Message

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 making the most of the planning and operation capabilities cultivated in the real estate business held by the sponsor group.

It is my pleasure to present our report on HHR's financial results for the 42nd fiscal period (December 1, 2025 to May 31, 2026).

In the Kansai Region, HHR's key investment area, the decline in office vacancy rates and the increase in office rents have continued, reflecting the shrinking supply of new office buildings due to higher construction costs, as well as the increasing demand for well-located office buildings as companies seek to strengthen their ability to recruit and retain employees through offering an attractive working environment. In addition, strong rental demand driven by factors including rising home prices continues to support increases in condominium rents.
In such an environment, HHR has been actively engaged in rent increase negotiations across the existing portfolio and has announced the acquisition of four assets, including PMO Umeda, a compact, high-quality, and mid-sized office building located in the heart of the Umeda area, and Nishinomiya Kitaguchi Primary One, a residential property located along a railway line operated by the sponsor. Going forward, we will concentrate our efforts on external and internal growth, financial strategy, and sustainability while paying close attention to rising interest costs and other changes in the external environment, with the aim of increasing distribution per unit and maximizing unitholder value.

Please visit our website for the 42nd fiscal period financial briefing video (Japanese only).
Hankyu Hanshin REIT, Inc. website

We look forward to your continued support and encouragement. Thank you.

July 2026