Jan. 22, 2009

2,100

1.7%

1,952

6.3%

Shiodome East Side Bldg.

Chuo W ar d,
T okyoAug. 2007

4.8

9,311.32

90.9%

5

4.6%

Feb. 29, 2008

19, 025

15.7%

12,800

4.8%

M1(K)

Ueroku F Bldg.

Chuo W ar d,
Osaka City

Sep. 1993

18.7

4,611.82

89.9%

12

3.2%

Nov. 1, 2005

2, 980

2.5%

2,470

6.0%

M2

(33% of the quasi co- owner ship of
the trust beneficiary interests)

Shinagawa Ward,
T okyoApr. 1993(Note 6)19.2

8,807.71

92.7%

22

2.7%

Oct. 2, 2007

9, 405

7.8%

8,382

4.6%

M3(K)

LAXA Osaka

Fukushima Ward,
Osaka City

Feb. 1999

13.3

30,339.91

100.0%

1

3.4%

Jan. 22, 2009

5, 122

4.2%

5,100

5.9%

M4(K)

Namba-Hanshin Building

Chuo W ar d,
Osaka City

Mar. 1992

20.2

4.5%

Jan. 22, 2009

4, 310

3.6%

3,030

5.5%

3.2%

―

121, 306

100.0%

106,817

5.1%

Sphere Tower Tennoz

Total

11.6

9,959.01

100.0%

1(6,456.88)（85.7%)(16)

341,637.00

99.4%

79

(313,459.73)( 98.5%)(316)

In addition to the assets shown above, we own silent partnership interests issued by Bay Leaf Funding GK, which owns trust beneficiary interestsof AEON MALL SakaiKitahanada (site), the targeted real estate under the trust.

20

3-1. Portfolio List (end of 14th fiscal period) ②(Note 1) These codes represent properties owned by Hankyu REIT classified into the following
properties and regions.
Left-side letters represent properties: “R” is for retail property, “O” is for office property, and“M” is for mixed-use property.
The numbers are assigned to properties in order of date of acquisition, and a the letter “K” inparenthesis means the property is located in the Kansai region.
(Note 2) The portfolio total is the weighted average building age by acquisition price.
(Note 3) Figures in parenthesis indicate the total leasable area for end-tenants, the occupancy rate
based on the said area, and the number of end-tenants, respectively.
For HEP Five, 45% quasi co-ownership of the trust beneficiary interests is indicated as theleasable area.
For Sphere Tower Tennoz, 33% quasi co-ownership of the trust beneficiary interests isindicated as the leasable area.
For LaLaport KOSHIEN (site), the leasable area is the total of the retail property site
(86,124.96m2) and the parking garage space (39,927.2m2).
(Note 4) PML of LaLaport KOSHIEN (site) is for the parking garage space administration building(394.88m2) .
(Note 5) The cap rate is based on the direct capitalization method using appraisal value calculations.
(Nitori Ibaraki-Kita Store (site), Kohnan Hiroshima Nakano-Higashi Store (site) and LaLaport
KOSHIEN (site), are allocated a discount rate using the DCF method.)
The portfolio total is the weighted average cap rate based on appraisal values.
(Note 6) The completion date for the office and store portions.

21

3-2. Portfolio View (end of 14th fiscal period) ①
Urban retail properties
HEP Five

NU chayamachi

Kitano Hankyu Building

Community-based retail properties
Dew Hankyu Yamada

LaLaport KOSHIEN (site)

Kohnan Hiroshima Nakano-Higashi Store (site)

Takatsuki-Josai SC

Nitori Ibaraki-Kita Store (site)22

3-2. Portfolio View (end of 14th fiscal period) ②
Hotel
LAXA Osaka

Hotel Gracery Tamachi

Richmond Hotel Hamamatsu

OfficeUeroku F Building

Namba-Hanshin Building

Shiodome East Side Building

Sphere Tower Tennoz

23

3-3. Appraisal Value ①
Appraisal value down by 0.9% Signs of CAP rate decline（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
(Note 2)0.0%
1stperiod'05/11

2nd
period'06/053r dperiod'06/114th
period'07/055th
period'07/11

HEP
TennozHankyu Yamada
Tamachi
Kohnan Hiroshima
Weighted average CAP rate

6th
period'08/057th
per iod'08/118th
period'09/059th
period'09/11NU
Takatsuki-Josai
LaLaport KOSHIEN
Namba-Hanshin
Hamamatsu

10th
period'10/0511th
period'10/1112th
period'11/0513th
period'11/1114th
period'12/05

Shiodome
Kitano Hankyu
LAXA Osaka
Ueroku F Bldg.
Nitori Ibaraki(Note 1) In the 9th fiscal period (November 27, 2009), as 10% of the quasi co-ownership (equity ratio of 50%) of the trust beneficiaryinterests was transferred, the comparison is based on an equity ratio of 45%. For comparison purposes, appraisal values are- fiscal periods calculated at an equity ratio of 45%.
shown for the ends of the 1st to the 8th(Note 2) Figures show the values at the end of each fiscal period.

24

3-3. Appraisal Value ②(Unit：JPY mn)
Acquisition price① End of previous
period(13th fiscal period-end)

Cap
rate

② End of current
period(14th 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)

20,79024,120

4.5%

23,760

4.5%

-360

-1.5%

19,1684,591

124.0%

Kitano Hankyu Building

7,740

6,870

5.6%

6,810

5.6%

-60

-0.9%

7,838

-1,02886.9%

Dew Hankyu Yamada

6,930

6,840

5.6%

6,900

5.5%

60

0.9%

6,073

826

113.6%

Takatsuki-Josai
Shopping Center

8,600

7,330

5.8%

7,371

5.8%

41

0.6%

7,813

-442

94.3%

Ueroku F Building

2,980

2,440

6.0%

2,470

6.0%

30

1.2%

2,864

-394

86.2%

Nitori Ibaraki-Kita Store(Site)

1,318

1,377

6.9%

1,392

6.7%

15

1.1%

1,340

51

103.8%

Kohnan Hiroshima NakanoHigashi Store (Site)

2,175

2,000

6.7%

1,980

6.7%

-20

-1.0%

2,280

-300

86.8%

NU chayamachi

19,30014,4004.8%

14,300

4.8%

-100

-0.7%

17,842-3,542

80.1%

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

9,405

8,448

4.6%

8,382

4.6%

-66

-0.8%

8,826

-444

95.0%

Shiodome East Side Bldg.

19,025

13,4004.8%

12,800

4.8%

-600

-4.5%

18,423-5,623

69.5%

Hotel Gracery Tamachi

4,160

3,850

5.4%

3,860

5.4%

10

0.3%

4,032

-172

95.7%

LAXA Osaka

5,122

5,000

5.9%

5,100

5.9%

100

2.0%

4,863

236

104.9%

LaLaport KOSHIEN(site)

7,350

6,710

5.0%

6,710

5.0%

0

0.0%

7,748

-1,038

86.6%

Namba-Hanshin Building

4,310

3,030

5.5%

3,030

5.5%

0

0.0%

4,100

-1,07073.9%

Richmond Hotel Hamamatsu

2,100

1,937

6.3%

1,952

6.3%

15

0.8%

1,838

113

106.2%

Total

121,306

107,752

5.1%

106,817

5.1%

-935

-0.9%

115,055-8,23892.8%

The cap rate is based on the direct capitalization method using appraisal value calculations. (Nitori Ibaraki-Kita Store (site), Kohnan
Hiroshima Nakano-Higashi Store (site) and LaLaport KOSHIEN (site) are allocated a discount rate using the DCF method.)
The portfolio total is the weighted average cap rate based on appraisal values.

25

3-4. Occupancy Rate for Individual Properties (occupancy by end-tenants)
end ofTotal
8.5% ((endTotal portfolio
portfolio occupancy
occupancy rate
rate 998.5%
of 14th
14th fiscal
fiscal period
period ))The graph excludes the seven properties (Takatsuki-Josai, Nitori Ibaraki, Kohnan Hiroshima, Tamachi, LaLaport
KOSHIEN, LAXA Osaka and Hamamatsu) leased to single tenants (occupancy rates of 100%).
(％)

100

Total portfolio

95

HEP

90

Kitano Hankyu
Hankyu Yamada

85

Ueroku F Bldg.

80

NU

75

Tennoz－

Shiodome70
2011/112011/122012/01

2012/02

2012/032012/04

2012/05

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

StableStable occupancy
occupancy rates
rates maintained
maintained since
since 1st
1st fiscal
fiscal period
period（％）

100
9599.5 100.0 99.3 98.5 99.3 98.8
98.1 98.5 98.7 98.4 98.7 99.0 99.4 98.5

9085

Total portfolio

80(Note) 1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
14th
period period period period period period period period period period period period period period'05/11 '06/05 '06/11 '0 7/05 '07/11 '08/05 '08/11 '09/05 '0 9/11 '10/05 '10/11 '11/05 '11/11 '12/05(Note) Figures indicate the values at the end of each fiscal period.

26

3-5. Income Ratio by rent Category and Sales-Based Overage Rent System Mechanism
Income Ratio by Rent Category and Variation Factors

Overagerent
tenants

Fixedrent
tenants<Variable-rent portion>
Rent income varies inaccordance with the overallsales of primarily HEP Five
and NU chayamachi<Fixed-rent portion>
Rent income varies inaccordance with theoccupancy rates and rent
levels of primarily HEP Five
and NU chayamachi

3.6%

3.6%

3.3%

33.0%

32.2%

32.3%

96.4%

96.4%
63.4%

Actualfixed-rent
portion

96.7%
64.2%

64.4%

JPY 4.05bn
12th fiscal
第12期
periodJPY 3.96bn
14th fiscal
第14期
periodRent income varies inaccordance with theoccupancy rates and rent
levels of remaining properties

JPY 4.12bn
fiscal(excluding warehouse income) 10th
第10期
periodTotal rent income

Concept Diagram of General Sales-based Overage Rent System
Rent income
Variablerent
portionFixedrent
portionTenant sales
Point from where sales-based
variable rent is generated

27

3-6. Rent Systems and Present Conditions of 15 Portfolio Properties (end of 14th fiscal period) ①<Properties mainly using the sales-based overage rent system>Name

HEP Five
Specialty shop buildings(City center SC)

NU chayamachi
Specialty shop buildings(City center SC)

Main rent system

Overage(fixed + variable)

Overage(fixed + variable)

Present conditions
Occupancy rate was stable at 100% at the end of the 14th fiscal period.
Aiming for recovery in sales, implemented measures to strengthen operational structure, such as
reviewing sales promotion activities and establishment of an on-site PM office.
To boost the customer utilization rate and gaining new customers, held group employee sales and otherevents; in cooperation with tenants and the PM company, continue promoting events to revitalize theentire building.
By promoting the replacement of tenants with low sales and the change of brands, continue to focus on
preventing obsolescence of the entire property and enhancing the appeal.
Contributed to improving the appeal and attractiveness to customers of the entire area through thedevelopment of various events including “CHAYAMACHI BAR,” a street bar event where visitors can gofrom restaurant to restaurant and pub to pub along a Spanish-style “bar street,” and “CHAYAMACHI ARTPICNIC” with exhibitions of original art by popular artists in Chayamachi and the surrounding area.
Aiming to achieve early occupancy, one floor, which was vacated by the departure of a tenant at the endof January 2012, was divided into three. A bridal photo studio opened in May in one of the sections.

<Properties using the fixed rent system>
Name

Main rent system

Ueroku F Building
OfficeFixedSphere Tower Tennoz
OfficeFixed

Shiodome East Side
Building
OfficeNamba-Hanshin Building
Office

Fixed

Fixed

Present conditions
Occupancy rate was stable at 89.9% at the end of the 14th fiscal period, no change from the end of theprevious period (13th fiscal period). Utilizing the building attributes that make it competitive in the area(accessibility, visibility and scale), currently focusing on leasing vacant office spaces by conducting open
property viewings targeting real estate agents and offering tenants the option to expand floor space andother efforts.
Although the occupancy rate has dropped 5.5 points from the end of the previous period (13th fiscal
period) to 92.7%, agreements were reached on an unofficial basis with new tenants including a clinic. In
the current period, implemented disaster prevention measures such as creating disaster responsemanuals and adding stockpiles for disaster response, as requested by tenants; continue to focus on
boosting tenant satisfaction and aim to secure tenant leasing as early as possible.
Although one floor contract was cancelled at the end of January 2012, existing tenants increased floor
space to 2/3 of the vacated section, resulting in a 95.8% occupancy rate.
Currently focusing on tenant leasing for the remaining 1/3 of the section to achieve early occupancy.

Although there was a decreasing trend in occupancy rate, the rate recovered to a high level of 94.9%
after a successful promotion to attract group companies. As the area is attractive to businesses with visitsfrom clients, currently focusing on leasing vacant offices by continuing to conduct open property viewings
aimed at real estate agents and offering tenants the option to expand floor space and other efforts.

28

3-6. Rent Systems and Present Conditions of 15 Portfolio Properties (end of 14th fiscal period) ②<Properties that mainly use the long-term, fixed rent systems>
Name

Main rent system

Kitano Hankyu Building
Specialty shops buildings(City center SC)

Long-term, fixed(partly overage)

Dew Hankyu Yamada
NSC (Neighborhood
shopping centers)

Long-term, fixed(partly overage)

Takatsuki-Josai Shopping
Center
NSC (Neighborhood
shopping centers)

Long-term, fixed

Nitori Ibaraki-Kita Store (site)
Specialty shops

Long-term, fixed

Kohnan Hiroshima NakanoHigashi Store (site)
NSC (Neighborhood
shopping centers)

Long-term, fixed

Hotel Gracery Tamachi
High-grade hotels forbusiness travelers

Long-term, fixed

LaLaport KOSHIEN (site)
RSC (Regional shopping
centers)

Long-term, fixed

LAXA Osaka
City hotels

Long-term, fixedRichmond Hotel Hamamatsu
High-grade hotels forbusiness travelers

Long-term, fixed

Present conditions

Achieved occupancy rate of 100% at the end of the 14th fiscal period as a result of proactive newleasing activities. Nightclub “North Platinum” newly opened in November 2011 contributed torevitalizing the entire building as a property drawing customers for long hours. In June 2012, renewal
construction was conducted for the nightclub which is expected to benefit other tenants and raise theentire property’s potential.
Average occupancy rate for the fiscal period was stable at 100%. Customer-attractive events such as“Summer Fair” and “Anniversary Fair” were regularly held. Because the market area population is large
and the building has strong attractiveness for customers, both overall sales and rent income are stable.
Aiming to promote use of the parking area during weekdays and increasing revenue, held a campaign
to boost use of “park & ride,” continue to raise awareness of parking facilities and increase the numberof leased parking spaces.
Stable rent income based on the fixed-type master lease method* with Kohnan Shoji Co., Ltd. Tenantcomposition of home improvement center, grocery store, home electronics retailer, sporting goods
store, etc. fulfills the needs of residents in the surrounding area. Currently applying for administrative
approval among other measures to expand retail floor space.
Stable rent income based on a contract for fixed-term land lease for business use with Nitori Holdings
Co., Ltd. The market area population is increasing mainly due to local residential property
development.
Stable rent income based on a contract for fixed-term land lease for business use with Kohnan Shoji
Co., Ltd. Retail property that offers high transportation convenience with a home improvement centerand a grocery store.
Stable rent income based on long-term lease with Fujita Kanko Inc. Hotel occupancy rate has
recovered to a high level since summer 2011. The latest average occupancy rate remained at a highlevel of 96%. Listed in the hotel section of “MICHELIN Guide 2012” and this was utilized in sales
promotion development and commemoration plans.
Stable rent income based on a contract for fixed-term land lease for business use with Mitsui FudosanCo., Ltd. Property’s competitiveness further boosted by conducting a major renewal in spring 2011(bringing in new stores of fast-fashion chains such as H&M, ZARA, UNIQLO and newly adding “LaLa
Kid’s Park”).
Stable rent income based on the fixed-type master lease method* with Hanshin Electric Railway Co.,
Ltd.(Note) The occupancy rate of Hotel Hanshin that is under a sub-leasing contract remained at a highlevel.
Stable rent income based on the fixed-type master lease method* with RNT HOTELS Co., Ltd.
(consolidated subsidiary of ROYAL HOLDINGS Co., Ltd.).
Converted a portion of guest rooms into conference rooms and refurbished guest room interiors.
By providing a wide range of accommodation plans among other incentives, the hotel continues tomaintain a high-level occupancy rate in the Hamamatsu City area.

(Note) Fixed-type master lease method: Hankyu REIT receives rent income from the master lessee (sublessor). The amount received isfixed irrespective of the rent received by sublessor from end-tenants.

29

4. Overview of Financial Results30

4-1. Financial Highlights（Unit:JPY mn）

Item

Forecast for 14th Fiscal Period①(as of Jan.20. 2012)

Results for 14th Fiscal Period ②(Dec.1, 2011 to May.31, 2012)

Change② -①

Operation period (days)

183

183

―

Operating revenues

4,784

4,772

-12

Operating income

1,477

1,501

23

Ordinary income

1,026

1,054

27

Net income

1,024

1,052

27

Number of outstanding
investment units at end of
fiscal period (units)

85,40085,400―Distribution per unit (JPY)12,00012,324324

23,69824,013315

FFO per unit (JPY)(Main factors for increase/decrease in profit)①②③① Decrease in operating revenues

JPY-12 mnDecreased lease income(Mainly NU)
Decreased utilities expense income
Contract breach fine etc.

JPY

-12 mnJPY
JPY-13 mn
12 mn② Decrease in operating expenses

JPY

35 mn

Decreased repair expenses
JPY
Decreased tax and public dues
JPY
Decreased property/facility management fees JPY

13 mn
6 mn
5 mn

JPY

2 mn

③ Decreased interest expenses31

4-2. Income Statement / Cash Distribution Statement
Income Statement

Cash Distribution Statement（Uni t: JPY mn）

13th Fiscal Period

Item(Operation period:183 days)(Oper ation period:183 days)

Jun. 1, 2011 to Nov. 30, 2011

Dec . 1, 2011 to May.31.2012

AmountPretax net income for current period

4,894
4,882
11
3,344
2,972
278
3
16
30
7
35
1,549
1
0
0
466
431
28
3
0
1
1,085
1,085

Corporat e, local and enterprise tax

1Adjust ment for corporate t ax, etc.

0
1,083
0
1,083

1. Operating revenues
Lease operating revenues
Distribution revenue of silent partnership

2. Operating expenses
Lease operating costs
Asset management remuneration
Of ficer remuneration
Asset consignment remuneration
Adminstrative agenc y remuneration
Auditor remuneration
Other operating expenses
Operating income
3. Non-operating revenues
Int erest earned
Other non-operating revenues
4. Non-operating expenses
Int erest expenses
Loan related expens e
Interest due on investment corporation bonds
Amortization of inves tment corporation bondissuance cos ts

Other expenses
Ordinary income

Net income f or c urrent period
Retained earnings carried forwardfrom the previous period
Unappropriat ed income for current period(Uni t: JPY thousand)

14h Fiscal Peri od

Percent age

100.0

68.3

31.7
0.0

9.5

22.2

Amount

4,772
4,754
17
3,271
2,904
275
3
16
30
7
32
1,501
2
0
2
449
379
27
38
3
1
1,054
1,054

Percentage

100.0

-122

Lease operating revenues and costs
Breakdown: Refer to page 35 and 36
Occupancy rate at end of fiscal period: 98.5%(Occupancy by end-tenants)

0
1,052
0
1,052

①

68.5

-73

ChangeAmountAmountAmountUnappropriated income for current
period

1,083,582

1,052,527-31,054

Distributions

1,083,555

1,052,469-31,085(12,688)27(12,324)57(-364)
30(Distribut ion per unit (JPY))② Retained earnings c arried f orward(Main factors of increase/decrease)① Decrease in operating revenues

31.5
0.1

-48
1

9.4

-16

Decreased lease income(Shiodome, NU, and etc)
Decreased utilities expense income
Effect of tenant bearing sales promotion expenses *③② Decrease in operating expenses
Decreased utilities expense③ Decrease in non-operating expenses
Decreased interest expenses

22.1

22.1

JPY

-122 mn

JPY-29 mnJPY
JPY-33 mn-51 mnJPY-73 mnJPY-74 mnJPY-16 mnJPY-18 mn

-31

1
22.1

Item

Change13th Fiscal Period 14th Fiscal Period-31*At HEP Five and NU chayamachi, the tenant bearing sales promotion expenses thatwere 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 agreementwith the master lessee. Accordingly, a balance of these deposits of JPY 51 million
held by the master lessee at the beginning of the 13th fiscal period is recorded asincome in a lump-sum.

324-3. Balance Sheet（Unit: JPY mn）
Item

13th Fiscal Period

14th Fiscal Period(as of Nov. 30, 2011)(as of May.31, 2012)

AmountAmountRatio (%)

ChangeCurrency and demand deposit

9,472

7.5

2,267

9,629

6,790

7,437

Operational income receivable

25

Prepaid expense
Deferred income tax assets

II Fixed assets total

157

6,500

309

339

79

154

Long term loans payable(return within 1 year)

17,900

8,700

0

2

116,364

92.4

115,485

92.3

-878

10

226

185

1

1

Interest-bearing
debt

34

46

JPY 56,900 mn

487

447

0

0

1

7,938

7,938

Secur ity deposits

Buildings in trust

34,07233,311(return within 1 year)

Structures in trust

443

421

Machinery and equipment in trust

213

196

Tools, furniture and fixtures in trust

80

74

69,61369,613
114,094

Accr ued consumption tax
Advance r eceived
Current deposit received

II Total nonc urrent liabiliteies

91.2

-883

6
963

962

0.8

0

3. Investments, other assets
Investment sec uritie sLong-fiscal period prepaid
expenses
Guarantee money deposit
Investment, other assets total

IIITotal deferred assets
Investment corporation bondissuance costs

As sets total

375

375

36

43

10

52,362

6,000

6,000

29,50035,700

Secur ity deposits

1,599

1,552

Secur ity deposits in trust

9,203

9,110

41.8

6,060

Total of security
deposits/guarantees:
JPY 10,937 mn

69,44055.2

68,74654.9

I Unitholders capital

55,34444.0

55,34444.2

II Total surplus

1,083

0.9

1,052

0.8

JPY 5,196 mn
was allocated for-693 property acquisitions

Net ass ets

5
0.8

274
36.8

Long term loans payable

Liabilities total

957

400
46,302

Investment corporation bonds

2. Intangible fixed assets

957-6,753

Accr ued expenses

300

91.3

13.1

11

Income taxes payable

114,978

AmountAccr ued dividend

2Intangible fixed assets total

16,3833,500

315

Others

18.4

Short term loans payable

2,236Land leasehold

23,13726

2,298

T angible fixed assets total

Ratio (%)

217

Structures

Land in trust

AmountRatio (%)

575

Buildings

Land

AmountOperating accounts payable

1. T angible fixed assets

Tools, furniture and fixtures(as of May. 31, 2012)

Liabilities
I Current liabilit ies total

1,669

Currency and demand depositin trust

Deposit paid

7.7

(as of Nov. 30, 2011)

AmountAs sets
I Current assets total

14th Fi scal Period
ChangeItem

Ratio (%)

13th Fiscal Period

Unappropriated income for current
per iod

Net ass ets total

1,083

1,052

56,42844.8

56,39745.1-31125,868

100.0

125,144

100.0

-724

10

422

0.3

428

0.3

6

31
31
125,8680

28
28
125,144

0.0

-3

100.0

-724

100.0

Liabilities and net as sets total

33

4-4. Financial Indicators
Item

Operation period

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

13th Fiscal Period

14th Fiscal Period

Remarks

183 days

183 days

0.9%

0.8%

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 }

3.8%

3.7%

Calculated from days of operation

44.8%

45.1%

Net assets / Total assets(Amount of interest-bearing debt + 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)

13th fiscal period: Jun. 1, 2011 to Nov. 30, 2011
14th fiscal period: Dec. 1, 2011 to May 31, 2012

56.0%

55.9%

（ 52.2%）（52.0%）

45.2%

45.5%

5.8 times

5.9 times

Net Operating Income (NOI)

JPY 2,899 mn

JPY 2,848 mn

Net lease operating income + Depreciation

Funds From Operation (FFO)

JPY 2,072 mn

JPY 2,050mn

Net income for current fiscal period + Depreciation

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)Interest-bearing debt / Total assets
Pre-interest and pre-depreciation net income for current fiscal period /Interest expenses

34

4-5. Income and Expenditure by Property ①（Unit： JPY mn）

HEP Fi ve

Item

N um ber of operating daysof 14th fi scal per iod(4 5% of the quasi
co-o wnership of Kitano H ank yu
Bldg.
the tru st
benef iciaryinterests)

Dew Han kyu
Yam adaTak atsuk iJos ai SC

Spher e T ower

Nitori Ibarak iKita Stor e(s ite)(No te 1)

Ko hnan
H iros him a
N akanoHigas hi Sto re(s ite)NU
chayam achi

183

183

183

183

183

183

Tenn oz(3 3% of the q uasi
co-ownership of
the t ru stb enef iciary

Ueroku F
Bldg.

Shiodom e
EastSide Bldg .

183

183

183

183

1,022

567

372

284

76

634

132

350

396

836

398

259

283

76

479

114

272

374

58

113

48

―

―

69

9

24

19

127

54

64

1

0

84

8

53

2

655

383

231

139

7

501

86

190

193

147

112

72

9

0

107

22

28

19

71

128

46

0

―

85

10

52

24

7

0

1

21

―

0

―

―

0

144

2

2

―

―

74

0

―

―

19

12

1

0

―

5

4

8

0

3

2

1

0

―

2

0

0

1

Tax and publi c dues

69

52

27

27

7

54

13

30

23

Other expenses

28

4

4

0

―

4

1

4

2

164

68

73

78

―

168

33

64

121

Lease operating incom e

367

183

141

145

68

132

45

160

203

N OI
( Lease operating i ncome +D epreciati on)

531

252

214

223

60

68

301

79

224

325

35

1

0

―

―

② 23

③ 27

8

6

Lease operating revenues total
Incom e from leaseUti liti es ex pense i ncom e
Other i ncomes
Lease operating costs total
Property/Facil ity managem ent
fees
Uti liti es ex pense
Rent pai d
Adv er tising and pr om oti on
expenses
Repair expense
Nonl ife insurance pr em ium

Depreci ati on

C apital ex penditur e

7①(Note 1) Rent information is not disclosed as the consent of the tenant was not obtained.
(Main capital expenditure)① Kitano Hankyu Bldg.
Preparatory construction for new tenants on 3rd floor (2 stores) JPY

20 mn② NU chayamachi
Construction to split 7th floor into compartments

JPY

17 mn

JPY

19 mn

③ Ueroku F Bldg.
Construction to renew air-conditioners

35

4-5. 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 14th fiscal period

Total(15 properties)

Number of operating daysof 14th fiscal period

183

183

183

183

Lease operating revenues total

121

255

257

143

116

254

257

118

Utilities expense income

―

―

―

9

Utilities expense income

352

Other incomes

4

0

0

15

Other incomes

419

54

167

106

122

Lease operating costs total (Note 2)

2,904
550
433

Income from lease

Lease operating costs total

183

Lease operating revenues total
Income from lease

Property/Facility management
fees

1

1

1

23

Property/Facility management
fees

Utilities expense

―

―

―

14

Utilities expense

Rent paid

―

18

0

―

Rent paid

―
4,754
3,982

50

Advertising and promotion
expenses

―

―

―

0

Advertising and promotion
expenses

Repair expense

―

10

―

5

Repair expense

70

Nonlife insurance premium

0

3

0

0

Nonlife insurance premium

16

15

52

102

20

Tax and public dues

0

1

1

1

Other expenses

36

81

0

55

Depreciation

66

87

150

20

Lease operating income

1,850
2,848

Tax and public dues
Other expenses
Depreciation
Lease operating income
NOI(Lease operating income +Depreciation)
Capital expenditure

103

168

150

76

65

NOI
(Lease operating income +Depreciation)

―

1

―

1

―

Capital expenditure

222

507
54
997

113

(Note 1) Rent information is not disclosed as the consent of the tenant was not obtained.
(Note 2) Depreciation amount of Head Office are not included.

36

5. APPENDIX

32
22
10
2
37
14

5-1. Investment Unit Price
Unit Price (closing price basis)
1st（円）(JPY) period

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
015ｔｈ
period

6th
4th
2nd
3rd
5th
period period period period period

8th
7th
period period

9th
10th
period period

11th
period12th
13th
period period

14ｔｈperiod（口）(Units)

18,00016,00014,00012,00010,000Per unit trading trends(Oct 26, 2005 - July 5, 2012)
High (closing price basis)
Low (closing price basis)

8,000

JPY 1,380,000(June 2007)
JPY 325,000(December 2011)

6,000
4,000
2,000
0

‘05/11/30 ‘06/5/31 ‘06/11/30‘07/5/31 ‘07/11/30 ‘08/5/31 ‘08/11/28 ‘09/5/29 ‘09/11/30‘10/5/31 ‘10/11/30 ‘11/5/31 ‘11/11/30 ‘12/5/31‘05/10/26‘12/07/05

出来高VolumeSource: QUICK

投資口
価格
Unit priceDuring 14th fiscal period(December 1, 2011 - May 31, 2012)
High (closing price basis)
Low (closing price basis)

JPY 409,500(April 2, 2012)
JPY 325,000(December 22, 2011)

Price as of July 5, 2012 (closing price basis)
JPY 369,000

Relative Price (closing price basis)（％ ） 2 40

1stperiod2 20

2ndperiod3rd
period4th
period5th
period6th
period7th
period8th
period9th
period10th
period11th
period12th
period13th
period15th
period14th
period

2 00
1 80
1 60
1 40
1 20
1 00
80
60
40

‘05/11/30 ‘06/5/31‘05/10/26‘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 ‘11/11/30 ‘12/5/31‘12/07/05

阪 急RE
ﾘ ｰＩTﾄ投 資 口 価TSE
格 REIT Index
東 証 R EIT 指 数 Nikkei Stock
日 経 Average
平均株価
HankyuSource: QUICK, Tokyo Stock Exchange38

5-2. Analysis of Unitholder Attributes at End of 14th Fiscal Period
Unitholder Composition
O wnership by category

Number ofunitholders (persons)Ratio of Units by Unitholder Category

Number of
Ratio to number
Rati o to ownership investment units heldof investment un its( units)

Financial institutions( excludi ng trust banks)

62

0.68%

21,60725.30%

Trust banks

9

0.10%

22,47826.32%

8,766

Individuals, etc.

185

O ther organization s

96.36%
2.03%

24,354
10,83328.52%

47.27%

43 .48%44.25%

75
9,097

Total

0.82%
100%

6,128
85,40033.83%

37.17% 35.81%

38.22%

34.34%

31.72%

26.31%

27.56%

21.38%

23.20%

24.78%

11.22%

11.31%

11.33%

39.22%

13. 39%7.18%

27.24%

33.60%

33.96%

32. 53%32.70%

29.02%

23.71%

13 .38%

11.16%

9.29%

7.80%

7.37%

7.78%

8.11%

8.82%

As of end of
1st pe ri od

As of en d of
2n d perio d

As o f end o f
3rd period

9.63%
7.33%
12.98%
As of e nd of
4th peri od

13.46%

13.44% 17.05%

8.62%

8.23%

10.14%

8.62%

As o f end o f
5th perio d

As of end of
6th pe ri od

Other organizations

9.1 2%

18.44%
9.78%

5.3 2%

4.55%

4.47%

4.83%

4.61%

As of en d of
7th period

As of end of
8th p eriod

As of en d of
9th peri od

As o f end o f
10th p eriod

As of e nd of
11th period

Individuals, etc .

Trust banks

Top 10 Unitholders
Number of units
held (units)

Ownership

Japan Trustee Servic es Bank , Ltd.
(Trust account)

12,06914.13%The Senshu Ikeda Bank, Ltd.

4,150

4.86%

The Nomura Trust and Banking Co., Ltd.
(Investment accounts)

4,024

4.71%

Hanky u Corporation

3,500

4.10%

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

2,151

2.52%

Nomura Bank (Luxembourg) S.A.

2,139

2.50%

North Pacific Bank, Ltd.

2,071

2.43%

Shikoku Railway Company

1,768

2.07%

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

1,446

1.69%

Sumitomo Mitsui Banking Corporation

1,332

1.56%

Total investment

34,65040.57%

Number of outstanding units

85,400100%

2 2.67%26.32%

28.39%

Foreign organizations, etc.

Unitholder name25.30%

23.77%

12.69%

100%

25.95%

29.72%

22.27%

Foreign organizations, etc.

36.46%

3 2.07%23.46%

28.52%

11.86%

12.69%

9.0 1%

7.18%

8.72%

As of end of
13th perio d

As of en d of
1 4th p eriod

As of en d of
12 th p eriod

1 2.78%Financial institutions(excluding trust banks)＜Questionnaire to investors ＞
A postcard-style questionnaire is to be sent to investors on theregistrar at the end of the 14th fiscal period (May 31, 2012).
Calendars with themes such as Takarazuka Revue, Hanshin Tigers,
etc. or a pair of tickets for the Hep Five Ferris wheel will be offered
to 250 selected respondents.
Hankyu REIT will continue to value a management style that listens
to its investors.

39

5-3. Trends of distribution per unit
Distribution per unit forecast（JPY）
18,96220,00 017,36518,00 016,00 014,00 012,00 010,00 0Distribution per unit

13,579 13,723

14,955

13,572

14,99015,342

JPY12,324
14,31016,500 11,611
12,415 12,694 12,688 12,324
15,00 014,30014,10014,10 013,00012,80012,80012,50012,10012,00012,300 12,000 12,000

8,00 06,00 04,00 02,00 0
0
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th 11th
12th
13th
14th 15th
period period period 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 '11/11 '12/05 '12/11
Irregular period (303 days)(Compared with 14th fiscal period forecast)
Increase in lease operating income:

JPY 23 mn(Although operating revenues decreased by JPY 12 mn, profit increased as a result of a JPY 35 mn reduction inlease operating costs such as repair expenses.)40

5-4. Asset Scale and LTV (Loan to Value)

Total acquisi tion priceTotal appraisal val ue at the end of perio d
LTV at end of perio dInterest-beari ng debt ra tio at the end of period（％）(JPY bn)
Capital increase
70
180
57.9
56.1
55.6
55.9
56.0
55.9
by
publicoffering
160
60
55.2
140
46.1
45.6 46.0
50
120
100
49.4 46.9 46.2
31.0 30.0 30.7
28.8
45.4 45.5 45.2 45.5 4080
40.8 40.3
39.1
30
60
40
20
20
21.3
18.2 18.9
10
0 18.0
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th 13th
14th
period period 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 '11/ 11 '12/5

Number of
Properties

5

6

7

8

9

11

11 16 1515

15

15 15 15

LTV is generally stable despite a slight reduction in the rate of decline of appraisal values.
41

5-5. Features of Hankyu REIT
Two-thirds
Two-thirds ofof investment
investment allocatedallocated toto Umeda
Umeda oror
along
along Hankyu/Hanshin
Hankyu/Hanshin Lines
Lines

Primary
Primary emphasis
emphasis on
on highly
highly competitivecompetitive
retailretail properties
properties
Retailproperties

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

Retailzone

Officezone

Zones forother uses

Zones forother uses

2.5%
Along Hankyu/Hanshin Lines

23.5%
The ratios are calculated based on the acquisition price.
Silent partnership interests are not included.

Office
25.2%

Umeda
43.7%

In Osaka City
(excl. Umeda)

Kansairegion69.6%

Mixed-use
properties

Officezone
Retailuse zone
Zones forother uses

Others0.4%

Other areas
3.5%
Tokyo
26.9%

Officeproperties

Hotel
10.6%

Urban retailproperties
42.0%

Community-based retail properties

21.7%

Retail
74.4%

The ratios are calculated based on the acquisition price.
(For mixed-use zone properties, the amount is proportionate to the rent
income and common service fees for each zone.)
Silent partnership interests are not included.

42

5-6. “Umeda,” Hankyu REIT’s main area
“Umeda” has grown into the largest area of concentrated commercial activity
in Western Japan, and it still continues to develop
Aerial photograph taken from south-east side facing north-west
HERBISOSAKA

Hotel New
Hankyu Osaka

HERBIS
ENT
Hankyu Grand
Bldg.

Hankyu Terminal
Bldg.

Hankyu Corporation
Head Office Bldg.

ＮＵ chayamachi

Kitano Hankyu Bldg.
Kita-Hankyu
Bldg.

Chayamachi
Applause

Hanshin
Department
Store

JR Osaka sta.

GRAND FRONT OSAKA

Hankyu Umeda Sta./
Hankyu-sanbangai

Shin-Hankyu Bldg.

Umeda Hankyu Bldg.
(Hankyu Department
Store)(currently undergoingreconstruction work)

OS Bldg.
HEP Navio

HEP FIVE

HigashiHankyu
Bldg.

Umeda Center
Bldg.

■Hankyu REIT, Inc.’s properties ・ ■The Hankyu Hanshin Holdings Group’s main developments and properties■Hankyu REIT, Inc.’s properties ・ ■The Hankyu Hanshin Holdings Group’s main developments and properties43

5-7. Dew Hankyu Yamada and Properties 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
YamadaAerial photograph taken from south side facing north44

5-8. LaLaport KOSHIEN (site) and Properties 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)

Aerial photograph taken from south side facing north45

5-9. Takatsuki-Josai Shopping Center and Properties 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 Center

Aerial photograph taken from south side facing north46

5-10. Hankyu/Hanshin Lines and Properties Held
Properties held
outside the 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-Hanshin47

5-11. Trend of Large-scale Retail Properties 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 properties
properties between
betweenJanuary
January 20122012 andand 2015)
2015)

Equivalent
Equivalent toto 9.7%
9.7% ofof existing
existing
property
floor
area
property floor area

(Total(Total floor
floor area
area ofof large-scalelarge-scale retail
retailproperties
properties inin 33 main
main areas:
areas: 1,030,000
1,030,000 m²)
m²)

From Kobe direction

In
In thethe Umeda
Umeda area,
area, development
development
focusesonthenewfocuses on the new opening
opening ofof the
the
Grand
Front
Osaka.
Grand Front Osaka.

Shinsaibashi and Namba
Existing
320,000 m²
From Kobe direction

In
In thethe Umeda
Umeda area,
area, fresh
fresh demand
demand isisexpected
expected due
due toto thethe new
new supply
supply ofofofficebuildings,
hotelsandoffice buildings, hotels andresidential
residential buildings
buildings inin thethe area,
area, andand
also,
also, boosted
boosted attractivenessattractiveness andand“pull”“pull” areare expected
expected toto draw
draw
customers
fromwideareas.
customers from wide areas.

From Nara direction

New 30,000 m²
m²
Existing
210,000 m²

TennojiIn
In orderorder toto taptap into
into thethe increasing
increasing
demands
demands ofof customers
customers inin thethe
Umeda
Umeda area,
area, Hankyu
Hankyu REIT
REIT plans
plans totocollaborate
withtheHankyuGroupcollaborate with the Hankyu Grouptoto boost
boost thethe attractivenessattractiveness ofof itsits
retailretail properties
properties more
more effectively
effectively ononanan ongoingongoing basis.
basis.
**Created
Created byby Hankyu
Hankyu REIT
REIT Asset
Asset Management
Management frompublicly
releasedmaterial
by CB
RichardEllis K.K.
frompublicly
releasedmaterial
by CB
Richardandothersources.
48
Ellis K.K. and other sources.

5-12. Trend of Office Supply in Central Osaka
New 260,000 m²
m²

Umeda
Main directionof tenant flow

Existing
3,740,000 m²(Estimated by Hankyu REIT
Asset Management)

Floor
Floor area
area ofof new
new supply:
supply:540,000
540,000 m²
m²(Total(Total floor
floor area
area scheduledscheduled forfor completion
completion
between
July
2012
and
2015)
between July 2012 and 2015)

Equivalent
Equivalent toto 4.9%4.9% ofof existing
existingbuilding
floor
area
building floor area

(Floor(Floor area
area inin mainmain areas:11,100,000
areas:11,100,000 m²)
m²)
New 210,000 m²
m²

Nakanoshima

Yodoyabashi and Hommachi
Existing
3,420,000 m²

SupplySupply ofof high-spechigh-spec buildings
buildings(S(S class)class) inin strongstrong areas
areas ofof Osaka,
Osaka,
which
is
a
rare
occurrenceinwhich is a rare occurrence in recent
recentyears.
years.
Promotion
Promotion ofof rejuvenation
rejuvenation inin thetheOsakaofficemarketandOsaka office market andconcentration
concentration ofof citycity functions.
functions.

New 10,000 m²
m²

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), areare expected
expected to
to winwin outout
asbusinessareas.
as business areas.
New 70,000 m²
m²

Tennoji*Created by Hankyu REIT Asset Management frompublicly released materials.

49

5-13. Organization of Hankyu REIT Asset Management, Inc.
(As of July 13, 2012)

Corporate Data

General meeting ofshareholders
Trade nameHankyu REIT Asset Management, Inc.

Headquarters

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

EstablishedMarch 15, 2004

Paid-in capital

JPY 300 mn

Shareholder

Hankyu Corporation (100%)

Number of
employees

21

Auditors
Board of Directors

President &Representative Director

Internal Audit Department
Compliance Committee

Investment Management
Committee

Executive
officers

President &Representative Director

Yoshiaki Shiraki

Director

Toshinori Shoji

Director

Yasuki Fukui

Corporate Auditor (parttime)
Corporate Auditor (parttime)Compliance Department

Toru Ono
Ken Kitano

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,transportation and tourism

50

5-14. Compliance and Internal Audit Systems of Hankyu REIT Asset Management, Inc.
Systematically ensure multiple checking functions.
Focus on promoting a compliance-conscious corporate
culture.
Constituent members
Directors, Corporate Auditors

Implementation
Implementation

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

Board
Board ofof Directors
Directors

President
President && Representative
Representative Director
Director

Constituent members
Chairman: Compliance Officer
Committee members: President & Representative
Director, full-time Directors and outside experts
Observers: Corporate Auditors (do not participate
in resolutions)

Compliance System
・ Achieve comprehensive compliance by establishinga Compliance Department and a Compliance
Officer・ The Compliance Committee, including outside
experts, deliberates on conflicts of interest
transactions with interested parties
・ The Compliance Officer attends the Investment
Committee Meeting and checks compliance issues
・ Appointed a person to be in charge of efforts toprevent improper requests and the exclusion ofanti-social forces

Internal 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 theCompliance Officer and two outside experts.

Constituent members
Investment
Investment Management
Management Committee
Committee

Proposals
Proposals by
by Departments
Departments

Chairman: President & Representative Director
Vice chairman: Full-time director designated by thechairmanCommittee members: Full-time director (excluding
the Compliance Officer), respective department
managers (other than full-time directors or theCompliance Officer)

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 are in attendance together with theCompliance Officer.

・Implemented PDCA cycle by systematically
implementing the internal audit system every fiscal
year based on the annual internal auditing plan
・Utilize external consulting entity to secure
independence of internal audit and obtain a highly
effective internal audit
・Introduced semi-full-time Corporate Auditor systemand strengthened auditing functions(Independent system of the Hankyu Corporation andthe group companies. Recognized as part-time
Corporate Auditor under the Companies Act.)・Established the internal control system andstrengthened check and balance functions as aconsolidated subsidiary of Hankyu Hanshin
Holdings, Inc.

51

5-15. Company Structure of Hankyu REIT
( As of July 13, 2012)(Note) In preparation for the event that the number of Supervisory Directors is less than that stipulated in laws and regulations, Motofumi
Suzuki was elected as alternate Supervisory Director at the General Unitholders’ Meeting held on August 27, 2010.

52