To All Readers:
Hankyu REIT strives to eliminate risks in addition to the maintenance and increase of distributions.
Hankyu REIT reached a settlement with Fujita Kanko Inc., the plaintiff, on September 13, concerning a lawsuit over rent reduction for Hotel Gracery Tamachi.
Although it was regretful that our claim was not attained, the details of the settlement are favorable when compared to the median value of the claims from both parties. Moreover, there were concerns that further lengthening of the trial would increase risk as nearly three years had elapsed since the plaintiff filed the suit.
Avoiding a significant impact on revenue and expenditure by exercising operational ingenuity is possible in coming to an appropriate settlement at this point in time.
Temporary expenditure (payment of settlement money) will accrue in conjunction with the settlement. We were able to review each expenditure item and confirm that revenue and expenditure are generally well balanced.
Accordingly, there are no changes to the forecasted distribution of 2,800 yen for the 25th fiscal period (fiscal period ending November 2017) and 2,900 yen for the 26th fiscal period (fiscal period ending May 2018).
As mentioned earlier, Hankyu REIT recognizes the “maintenance and increase of distributions” as its vital mission.
We look forward to your continued support and patronage.