Top Message
Hankyu Hanshin REIT is implementing measures toward continued growth and enhancement of distributions.
Toyoshige Okazaki
Executive Director,
Hankyu Hanshin REIT, Inc.
President and Representative Director,
Hankyu Hanshin REIT Asset Management, Inc.
Welcome to our website!
Firstly, I would like to extend my heartfelt gratitude for your continued support of our business.
Starting from the railway business of Hankyu Corporation and Hanshin Electric Railway Co., Ltd., the Hankyu Hanshin Holdings, Inc. Group (hereafter, the “sponsor group”), as the sponsor of Hankyu Hanshin REIT, Inc. (hereafter, “HHR”), has provided our customers with a wide range of services in such businesses as real estate and entertainment.
In the real estate business, we are engaged in the development and operation of offices and retail facilities, centered on the Osaka Umeda area, which represents the core area where we develop and own a lot of facilities along the railways.
HHR will continue its initiatives for sustainable growth by leveraging the planning and operation capabilities in the real estate business held by the sponsor group.
In the Kansai Region, one of HHR’s key investment focus areas, Japanese and foreign tourist demand and going-out demand have shown a robust growth trend on the back of the openings of “GRAND GREEN OSAKA South Building” and “EXPO 2025 Osaka, Kansai, Japan,” etc.
Furthermore, the social and economic environment surrounding HHR has been changing significantly, as observed in the price increases of goods and services due to inflation, in addition to the declines of office vacancy rates and the increase in rent unit prices reflecting the rising need for location improvement for the purpose of active recruitment and improvement of the employment environment.
In such environment, the operations of HHR have been steadily progressing.
In the 40th fiscal period (December 1, 2024 to May 31, 2025), Hankyu Hanshin REIT Asset Management, Inc., as an asset management company, implemented a strategic asset replacement as its original initiatives by selling “Shiodome East Side Building (equivalent of 80% quasi co-ownership),” and acquiring “AEON MALL INAGAWA” and “Friend Mart Ibaraki Hirata Store (site).” As a result, the profitability of the entire portfolio has been improved. In addition, the proceeds from the sale of the remaining 20% quasi co-ownership of “Shiodome East Side Building” on June 30, 2025 will be applied to our new initiatives that will contribute to the further growth of HHR.
With respect to the operation of the existing properties, all of our refurbishment plans were completed with the last one tenant having opened in April 2025 in the tenant area of the restaurants rearranged in November 2024 under the name of “Umeda Shibachika” on the 1st basement floor, and with a change of type of business in the tenant area on the 1st floor of “Kitano Hankyu Building.”
As a result, the distribution per unit for the 40th fiscal period ended May 2025 was 3,319 yen, a 1.2% increase from the revised forecast (3,280 yen) announced on March 19, 2025.
The distributions per unit for the 41st fiscal period ending November 2025 and the 42nd fiscal period ending May 2026 are expected to be 3,300 yen and 3,200 yen, respectively.
Going forward, we will concentrate our efforts on realizing external and internal growth, financial strategy and sustainability, pursuing an increase in distribution per unit and maximization of unitholder value.
Please visit our website for the 40th fiscal period financial briefing video (Japanese only).
I look forward to your continued support and encouragement. Thank you.
July 2025