As for management of portfolio properties, Hankyu REIT, Inc. attempts to maintain and improve lease operating income by seeking to optimize operations according to the characteristics of the use of the units. Specifically, Hankyu REIT shall consider not only the building as a whole but also forms of use of each floor and zone, and incorporate the perspectives of not only tenants but also end-user consumers.

Hankyu REIT shall frequently communicate with individual tenants through the property management company to enable customized management that reflects tenant needs (including consumer trends in retail-use properties) for improved tenant satisfaction.

By streamlining operation management and reviewing the unit prices of management cost from time to time, Hankyu REIT shall attempt to optimize management cost.

If Hankyu REIT has determined that the use of the operation capability of the Hankyu Hanshin Holdings Group in operating individual portfolio properties is effective and appropriate, Hankyu REIT may select a property management company from within the Group.