Hankyu Hanshin REIT, Inc.


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Hankyu Hanshin REIT is implementing measures toward continued growth and enhancement of distributions.

Yoshiaki Shiraki
Executive Director,
Hankyu Hanshin REIT, Inc.

President and Representative Director,
Hankyu Hanshin REIT Asset Management, Inc.

Welcome to our website!

Amid the coronavirus pandemic (COVID-19), I would like to take this opportunity to offer my sincere sympathy to those among our unitholders who are facing inconvenience in any form.

On July 16, 2020, we announced our financial results for the 30th fiscal period (ended May 2020). The actual distribution per unit was 3,039 yen, 4.1% short of our forecast of 3,170 yen which had been disclosed in March 2020.
This was mainly attributable to partial reductions and exemptions of rent which we implemented considering social requests and the significant impacts on the sales of the tenants of our buildings mainly arising from temporary closure and suspension of business at commercial facilities (including hotels) after the Japanese government declared a state of emergency.

Going forward, while there is a possibility that a second and third wave of infection could hit, the spread of coronavirus infections is expected to settle down as the development of therapeutic agents and vaccines progresses.

As of today, we find it difficult to precisely estimate our future performance, but in calculating the forecast for the distribution to be paid out for the next fiscal period and thereafter, we took into consideration to a certain degree (1) a decrease in rent income arising from temporary closure and suspension of business, (2) vacancy periods due to withdrawal of tenants, and (3) a decline in the rent level arising from the decrease in sales at tenants as new life styles disseminate.
We announced the forecast of distributions per unit for the 31st fiscal period (ending November 2020) at 2,920 yen and the 32nd fiscal period (ending May 2021) at 2,940 yen, respectively.
Notice Concerning Revision to the Forecasts of Financial Results and Distribution for the Fiscal Period Ending November 30, 2020 and Forecasts of Financial Results and Distribution for the Fiscal Period Ending May 31, 2021

Meanwhile, the portfolio occupancy rate was maintained at 99.8% as of May 31, 2020. Furthermore, the community-based retail facilities and office-use facilities accounting for approximately 70% of all assets (based on acquisition prices) have demonstrated robust performance, continuing to generate revenue to support distributions.
We have been steadily implementing settlements with respect to the asset replacement which we announced on March 18, 2020.
Our new assets consisting of SHIBAURA RENASITE TOWER (equivalent of 10% co-ownership), nanohana Ebisubashi (site) and MANDAI Shimoshinjo Store have been added to our property portfolio, contributing to improving the quality of the portfolio.

Going forward, we will also continue to stand firm on our basic policy of taking into account the balance of portfolio composition while upholding the basic policy of focusing on the Kansai Region and commercial facilities.
While closely watching the social situation and economic conditions, we are firmly determined to overcome the COVID-19 calamity and meet our responsibilities by maintaining relationships with our tenants and continuing effective fund raising.
Thank you for your continued support.

July 2020