REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Yoshiaki Shiraki, Executive Director
Asset Management Company
Hankyu REIT Asset Management, Inc.
Yoshiaki Shiraki, President & Representative Director
Contact:
Hiroshi Yoshida
General Manager, IR and Public Relations Department
Email: hankyureit-ir@hankyu-rt.jp

Supplementary Material for Financial Results
and Timely Disclosure as of Today
January 25, 2018

As of January 25, 2018
“Notice Concerning Revision to Forecasts of Financial Results for the Fiscal Period Ending May 31, 2018 andForecasts of Financial Results for the Fiscal Period Ending November 30, 2018”“Hankyu REIT, Incorporated Financial Results for the 25th Fiscal Period From June 1, 2017 to November 30, 2017”

Summaries: 25th FP Financial Results & 26th & 27th FP Forecasts■ Financial results for 25th fiscal period・Despite the occurrence of payment of settlement money for the rent reduction action concerning Hotel Gracery Tamachi,
Hankyu REIT secured an increase in revenues and income from the 24th fiscal period actual results, as well as
exceeding the 25th fiscal period forecasted figures, by realizing 100% rent collection from OASIS Town Itami Konoike(site) since July 3, 2017 along with its full opening, decreasing repair expenses through partial change in repair plans,etc., and other factors.

■Financial forecasts for 26th and 27th fiscal periods
・Plan to issue new investment units and acquire new properties (METS OZONE and Vessel Inn Hakata Nakasu) in 26th
fiscal period (Note 1)・Distribution per unit is expected to continue to grow (26th FP forecast: JPY 2,950, 27th FP forecast: JPY 3,000)
・Both fiscal periods are expected to see an increase in revenues and income from the 25th fiscal period actual results
as the increase in lease income of Sphere Tower Tennozu (Note 2) and the increase in revenues from 100% rent
collection from OASIS Town Itami Konoike (site) through the whole period will offset the increase in repair expenses,etc., due to partial change in repair plans and other factors.

3,200■ Distribution per unit (results)■Distribution per unit (forecasts)

3,000

4.3%
Increase

2.5%
Increase(JPY)

5.9%
Increase(changeover the25th FP)(changeover the25th FP)(changeover the24th FP)

2,950

3,000

2,877

2,800

Includes tax andpublic dues on an ongoingbasis for new properties:Approx. JPY 30 mn/FP

2,717
2,6262,600(Note 3)

2,400
2,200
0
23rd period
Nov. 2016

24th period
May 2017

25th period
Nov. 2017

26th period
May 2018

27th period
Nov. 20181

Summaries for 25th Fiscal Period Financial Results● Comparison with 24th fiscal period results(Unit: millions of yen)

Item

Results for 24th FP (A)(Dec. 1, 2016 - May 31, 2017)

Results for 25th FP (B)(Jun. 1 - Nov. 30, 2017)182

Operation period (days)(Main factors for increase/decrease)

Change(B) - (A)

183

(1)
Increase in income from lease (Itami):

1

JPY +100 mn(100% rent collection from July 3, 2017 (2 months earlier than initial assumption))

Operating revenues

4,740

4,902

162

(1)

Increase in air-conditioning usage fee income (Tennozu): JPY +13 mn

Operating income

1,979

2,150170(2)

Increase in utilities expense income:

JPY +47 mn

Ordinary income

1,625

1,793

168

(3)

(2)
Decrease in repair expenses:
Increase in utilities expenses:

JPY +60 mn
JPY -54 mn(3)Payment of settlement money (Tamachi) :JPY -73 mn

1,623

1,718

95

Total number of investment
units issued and outstanding

597,500

597,500―

Distribution per unit (JPY)

2,717

2,877

160

FFO per unit (JPY)

4,133

4,285

152

Net income● Comparison with 25th fiscal period forecasts(Main factors for increase/decrease)(Unit: millions of yen)

Results for 25th FP (B)(Jun. 1 - Nov. 30, 2017)

Operation period (days)

183

183

―

Operating revenues

4,873

4,902

29

Operating income

2,052

2,150

97

Ordinary income

1,674

1,793

118

Net income

1,6731,718

45

Total number of investment
units issued and outstanding

597,500

597,500―

Distribution per unit (JPY)

2,800

2,877

77

FFO per unit (JPY)

4,212

4,28572

Net assets per unit

JPY 122,809

Net assets per unit
after reflecting unrealized gain/loss

JPY 157,053(1)
Increase in income from lease:
Increase in air-conditioning usage fee income (Tennozu):

Change(B) - (A)Forecasts for 25th FP (A)(As of July 14, 2017)

Item

(1)
(2)

(2)
Decrease in repair expenses (Yamada, etc.):

JPY +5 mn
JPY +9 mn

JPY +54 mn(Partial change in repair plans to make up for the payment of settlement money (Tamachi))(3)

Decrease in utilities expenses:

JPY +16 mn(3)
Decrease in interest expenses:

JPY +6 mn(4)Payment of settlement money (Tamachi):

JPY -73 mn(4)Results for 25th fiscal period (ended November 2017)
JPY 2,877
Distribution per unit2

Summaries for 26th and 27th Fiscal Period Financial Forecasts(Unit: millions of yen)

Item

Results for 25th FP (1)(Jun. 1 - Nov. 30, 2017)

Forecasts for 26th FP (2)(Dec. 1, 2017 - May 31, 2018)

Change(2) - (1)Forecasts for 27th FP (3)(Jun. 1 - Nov. 30, 2018)

Change(3) - (2)Operation period (days)

183

182

-1183

1

Operating revenues

4,902

5,176

274

5,402

226

Operating income

2,150

2,269

119

2,269

-0

Ordinary income

1,793

1,885

91

1,917

31

Net income

1,718

1,883

164

1,915

31

597,500

638,500

41,000638,500―

Distribution per unit (JPY)

2,877

2,950

73

3,00050

FFO per unit (JPY)

4,285

4,328

424,439110

Total number of investment units
issued and outstanding[Forecasts for 26th Fiscal Period] Main factors for increase/decrease from 25th fiscal period results
・Increase in lease operating income from acquisition of new properties
JPY +87 mn (OZONE +76, Hakata +10)

・Increase in lease*
JPY +110 mn(Tennozu +98, Itami +21 (lease income: Full-period 100% rent collection), etc.)
・Increase in repair expenses*
JPY -72 mn ( Yamada -66, HEP -21, etc.)(Partial change in repair plans for 25th FP to make up for the payment of settlementmoney (Tamachi))・Occurrence of expenses related to issuance of investment units
JPY -43 mn・ Decrease in expenses due to absence of payment of settlement money (Tamachi)
JPY +73 mn*Calculation includes existing properties only

Forecast for 26th Fiscal Period (ending May 2018)
Distribution per unit

JPY 2,950[Forecast for 27th Fiscal Period] Main factors for increase/decrease from 26th fiscal period forecasts• Increase in lease operating income from acquisition of new properties
JPY +90 mn (OZONE +59, Hakata +30)
• Difference between income and expenditure of utilities expenses*
JPY -20 mn• Increase in repair expenses*
JPY -39 mn (Takatsuki -28, etc.)• Increase in depreciation*
JPY -16 mn (NISHINOMIYA, etc.)• Increase in asset management remuneration
JPY -11 mn• Increase in interest expenses
JPY -11 mn• Decrease in expenses due to absence of payment of expenses related to issuanceof investment units
JPY +43 mn*Calculation includes existing properties only

Forecast for 27th Fiscal Period (ending November 2018)
Distribution per unit
JPY 3,000[Main preconditions (Note 4)]• There will be no change in portfolio properties from the 25 properties presently held or planned to be acquired.
• There will be no additional issuance of investment units to the 638,500 units (the sum of the total number of outstanding investment units at present and the 41,000 units(max.) of new investment units to be issued as resolved on January 25, 2018) in total number of outstanding investment units through to the end of the 27th fiscal period.

3Note and Disclaimer<Note>(Note 1) Please refer respectively to “Notice Concerning the Issuance of New Investment Units and Secondary Offering of Investment Units”
announced today for the issuance of new investment units, and “Notice Concerning Acquisition of Domestic Real Estate Trust BeneficiaryInterests” announced on November 28, 2017 and “Notice Concerning Acquisition of Domestic Real Estate” announced today for informationon the acquisition of new properties.
(Note 2) Hankyu REIT has concluded building lease contracts with two new tenants at Sphere Tower Tennozu since October 2017 (one moved in inNovember 2017.). As the respective leasing dates are November 1, 2017 and February 1, 2018, the occupancy rate of the property stood at
93.0% in November 2017 and is scheduled to improve to 94.8% in February 2018.
(Note 3) Calculated based on the figures stated in appraisal reports for the new properties.
(Note 4) Please refer to “Notice Concerning Revision to the Forecast of Financial Results for the Fiscal Period Ending May 31, 2018 and Forecasts ofFinancial Results for the Fiscal Period Ending November 30, 2018” and “Hankyu REIT, Incorporated Financial Results for the 25th Fiscal
Period From June 1, 2017 to November 30, 2017” announced today for other preconditions.

<Disclaimer>••••••••

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.
Since investment securities of Hankyu REIT are closed-end type which do not make redemption of units demanded by unitholders, the only means
for unitholders to convert the investment securities is to sell to third parties. Market value of the investment securities is affected by supply/demandat the exchange and also fluctuates affected by interest rate environment, economic situations, real estate market trends and various other factors
surrounding the market. Therefore, the unitholders may not be able to sell the investment securities at the price of acquisition incurring loss.
This material is prepared solely for the purpose of providing information on financial results of Hankyu REIT, and not intended as a solicitation toacquire investment securities of Hankyu REIT nor is it intended as a solicitation to sign contracts relating to transactions of other financialinstruments. When undertaking any investment, please do so based on your own judgment and responsibility as an investor after referring to theprospectus for notification of the issuance of new investment units and secondary offering of investment units (including amendments thereto).
Upon purchasing investment securities of Hankyu REIT, please consult with a securities company that is a “Type I Financial Instruments BusinessOperator.”
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.
"(Site)" is added after the name of properties for which Hankyu REIT owns only its land.