<Provisional translation>
January 25, 2018

For Immediate Release
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

Notice Concerning Revision to the Forecasts of Financial Results for the Fiscal Period Ending May 31,
2018 and Forecasts of Financial Results for the Fiscal Period Ending November 30, 2018Hankyu REIT, Inc. (hereafter “Hankyu REIT”) hereby announces a revision to its forecasts of financial results forthe fiscal period ending May 2018 (26th fiscal period: December 1, 2017 to May 31, 2018), which was disclosed
on July 14, 2017, in the Financial Results for the period ended May 2017.
Hankyu REIT also announces its forecasts of financial results for the fiscal period ending November 2018 (27thfiscal period: June 1, 2018 to November 30, 2018).
Details
1. Revision to the Forecasts of Financial Results for the Fiscal Period Ending May 2018 (26th fiscal period:
December 1, 2017 to May 31, 2018)

Prior forecast (A)Revised forecast(B)Change (B - A)
Rate of change(B - A) / A(Reference)Previous fiscal
period’s actualresults(Fiscal PeriodEnded November2017)

Distribution per unit Distribution in(not includingexcess ofNet income
distributions inearnings per
excess of earnings)
unit
1,732
2,900 yen
0 yenmillion yen
1,883
2,950 yen
0 yenmillion yen
150
50 yen0 yenmillion yen

Operatingrevenues

OperatingincomeOrdinary
income4,956
million yen
5,176
million yen
220
million yen

2,104
million yen
2,269
million yen
165
million yen

1,734
million yen
1,885
million yen
150
million yen

4.4%

7.9%

8.7%

8.7%

1.7%

-4,902
million yen

2,150
million yen

1,793
million yen

1,718
million yen

2,877 yen

0 yen

Note 1: Total number of investment units issued and outstanding at the end of the 26th fiscal period: 638,500 units (planned)
Note 2: Figures less than a unit has been rounded down. Percentage figures are rounded to one decimal place. The same
applies hereafter.

Disclaimer: This document is a press release to make a public announcement of the revision to the forecasts of financial results for the fiscal period ending
May 2018 and forecasts of financial results for the fiscal period ending November 2018, and has not been prepared as a solicitation forinvestment. Hankyu REIT advises investors to ensure that they refer to the prospectus for notification of the issuance of new investment units
and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any, before undertaking investments andinvestments be made at their own discretion and responsibility.

12. Forecasts of Financial Results for the Fiscal Period Ending November 2018 (27th fiscal period: June 1, 2018
to November 30, 2018)

Fiscal period
ending November
2018

Ordinary
incomeDistribution perunit (notDistribution inincluding
Net income
excess ofdistributions inearnings per unit
excess ofearnings)

Operatingrevenues

Operatingincome

5,402

2,269

1,917

1,915

million yen

million yen

million yen

million yen

3,000 yen

0 yen

Note: Total number of investment units issued and outstanding at the end of the 27th fiscal period: 638,500 units (planned)

3.

Reason for Revision and Announcement
There were changes in the assumptions for forecasts of financial results for the fiscal period ending May
2018 (26th fiscal period: December 1, 2017 to May 31, 2018), which was disclosed on July 14, 2017, with
the incorporation of assets to be acquired announced in “Notice Concerning Acquisition of Domestic Real
Estate Trust Beneficiary Interests” dated November 28, 2017 and “Notice Concerning Acquisition ofDomestic Real Estate” dated today and issuance of new investment units announced in “Notice Concerning
Issuance of New Investment Units and Secondary Offering of Investment Units” dated today. Accordingly,
the forecasts of financial results were revised at this point in time.
Furthermore, forecasts of financial results for the fiscal period ending November 2018 (27th fiscal period:June 1, 2018 to November 30, 2018) are announced together with the revision.
Note: The above numerical forecasts are forecasts at this point in time based on assumptions indicated in theattachment. Actual operating revenues, operating income, ordinary income, net income, distribution per unit (notincluding distribution in excess of earnings) and distribution in excess of earnings per unit may change due tofuture acquisitions or sale of real estate, fluctuations in the real estate market, change in the number of new
investment units that will actually be issued, and other changes in conditions surrounding Hankyu REIT.
Furthermore, the forecasts do not guarantee any cash distribution amounts.
If a certain difference is expected from the forecasts above, Hankyu REIT may revise it.
••The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club), Osaka Securities
Exchange, and the Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction trade
newspaper of the Ministry of Land, Infrastructure, Transport and Tourism.
Hankyu REIT website: http://www.hankyu-reit.jp/eng/

Disclaimer: This document is a press release to make a public announcement of the revision to the forecasts of financial results for the fiscal period ending
May 2018 and forecasts of financial results for the fiscal period ending November 2018, and has not been prepared as a solicitation forinvestment. Hankyu REIT advises investors to ensure that they refer to the prospectus for notification of the issuance of new investment units
and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any, before undertaking investments andinvestments be made at their own discretion and responsibility.

2

[Attachment]
Assumptions for Forecasts of Financial Results for the Fiscal Period ending May 2018 (26th Fiscal Period:December 1, 2017 to May 31, 2018) and the Fiscal Period ending November 2018 (27th Fiscal Period: June 1,
2018 to November 30, 2018)
Item
Accounting period

Assumption
・ 26th Fiscal Period: December 1, 2017 to May 31, 2018
Operating period: 182 days
・ 27th Fiscal Period: June 1, 2018 to November 30, 2018
Operating period: 183 days

Assets under・ It is assumed that the two assets planned to be acquired (Vessel Inn Hakata

management

Nakasu announced in the press release “Notice Concerning Acquisition ofDomestic Real Estate Trust Beneficiary Interests” dated November 28, 2017 andMETS OZONE announced in the press release “Notice Concerning Acquisition ofDomestic Real Estate” dated today) will be acquired on the planned dates ofacquisition in addition to the 23 existing properties owned as of today.
Additionally, it is assumed that there will be no changes other than these to theassets under management (acquisition of new properties, sales of existing
properties, etc.) until the end of the 27th fiscal period (November 30, 2018).
・ However, these assumptions may change if there are any changes in the assets
under management.

Operating revenues

・ Calculated based on lease agreements currently in effect for the existing 23
properties and based on lease agreements scheduled to take effect on theplanned acquisition date for the two assets planned to be acquired, taking into
consideration portfolio property competitiveness, market conditions and otherfactors. Also, with regard to other factors that might change such as variable
revenue or contract cancellation notices, we have made calculations taking into
account a reasonable margin for fluctuation in the reported figures based on pastfinancial results and the conditions of individual tenants.
・ It is assumed that there are no rents in arrears or delinquency of tenants.

Disclaimer: This document is a press release to make a public announcement of the revision to the forecasts of financial results for the fiscal period ending
May 2018 and forecasts of financial results for the fiscal period ending November 2018, and has not been prepared as a solicitation forinvestment. Hankyu REIT advises investors to ensure that they refer to the prospectus for notification of the issuance of new investment units
and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any, before undertaking investments andinvestments be made at their own discretion and responsibility.

3Operating expenses

・ Expenses of real estate rent, that are principal operating expenses, arecalculated based on past financial results (excluding depreciation costs of theexisting 23 properties) reflecting factors that might affect expenses.
Also, expenses other than the depreciation costs of the two assets planned to beacquired are calculated by reflecting factors that might affect expenses and taking
into consideration the information provided by the current owners and leaseagreements scheduled to take effect on the planned acquisition dates of the two
assets planned to be acquired.
・ Public charges such as property tax, city planning tax, and other taxes areestimated to be 556 million yen for both the 26th and the 27th fiscal periods. In
general, public charges such as property tax, city planning tax, and other taxes
applicable in the fiscal year of acquisition are calculated on a pro rata basis as ofthe date of acquisition and shared between the buyer and seller. However, they
will not be recorded as expenses upon acquisition as Hankyu REIT capitalizes
the amount of these taxes into the acquisition cost. In addition, as for the twoassets planned to be acquired, the total amount of public charges such as
property tax, city planning tax, and other taxes capitalized into the acquisition costis estimated to be 63 million yen.
・ For repairs and maintenance expenses of buildings, an estimate of the amountrequired for each fiscal period is allocated to expenses.
・ The actual repairs and maintenance expenses may, however, differ significantly
from the amount estimated, as a substantial amount of unexpected contingent
repairs and maintenance expenses may be required, and these expenses differ
significantly between fiscal years, and are not incurred on a regular basis.
・ Outsourcing fees for property/facility management are estimated to be 365 million
yen for the 26th fiscal period and 378 million yen for the 27th fiscal period.
・ Depreciation costs, including incidental expenses and capital expenditures
expected in each fiscal period, are calculated using the straight line method andare estimated to be 879 million yen for the 26th fiscal period and 918 million yen
for the 27th fiscal period.
・ Operating expenses other than expenses of real estate rent (asset management
fees, asset custodian fees, and administrative service fees) are estimated to be
481 million yen for the 26th fiscal period and 514 million yen for the 27th fiscal
period.

Non-operating
expenses・ Temporary expenses for the issuance of new investment units through public
offering resolved at the Hankyu REIT’s Executive Meeting held today are
estimated to be 43 million yen for the 26th fiscal period.
・ Interest expenses and finance related costs are estimated to be 340 million yen
for the 26th fiscal period and 351 million yen for the 27th fiscal period.

Interest-bearing debt

・ Hankyu REIT has the balance of interest-bearing debt of 65,900 million yen as ofthe end of the 25th fiscal period, out of which 61,900 million is debt financing and
4,000 million yen is investment corporation bonds.
・ It is assumed that there will be no increase or decrease in the balance ofinterest-bearing debt of 65,900 million yen during the 26th and 27th fiscal periods.
・ It is assumed that long-term borrowings of 2,000 million yen and short-term

Disclaimer: This document is a press release to make a public announcement of the revision to the forecasts of financial results for the fiscal period ending
May 2018 and forecasts of financial results for the fiscal period ending November 2018, and has not been prepared as a solicitation forinvestment. Hankyu REIT advises investors to ensure that they refer to the prospectus for notification of the issuance of new investment units
and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any, before undertaking investments andinvestments be made at their own discretion and responsibility.

4

borrowings of 4,700 million yen due in the 26th fiscal period will be fullyrefinanced.
・ It is assumed that long-term borrowings of 1,000 million yen and short-termborrowings of 2,500 million yen due in the 27th fiscal period will be fullyrefinanced.
・ It is assumed that outstanding balance of investment corporation bonds will be
4,000 million yen and there is no increase or decrease during the 26th and 27thfiscal periods. Moreover, there is no investment corporation bond due forredemption during each fiscal period.
Investment units

・ It is assumed that in addition to the 597,500 investment units issued andoutstanding as of today, there is issuance of new investment units through publicoffering (39,000 units) and issuance of units by third-party allotment throughover-allotment (2,000 units) resolved at the Hankyu REIT’s Executive Meeting
held today, amounting to 638,500 units. It is assumed the additional issuance ofinvestment units by third-party allotment, 2,000 units (max.), will all be issued. Fordetails of the above issuance of new investment units, please refer to the press
release “Notice Concerning The Issuance of New Investment Units andSecondary Offering of Investment Units” dated today.
・ It is assumed that there will be no issuance of new investment units other thanthat until the end of the 27th fiscal period (November 30, 2018).

Distribution per unit
(not including
distributions inexcess of earnings)

・ Distribution per unit is calculated based on the cash distribution policy set in theHankyu REIT Articles of Incorporation.
・ Distribution per unit may change due to change in rental income resulting from achange in assets under management, a change in tenants, or other factors
including unexpected repairs.

Distribution in・ There is no plan to conduct distribution in excess of earnings per unit.

excess of earnings
per unit
Other・ It is assumed that there will be no revisions in the laws and regulations, taxation
system, accounting standards, exchange listing rules, or The Investment Trusts
Association’s regulations that will influence the above financial forecasts.
・ It is assumed that there are no significant unforeseen changes in general
economic trends or the real estate market, etc.

Disclaimer: This document is a press release to make a public announcement of the revision to the forecasts of financial results for the fiscal period ending
May 2018 and forecasts of financial results for the fiscal period ending November 2018, and has not been prepared as a solicitation forinvestment. Hankyu REIT advises investors to ensure that they refer to the prospectus for notification of the issuance of new investment units
and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any, before undertaking investments andinvestments be made at their own discretion and responsibility.

5