To all readers:

Hankyu REIT, Inc. announced its financial results for the 13th fiscal period.

The distribution per unit was 12,688 yen. Although it fell short of the amount of the 12th fiscal period by a tiny 6 yen, it did constitute a rise against the distribution per unit forecast announced in July last year and the amount of the 11th fiscal period (12,415 yen per unit).

Despite being the J-REIT 10th anniversary year, last year was characterized by negative factors, such as the Great East Japan Earthquake, the typhoon destruction, economic turmoil in Europe, the super strong yen, and massive flooding in Thailand. On top of such factors, a number of rival retail facilities opened in succession from March to May in Osaka’s Umeda area, which is Hankyu REIT’s dominant area. Consequently, due to both external and internal factors, we faced an extremely tough business environment.

Nevertheless, even in such an environment, we have managed to achieve stable results for three consecutive periods. We believe that we achieved this certain degree of success through effective operational management (customized operation based on characteristics in the zone), which strives to achieve optimized return from portfolio properties.

However, for the current 14th fiscal period already underway, we expect the trend of falling revenues and profits to continue, and we have forecast a distribution amount of 12,000 yen per unit. Therefore, a policy of portfolio expansion by acquisition of new properties is clearly a priority.

To address this situation moving forward, this year, we aim to maintain and improve distribution amounts by steadily proceeding step by step towards our goals and return to a path of new growth by acquiring excellent properties. I ask for your ongoing understanding and support of Hankyu REIT.